The Influence Of Green Policies On Organizational Behavior And Performance

Corporate Social Responsibility and Green Practices

With the continuous concern with regards to environmental challenges, global warming and increased levels of pollution, it deemed necessary for multinational cooperations (MNC) to enhance there business operations and attempt to “green” their activities. This is due to the fact MNC’s are usually the large in size, and the impact they have on the society (Mousiolis, Zardis, Karaminis and Rontongianni, 2015). Moreover, it was evident that the there are a lot of negative impacts of MNC’s on emerging economies due to a number of reasons. For instance, with loose environmental policies emerging economies, MNC’s can find it very easy to expand their operations without consideration of the effects that this might have on the resources that they might exploit or the pollution that might result. Another reason for MNC’s to adhere to greening activities is to decrease costs and increase returns on investment. Moreover, with the internet and increased accessibility to the media, reputations of firms can easily be affected by their actions. With all of this in mind, greening operations and environmental considerations are now a main piece of the puzzle to strategic business plans (Kolk, Kourula, and Pisani, n.d)

 The attempts to green operations are usually categorized under the Corporate Social Responsibility of an entity, which is a firm’s strategy to mitigate the impacts of its activities on the surrounding environment and community (reference). There are various dimensions through which an MNC can affect the surroundings, consequentially, efforts to mitigate risks are usually directed towards for main areas: workplace, community, environment, and marketplace. These efforts can take different forms and can be applied at different degrees depending on different factors. The participants in all of these dimensions are called “stakeholders”, as they are either directly on indirectly affected by the activities of the MNC. On the other hand, stakeholders can also ffect the activities of the MNC through either limiting the access to resources or its activities (Yang and Rivers, 2009). There are various antecedents from a stakeholders point of view that drives a firm to adapt green practices.

The first set of antecedents are directly affected by the social context. First, environmental awareness and its applications are the first main drivers of green practices. Both internal awareness and external awareness of environmental and social issues can affect the degree to which am MNC applies green operations (Heru and W.Lo, 2016). Governments and international institutions usually formulate policies and regulations due to certain public concerns (Heru and W.Lo, 2016). Consequentially, the degree to which public citizens and employees of an organization are knowledgeable about emerging issues would drive the policies, codes and regulations of an MNC. For instance, consumers of a certain product or service can refuse to invest in a non-green MNC and buy from a competitor instead. This would affect the revenue of an MNC and would therefore result in a loss if the MNC does not adhere to wants of customers. Employees of an organization can also exert power on a firm to change its policies (Yang and Rivers, 2009). A good example is the attraction of new talents and prospective employees. Employers might find themselves at dire, if their reputation within the society does not imply that they comprehend with green operations and activities as this might push prospective employees to apply to other firms and entities. Another set of influencers are the shareholders of an entity. With the increased environmental awareness and the concept of “Socially Responsible Investment”, the power of shareholders can affect the degree to which MNC’s operate (Yang and Rivers, 2009). Investors are now not only concerned about the return on investments they make, but also on the behavior of firms both internally and externally.

Antecedents of Green Practices

Another set of antecedents are related to the organizational characteristics of a firm. First, the relative distance between and MNC and its parent company, plays an important role in greening operations. When expanding in a foreign context, conflicts can arise between a firm’s parent company and its subsidiary (Yang and Rivers, 2009). Those conflicts can arise from the difference of degrees of regulations and policies. For instance, in developed countries, regulations and policies are stricter than those of emerging economies which might create a number of conflicts between the two entities. In this example the parent country is leading on environmental issues and the host country is lagging behind which can considered as a  competitive advantage, where an MNC pioneer the CSR movement and bring added benefits to the unit (Heru and W.Lo, 2016). However, if the host country is leading in environmental issues and the parent country is not, this is where conflicts start to arise. In this case, an MNC will find it very difficult to adapt and might eventually lose the subsidiary. Therefore, governing bodies, both national and international, can also affect the degree to a company applies green practices and processes. Formal institutions can regulate the extent to which businesses can induce impacts on resources, environment and society through policies and regulations. They can either provide incentives for MNC’s for adhering to environmental sound policies or they might penalize them for not doing so. The commitment of greening operations and adapting sound environmental and social strategies have increased over the years due to the legislative efforts by national and international institutions (Yang and Rivers, 2009).

Lastly, another set of antecedents in MNC’s that can affect the degree of green operations are industrial and market pressure antecedents. According to Heru and W.Lo (2016), one of the main drivers to push greening in firms is the industrial antecedents, where the whole supply chain is affected by the act of greening. For instance, if a manufacturer is adapting to green policies and regulations this will push its suppliers to adapt to in order to ensure that their source of income does not move to other competitive suppliers who are adhering to green operations and activities. Such practices can also lead to innovations within the industry in order to achieve sustainable practices (Cheng, 2015). For instance, due to the regulations, policies, public opinions and shifts in activities, there is a rapid increase in emerging green technologies in many industries. This intense advancement in technologies required a huge amount of investment in innovation and research and development units in many MNCs.

The following dissertation has been designed to assess the influence of the green policies and practices being followed in an organization on green job behaviors.  The following research study has been revolving around three research terms such as organization green policies, organizational green practices, and green job behavior. The initial objective of the research study is to evaluate the influence of green practices of companies impacting the organizational green policies. The second objectives of the research study the influence of the organization green policies on green job behavior. The last objective of the research study focuses on studying the impact of company green policies on green job performance.

Social Context

The current research quantitative research methodology follows the survey methodology. The questionnaire has been designed which is distributed among the organization. The current study utilizes the statistical testing methodologies and approaches explained. To gain the knowledge, correlation, Beta to explain the level of association among the factors. Correlation testing approach is optimal for assessing the degree at which the respondent perspective become identical to accept/reject the hypothesis. The current dissertation has also followed the regression technique which helps in explaining the variance and significance of the research work and model.  

The data in the current research study is collected through the structured questionnaire designed through the close-ended questions. Typically, the questions are defined at the 5-point Likert scale which contains strongly agree, agree, neutral, disagree and strongly disagree options. It is the respondents to choose the answer based on his/her understandings. The questionnaire is distributed among the sample population through a sampling technique. The sample population is the group of the people having a similar mindset and personality. They can easily group together based on their perspective, beliefs, and thoughts. Whereas the sampling technique is the methodology used by the researcher to choose the people based on the research objectives. In the current research study, the questionnaire is distributed among the people who work in the organization that follows the green policies and its implementation in the organization. The sample population will be 45 employees selected randomly working in the organization who works as managers.

Table 1 provided below shows the distribution of the sample population which is 21 male and 24 females working in the professional environment and a structured organization. The cumulative percentage for the male and female is 47% versus 53%. The demographic details of the participants reveal that the highest number of the population who participate in the formulation of the research findings belongs to the 31-40 age group which makes the 56% of the total population. Whereas, the second highest population participated in the research study belongs to the 20-30 age group containing 15 people, hence making 33% of the total population. Rest of the population belongs to the other groups specified below.

Table 1:

Sample Details

	Respondents Number
%(Percentage)
Gender	Male	21	47%
Female	24	53%
Age Group	20-30	15	33%
31-40	25	56%
41-50	5	11%
51-60	0	0%
61-70	0	0%
Education Level	High School	0	0%
Diploma	0	0%
Bachelor	37	82%
Master	8	18%
Doctoral	0	0
Nationality	Middle Eastern	26	58%
Asian	15	33%
North American	0	0%
South American	0	0%
European	2	5%
African	1	2%
Australian	1	2%

While evaluating the education level of the respondents it is evident that most of the population have completed their Bachelor. Total 37 people participated in the research formulation has completed their Bachelor which also makes the population of the 82%. Other than that, the rest of the 18% of respondents belongs to the master category. The 8 people have completed their masters in the chosen sample population. Moreover, while assessing the nationality of the respondents, it has been evaluated that 58% of the population are Middle-Eastern making a total population of 58%. While other 15 person belongs to the Asian population which makes the 33% of the population.

Measuring Instruments Statistics Approach

The following study has a detailed questionnaire which involved three main question which is further divided into sub-questions. The initial variable organizational green policies contain 18 different questions. Whereas, the organizational green practices contain 8 different question. Furthermore, the last question inquiring about the job performance in green companies involve 10 questions. It has been evaluated that the question of the questionnaires is designed on the 7-point Likert scale which contains 1 = strongly disagree to 7 = strongly agree.

Organizational Characteristics

Statistical computation techniques have been followed in the current research study. As the research is quantitative, the statistical technique will help in evaluating the hypothesis testing through descriptive analysis, Correlation, and Regressions. The answers are provided in the numerical format which will be further presented through the means of tables to explain the variables testing and its findings.

It is utilized as the medium for depicting the fundamental and statistic information in an investigation, which gives an outline about mean, institutionalization, medium, Maximum, and Minimum estimation of information. This examination focusses on institutionalization, medium as elucidating statics.

It is a test to recognize whether there is a connection or relationship between two factors. It utilizes a measurement called the Pearson relationship coefficient (R), which is a proportion of the quality of the relationship between the factors. A positive R demonstrates an immediate connection so that if a variable either increments or abatements, the other variable alters in a similar course. A negative R demonstrates a backward connection so that on the off chance that a variable build, the other variable abatements, or in the event that a variable decline, the other variable increments. The size of the Pearson connection coefficient R demonstrates the genuine quality of affiliation. As the size of the Pearson connection coefficient R builds, the quality of the affiliation additionally increments. The esteem 0 implies no affiliation while the esteem 1 or – 1 implies impeccable affiliation.

It is a test to recognize the exactness of a specific measure. It utilizes the measurement unwavering quality coefficient, which is acquired from processing the connection of two arrangements of measure. The range for the unwavering quality coefficient is 0 to 1. An unwavering quality coefficient esteem more than 0.7 suggests high dependability. High unwavering quality fundamentally affirms the quality and legitimacy of the information and the investigation.

It is a test to recognize the explicit factors that can anticipate the result. It further pinpoints how much the huge factors can influence the result using the relapse condition. A specific variable can influence the result by an esteem dependent on its own y capture. The relapse the measurement F detail which results to the esteem called Significance F. This Significance F is the esteem used to decide the choice and the end from the essentialness test by either acknowledge or dismiss the speculation. On the off chance that the Significance F is not exactly the essentialness level (0.05), the speculation is acknowledged, generally will dismiss.

In the provided result, the statistical analysis of the research problem has been analyzed. Initially, a descriptive statistics table 2 has been presented below which shows the value of the standards deviation, reliability test, and correlation coefficient. In the following research study, three variables are used such as ORGPOLI: Organization Green Policies, ORGPRAC: Organization Green Practices, and GJB: Green Job Behaviors. The following factors are the independent and dependent variables respectively. The data collection part has analyzed each of the factors in great detail and depth through a structured questionnaire which involved critical question effectively containing important information necessary for research work.

Industrial and Market Pressure

Table 2:

Mean, SD. Reliability Coefficients, Relationships amongst Green Organizational Policies, Green Practice, and Green Job Behavior (n=45)

		Mean	SD	Reliability Coefficient	1	2	3
1	Organizational Green Policies (ORGPOLI)	5.83	0.31	0.718	1
2	Organizational Green Practices (ORGPRAC)	5.91	0.66	0.935	.484**	1
3	Green Job Behaviors (GJB)	5.78	0.57	0.882	.437**	.320*	1

Correlation is significant at the 0.01 level (2-tailed) & * Correlation is significant at the 0.05 level (2-tailed).

Wherein, SD = Standard Deviation.

In the above-presented table 2, the first things which explain the participants highest agreement point are the mean of the research analysis technique. Mean help in explaining the level of agreement shows by the respondents while tailoring this current research study outcomes. The mean of three variables are most closely related and identical, but organizational green practices have the highest mean that is 5.91. Moreover, organization green policies and green job behavior have a moderate mean of 5.83 and 5.79 respectively. The standard deviation is used in the statistical model to elaborate the variations created by the concerned factor in the research model/ framework. The lowest standard deviation is associated with the company green policies that is 0.31. Based on the statistical findings it can be elaborated that the green policies of the company explains the 31% variation created by the factor on the model. Other than that, organization green practices and green job behavior explains the 0.66 and 0.57 respectively. It can be analyzed that company green practices created 66% of the variations in the research model (which is the highest value of the standard deviation). Furthermore, green job behavior variation is explained through the 57% variations.

The descriptive analysis of the above-mentioned result also provides with the reliability coefficient. The following kind of the coefficient helps us in understanding the test accuracy as it is labeled as the measurement for the test accurateness. The acceptance of the reliability coefficient is described within the boundary which 0.035 -to- 0.7. it is important for the research study to have the value of more than 0.7 which is true in the case of the current research findings. The reliability coefficient for the organization green policies, organization green practices, and green job performance are 0.718, 0.935, and 0.882 respectively. The following result assures that variables study in the dissertation is reliable and valid in a research framework.  

The correlation coefficient in the research analysis help in explaining the relationship between the two different variables. The pattern of the association is measured through the correlation which aids the researcher to perform the analysis of the extent of the degree to which the variables are correlated. The positive value close to the 1 is considered to be highly positively correlated while other values close to -1 are highly negatively correlated, however, the relationship is said to occur. In table 2, the correlation matrix shows that organization green policy and organization green practices are moderately correlated having a value of 0.484. it is the highest correlation value found in the model, thus it can be elaborated that relationship between company green policies and practices is optimal and progressive. whereas, the organization green policies and green job behavior have a correlation value of 0.437 which also depict the moderate positive correlation. On the other hand, the relationship between the organization green practices and green job behavior is explained as the low positive association among factor as it has the value of 0.320. Therefore, it can be evaluated that organizational green policies and green practices show a strong relationship. Influence on one factor will create a similar level of the effect on the other correlated factors.  

Methodology

Table 3:

Impact of Organizational Green Policies on Organizational Green Practices (n=45)

Model	R	R Square	Β	F	Significance
Organizational Green Policies	0.484	0.217	0.484	13.173	p<0.001

Table 3 is the model summary table which shows the R-value which is important to study to define the association among the variables. Other than that, R square is used to define the variation in the variables and its effect on the overall research model. 0.484 explains that organization green policies and organization green practices are associated with each other in a positive way. The progression in one variable will affect the growth of other variables in the current research context. The beta value of R (0.484) explains the strong nature of the variables in the research study. The R square explains the variation made by the dependent variables on independent variables in the current research framework. It can be evaluated that 21.7% variation is made by the organization green practices. The significance value is considered to be low that 0.05 (it is the acceptable value) indicates that the current research hypothesis is accepted. It can be stated that organizational green practices have a significant influence on organizational green policies.

It can be stated that it is essential for the employees working in the organization to maintain the healthy standards of the work in the organization. It is the pivotal duty of the employees to preserve the nature and respect the environmentalist verdict regarding the saving world perspective. An organization who develops the environmental policies in the organization are considered to be socially active. Moreover, after the importance of the corporate social responsibility, it becomes important for the organization to define the green policies and practices which provide a code of conduct to the employees working in the organization. People who actively care about the organization environment defines the responsible attitude of the employees.

Table 4:

Impact of Organizational Green Policies on Green Job Behaviors (n=45)

Model	R	R Square	Β	F	Significance
Organizational Green Policies	0.437	0.191	0.437	10.162	p<0.003

Table 4 of the current research study analysis help us to reveal the information that it is important for the company to consider the green policies while explaining the job behaviors. The value of the R that is 0.437 shows a positive correlation between the green policies devised in companies and job behavior. Other than that, R square explained in table 2 defines the 19% variation independent and independent variable. Moreover, it has been found that organizational green policies are highly correlated with green job behaviors. Furthermore, it has been evaluated that significance value shows that both of the factors are correlated and an impact will be seen when contrasting these two variables. For example, employee non-caring towards the preservation of the environment might create problems for the implementation of environmental policies. It also has been evaluated that the non-serious attitude of employees also shapes their behavior which could be destructive and misleading towards the environment.

Table 5:

Impact of Organizational Green Practices on Green Job Behaviors (n=45)

Model	R	R Square	Β	F	Significance
Organizational Green Practices	0.320	0.102	0.320	4.909	p<0.032

In table 5, the influence of the organizational green practices has been studied on the green job behavior. The 0.320 of R and Beta depicted a moderate significant relationship between both of the factor. Moreover, it has been revealed that these factors only explain the 10% of the variation in the model. Other than that, significance value is below 0.05 which guide to accept the hypothesis. It can evaluate that green practices of the organization impact the green job behavior. Employees working in organization showing self-interest of preservation of environment could be constructive for the development of the sustainable environment. Moreover, it helps in the achievement of the goals.

Research Design

Limitations for MNC’S going green

Adopting a green culture by MNC’s usually has its limitations:

Firstly, green technology is normally associated with costly products that reach the markets. Right from production to the final consumer operational costs as a result of going green will tend to go up. In order to make a profit MNC’s will have to add prices of commodities in order to survive in the market (Drozdenko, 2011).

 Secondly, some regulations and laws usually offer entrenched biasness to companies that want to go green. Fewer MNC’s in Florida are verified regarding the implementation of measures taken to save energy by getting the Leadership in Energy and Environmental Design certification.

Thirdly, MNC’s can reduce or remove the usage of paper as a method of going green. Only that it has a lot of disadvantages. Businesses can use gadgets like laptops or smart phone only that such gadgets are prone to theft. This will lead to loss of important data that would otherwise be stored using a paper file. Also system crash can be disastrous if computer files are not backed up properly.

Fourthly, some MNC’s can employ green washing using misleading or unproven claims about how the product can be friendly to the environment. Green washing usually make some companies look to be consumer friendly than the reality of the situation. This is done by changing adverts, branding, and even packaging to alert the customer’s attention energy saving benefits, recycling or manufacturing using green methods.

Furthermore, there are high initial costs for MNC’s going green. If a business is to turn to solar power usage one needs to consider the solar panels to install. In the US there exists a 30% federal tax credit on solar panels and solar water heater systems. Installing solar panels costs about $9-$10 per Watt and with the average installation being at an estimate of 3 Kilowatts (3000 Watts) costs between $ 27000-30000. Such costs of conversion do not instantly lead to cost reduction in energy savings.    

Implications of MNC’s going green

In this current generation going green seem to be like the hip thing to do, but what does going green imply to multinationals?

Firstly, the greater reason for adopting the green policy is based on preservation of a healthy environment. MNC’s need to use sustainable ways that limit the wastage of natural resources, thus cutting down certain risk s like depletion. In order to do this, employees of multinationals need to ensure that simple mistakes like leaving lights on in un-used offices are avoided. Such actions will result in electricity savings by reducing the power that is consumed by the MNC’s.

Secondly, there is current initiative for going green that triggers certain public responses. Going green is gaining popularity daily, and recent economic studies indicate that MNC’s that use green technology and offer green products to the markets have seen a marginal rise in profits. Companies like Wal-Mart have allowed greener methods like recycling and selling green commodities and as a result in 2010 alone product sales rose by a whopping 20% (John, 2003).

Thirdly, going green implies a better working environment. Normally green products contain less chemicals like nitrobenzene and sodium hypochlorite that can cause health problems like respiratory and physical infections. Some MNC’s have also taken a higher step in going green by converting waste from food leftover from cafes and turn them into biogas that is used to power their buildings.

Furthermore, adopting a green culture can be equated to the efficiency of MNC’s. Businesses are able to trim operation costs by minimizing unwanted wastage. Such practices like refilling ink cartridges not only saves money but also reduces the amount of plastic that might be dumped. Hybrid vehicles are also offered to company staff in order to save cash for businesses and refund them on mileage of employees on the prices of fuel.

Lastly, in some countries going green means that MNC’s has some tax and legal advantages. In Florida, all businesses that use solar power systems are often exempted from sales tax. Also there exists an Incentives Program for solar power systems that enable firms in Florida to take rebates. In California, the state has set standards on emission allowances and are furthermore offered incentives and tax credits if they comply with state standards.

Conclusion

The main aim for going green is to conserve energy for future use. The big question that should exist in everybody’s mind should be where we are heading as a generation. Going green doesn’t start at the MNC level but individual level. In order to manage waste, don’t forget to reduce, reuse, and recycle.

References

Alex, J. (2009). Imperialism and Postcolonialism. London: Sage Publishers.

Banerjee, B. (2007). Corporate Social Responsibility. London: Edward Elgar Press.

Drozdenko, R. (2011). Pricing of Green Products. Chicago: Adventure Works Press.

John, M. (2003). The Company. New York: Modern Library Press.

Picard, R. (2008). Capital and Control. New York: NYU Press.

Wolff, R. (2012). Democracy at Work. Chicago: Haymarket Books.