Less plastic, more profits? Estimating the effect of firms’ efforts for plastic reduction on their financial performance

Purpose – This study investigates the impact of Islamic banks' environmental commitment on their financial performance. In addition, the moderating role of management quality is employed to assess whether it affects the nexus of environmental commitment and Islamic banks’ financial performance. Methodology – The sample of the study consists of 32 Islamic banks from 12 countries with sufficient environmental commitment reports from 2016 to 2023. A panel data approach is adopted to estimate the models in this study, namely the random effects model (REM), 2-Stage Least Squares (2SLS), and Least Squares Dummy Variable Corrected (LSDVC).Findings – The findings reveal that Islamic banks' commitment to environmental activities supports their financial performance. In addition, the management quality of Islamic banks moderates the relationship between environmental commitment and financial performance. The findings of this study are robust after conducting estimations to check the consistency of the results using several econometric scenarios. Implication – The findings imply the urgency to embrace, practice, and develop environmental commitment in Islamic banking. It can be implemented by policymakers and regulators to spur and demand that Islamic banks have sufficient environmental commitment while operating them. Originality – This study contributes to the precise examination of inconclusive findings on the nexus between environmental commitment and financial performance in global Islamic banks. Moreover, it highlights the role of management quality in the nexus between environmental commitment and financial performance, which remains understudied in prior literature.

Objective: This paper examines the impact of financial performance (FP) on the social performance of companies (SPC) in the Moroccan context, a topic of increasing relevance due to the growing social and environmental commitment within organizations. Theoretical Framework: The research is anchored in a diverse set of theoretical perspectives, including stakeholder theory, agency theory, and institutional theory. Foundational models such as those by Carroll, Wood, and Clarkson help structure the concept of social performance. The study also revisits ongoing debates surrounding the CSR–FP relationship, including the virtuous and vicious cycle hypotheses, trade-off models, and non-linear interpretations, all while considering the unique regulatory and cultural features of the Moroccan business landscape. Methodology: the study focuses on a sample of 10 companies listed on the Casablanca Stock Exchange that adopt Corporate Social Responsibility (CSR) strategies influenced by labels such as those from the General Confederation of Moroccan Enterprises (CGEM). The central question is to analyze the relationship between FP and SPC using an exploratory qualitative approach based on semi-structured interviews. The data collected were analyzed using NVivo software to identify the underlying dynamics between these two dimensions and to understand how CSR integrates into the strategies of Moroccan companies. This study sheds light on the opportunities and challenges associated with integrating CSR into corporate practices and contributes to understanding the reciprocal effects between financial and social performance. The results are expected to provide valuable insights into the evolution of responsible practices in Morocco and their impact on corporate competitiveness. Results and Discussion: The findings reveal a strong and positive correlation between FP and SPC. Companies with greater financial resilience are better positioned to invest in meaningful CSR actions, which, in turn, reinforce their public image, employee engagement, and stakeholder trust. However, a wide variation in CSR implementation strategies was observed—ranging from proactive, value-driven approaches to minimal compliance-based practices. The influence of organizational size, sectoral context, and leadership orientation also emerged as key variables in this relationship. Research Implications: This research offers a foundation for future empirical studies on CSR in Morocco, underlining financial stability as a necessary—though not sufficient—condition for robust social performance. It invites further investigation through quantitative approaches and encourages integration with broader frameworks, such as public policy initiatives or international CSR standards. Originality/Value of the Research: As one of the rare qualitative studies addressing the FP–SPC dynamic in a Moroccan context, this research stands out by combining theoretical plurality with a grounded, managerial perspective. Its originality lies in its contextual relevance, its thematic structure, and its potential to inform future mixed-method investigations into CSR practices in emerging economies.

PurposePrior studies have found a mixed result on the relationship between environmental commitment and firm performance. To shed a new light on this relationship, this study aims to draw on stakeholder theory, upper echelon theory and gender socialization theory to determine the mediating role of environmental collaboration with suppliers and the moderating role of chief executive officers (CEOs) gender into this relationship.Design/methodology/approachThis study conducts a questionnaire survey to collect sample data of 177 CEOs in manufacturing firms in China. Structural equation modeling is used to analyze data and test hypotheses.FindingsEmpirical results show that environmental commitment has a positive influence on firm financial performance. Furthermore, the results show that environmental collaboration with suppliers mediates the link between environmental commitment and financial performance. In addition, CEO gender has a moderating effect on the relationship between environmental commitment and environmental collaboration with suppliers. Finally, CEO gender also moderates the indirect effect of environmental commitment on financial performance through environmental collaboration with suppliers.Originality/valueFindings of this study helps to clarify the mediating and moderating mechanism in the relationship between environmental commitment and firm performance. That is this study helps to clarify the mixed relationship between environmental commitment and firm performance in prior literature. This study also provides new insight and knowledge for business managers to make better decision in dealing with the environmental issue to enhance firm performance.

PurposeOver the decade the trend of Global Fortune 500 firms has shown significant changes – Japanese and Chinese firms in particular. The purpose of this paper is to present trend analysis of Global Fortune 500 – Japanese and Chinese firms. Key research questions are: what are the relevant macro-level changes that have affected the growth and decline of Japanese and Chinese firms? What are the industry-level changes that have occurred in Japanese and Chinese firms in terms of firm characteristics and financial performances? What are the lessons and implications from the firms added to or removed from Global Fortune 500? Data analysis is conducted based on Fortune database from 1995 to 2013.Design/methodology/approachThe study employs descriptive analysis to examine the trend of Japanese and Chinese firms listed in Global Fortune 500 including: based on revenue and profit figures from 1995 to 2013; the authors perform trend analysis for each of those five types from 1995 to 2013; the authors replicate the analyses for different industry types in terms of the above five types; the authors compare the performances of Japanese and Chinese firms; based on 2011-2013 data, the authors conduct more in-depth analysis for selected firms.FindingsThe findings suggest five distinct types of firms including “Sustainables,” “New Comers,” “Move Ups,” “Decliners,” and “Drop Outs”; it is interesting to note that the changes in Global Fortune 500 firms suggest how these two countries show their relative competitive advantage. Chinese firms show steady flows of new firms that join in the rank of Global Fortune 500 whereas Japanese firms suggest continuous drop of firms that move out of Global Fortune 500 firms. As China increases its size of economy, state-owned financial institutions, resource-focus firms (e.g. mining and petroleum) firms also rapidly increased its overall size. Although the number is still small, privately owned Chinese global firms (e.g. Lenovo, Huawei, Zhejiang Geely Holding Group, Ping An Insurance) also are now listed as Global Fortune 500 firms. In contrast, Japanese firms that lost their global market positions steadily disappeared from Global Fortune 500 firms. Representative firms include Daiei, Mitsubishi Motor Company, and NEC.Research limitations/implicationsOne limitation of the analysis on financial indicators is that the authors select only a few firms and focus only on two time points. Nevertheless, it provides the authors information about the financial factors that characterize the two types of Global Fortune 500 firms. Moreover, it opens up new opportunities for future research.Practical implicationsFactors that influence the behaviors of Global Fortune 500 firms suggest both external environmental and internal managerial factors. Although serious external factors (e.g. Global Financial Crisis) affect the outcomes of these competitive positioning, it is still the managerial leadership that makes differences in cases of many Japanese firms. To Japanese firms maintaining domestic advantage is not enough to sustain their position in Global Fortune 500. Global competitiveness matters. On the other hand, it is unclear whether changes occurring in Chinese firms are more managerial than externally dictated. In case of many Chinese financial firms and resource rich firms, the huge domestic advantage has much to do with their position in Global Fortune 500.Originality/valueThis is the first trend analysis that examines the Global Fortune 500 firms from Japan and China. The authors identify five types of firms that would be an important basis for the further benchmarking studies of Global Fortune 500 firms in other counties (e.g. the USA, Germany, Korea, and other Emerging Economies – Russia, India, Brazil).

An increasing number of food companies are voluntarily adopting environmental policies and sustainability initiatives to tackle climate change. The aims of this study were to analyse the presence of environmental labels on table olive products, to explore consumer perceptions of these companies' environmental commitment and initiatives, and to evaluate the influence of these messages on purchasing decisions. For this purpose, a market study was conducted in different hypermarkets and supermarkets in Spain, and an online survey was submitted to consumers (n = 227). The results show that environmental claims and/or certifications related to sustainability do not appear on table olive products, despite most of the companies that produce and/or market table olives having adopted environmental and sustainability policies and commitments (34.3% have their environmental policy published on their website). More than 85% of consumers positively value these companies' sustainability commitments and consider environmental initiatives to be very important. As a sector of consumers pays close attention to environmental commitments, it would be interesting for table olive companies to identify their sustainability policies on their products' labelling to, thus, facilitate pro-environmental consumer purchase choices. These results could help the food industry develop the best strategies to publicise their social and environmental policies and commitments.

Small and Medium Enterprises in South Africa contribute critically to the economy, yet they face many challenges, such as lack of access to external finance. Thus, applying the stakeholder theory, this study tested the relationship between environmental sustainability commitment and access to finance and whether this relationship was mediated by financial performance. The study further examined the moderating role of corporate governance on the relationship between environmental sustainability commitment and access to finance. Owner/managers of 600 SMEs from three provinces in South Africa were randomly selected using a probability sampling method. Primary data were collected using self-administered questionnaires. The moderated mediation model was tested using PLS-SEM. The findings showed that environmental sustainability commitment significantly predicts access to finance both directly and indirectly through financial performance. Moreover, the results showed that corporate governance positively moderates the link between environmental sustainability commitment and access to finance. This study has several implications. Practically, small unlisted firms can adopt and apply the model developed in this study to enhance their environmental, social, and governance practices to unlock external funding. The novelty of this study is that it proposed and tested a moderated mediation model to understand SMEs’ determinants of access to finance. In addition, this study provides a nuanced understanding of responsible business through green behaviour in the context of SMEs, which has been lacking in the existing literature.

Abstract: Historically, Japanese firms have been leading the optical disk industry in technological development and market development; however, Taiwanese and Korean firms are quickly catching up and have surpassed Japanese firms in terms of production volume. This paper focuses on the optical disk industry in Taiwan and analyzes the factors that have enabled Taiwanese firms to quickly catch up to Japanese firms. Our analysis show that cooperation with Japanese firms and international specialization have been the prerequisites of business activities in Taiwanese firms. This suggests that symbiotic relationships as well as competitive rivalries exist between firms in developed countries and those in developing countries that are quickly catching up.Keywords: optical disk, global competition, technology transfer, collaboration, Taiwan1. IntroductionToday, due to the worldwide popularity of optical disk drives such as CDs and DVDs, used in audiovisual devises and personal computers (PCs), the shipment volume reached about 600 million and the market scale surpassed 2.5 trillion yen in 2004. Recording media has also flourished, with CD-Rs alone becoming the largest recording media in history, with annual shipments of over 10 billion (Ogawa, 2009).Japanese firms have been leading the world in the technological developments of optical disks. An overview of the major standard bearers in the industry begins with Sony and Philips in CD audio and CD-ROM; Sony and Taiyo Yuden in CD-R; Toshiba, Matsushita, and a number of other Japanese firms in DVD players and DVD-ROM; Pioneer in DVD-R; and Ricoh in DVD+R. Furthermore, regarding the recording media, Japanese firms such as Taiyo Yuden, TDK, Hitachi Maxell, and Mitsubishi Chemical have developed the materials and production methods and led the introduction of the product to the market.Japanese firms have led technological developments within the optical disk field and proposed technological standards to the world. These standards have been accepted not only in the audiovisual market but also in the PC market. Thus, the technologies developed by Japanese firms have set global standards and created large markets.Between the introduction stage and early growth stage of the product life cycle, Japanese firms had been dominant in the market. However, during the latter growth stage when the technologies were established as the global standard and the market began to fully grow, Japanese firms rapidly lost their market share to foreign companies.Figure 1 summarizes the trends in shipments of optical disk drives used in PCs. It shows that the production of Taiwanese firms grew rapidly in the latter half of the 1990s, occupying a large market share. Indeed, Japanese, Taiwanese, and Korean firms have a three-way share in market for optical disk drives used in PCs.On the other hand, in the production volume of optical disk media, the decline in the share of Japanese firms and the rise of Taiwanese firms have become evident. Figure 2 shows the trends in production of CD-Rs.The CD-R market saw rapid growth after 1999. Taiwanese firms were responsible for much of the growth; the firms garnered a 70-80% share of global production since 1999.Despite the fact that Japanese firms were in control of technological development and new product introduction in the optical disk industry, how have Taiwanese and Korean firms been able to grow and even surpass Japanese firms in terms of production volume? This paper examines the factors that facilitated the rapid growth of Taiwanese firms in the optical disk industry.We argue that the development of Taiwan's optical disk industry was not merely a game of international competition, but it was based on cooperation with Japanese firms and international specialization. In other words, we argue that developing countries were able to catch rapidly up not only because of competitive rivalry with developed nations but also because of cooperation with them. …

The importance of heeding the environmental sustainability commitment call cannot be underestimated. Laggards in terms of environmental sustainability commitment are likely to face fines and penalties as talks to tighten environmental legislation are now at an advanced stage globally. The current work assessed the link between environmental sustainability commitment and financial performance of firms listed on the Johannesburg Stock Exchange (JSE). The study was quantitative in nature with a case study research design. The longitudinal design was adopted where the researcher collected panel data from 2011–2018. The population of the study included all firms listed on the JSE Responsible Investment Index in South Africa. The sample constituted of 32 firms listed on the Financial Times Stock Exchange FTSE/JSE Responsible Investment Index in South Africa. The researchers employed the panel regression analysis model to analyze the data. Specifically, the Feasible Generalized Least Squares regression model was used in this study. Financial performance was treated as the dependent variable as measured by earnings per share and share price. The independent variables of the study included components of environmental sustainability such as carbon emission reduction and environmental compliance. Control variables such as firm size and liquidity were used in the study. The findings indicated that carbon emission reduction was positively and significantly related to earnings per share and share price. The findings further exhibited that environmental compliance was positively related to earnings per share and share price. It was concluded that firms can enhance their financial performance from environmental investment as all the hypotheses were supported. This study contributes practically towards shaping environmental policies and it also serves as motivation to listed companies that they can enhance both their profitability and market value from environmental investments.

This article has two main objectives: to assess and compare the profitability of Japanese and American firms and industries during the latter half of the 1980s; and to explore the relationship between firm profitability and national competitiveness. The study reveals that: Japanese firms in most industries were less profitable than American firms; after adjusting for differences in tax rates, accounting practices, and debt levels, Japanese firms had lower returns on assets and operating margins than American firms, but similar returns on equity; the returns of Japanese companies exhibited far less volatility than the returns of American companies; and differences in the average returns of Japanese firms in different industries were extremely small. The link between profitability and competitiveness depends on the effect profits have on firm strategy, particularly the firm's investment strategy. In the U.S., the desire for profits may have encouraged firms to pursue strategies which are not consistent with national competitiveness. Conversely, Japanese firms have tended to adopted strategies which promote competitiveness.

Does emission trading system achieve the win-win of carbon emission reduction and financial performance improvement? —Evidence from Chinese A-share listed firms in industrial sector

Objective: The study evaluates the impact generated by Corporate Environmental Responsibility (CER) activities on Competitive Performance (CP) and Financial Performance (FP) of Micro and Small Business (MSMEs) in the service sector in Mexicali, Baja California, Mexico. Theoretical Framework: From a sustainability perspective, corporate environmental responsibility and its relationship with various constructs and their interactions such as competitive and financial performance are analyzed. Method: A survey was developed and applied to 57 company managers in the following sectors: private sector medical laboratories, car repair and laundries, differentiated by the management of waste with potential environmental impact and greater demands in compliance with environmental standards. To confirm the hypotheses raised, an exploratory factor analysis and linear regressions of the constructs formed were applied. Results and Discussion: It was found that there is a strong relationship between CER and CP, however, there is no influence of CER on CP. Research implications: Service sector entrepreneurs continue to view RAE activities as expenses and financial burdens, which prevents them from taking RAE as a development strategy. They have not adopted strategies that allow them to benefit from the RAE actions they carry out, and it prevents a better environmental performance of SMEs in the service sector. Originality/Value: By demonstrating that there is no positive effect of RAE on finances, it is evidence of why the service sector continues to lag behind in its environmental performance and commitment, compared to other economic sectors at local and regional level. It also provides evidence in the theoretical discussion of the effect of RAE on the competitive and financial performance of the company.

PurposeOver the past two decades, scholarly attention has focused mainly on a direct and inverse relationship between corporate environmental responsibility (CER) and corporate financial performance (CFP). This study aims to explore the bidirectional causality hypothesis, as good environmental results can lead to good financial results, which makes it possible to invest more resources in projects that improve environmental performance.Design/methodology/approachThe authors test the bidirectional causality between CER and CFP on a sample of listed Italian manufacturing firms over the 2005-2014 period. The authors use a fixed effect panel data regression and check the robustness of the results with alternative econometric techniques.FindingsAlthough the findings do not support bidirectional hypothesis, they establish direction/causality from CFP to CER. As a result, environmental responsibility is a consequence of prior financial performance, which supports the slack resources hypothesis.Research limitations/implicationsGiven that companies’ environmental commitment is dictated by economic evaluations or by assessing the availability of resources to invest, it seems that the spread of environmentally responsible behaviours might be supported by different external pressures.Originality/valueThe paper provides further insights on sustainability management literature by establishing a bidirectional relationship between firm performance and environmental responsibility.

How does environmental performance affect financial performance? Evidence from Japanese manufacturing firms

The banking sector plays a vital role in economic stability and sustainable development. As financial institutions face increasing pressure to align profitability with Environmental, Social, and Governance (ESG) commitments, Enterprise Risk Management (ERM) has gained prominence as a tool for enhancing both financial outcomes and ESG performance. While prior research has explored the impact of bank characteristics and industry concentration on performance, the mediating role of ERM remains underexamined, especially in emerging markets. This study addresses this gap by investigating how bank characteristics (ownership concentration, complexity, international diversification) and industry concentration affect financial and ESG performance, with ERM as a mediating variable. The analysis draws on data from ASEAN-listed banks between 2019 and 2023 using Partial Least Squares Structural Equation Modeling (PLS-SEM). Results show that ownership concentration negatively influences financial performance, whereas bank complexity and international diversification have no significant financial effects. Industry concentration also lacks a significant financial impact. For ESG performance, bank complexity and international diversification show positive effects, while ownership concentration has no influence and industry concentration exerts a negative effect. ERM does not mediate relationships with financial performance or the effect of industry concentration on ESG outcomes. However, it mediates the relationship between international diversification and ESG performance. The findings highlight the conditional role of ERM in advancing ESG goals, especially in internationally diversified banks. Regulators are urged to revisit ownership concentration policies, and banks are encouraged to integrate ESG into core strategies and reinforce governance frameworks to manage structural risks.

In many industries, especially in the quick-paced technological world, ethical leadership (EL) has become a crucial driver of company financial performance and competitive advantage. Senior management's behavior is vital in influencing organizational decision-making and accomplishing pre-set objectives. This study focuses on the organizational culture's mediating function as it explores the relationship between ethical leadership and the firm financial performance of non-financial enterprises in Bahrain. This study explores the complex relationship between behavioral leadership, organizational culture, and firm financial performance using a theoretical conceptual framework approach. Bahrain is the right setting for this inquiry because of its vibrant business community and wide variety of non-financial businesses. The importance of ethical leadership in overcoming obstacles while preserving ethical standards is influenced by the nation's advantageous geographic location, encouraging government policies, and technological investments. The main goal of the current study is to clarify how senior management's ethical leadership practices affect the financial performance of non-financial enterprises in Bahrain while taking organizational culture's mediating function into account. The study advances knowledge of how ethical leadership, organizational culture, and firm financial performance interact within Bahrain's socio-cultural and economic setting by investigating this interaction. This study contributes to the body of knowledge on ethical leadership in Bahraini non-financial organizations through thorough investigation guided by the theoretical framework. The importance of ethical leadership in overcoming obstacles while preserving ethical standards is influenced by the nation's advantageous geographic location, encouraging government policies, and technological investments. The main goal of the current study is to clarify how senior management's ethical leadership practices affect the financial performance of non-financial enterprises in Bahrain while taking organizational culture's mediating function into account. The study advances knowledge of how ethical leadership, organizational culture, and financial performance interact within Bahrain's socio-cultural and economic setting by investigating this interaction. This study contributes to the body of knowledge on ethical leadership in Bahraini non-financial organizations through thorough investigation guided by the theoretical framework. It offers understanding into how organizational culture and ethical leadership practices affect their financial performance. The research findings should have repercussions for academics and professionals, improving knowledge of behavioral leadership and the mediating function of corporate culture for accomplishing organizational success. By analyzing the effects of ethical leadership within the specific context of non-financial enterprises in Bahrain, this study will advance knowledge. The complicated relationships between ethical leadership, organizational culture, and financial performance are further understood by recognizing the mediating function of organizational culture. The originality of the current study is in providing a springboard for additional investigation into ethical leadership and its connection to corporate culture across many fields and industries. The current study's anticipated consequences include how its findings might be applied to improve leadership development, talent recruitment, and the creation of a healthy organizational culture. Organizations can link their business goals with ethical principles and gain a competitive advantage through the promotion of ethical leadership practices and the development of a supporting culture.