Business Ethics: A Eur Rev. 2019;00:1–13. wileyonlinelibrary.com/journal/beer
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1 © 2019 John Wiley & Sons Ltd
1 | INTRODUCTION
The growing environmental awareness of citizens, companies, nations,
and society in general to preserve the natural environment since the
last quarter of the 20th century, together with the impetus of global
events, such as the 1992 Rio de Janeiro Earth Summit and the increas‐
ing interest of management and strategy scholars on the impact of
organisations on the natural environment, has led to the emergence of
a body of management literature focusing on the relationship between
the firm and the natural environment (Aragón‐Correa & Sharma, 2003;
Christmann, 2000; Hart, 1995; Klassen & McLaughlin, 1996; Porter &
Van der Linde, 1995; Shrivastava, 1995). This phenomenon occurred
in parallel with the rise of corporate social responsibility issues as well
as growing concern about a firm's public relations and image (Clark,
2000; Clarke & Gibson‐Sweet, 1999), thus signalling the relevance of
a firm's strategy and business activities in relation to the environment
(Warren, 1999) and its public judgement by external stakeholders,
where the firm's reputation, image, and legitimacy are the key organi‐
sational factors. Nevertheless, as Kumar (2018) claims, the mechanism
connecting firm environmental strategies to reputational outputs is
largely understudied.
From an academic perspective, despite the recent and intense
development of this growing body of literature, and in particular, the
recognition of the essential role of a firm's stakeholders and manag‐
ers' actions in environmental management (EM) decisions (Delmas
& Toffel, 2008, Eesley & Lenox, 2006; González‐Benito & González‐
Benito, 2010; Haddock‐Fraser & Tourelle, 2010; Montiel, Husted, &
Christmann, 2012, Onkila, 2011; Sharma & Henriques, 2005), con‐
tributions in the EM literature to provide solid theoretical content to
the external projection of firms' environmental activities are scarce.
In this sense, previous works use several terms to reflect the external
projection of the firm. Among them, the concept of “corporate envi‐
ronmental reputation (CER)” comprehensively integrates stakeholder
perceptions of firm behaviour in relation to the natural environment.
Nevertheless, as we will show below, this construct, sometimes used
interchangeably with green corporate image (GCI) or corporate en‐
vironmental legitimacy (CEL) (Chun, 2005; Czinkota, Kaufmann, &
Basile, 2014), suffers from a lack of clarity in its conceptualisation,
Received: 6 April 2018
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Revised: 11 June 2019
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Accepted: 17 October 2019
DOI: 10.1111/beer.12250
ORIGINAL ARTICLE
Corporate environmental reputation: Exploring its definitional
landscape
Gregorio Martín‐de Castro
1
| Javier Amores‐Salvadó
1
| José E. Navas‐López
1
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Remy M. Balarezo‐Núñez
2
1
Management and Marketing
Department, Complutense University of
Madrid, Madrid, Spain
2
Business Policy Department, University of
Piura, Miraflores, Peru
Correspondence
Gregorio Martín‐de Castro and Javier
Amores‐Salvadó, Management and
Marketing Department, Complutense
University of Madrid, Campus Somosaguas,
sn, 28223 Pozuelo de Alarcón, Madrid,
Spain.
Emails: gmartinc@ucm.es; jamores@ccee.
ucm.es
Funding information
Banco Santander‐UCM, Grant/Award
Number: Project PR26/16‐15B‐1;
Spanish Ministry of Economy and
Competitiveness, Grant/Award Number:
Project ECO2012‐38190 and Project
ECO2015‐65251‐ P
Abstract
Despite its growing strategic importance, the concept of Corporate Environmental
Reputation (CER) still lacks a specific definition and content delimitation in the litera‐
ture. This fact, together with its difficult differentiation from other similar constructs,
hides the key role of this construct in the connection between management and envi‐
ronmental studies and in the development of corporate environmental management
strategies. To address this issue, in this research, we develop a literature review on
CER conceptualisation, operationalisation and measurement, and analyse its main ef‐
fects on firm competitiveness and performance drawing on the Institutional Theory
and the resource‐based view. As a result, we propose a CER definition, highlighting
its main characteristics and drivers and delimitating it in relation to closely related
concepts such as green corporate image and corporate environmental legitimacy.