The Voluntary Adoption of Green Electricity By Ontario-Based Companies

Abstract

Organizational values and organizational context have been shown to influence the willingness of businesses to voluntarily adopt environmental initiatives. This study explores how these factors support the adoption of an initiative that is not associated with a clear “win-win” outcome for the firm. Using a matched-pair research method to establish a degree of pretest equivalence, the authors compare the organizational values and organizational structural context of firms in Ontario, Canada, that had voluntarily adopted green electricity (e.g., wind, solar, and small hydro) with firms that had not. They find that the firms that had adopted green electricity were more likely to value improved environmental performance as more than a means to earn demonstrable financial gains, more likely to make public their environmental performance metrics, and more likely to integrate formal environmental responsibilities within their organization. In concluding, the authors argue that their evidence supports the efficacy of actualizing espoused proactive environmental values through formalized organizational structures.