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.