From a psychological point of view, environmental consciousness refers to certain psychological factors related to human tendencies to engage in pro-environmental behavior (Zelezny & Schultz, 2000). Meanwhile, Kollmuss &Agyeman (2002) define environmental consciousness as the level at which someone knows the impact of human actions on the environment. Judge & Krishnan (1994) stated a traditional idea that attention to environmental issues would negatively affect company performance because of spending more money. In addition, many companies whose environmental obligations are only to avoid sanctions for regulations that require them, rather than consciously caring about environmental issues. In the context of organization and business, Ahmed et al. (1998) state that environmental consciousness is a perception held by an organization or individual about environmental concepts, such as environmental protection, policy, environmental management, and environmentalism. Verbeke & Buysse (2003) argues that companies will have a proactive strategy or environmental management if they realize the importance of meeting the interests of their stakeholders. Therefore, Huang & Kung (2011) states that the way companies perceive environmental problems depends on their stakeholders. Corporate perceptions of social and ethical responsibility are indicators of how companies perceive environmental issues.
The concept of the perceived role of ethics and social responsibility (PRECOR) was first introduced by Singhapakdi et al. (1996), whose purpose was to measure the understanding of ethics and social responsibility at the managerial level. Later, Axinn et al. (2004) took PRECOR one step further, providing a more precise definition based on the views of stockholders and stakeholders. Stakeholders include internal stakeholders (e.g., executives and employees), social-economic stakeholders (e.g., law enforcement, legislators, residents, and environmental groups), and market stakeholders (e.g., green consumers, potential rivals, suppliers, and the media). Firms must strike a balance between stockholder and stakeholder interests. In other words, firms should maximize public interest while seeking profitability without compromising the interests and expectations of either the stockholders or the stakeholders (Hillman and Keim, 2001).
Pro-environmental behavior was driven by the motivation to adopt the concept of green in business. This means the green business will influence the attitude of a person and the result of acting green. Besides Pro-environmental green behavior, there is also reactive green behavior which comes from an environmental problem that should be solved. They also consider the environmental consciousness level from a low level, which may have little knowledge and as a beginner of being green, until high level which has experienced doing green and has much knowledge of green insight. According to them, there is internal determinant (demographic, psychological, and economic) that will influence doing green as environmental consciousness. At the same time, the external determinant that influences environmental consciousness might come from media, culture, and family to become environmentally friendly.
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