Stakeholders may influence both ISO 14001 and GSCM as well. Influences from various stakeholders were measured by responses to a survey question asking ‘‘How important do you consider the influence of the following groups or organizations on the environmental practices of your facility?’’ Respondents ranked the importance of the following 10 stakeholders: corporate headquarters, household consumers, shareholders, banks, management employees, non-manage- ment employees, labor unions, industry associations, environmental groups, and community groups. Facility managers indicated whether these stakeholders were ‘‘not important,’’ ‘‘moderately important,’’ or ‘‘very important.’’ We construct a dummy variable that takes the value of one if the response was ‘‘moderately important’’ or ‘‘very important,’’ zero otherwise.
Since environmental policy can be determining factors for both ISO 14001 and GSCM practices, we control for various types of policy instruments. Specifically, we include 10 dummy variables, each of which takes the value of one if facilities reported that the following environmental policy instruments are applicable to their facility’s production activities: input bans, technical standards, performance standards, input taxes, liability for environmental damages, demand information measures (e.g., eco-labels), supply information measures (e.g., recognition programs), participation in voluntary environ- mental programs, subsidies/tax preferences, and technical assistance programs.