This study contributes to the debate about the moderating factors that affect the relationship between environmental and financial performance. Combining stakeholder theory, stakeholder salience, and legitimacy theory, and based on a large international sample, we demonstrate that stakeholder prioritization and engagement jointly positively moderate the relationship between environmental and financial performance. However, this moderating effect is only found when both formal and informal societal characteristics are strong and support the business environment surrounding the firm and its stakeholders. Contributions and implications for managers and regulators are discussed.

Additional Metadata
Keywords Corporate financial performance, Corporate social responsibility, Environmental performance, Stakeholder engagement, Stakeholder prioritization
JEL Corporate Culture; Social Responsibility (jel M14), Accounting (jel M41), Environment and Development; Environment and Trade; Sustainability; Environmental Accounting; Environmental Equity; Population Growth (jel Q56)
Persistent URL,
Journal Journal of Environmental Management
Dal Maso, L, Mazzi, F, Soscia, M. (Manuel), & Terzani, S. (2018). The moderating role of stakeholder management and societal characteristics in the relationship between corporate environmental and financial performance. Journal of Environmental Management, 218, 322–332. doi:10.1016/j.jenvman.2018.04.005