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Geographic Variations in the Early Diffusion of Corporate Voluntary Standards: Comparing ISO 14001 and the Global Compact

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  • Richard Perkins
  • Eric Neumayer
Abstract
Despite their availability to firms across the world, uptake of global voluntary standards has proceeded unevenly across countries over time. In this paper we seek to provide new insights into how geography shapes these spatiotemporal variations, focusing on two leading examples of codified voluntarism: ISO 14001 and the Global Compact (GC). In an advance on previous quantitative studies, which have analyzed domestic and nondomestic influences separately, we examine how the internal attributes of place ‘condition’ the influence of transnational spatial dependencies. We find that higher levels of ISO 14001 certification in other economies are more likely to spill over (via transnational linkages) into higher domestic uptake of the standard in wealthier economies, while domestic receptivity to the influence of higher GC adoptions abroad is greater in more democratic countries. Another important advance on previous studies is that we examine the influence of a larger number of measures of transnational economic linkage. Providing evidence of ‘trading-up’ and ‘investing-up’ dynamics, we show that higher densities of ISO 14001 certificates and GC participants in a country's export and inward foreign direct investment partners are associated with higher levels of domestic uptake of the respective standard. We also find tentative evidence of ‘visiting-up’ dynamics associated with the cross-border movement of businesspeople.

Suggested Citation

  • Richard Perkins & Eric Neumayer, 2010. "Geographic Variations in the Early Diffusion of Corporate Voluntary Standards: Comparing ISO 14001 and the Global Compact," Environment and Planning A, , vol. 42(2), pages 347-365, February.
    • Handle: RePEc:sae:envira:v:42:y:2010:i:2:p:347-365
    DOI: 10.1068/a4249
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    Cited by:

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    3. Scholtens, Bert & Kleinsmann, Renske, 2011. "Incentives for subcontractors to adopt CO2 emission reporting and reduction techniques," Energy Policy, Elsevier, vol. 39(3), pages 1877-1883, March.
    4. Perkins, Richard & Neumayer, Eric, 2012. "Does the ‘California effect’ operate across borders? trading- and investing-up in automobile emission standards," LSE Research Online Documents on Economics 42097, London School of Economics and Political Science, LSE Library.
    5. Seo-Young Cho & Axel Dreher & Eric Neumayer, 2014. "Determinants of Anti-Trafficking Policies: Evidence from a New Index," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(2), pages 429-454, April.
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    7. Cho, Seo-Young & Dreher, Axel & Neumayer, Eric, 2010. "The spread of anti-trafficking policies: Evidence from a new index," University of Göttingen Working Papers in Economics 119, University of Goettingen, Department of Economics.
    8. Christopher Marcoux & Johannes Urpelainen, 2012. "Dynamics of Spatial Interdependence: The Contingent Effect of International Trade on Voluntary Environmental Standards," Environment and Planning C, , vol. 30(5), pages 871-890, October.
    9. Hee‐Chan Song, 2020. "Sufficiency economy philosophy: Buddhism‐based sustainability framework in Thailand," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 2995-3005, December.
    10. E. Carina H. Keskitalo & Elias Andersson, 2017. "Why Organization May Be the Primary Limitation to Implementing Sustainability at the Local Level: Examples from Swedish Case Studies," Resources, MDPI, vol. 6(1), pages 1-16, March.
    11. Oliver Westerwinter, 2021. "Transnational public-private governance initiatives in world politics: Introducing a new dataset," The Review of International Organizations, Springer, vol. 16(1), pages 137-174, January.
    12. Suwala, Lech & Albers, Hans-Hermann, 2020. "Corporate Spatial Responsibility and Sustainable Development Goals," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 141-153.
    13. Bernhagen Patrick & Mitchell Neil J. & Thissen-Smits Marianne, 2013. "Corporate citizens and the UN Global Compact: explaining cross-national variations in turnout," Business and Politics, De Gruyter, vol. 15(1), pages 63-85, March.
    14. Quang Le Van & Thanh Viet Nguyen & Manh Hung Nguyen, 2019. "Sustainable development and environmental policy: The engagement of stakeholders in green products in Vietnam," Business Strategy and the Environment, Wiley Blackwell, vol. 28(5), pages 675-687, July.
    15. Ralf Barkemeyer & Jason Miklian, 2019. "Responsible Business in Fragile Contexts: Comparing Perceptions from Domestic and Foreign Firms in Myanmar," Sustainability, MDPI, vol. 11(3), pages 1-18, January.
    16. Merima Ali & Adnan Seric, 2014. "Diffusion of labor standards from origin to host countries: Cross county evidence from multinational companies in Africa," RSCAS Working Papers 2014/22, European University Institute.
    17. Daniel Berliner & Aseem Prakash, 2012. "From norms to programs: The United Nations Global Compact and global governance," Regulation & Governance, John Wiley & Sons, vol. 6(2), pages 149-166, June.
    18. Fuchs, Heidi & Aghajanzadeh, Arian & Therkelsen, Peter, 2020. "Identification of drivers, benefits, and challenges of ISO 50001 through case study content analysis," Energy Policy, Elsevier, vol. 142(C).
    19. Guoyou Qi & Saixing Zeng & Xiaodong Li & Chiming Tam, 2012. "Role of Internalization Process in Defining the Relationship between ISO 14001 Certification and Corporate Environmental Performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 19(3), pages 129-140, May.
    20. Abdoul G. Sam & Danbee Song, 2022. "Corporate environmentalism and international trade: Evidence from industry‐level data," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1440-1455, September.
    21. Eric Neumayer & Thomas Plümper, 2010. "Making spatial analysis operational: Commands for generating spatial-effect variables in monadic and dyadic data," Stata Journal, StataCorp LP, vol. 10(4), pages 585-605, December.

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    More about this item

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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