Fit to be creative : organization-employee congruence on environmental values

Evidence is mounting that firms can benefit significantly from embracing a “green imperative.” Proactively adopting and implementing environmentally-friendly strategies beyond mere compliance translates into greater market share (Menguc and Ozanne, 2005), improves consumer beliefs and attitudes (Becker-Olsen, Cudmore, and Hill, 2006), and enhances future financial performance (Waddock and Graves, 1997). However, extant literature does not provide clear insight into how employee creativity might be enhanced (or diminished) by a firm’s environmentally conscious stance. Employee creativity is a particularly salient performance aspect, since environmentally conscious companies pursue their mission through engaging in innovation (Shrivastava, 1995), which in turn enhances a firm’s value (Sorescu and Spanjol, 2008). General Electric’s Ecomagination initiative, for example, has produced over 80 new products and services (such as energy-efficient MRIs and light bulbs) since its inception in 2004, leading to $17 billion in annual revenue and over $100 million in cost savings (Kauffeld, Malhotra, and Higgins, 2009). A study of 599 firms across 28 countries demonstrates that innovation (along with human capital and culture) completely mediates the positive relationship between corporate social responsibility and financial performance (Surroca, Tribo, and Waddock, 2010)