Sort by
Analysis of corporate sustainability performance and corporate financial performance causal linkage in the Indian context

This paper aims to explore the relationship between corporate sustainability performance (CSP) and corporate firm performance (CFP) for a sample of the top 500 Indian firms covering the period from 2008 to 2018. CSP variables have been considered at both aggregate and disaggregate levels of environmental, social and governance performance. CFP has been evaluated in both accounting and market-based measures. Rigorous statistical methods have been used to evaluate the bidirectional causality and intensity of the CSP-CFP relationship using the Granger causality test and multiple regression for panel data. A sectoral level trend analysis is presented dividing the firms in various industries and classifying them in ESI vs non-ESI sectors. The findings indicate the absence of causality among CSP and CFP variables in either direction and suggest that the CSP-CFP linkage is mostly insignificant for Indian firms at the aggregate level. At an individual level, some negative association is found between CSP and CFP. This relationship has an adverse impact on CSP-CFP linkage in both cases, which means that Indian firms don’t get the financial performance benefits of investments done for sustainability. Our findings with mostly insignificant results for this relation also means that firms with higher or lower CSP on ESG dimensions will perform likewise in terms of CFP. The findings have practical implications for corporates, academicians, and policymakers alike given sustainability as a high focus area for all.

Open Access
Relevant
Transition towards green banking: role of financial regulators and financial institutions

This paper provides an overview of green banking as an emerging area of creating competitive advantages and new business opportunities for private sector banks and expanding the mandate of central banks and supervisors to protect the financial system and manage risks of individual financial institutions. Climate change is expected to accelerate and is no longer considered only as an environmental threat because it affects all economic sectors. Furthermore, climate-related risks are causing physical and transitional risks for the financial sector. To mitigate the negative impacts, central banks, supervisors and policymakers started undertaking various green banking initiatives, although the approach taken so far is slightly different between developed and developing countries. In parallel, both private and public financial institutions, individually and collectively, are trying to address the issues on the horizon especially from a risk management perspective. Particularly, private sector banks have developed climate strategies and rolled out diverse green financial instruments to seize the business opportunities. This paper uses the theory of change conceptual framework at the sectoral, institutional and combined level as a tool to identify barriers in green banking and analyze activities that are needed to mitigate those barriers and to reach desired results and impacts.

Open Access
Relevant
Potential applications of unmanned ground and aerial vehicles to mitigate challenges of transport and logistics-related critical success factors in the humanitarian supply chain

The present decade has seen an upsurge in the research on the applications of autonomous vehicles and drones to present innovative and sustainable solutions for traditional transportation and logistical challenges. Similarly, in this study, we propose using autonomous cars and drones to resolve conventional logistics and transport challenges faced by international humanitarian organizations (IHOs) during a relief operation. We do so by identifying, shortlisting, and elaborating critical success factors or key transport and logistics challenges from the existing humanitarian literature and present a conceptual model to mitigate these challenges by integrating unmanned ground (UGVs) and aerial vehicles (UAVs) in the humanitarian supply chain. To understand how this novel idea of using UGVs and UAVs could help IHOs, we drafted three research questions, first focusing on the identification of existing challenges, second concentrating on remediation of these challenges, and the third to understand realization timeline for UGVs and UAVs. This lead to the development of a semi-structured, open-ended questionnaire to record the respondents’ perspectives on the existing challenges and their potential solutions. We gathered data form, ten interviewees, with substantial experience in the humanitarian sector from six IHOs stationed in Pakistan and Austria. In light of the feedback for the second research question, we present a conceptual model of integrating UAVs and UGVs in the relief chain. The results of the study indicate that technological advancement in mobility withholds the potential to mitigate the existing challenges faced by IHOs. However, IHOs tend to be reluctant in adapting UGVs compared to UAVs. The results also indicate that the adaptation of these technologies is subject to their technical maturity, and there are no significant differences in opinions found between the IHOs from Pakistan and Austria.

Open Access
Relevant
Sustainable product purchase: does information about product sustainability on social media affect purchase behavior?

Nowadays, consumer-to-consumer communication and its impact on purchase decisions have gained substantial consideration owing to digitalization and the emergence of internet-based social media platforms. Social media allows consumers to communicate with thousands of people well beyond their network. Consequently, the demand for transparency from industrial corporations has increased. It even becomes more important to understand how sustainability-related information on social media holds organizations accountable for their wrongdoings and reward them for taking sustainability-related initiatives. In this research work, the authors investigate how information that is available on social media influences consumers’ purchase behavior with regard to sustainable products in the context of developing countries. Therefore, the authors surveyed social media users residing in Pakistan and used partial least squares structural equation modeling (PLS-SEM) to analyze the collected data. The results established that positive and negative sustainability-related information on social media significantly influences consumers’ intention to purchase sustainable products. Furthermore, this study explains that consumers’ willingness to seek sustainability-related information makes them dependent on social media and this dependency on social media affects their intention to purchase.

Open Access
Relevant