David Erwin, Portland State University

The evidence is mounting: The vast majority of Oregon businesses are making decisions based on their potential impacts on the environment. Most top managers of Oregon businesses feel responsible for the environment. 

A comprehensive study funded by the U.S. Environmental Protection Agency (EPA) and conducted jointly by Portland State University (PSU), Oregon State University (OSU) and the University of Illinois at Urbana-Champaign (UIUC) surveyed 689 Oregon businesses with at least 10 employees in six industries: building construction, food manufacturing, wood products manufacturing, computer and electronics manufacturing, ground transport and accommodation. The study, known as the Oregon Business Decisions for Environmental Management (OBDEM) Project, appears to be the most comprehensive study of its kind.

Across all the industries, of all motivations queried, the idea that upper management believes it has a moral responsibility to protect the environment received the highest average rating. Over 82 percent agreed or strongly agreed with this idea, and only five percent did not. Nearly 65 percent also agreed their organization should help conserve society’s limited natural resources. Moreover, when asked whether upper management supported environmental protection even at substantial cost, 55 percent agreed or strongly agreed.

These numbers suggest that strong management attitudes toward environmental stewardship permeate the Oregon business mainstream, and are no longer simply the purview of leading-edge companies. This finding is particularly robust because the study is unusual in that the sample—dominated by small, privately held businesses—reflects U.S. industry more closely than previous studies, generally dominated by large, publicly traded manufacturers.

Sounds good, but are managers walking the talk? Results from the OBDEM study showed that strong environmental stewardship values had the largest impact on the level of environmental policy and practice, even after controlling for regulation, market and other influences. And stronger corporate environmental policy and practices significantly increased the level of pollution prevention activities. The findings suggest that, contrary to conventional wisdom, many businesses look beyond the financial-bottom-line in environmental decision-making.