Stakeholder Influence on Corporate Environmental Responsibility of Texas Petroleum Refineries

The U.S. Environmental Protection Agency (EPA) has classified petroleum refineries as a major source of hazardous air pollutants (HAPs). Although refineries are federally and sometimes state regulated, evidence suggests that the environmental regulations have failed to improve air quality. Corporate environmental responsibility (CER) results in stakeholder coalitions to reduce HAPs; the research literature shows a gap, however, in the empirical association of stakeholder influence (SI) and the CER of refineries. The purpose of this study was to address this gap by identifying the key stakeholders and strategies for refineries in Texas, the U.S. state with the largest number of refineries. The research question focused on exploring the relationship between SI and the CER of Texas refineries. The theoretical frameworks for this study were Campbell's institutional theory and Freeman's stakeholder theory as related to CER. A quasi-experimental time series study, based on secondary data from 1990 to 2010 from EPA, Texas Commission on Environmental Quality, U.S. Census Bureau, and U.S. Energy Information Administration, was used in a correlational analysis. Findings indicated that, among the 3 key stakeholders—government, environmental nongovernmental organizations (ENGOs), and community—community members had a significant positive impact, whereas ENGOs had a significant negative impact, and government organizations had no significant impact on the CER activities of these refineries. A model was generated showing the role and impact of stakeholders on CER. The implications for positive social change include informing these 3 key stakeholders about their role in promoting CER, which may result in improved air quality in the U.S.