What Drives a Firm to Implement Environmental Sustainability Practices?

This literature review investigates the motivations that leads firms to implement environmental sustainability practices (EMPs). The research focuses on understanding how business strategy emphasizes sustainable firms and successfully managing their responsibility to employees, the natural environment, and shareholders to protect natural resources. The review answered questions in regard to the motivations to adopt EMPs, differences in proactive and reactive approaches, and environmental sustainability from an industry and country perspective. In addition, the business case demonstrates the cost and the benefits of environmental sustainability practices. The results stem from the motivations to adopt EMPs included external (consumers, competitors, regulators) and internal (employees, managers, executives) forces. Proactive approaches help to reduce firms' impact on the environment, whereas reactive approaches are only implemented when required. Industries' adoption can vary depending on consumer pressure, buy 'dirtier' industries may also choose to adopt EMPs to harm operations processes on the environment. Country adoption of EMPs depends on government policies, industry practices, technological innovation, and social responsibilities. European countries are ahead in adopting, whereas other countries, such as China, adopt more slowly. Future research should focus on questions such as "Are countries with laws and regulations supporting the adoption of sustainability supporting the growth of firms?" and "Are firms in dirtier companies/industries more proactive in adopting EMPs because they are concerned about a poor environmental reputation?"