The Impact of Social policies´ Promotion and the Moderating Role of Location on firm´s Environmental Scores

Abstract

The objective of present research was to analyze environmental scores in companies when<br />adopting external social policies. We confirmed that location acts as a differentiating factor. We also analyzed<br />the human rights, community and product responsibility policies interaction with Environmental Scores. Our<br />first hypothesis stated that social policies contribute to orientate companies toward environmental aspects<br />and improving environmental scores. The results supported the assumption that better environmental scores<br />are influenced positively by the promotion of social policies. We can conclude that the promotion of social<br />policies positively affects the environmental orientation of the firm. We can argue that company's capacity to<br />operate guaranteeing the freedom association and excluding child, forced or compulsory labor, to be a good<br />citizen protecting public health and to produce quality goods and services is a measure of being more sensible<br />to promote environmental aspects among their structures and processes. The differences between firms that<br />promote external social policies and those that don't are evident. Finally, we have determined how location<br />moderates the relative impact of each policy in the environmental performance.