Encouraging corporate sustainability through effective strategic partnerships

Juan Pablo Valbuena‐Hernandez,Natalia Ortiz‐De‐Mandojana

doi:10.1002/csr.2188

Juan Pablo Valbuena‐Hernandez, Natalia Ortiz‐De‐Mandojana

Open Access

https://doi.org/10.1002/csr.2188

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Abstract

AbstractThere is a substantial body of theoretical evidence and a wide variety of recommendations from multilateral agencies on the importance of develop partnerships to achieve sustainability but not all partnerships could be equally effective. The purpose of this study is to establish which characteristics of partnerships could be related to greater improvements in firms' sustainability. To achieve this goal, we based on the resource‐based view, to emphasize the importance of expanding firm resources and capabilities through strategic partnerships. The longitudinal panel data used includes information from sustainability reports published by Spanish listed firms between 2016 and 2019. We find evidence that greater diversity referring to social sectors involved and longer duration partnerships improve sustainability measures, but only in responsive firms (environmentally pollutants). By contrast, in nonresponsive firms, diversity and longer‐tenure partnerships implied less improvement. Finally, we analyze the implications of these results to build effective partnerships and encourage sustainability.

Highlights

Two decades have passed since the-United Nations (UN) SecretaryGeneral Kofi Annan announced at the World Economic Forum in 1999 the constitution of the UN Global Compact, describing it as a creative alliance between the UN and the business sector to give to the global market a more human face, encourage greater corporate responsibility and promote partnerships (Kell, 2002; Reed & Reed, 2009)
We found evidence that the diversity and duration have a significant impact related to the improvement of global sustainability measures but only in responsive firms
We calculated the variance inflation factor (VIF) after each regression; values were within acceptable limits with any VIF above of 10 indicating that high correlation is not cause for concern

Summary

Introduction

Two decades have passed since the-United Nations (UN) SecretaryGeneral Kofi Annan announced at the World Economic Forum in 1999 the constitution of the UN Global Compact, describing it as a creative alliance between the UN and the business sector to give to the global market a more human face, encourage greater corporate responsibility and promote partnerships (Kell, 2002; Reed & Reed, 2009). Business can play a critical role in the achievement of SDGs (Rosati & Faria, 2019); firms and other social actors that have aligned themselves with achieving objectives related to sustainability are still insufficient to reach the proposed objectives. To meet these goals, set out in the SDGs by 2030, it is imperative to close a financial gap that ranges from USD 2 to USD 4 trillion dollars yearly. SDG 17 is a comprehensive appeal for the implementation of global partnerships, in which the action of all actors leads to genuine sustainability (Colaner et al, 2018)

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