Environmental Management And Enterprise Value Under The Perspective Of Enterprise Sustainable Development

The promotion of conservation culture was pointed out at the Third Plenary Session of the party’s Eighteenth Central Committee. As the main body of the national economy and the major polutor, enterprises are responsible to maintain and improve the ecological environment by managing environment in its manufacturing and operating activities. Based on literature research and theoretical analysis, this paper examined the driving factors of corporate environmental management which are environmental regulation, stakeholders and market competition. In environmental regulation perspective, influence of government regulation over coporate environment management and enterprises’response to regulations are examined. Moral drive refers to the enterprise’s responsibility of serving the stakeholders and protecting the environment. Market drive is to improve competitive advantage so as to enhace the persuit of actual and potential economic benefits. This study discovered that there are inner connections among those three factors. The three factors jointly drive environmental management and enhance competitive advantage. This paper then propsed that the collaboration mechanism among multiple driving factors is value creation.On the basis of theoretical analysis, according to the score of the corporate social responsibility report and social responsibility report among other business information, this paper identified and tested the influencing factors of environmental management. Results shows environmental regulation, stakeholders and market competition are indeed driving factors in enterprises’engagement of environmental management. Moreover, in this paper, the effectiveness of corporate environmental management is examined by empirical test. Results show that there is significant positive correlation between environmental management behavior and the performance of firms, thus further proved the necessity of corporate environmental management.Major conclusions drawn are listed as follows:(1) Environmental regulation, stakeholders and market competition are driving factors of corporate environmental management. Those driving factors all attributes to an essential factor which is value creation. Value creation is the root cause of enterprises’engagement of environmental management;(2)Environment management and environmental performance are positively correlated. Environmental performance and economic performance are positively correlated. The improvement of economic performance and enterprise value in turn contributes to a more effective environmental management, thus enabling a virtuous circle and sustainable development of enterprise production and management;(3) For China applies a government-led development model and environment management is in an infantile stage, the government would have an important role to play in environmental management. At the present stage, the governemt must formulate relevant laws and regulations on the behavior of enterprises, forcing enterprises to take relavent environmental responsibilities.