Research Article

Investigating the Complex Relationship between Financial Performance and Company’s Green Behavior: A Comparative Analysis

Table 8

Evidence from data illustrating major relationships between financial indicators and company’s green behavior.

Typical quotes from interviewsInsight

Business solvencyCompanies with good green behaviors“Business solvency is often a key factor in measuring a company’s reputation in society, standing for credibility in society. The company with strong business solvency tends to take good care of their reputation, so they will actively participate in green practices.” (Company E+)Business solvency is strongly associated with company’s green behavior in terms of its favor by financial institutions, stable operation, economic power and financial status, and good reputation.
“The company has strong business solvency, implying that it has the ability to repay debt, has economic development potential, and will also establish green behaviors to enhance trust between partners.” (Company C+)
“Our company has no debts in arrears, but has stable and good operating efficiency, and has a high reputation in the industry. It is well known that our company is a role model in green behavior area, and is the first to apply many environmental protection measures.” (Company G+)
Companies with bad green behaviors“The company that has long-term debts must be the one in poor financial condition. Such a company often has poor prospects, so that it will think more about their own interests rather than their contributions to environmental causes.” (Company B)
“Our company has been good in green practices before, and has invested a lot in the development of green innovative products, but recently some problems have occurred in capital chain, causing debts not to be repaid in time, so green products developed have to be terminated, which hinders our green behavior.” (Company D)
“Our company has been busy with product development in large-scale heavy industry, so we have debts not repaid as there has been no return of funds before we sell our products out, I am afraid we have no power to care about green behavior. (Company C)

ProfitabilityCompanies with good green behaviors“Our products have a high reputation in society and are sold profitably. Only by internally digesting environmental protection costs can we ensure the orderly development of our market share, so we have the ability to perform green behaviors.” (Company A+)Profitability is strongly associated with company’s green behavior in terms of its good reputation, financial status, initiative to invest in green productivity, and social and environmental responsibilities.
“Profitability represents a company’s financial status and is positively related to environmental performance, and economically supported, we have incentives to reduce environmental damages.” (Company I+)
“With good profits, we have the energy to focus on green behaviors, such as adjusting green product structure and upgrading industrial structure, because environmental protection activities can increase corporate revenue, such as converting waste into reuse, or even turning it into products for sales. These green products bring additional benefits to our company.” (Company B+)
“Profitability is of course an issue that affects the company’s environmental responsibilities. The company with strong profitability usually has large-scale, wide market coverage, and great impact, so it should be most aware of environmental impact of their operations and should actively take actions to bear corresponding environmental responsibilities.” (Company D+)
Companies with bad green behaviors“In order to solve external environmental problems, the company will inevitably have capital investment, which can reduce its operating profits. Thus, we have not carried out green behaviors.” (Company F)
“Because of limited profitability, we have not paid too much attention to technological innovation to produce green products and meet the growing green demand of consumers, resulting in a decrease in market share.” (Company H)
“Our company’s profits are not good enough. Survival is our top priority. We have the willingness to perform green behaviors but our real strength does not allow us to do so. We are more concerned about expanding market and improving business development, so we rarely take into account green behavior.” (Company E)

Development abilityCompanies with good green behaviors“Our development prospects are very optimistic, we have always had a sense of social and environmental responsibilities. We have a good image in society and are willing to set an example in environmental protection decisions and behaviors.” (Company H+)Development ability is strongly associated with company’s green behavior in terms of its social and environmental responsibilities, long-term development potential, and providing environmental ideas to employees.
“From a long-term development perspective, it is an inescapable responsibility for our company to participate in environmental protection practices. Therefore, we decompose the performance of green behaviors within the company and distribute it to every employee, so that everyone is responsible for green behavior.” (Company I+)
Companies with bad green behaviors“Our company has relatively weak development ability, for those with strong abilities, they are obliged to return to the market and to the society with healthier and green products, but we have not done enough at this point.” (Company D)
“The development prospects we face and our existing development ability limit our vision for future development in every respect. For us, following the original supply chain activities will bring us the same benefits as before, but we are also trying to change to cater to environmental protection. but it is impossible to achieve rapid change of concept in a short period.” (Company A)
“Our development ability has not yet made it possible for us to immediately focus on the development of green behavior, because this requires a transformation from the inside to the outside. First, our company has not set off such a green atmosphere to employees. Second, we have no suppliers to provide environmentally friendly resources. These may be determined by our original heavy industry development route.” (Company G)