Corporate Environmentalism in Ethiopia: Practice, Motivation and Barrier the Case of Leather Industrial Firms
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Date
2020-10
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Addis Ababa University
Abstract
A growing body of environmental management literature suggests that firms can gain sustainable
competitive advantages by reducing the adverse impacts of their operations on the natural environment.
Hence the purpose of the study is to explore Leather Industries Corporate environmentalism practices,
motivations and barriers to reduce environmental degradation and effort to manage natural resource.
The leather industries were selected because of that they are high consumers of raw material, natural
resource and chemicals and with polluting effect. Moreover they are highly privatized and they have both
local and international stakeholders which affects their motivation. This study paper is a qualitative case
study research mainly constructed on qualitative data which shows the industry practice, motivations and
barriers rather than quantified sources. The study mainly relies on the inductive research approach,
which is based on empirical evidence and drawing general conclusions/building theories from the
empirical observations, as findings are incorporated back in to existing knowledge (literature/theories) to
improve theories. The unit of analysis of the study was focused on six leather industries and 3
Governmental institutions namely Environment, Forest and Climate Change Commission, Addis Ababa
City Environmental Protection and Green Development Commission and Ethiopian Leather Industry
Development Institute from Addis Ababa. Data was collected via interviews, site visit/observation, notes
from informal discussions during visit and open-ended questions. Data analyzed the data considered data
reduction, data display and conclusion drawing and verification. Results of the analysis showed that
leather industries practices lack of Environmental policy, EIA as well as Environmental Audit, Water and
energy efficient technology, and territory waste water treatment plan, life cycle assessment. Furthermore
the result showed that Government legislation and public pressure are the main motivation that leads the
leather industries to implement Corporate environmentalism . However, inadequate space (land), high
cost, government failure were the barriers that hinder their CE implementation. Moreover, Furthermore,
the leather industries corporate Environmentalism practices showed association with a, stakeholder
theory, legitimacy theory, and institutional Isomorphism theories but not with a nature resource based
theory. Accordingly, it is concluded that the leather industries have a huge gap implementing different
corporate Environmentalism activities. It is therefore recommended that all regulatory bodies should
strength the enforcement system and mechanism, Environmental awareness should provide in a
continuous manner be to all Industries, industries should adopt Environmental Policy.
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Keywords
corporate environmentalism, leather industry, environmental management, environmental problem, Addis Ababa, Ethiopia