Corporate Sustainability

Purpose - With the acceleration of global integration and the deepening of the market economy, sustainable development is receiving unprecedented attention worldwide. Corporate environmental, social, and governance (ESG) performance is one of the most important ways of promoting sustainable development. Companies with good ESG performance excel both operationally and financially, maintaining their competitive advantage and achieving sustainable corporate growth. This study examines the impact of ESG performance on corporate sustainability and identifies factors that influence this relationship from the perspective of external governance structures. Design/Methodology/Approach - This study investigates the impact of corporate ESG performance on corporate sustainability using a fixed-effects model with Chinese A-share listed companies from 2011 to 2020. It also explores the moderating roles of external audit quality, the shareholding ratio of institutional investors, and analyst attention on the impact of ESG performance on corporate sustainability. Findings - The findings show that corporate ESG performance can contribute to sustainable development. External audit quality, the shareholding ratio of institutional investors, and analyst attention have positive moderating effects on ESG performance, which can contribute to sustainable development. Research Implications - This study enriches theoretical research in ESG performance and sustainability, and identifies external governance factors that contribute to the relationship between the two. Consequently, it provides suggestions for listed company growth and sustainability practices

Over the past decades, the frequency and economic losses from natural disasters have continued to escalate globally. Disasters pose significant challenges to global sustainable economic and social development. As a critical part of the economy, a firm’s ESG performance is a key indicator of sustainability. Whereas the determinants of firms’ ESG (environmental, social, and governance) performance have gained growing attention, limited research focuses on the impact of natural disasters on ESG performance. This paper provides the first empirical study on the short-, medium-, and long-term impacts of natural disasters on firms’ ESG performance through the lensof earthquakes. By exploiting a difference-in-differences approach based on panel data of Chinese listed firms and a dataset of seismic events, this paper shows that earthquakes have a significant positive impact on affected firms’ ESG performance, with short-term positive effects on environmental and social performance and long-term positive effects on social and governance performance. Heterogeneity analysis reveals that the positive effects are more pronounced for state-owned firms, relatively smaller firms, and firms located in cities with frequent earthquake occurrences. This study highlights the distinct temporal effects on different ESG dimensions and provides new insights for policymakers to employ ESG practices to alleviate the negative effects of disasters.

We attempt to explore the impact of ESG (Environmental, Social, and Governance) performance on firms from a comprehensive and peer comparison perspective. We constructed a composite index encompassing profitability, growth, and security, and compared it with the median of peers to ultimately form a quality index for enterprises. Empirical results indicate that ESG performance contributes to improving the quality of firms and exhibits a certain degree of persistence. Among the three components, governance performance has the greatest impact, followed by social performance, while environmental performance is not significant. Mechanism research shows that ESG performance enhances corporate quality by alleviating financing constraints and improving labour productivity. Further analysis reveals that the more ESG investors there are, the weaker the impact of ESG performance on corporate quality; the better the financial fundamentals of a company, the greater the impact of ESG performance on corporate quality; and when firms operate in more competitive market environments, the impact of ESG performance on quality improvement is more pronounced.

The Road to corporate sustainability: The importance of artificial intelligence

Purpose This study investigates the role of knowledge management and absorptive capacity in promoting sustainable corporate development, examining the moderating effect of information technology (IT) within major organizations in Qatar. Design/methodology/approach A quantitative research design was employed, collecting data from 218 respondents from major organizations in Qatar. The analysis focused on validating the relationships among knowledge management, absorptive capacity and sustainable corporate development, with IT as a boundary condition. Findings The findings indicate that knowledge management significantly contributes to sustainable corporate development, mediated by absorptive capacity. IT enhances these relationships, showing that higher IT levels strengthen the positive effects of knowledge management and absorptive capacity on sustainable corporate development. Research limitations/implications The study’s focus on major organizations in Qatar may limit the generalizability of the results. Future research could extend the scope to a more diverse range of organizations and regions. Practical implications Organizations can improve sustainable development practices by investing in knowledge management and enhancing absorptive capacity. Leveraging IT further strengthens these efforts, leading to more effective and sustainable corporate outcomes. Social implications Promoting knowledge management and IT utilization helps organizations contribute to broader sustainable development goals, fostering more responsible and sustainable business practices that benefit society. Originality/value This study uniquely integrates knowledge management, absorptive capacity and IT to explore their combined impact on sustainable corporate development. It is one of the first empirical studies providing novel insights into the drivers of sustainable business practices in the context of major organizations in Qatar.

With the establishment of China’s “dual carbon” target and the promotion of high-quality development strategy, the role of green innovation has become increasingly important. Corporate ESG innovation, as a guiding principle for companies to practice sustainable development and an important signal for evaluating their environmental and social responsibilities as well as corporate governance level, deserves in-depth research on its impact on green innovation performance. This paper empirically analyzes the green innovation effect of corporate ESG (Environmental, Social and Governance) performance using Chinese A-share listed companies as a sample from 2009 to 2021. The research shows that corporate ESG performance can enhance green innovation performance. Mechanism analysis reveals that ESG performance mainly improves green innovation performance by alleviating financing constraints and enhancing human capital. Further research shows that all three sub-dimensions of ESG performance contribute to improving green innovation performance, with the strongest effect observed in corporate governance performance. ESG performance not only enhances strategic green innovation performance and independent green innovation performance but also improves substantial green innovation performance and collaborative green innovation performance. Therefore, the government should improve the ESG information disclosure system, increase support for companies with excellent ESG performance, and improve local talent policies to attract high-quality green innovation talents. Investors should incorporate ESG performance into their decision-making and strengthen the identification and use of ESG information. Companies should formulate ESG strategies, increase relevant investments, prioritize corporate governance improvement, and enhance the quality of ESG information disclosure through various means.

Improving manufacturing organizations' ESG (Environmental, Social, and Governance) performance is becoming more and more important in the global pursuit of green and sustainable development. AI (Artificial intelligence) has become a vital instrument for manufacturing companies to obtain a driven advantage in sustainability as a result of the growing digital revolution and urgent environmental issues. There is little academic research on the precise effects of artificial intelligence (AI) on the performance of ESG of manufacturing companies. The role of digital technologies in promoting ESG developments has been not extensively explored. The sample consists of Chinese-listed manufacturing companies from 2013–2022. This research study fills the research gap by developing a theoretical framework of how AI affects manufacturing organizations ESG pillars. Regression analysis, a correlation matrix, and descriptive statistics were used by the researcher to examine the data. The results show that the use of AI technology successfully encourages enhancements in manufacturing companies' ESG performance. This research adds to the body of knowledge on improving ESG performance, clarifies the theoretical basis for AI-enabled companies' non-economic performance, and expands the use of organizational dualism theory in novel settings.

Is managerial myopia detrimental to corporate ESG performance?

Supply Chain Resilience, ESG Performance, and Corporate Growth

With changing times as countries pursue sustainable development, traditional profit-driven strategic decisions are no longer sustainable. A well-planned financial investment may improve a business’s capital flow efficiency, but when short-term wealth overrides long-term value, the financialization of companies will inevitably impede their environmental, social, and governance (ESG) performance. This study examined how company financialization was related to its ESG performance by China Listed Companies between 2010 and 2019. According to empirical tests using data from the China Stock Market & Accounting Research database and the Wind Financial Terminal, corporate financialization negatively affects ESG performance. After a series of robustness tests, such as endogenous analysis, the conclusion still holds. Furthermore, financialization dampens ESG performance more in the private sector and in companies with high technology dependence. Mechanistic analysis shows that corporate financialization not only creates long-term value risks through crowding out real capital and appropriation of green resources but also undermines company ESG performance through a lack of balanced development to achieve objectives and capabilities. Lastly, using the green patent data provided by the Chinese Research Data Services Platform database, it is found that improved green technology innovation can mitigate the damage of corporate financialization on ESG performance, and this mitigation is more pronounced in regions with better green development. This study adds to the empirical evidence on the theoretical and controversial role of corporate financialization. It helps to warn of its short-sighted effects on sustainable development and provides implications through the positive effects of green technology innovations.

Promoting the concept and principles of sustainable development at the micro level requires that industrial companies understand and improve approaches to managing corporate sustainability. Currently, economics does not provide a universal definition of what corporate sustainability is. With regard to the mining sector, corporate sustainability issues reflecting the viability, value, and sustainable development potential of companies have not yet been studied extensively. The article discusses the conceptual foundations of corporate sustainability; the characteristics and a classification of approaches to defining corporate sustainability; and the relationship between corporate sustainability, sustainable development at the micro level, and circular economy. By analyzing the example of Russia, the influence of the mining industry on the environmental, economic, and social development of both a country with a resource-based economy and individual mining regions is shown from the viewpoint of sustainability. The distinguishing features of mining companies, which include natural capital and mineral assets, are studied in the context of promoting corporate sustainability. It is proven that the effective corporate management of ESG factors results in environmental and social influence that goes in line with sustainable development requirements and serves as a foundation for corporate sustainability. A refined definition of corporate sustainability has been formulated, the specific features of corporate sustainability management in mining companies have been determined, and the specific features of corporate social responsibility have been studied. The issue of integrating circular economy elements into the corporate sustainability concept is discussed, and it is claimed that the inclusion of circular business models in the corporate strategies of mining companies will contribute to their corporate sustainable development and boost their contribution to the achievement of sustainable development goals.

Against the global backdrop of advancing "carbon peak and carbon neutrality" alongside green transformation, ESG (Environmental, Social, and Governance) has emerged as a key research focus in both academia and industry as a comprehensive framework for evaluating corporate sustainable development performance. This paper systematically reviews the definition and theoretical foundations of ESG, highlighting its role in quantifying non-financial corporate performance through dimensions such as environmental responsibility and stakeholder management, while also interacting with long-term financial outcomes. Grounded in stakeholder theory and resource-based theory, this study examines the internal and external antecedents as well as the consequential impacts of ESG. The findings reveal that external factorssuch as industry characteristics, macroeconomic policies, and investor attentionalongside internal factors like board governance and firm size, collectively shape the heterogeneous patterns of corporate ESG performance. ESG performance enhances firm value through pathways such as fostering technological innovation, alleviating financing constraints, and reducing stock price crash risk. However, challenges such as policy uncertainty and "greenwashing" practices persist. Future research should integrate micro-level case studies with cross-cultural comparisons and explore the enabling role of emerging technologies (e.g., artificial intelligence) in ESG practices to refine evaluation frameworks and management strategies. This study provides theoretical insights for balancing economic efficiency with social value and offers practical implications for policymaking and investment decisions.

Against the backdrop of rapid advancements in intelligent technologies and the convergence of China's "dual carbon" strategic goals, how enterprises leverage artificial intelligence to enhance economic and environmental benefits while achieving sustainable development has emerged as a critical research question. This study adopts a dual-perspective approach, examining both financial and environmental performance within the framework of sustainable development. Based on a sample of Chinese A-share listed companies from 2013 to 2023, this study employs a multi-period Difference-in-Differences model to empirically examine the impact of applications of artificial intelligence on corporate sustainable development performance, as well as the underlying mechanisms. The findings reveal: (1) Applications of artificial intelligence enhance both the financial and environmental performance of corporations, thereby improving their overall sustainable development performance. The conclusion has passed a series of robustness tests, including heterogeneity tests and double machine learning. (2) Mechanism analysis reveals that artificial intelligence influences corporate sustainable development performance through green innovation effects, efficiency enhancement effects, and information acquisition effects. The Porter Hypothesis, the Resource-Based View, and the Information Asymmetry Theory, among other theories, have been verified. (3) The promotional effect of artificial intelligence applications on sustainable development performance exhibits heterogeneity. Specifically, the promotional effect is more pronounced in non-heavily polluting enterprises, high-tech enterprises, and enterprises with senior executives possessing environmental protection backgrounds. (4) When enterprises are engaged in intense market competition, the positive relationship between artificial intelligence adoption and sustainability performance strengthens. Our findings offer valuable insights for managers and policymakers aiming to leverage AI for achieving sustainable growth.

Purpose This study aims to explore key questions within the context of Asian countries: How do artificial intelligence (AI) and blockchain adoption in accounting influence enterprise risk management and environmental, social and governance (ESG) performance? What role does enterprise risk management have as a mediator in this relationship? In addition, how does environmental uncertainty shape the interplay between AI and blockchain adoption in accounting, enterprise risk management and ESG performance? Design/methodology/approach The authors collected data from Thomson Reuters Eikon Datastream, initially targeting the 20 Asian countries with the highest gross domestic product (GDP) per capita. Using stringent selection criteria, the research sample included 22,212 firms from these countries: Bahrain, China, Hong Kong, Indonesia, Israel, Japan, Jordan, Kazakhstan, South Korea, Kuwait, Lebanon, Malaysia, Oman, Qatar, Saudi Arabia, Singapore, Sri Lanka, Thailand, the United Arab Emirates and Vietnam. After a rigorous screening process, the final sample comprised 1,742 firms, representing 17,420 firm-year observations over the 2014–2023 period. This paper applied maximum likelihood structural equation modeling to analyze the data. Findings The findings reveal that both AI and blockchain adoption in accounting, along with enterprise risk management, positively impact ESG performance in the Asian context. Enterprise risk management serves as a mediating factor between AI and blockchain adoption in accounting and ESG performance. In addition, environmental uncertainty significantly moderates the relationships between AI and blockchain adoption in accounting and enterprise risk management, as well as between enterprise risk management and ESG performance. Practical implications This study uncovers the interplay between internal factors – such as AI and blockchain adoption in accounting and enterprise risk management – and external factors, notably environmental uncertainty, in fostering sustainable value for Asian firms. Internal factors enable firms to integrate ESG considerations into their operations, facilitating risk mitigation and enhancing ESG performance. Meanwhile, heightened environmental uncertainty drives the adoption of sustainable practices. Consequently, Asian Governments should prioritize the development of regions characterized by high environmental uncertainty to advance national sustainable development goals and encourage responsible business practices. Originality/value This study contributes to the existing literature by uncovering the combined effects of internal and external factors on ESG performance, offering empirical evidence from Asian countries with high GDP per capita. Specifically, it underscores the efficacy of AI and blockchain adoption in accounting and enterprise risk management, as well as the moderating role of environmental uncertainty, within the Asian context.

The rapid advancement of artificial intelligence (AI) has become a key driver in shaping firms’ environmental, social, and governance (ESG) performance. This study investigates the impact of corporate AI capabilities on ESG outcomes and examines how external environmental factors moderate this relationship. Using panel data from all A-share listed firms on the Shanghai and Shenzhen Stock Exchanges between 2010 and 2023, we measure firms’ AI capabilities through text analysis of annual reports and apply fixed-effects regression models to test our hypotheses. The results show that higher AI capability significantly improves ESG performance. Mechanism analysis suggests that AI enhances ESG outcomes by optimizing resource allocation and increasing efficiency in production and supply chains. Further, the positive effect of AI on ESG performance is more pronounced in industries with intense competition, while it is weakened under high environmental uncertainty. These findings contribute to the growing literature on AI and corporate sustainability by revealing both the internal mechanisms and contextual contingencies that shape ESG performance. The study offers practical insights for corporate managers aiming to leverage AI for sustainable development and provides policy recommendations for fostering supportive external environments.