Legitimacy in Green: Pollution vs. Profit in Canadian Oil Refineries

Abstract

This paper examines the correlation of financial and environmental performance in the petroleumrefinery sector. Emissions fell while profits rose over a ten-year period. Ongoing effortsto legitimize companies in light of changing societal expectations have created an external environmentthat encourages the development of new technologies that promote cost efficienciesand good environmental performance simultaneously. Russo and Fouts (1997) argued thatindustries subject to rapid technological advance are well suited to respond to these changes inthe external environment. The findings of this paper suggest that the petroleum refinery sectorof the oil and gas industry may be meeting the challenge of the environmental movement. Copyright © www.iiste.org