Abstract

Anecdotal evidence seems to suggest that firms are responding differently to the mounting concerns over environmental degradation and climate change. While a few studies at individual firm level do exist, relatively little is known about the longitudinal development of corporate environmental strategy at the population level of firms. Employing KLD data we explore the evolution of environmental strategy among a sample of S&P500 corporations over the period 1997 to 2006. We theoretically ground our study in Burgelman’s (1991) autonomous and induced perspectives of strategy-making. Our findings suggest widespread inertia among firms to adjust to the changing socio-institutional environment