The Emergence of Corporate Carbon Norms: Strategic Directions and Managerial Implications

In recent years, many firms have decided to adhere to a specific carbon norm, such as carbon neutrality or carbon labels, to show their commitment to climate change mitigation. Nevertheless, it is still unclear what it means when a firm sets a specific carbon norm. This article reviews the various kinds of carbon norms that have emerged and asks why firms would adopt a carbon norm and thus assume an additional constraint on a voluntary basis. We point out that carbon norms can fulfill a dual function: They help to position a firm strategically by creating a specific favorable image, and they deal with constraining factors as a consequence of a firm's carbon dependency and stakeholder influence. As there is still also some mistrust of corporate carbon norms, we conclude the article with lessons for managers that intend to implement carbon norms. (C) 2013 Wiley Periodicals, Inc.