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Firms’ Altruism and Adoption of Solid Waste Management Practices in Sri Lankan Agri-Food Processing Sector: An Analysis Based on Panel Data

Authors:

JMM Udugama ,

Dept. of Agribusiness Management, Faculty of Agriculture and Plantation Management, Wayamba University of Sri Lanka, Makandura, Gonawila (NWP), LK
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UK Jayasinghe-Mudalige

Dept. of Agribusiness Management, Faculty of Agriculture and Plantation Management, Wayamba University of Sri Lanka, Makandura, Gonawila (NWP), LK
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Abstract

The specific objective of this study was to incorporate time dimensions into the empirical analyses carried out by Udugama et al. (2009; 2011) with the motive of examining whether altruistic behavior of managers in agri-food processing firms in Sri Lanka has changed over time, and if so, whether it had an impact on firms’ decision with respect to adoption of solid waste management practices (SWMPs) recommended by the Ministry of Environment of Sri Lanka. The data collected from a cross section of firms representative to the industry structure (n=80) through a structured questionnaire administered with environmental managers/owners during March to June 2011 (Stage II) were matched with corresponding data collected two years earlier (Stage I) from the same set of firms (i.e. panel data) to formulate a Weighted Environmental Altruism Index (WEAI) reflecting the degree of altruism of a decision maker. The results suggest that environmental altruism of firms, as a whole, changed positively overtime, yet remains at a relatively low level (i.e. from 0.25 to 0.50 from Stage I and II, on an average, of the WEAI ranges from -1 to 1). In response, certain changes were evident to the level of adoption of 8 recommended SWMPs during this period (i.e. shift of Mean from 1.39 to 1.97) showing a positive relationship between altruism and firms private action on environmental management. The outcome of analysis emphasizes the importance of augmenting environmental altruism of decision-makers through better education and awareness creation alongside an incentive-based regulatory framework to increase the level of adoption of environmental controls so that firms are not liable for the environment it operates and to change the perspective of a firm’s management beyond the profits towards sustainability.

DOI: http://dx.doi.org/10.4038/jepsl.v1i1.5140

Journal of Environmental Professionals Sri Lanka Vol.1(1) 2012 24-42

How to Cite: Udugama, J. & Jayasinghe-Mudalige, U., (2013). Firms’ Altruism and Adoption of Solid Waste Management Practices in Sri Lankan Agri-Food Processing Sector: An Analysis Based on Panel Data. Journal of Environmental Professionals Sri Lanka. 1(1), pp.24–42. DOI: http://doi.org/10.4038/jepsl.v1i1.5140
Published on 15 Jan 2013.
Peer Reviewed

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