RT Article
T1 The Effect of Environmental Activism on the Long-run Market Value of a Company: A Case Study
JF Journal of business ethics
VO 140
IS 3
SP 455
OP 476
A1 Lewis, Robert
A1 O’Donovan, Gary
A1 Willett, Roger
LA English
PB Springer Science + Business Media B. V
YR 2017
UL https://ixtheo.de/Record/1785659995
AB This paper investigates the impact of activism on a large, powerful corporation in Tasmania. Gunns Ltd was a large woodchip processor in Tasmania that fought a long-running battle with environmental activists regarding Gunns’ logging and processing activities. The study focuses on events in 2004–2005, when Gunns applied to build a pulp mill in rural northern Tasmania and began a legal case against activists. The research question is whether there is clear statistical evidence that these events were important, as is widely believed, in the ultimate failure of Gunns in (Annual Report 2011, Gunns Ltd, Tasmania, available from: http://www.asx.com.au [11/04/14]), just 6 years after being the largest and one of the most financially successful Tasmanian companies. We use a mixed methods approach that combines a detailed narrative informed by theory, to examine issues of corporate social responsibility (CSR) and ethical behaviour, with an econometric time series analysis of the impact of activism on the market value of Gunns. Our analysis supports the contention that the events in 2004–2005 played a significant part in the decline of the long-run market value of Gunns over the subsequent period, through to its failure in 2011. We discuss the underlying causes for Gunns’ failure in terms of agency, stakeholder, legitimacy and leadership theories. Research frequently assesses effects such as those in the Gunns’ case through solely qualitative means. This paper integrates a quantitative analysis into a detailed qualitative narrative and theoretical interpretation of events, to provide additional precision to its findings. It contributes to research in CSR and the impact of activism.
K1 Error correction modelling
K1 Ethical Management
K1 mixed methods
K1 Gunns
K1 Corporate Social Responsibility
K1 Activism
DO 10.1007/s10551-015-2686-1