Why Japanese Firms Choose to Certify: A Study of Managerial Responses to Environmental Issues

This paper examines empirically the determinants that led large Japanese manufacturers Ž . Ž . to 1 incorporate environmental goals in their decisions, 2 obtain environmental certificaŽ . Ž . tion ISO 14001 , and 3 become early adopters of environmental certification. We estimate Ž . Ž . two sets of models: 1 models based on a profit maximization assumption and 2 models which incorporate utility maximization arguments, recognizing that managers’ values, attitudes, and beliefs may also influence firms’ decisions. The empirical analysis suggests that while the costs and benefits of voluntary actions to enhance or protect the environment and the capacity to act are significant determinants of voluntary environmental commitment, so are the environmental values, beliefs, and attitudes of managers. 2000 Academic Press