Corporate Environmental Management : Individual-Level Drivers and the Moderating Role of Charismatic Leadership

Drawing upon norm-activation and social cognitive theories, we examine whether the personal norms and self-efficacy of top managers affect their decisions to engage in environmental management initiatives (EMI). We also investigate whether this relationship is moderated by CEO charisma. Empirical evidence from a sample of 125 companies indicates that significant variation in EMI is explained by the two activators of personal norms – namely, awareness of consequences and ascription of responsibility – as well as self-efficacy with respect to environmental decisions. Furthermore, the effects of managers' personal norms on EMI engagement are more intense when charismatic leadership is present. The results offer insights into the microfoundations of proactive environmental management and their interplay with charismatic leadership. Managerial implications for firms seeking to advance their environmental conduct are discussed