Abstract
Based on the significance of the corporate social responsibility (CSR) activities, respectively, the Environmental, Social and Governance (ESG) measures, for companies’ advancement in the fields of agriculture, the purpose of our study is to appraise how the ESG measures influence the size of public companies from the agricultural sectors, with particular attention on the environmental pillar. The research methodology consists in applying two econometric procedures to assess the direct effects of the ESG activities on the size of public agricultural firms by models of robust regression (RREG) and to appraise global implications of ESG measures on companies’ dimension by models of structural equations (SEM). Data encloses the ESG indicators, focusing on environmental indicators and agricultural companies’ size (proxied by total assets), extracted from the Thomson Reuters Refinitiv Eikon database for the fiscal year 2020. Main results reveal that several components of the ESG measures, especially the environmental ones, may influence the size of the agricultural companies, given the significant companies’ strengths in implementing CSR actions to ensure sustainable resource management. We propose adequate strategies for companies to provide robust resource management and proper integration of the environmental credentials.
Highlights
IntroductionThe complexity that arises between the resources used in agriculture (mainly natural resources, such as water, oil, coal, natural gas, pasture, etc.) and the products generated by the agricultural sectors (food, textiles, leather goods, and others) leads to several controversies regarding sustainable resource management and environment protection [1,2]
The complexity that arises between the resources used in agriculture and the products generated by the agricultural sectors leads to several controversies regarding sustainable resource management and environment protection [1,2]
Given the corporate social responsibility (CSR) support for sustainable development that embraces the three pillars of environmental protection, social responsibility, and economic development [37] and the crucial role played by the agriculture sectors for attaining the SDGs, in this paper, we have assessed the ESG implications, with a specific focus on the environmental dimensions, on the size of the agricultural companies
Summary
The complexity that arises between the resources used in agriculture (mainly natural resources, such as water, oil, coal, natural gas, pasture, etc.) and the products generated by the agricultural sectors (food, textiles, leather goods, and others) leads to several controversies regarding sustainable resource management and environment protection [1,2]. As primary drivers of CSR activities, the Environmental, Social, and Governance (ESG) should be considered and implemented by managers of agricultural companies, both for the headway to sustainable development and as a promoter of financial profitability [7,9]. The results will reveal several components of the ESG measures, especially the environmental ones, that may influence the size of the agricultural companies, both as strength and concerns/risks, given the robustness of large companies in implementing CSR actions for ensuring sustainable resource management
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