Corporate perspective on VEAs and motivation Sample Clauses

Corporate perspective on VEAs and motivation. A considerable amount of literature has been published on the reasons for com- panies and industries to enter into VEA. In this section the corporate perspective on VEAs is explored. According to Xxxxxxxxx (2002) VEAs provide various ben- efits to the participating companies, such as direct incentives, economic savings, strategic marketing, organizational culture, and public recognition. The govern- ment plays an important role in providing some of these benefits. According to Xxxxxxx (2015), the five roles of the government are administrative support, xxxxx- cial support, monitoring and enforcement, marketing and customer. The administrative and financial support of the government provides direct incentives and legitimacy for the participants in VEAs (Heijden, 2015). Direct incentives refer to the tech- nical, information and financial assistance companies gain through participation in VEAs. Moreover, participation in VEAs enables companies directly to negoti- ate with the public administrator and reduce their administrative costs associated with environmental permits. (Xxxxxxxxx, 2002.) Participants in VEAs utilize economic savings as a result of adoption of new technologies, development of new projects and penalty avoidance. For in- stance, participating in VEAs limits the exposure of firms to major environmental accidents, thus companies improve their image and avoid penalties and strict monitoring (Xxxxxxxxx, 2002.) Monitoring and enforcement is the third role of the government. However, strict monitoring and enforcement would contradict the voluntary nature of VEAs. Instead, Xxxxxxx (2015) promotes “self-monitoring, administrator monitoring, monitoring by a third-party hired by the participant, independent third-party monitoring, and government monitoring”. Strategic marketing is another incentive for companies to get involved in VEAs. Participation in VEAs reduces consumer pressure, creates responsible im- age and improves customer relationship. For instance, firms participating in VEAs are considered to be responsible, which may convince the regulator that further legislation is not needed. Furthermore, through VEAs firms might adopt innovative techniques that lead to market expansion and competitive advantage. (Xxxxxxxxx, 2002) The marketing role of the government contributes for the pro- motion of the VEA and its participants. Commitment to environmental values as a result of participation in VEAs often influences the organizational culture. As a...
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