ECON 1 Lecture Notes - Lecture 15: Resource Consumption, Control Variable, Institutional Theory
Document Summary
Reverse logistics = activities necessary to retrieve a returned, used or damaged product from the point of consumption to either dispose of it or recover economic and/or environmental value. Advantages for firms: reduce material and energy resource consumption and thus reduce operating costs, generate revenue from returned, reconditioned or recycled products and materials that were previously discarded. This study assumes that organizational decisions are based on the social structure in which the firm operates: theoretical background & hypothesis. Individuals and organizational structures become institutionalized through the formation of established, orderly, stable and socially integrating patterns that add value or constraints to the firm"s structure or activities. Theoretical perspectives that accounts for the impact of social climates are more encompassing & better explain behavior. 3 types of institutional pressures on decision makers: coercive pressures (government) Organizations should comply with these environmental regulations or they will face the threat of government levying legal actions, penalties or removal from the market.
