Today, organizations seek competitive advantage by improving their environmental performance through meeting environmental standards, enhancing customers’ knowledge on this issue and reducing negative environmental effects of their products and services. The present paper aims at explaining the effect of green supply chain actions on competitive advantage of pharmaceutical companies listed in Tehran Stock Exchange. This descriptive researched is surveying a population composed of experts of pharmaceutical companies listed in Tehran Stock Exchange. Research questionnaire was distributed among 175 individuals and a total number of 172 questionnaires were collected. Required data was gathered using a questionnaire with standard components validity of which was confirmed by experts’ opinions. A GIF indicator of higher than 0.90 in structural equations further confirmed the validity. A Cronbach’s Alpha of 70% corroborated instrument reliability. Findings showed that green supply chain actions have a significant effect on competitive advantage of pharmaceutical companies listed in Tehran Stock Exchange. Ultimately, results indicated that green supply chain leads to faster delivery, reduced delay, decreased costs and enhanced quality. Moreover, by creating more added value for customers because of offering green products, it leads to competitive advantage.
