The basic framework proposed in this paper focuses
on a crucial element in understanding the link
between corporate environmental performance
and economic performance and sheds some light to
the con¯icting empirical results in this ®eld of
research.
Managerial qualities, materialised both by the
choice of environmental pro®le and way how economically
a certain pro®le can be achieved, determine
the link between environmental and economic
performance. Only after having designed and established
the best (i.e. for the company most suitable
and economically ef®cient) environmental management
concept, management can, secondly, choose
the economically best amount of corporate environmental
protection activities. From an economic and
eco-ef®ciency perspective point A in Figure 2 should
be chosen and the amount of environmental protection
should be adapted to an innovation-shifted
transformation curve ES0-A-B-C. It is only now,
after having optimised the corporate environmental
management system in market-oriented (increasing
revenues) or eco-ef®ciency enhancing (cost reducing)
terms that choosing the economically desired
level of environmental performance re¯ects social
responsibility and the comparative valuation of
economic and environmental goals.