Corporate Sustainability Performance Measurement Research Articles

Integrating corporate image of corporate social responsibility, stock price crash risk and profitability into a dynamic corporate sustainability performance measurement

Integrating corporate image of corporate social responsibility, stock price crash risk and profitability into a dynamic corporate sustainability performance measurement

Corporate social responsibility and sustainability performance measurement systems: implications for organizational performance

Corporate social responsibility and sustainability performance measurement systems: implications for organizational performance

Corporate sustainability performance measurement based on a new multicriteria sorting method

AbstractThe concept of sustainability deals with protecting and sustaining society and environment for future generations while trying to meet the maximization of market capitalization objective. Despite the increased awareness of corporate sustainability, questions remain on how to measure performance. The objective of this paper is to propose a new measurement method, which is Multimoora Sort, for corporate sustainability performance and make an empirical case with the 25 companies listed in Fortune 500 USA. We chose four economic subcriteria, two environmental subcriteria, and four social subcriteria for the methodology. The results of the study show that the proposed methodology is a practical and efficient decision method. The most important contribution of the study to the literature is to present a new evaluation method in the measurement of sustainability performance as well as the results of the empirical case are supported by the resource dependency theory, institutional theory, and stakeholder theory.

A framework to measure corporate sustainability performance: A strong sustainability-based view of firm

This paper proposes a framework to measure corporate sustainability performance by designing a composite sustainability index. Two core concepts form the basis of the proposed corporate sustainability index: (a) the triple-bottom-line approach and (b) the principles of strong sustainability. More specifically, the proposed index simultaneously combines the economic, environmental and social components of sustainability integrating the concept of thresholds into the logic composite index of corporate sustainability performance measurement so as to address some basic principles of strong sustainability. This implies that thresholds could be associated with the concept of carrying capacity, safe minimum standards and critical capital. Finally, a computational example has been designed in order to show the practical implications of the proposed index. The findings indicate that social and environmental thresholds could play a critical role in the overall sustainability performance of firms and the proposed index could be a good tool for scholars and practitioners to understand the logic of measuring corporate strong sustainability performance.

Corporate Sustainability Indexes: Dow-Jones Index

Corporate Sustainability Performance Measurement along with Corporate Environmental Sustainability aims to address the social and economic aspects. Concerns emerging from the three dimensions are being reduced to a single dimension of them. Multi-criteria decision-making methods, suggests a useful framework for assessing the variables together. Corporate sustainability and economic business activities are focused on the social and environmental impacts. In this sense, the economic activity established by the businesses do follow social and environmental impacts, therefore the generation of related information of these effects is being considered essential on the structure formation on a sustainable business. In this study, it has been used Dow Jones Sustainability Index monthly data from 2009 to 2015 in a range of 12 months to help investors to make decisions. The comparison of ARIMA and Exponential Smoothing models has been conducted, wherein the results showed that ARIMA model provided better estimates meantime those who invested in a stock portfolio with the same composition as the DJSI proved to ensure positive earnings. The purpose of the essay is to give a conclusion to the future of the practice.

Corporate Sustainability Indexes: Dow-Jones Index

Corporate Sustainability Performance Measurement along with Corporate Environmental Sustainability aims to address the social and economic aspects. Concerns emerging from the three dimensions are being reduced to a single dimension of them. Multi-criteria decision-making methods, suggests a useful framework for assessing the variables together. Corporate sustainability and economic business activities are focused on the social and environmental impacts. In this sense, the economic activity established by the businesses do follow social and environmental impacts, therefore the generation of related information of these effects is being considered essential on the structure formation on a sustainable business. In this study, it has been used Dow Jones Sustainability Index monthly data from 2009 to 2015 in a range of 12 months to help investors to make decisions. The comparison of ARIMA and Exponential Smoothing models has been conducted, wherein the results showed that ARIMA model provided better estimates meantime those who invested in a stock portfolio with the same composition as the DJSI proved to ensure positive earnings. The purpose of the essay is to give a conclusion to the future of the practice.

Sustainability performance measurement with Analytic Network Process and balanced scorecard: Cuban practical case

The recent years has arisen a global discussion in relation with how to incorporate sustainability at a business level. Corporate sustainability is a multidimensional concept, is the translation of Sustainable Development concept at a business level. Sustainability in organizations must be managed and assessed by decision makers, for that reason a multi-criteria sustainability performance measurement is necessary. The aim of this paper is combine different important tools that helps to make operative corporate sustainability and sustainability performance measurement in Cuban organizations. The combination of Sustainability Balanced Scorecard, multi-criteria decisions models like: Analytic Network Process, and Matrix of Sustainable Strategic Alignment, can help managers in sustainability performance measurement and assessment. The result of this paper focus in a Corporate Sustainability Measurement Network design as a first approach for further sustainability performance measurement systems development emphasizing in multi-criteria analysis.

Deconstructing corporate sustainability: a comparison of different stakeholder metrics

Although Corporate Sustainability Performance Measurement (CSPM) has been a subject of growing interest both in academia and in practice, knowledge on which Corporate Sustainability (CS) aspects should be considered to account for CSPM is still limited. The purpose of this article is to compare the most widely used CSPM instruments to highlight their similarities and differences as well as to advance toward a more standardized list of sub-dimensions that should be covered when accounting for the economic, social and environmental dimensions of CS. We first conducted a systematic literature review to identify the most relevant CSPM instruments. This process yielded 9 instruments developed by different stakeholders (e.g., KLD, DJSI, GRI, Bansal, 2005). Second, we analyzed their content based on a systematic process. We found that the instruments differ quantitatively and qualitatively on how they measure CS, although there seems to be more consensus regarding the CS environmental dimension. Finally, we created a list of sub-dimensions that could be used as a reference for academics, practitioners and other stakeholders interested in measuring CS at the corporate level.

Corporate sustainability management: a proposed multi-criteria model to support balanced decision-making

Companies have been challenged to attend to multiple objectives and to achieve appropriate decisions facing dichotomies mentioned in literature, such as shareholder versus stakeholder; financial versus non-financial; single versus multiple measures. Since the translation of the sustainable development concept to business by the triple bottom line (TBL), there have been attempts to implement operational approaches. This study proposes a model that helps corporate decision-making considering the TBL framework and a stakeholder view. Multi-criteria decision aid methods are used to generate a sustainability balanced single measure and performance indices. We apply the model to a Brazilian electricity corporation, where the indices are calculated from existing GRI indicators, and the use of the model within the company's strategic plan annual review is demonstrated. The findings suggest that the model has the potential to support informed decisions and the integration of corporate sustainability performance measurement and reporting activities with traditional management control systems.

A Heuristic Model for Establishing Trade-Offs in Corporate Sustainability Performance Measurement Systems

A large body of the literature on sustainability indicators, assessments and reporting is currently available. However, sustainability performance measurement systems have an insubstantial presence in the literature. Invariably, a sustainability performance measurement system presents the potential for certain trade-offs or opportunity costs for organizations. Extant sustainability platforms and standards are largely silent about how to deal with trade-offs. Utilizing evidence from the literature, as well as contingency factors, this paper seeks to present a heuristic model for establishing trade-offs in corporate sustainability performance measurement systems. Trade-offs in this area revolve around performance measurement, stakeholder management, competitive advantage, as well as the vertical and horizontal integration of the performance platform. This is particularly important for organizations seeking to establish, integrate or expand their environmental management systems into the area of sustainability. As yet, formalistic attempts to deal with trade-offs in sustainability performance measurement systems are infrequent and vague.

Promotion and evolution of sustainability performance measurement systems from a perspective of business process management

Purpose – The purpose of this paper is to create a conceptual proposal that considers the relevant aspects to guide the promotion and evolution of corporate sustainability performance measurement systems (SPMSs) from a perspective of business process management. Design/methodology/approach – This study is divided into two phases. The first phase is a literature review with the study question was, “Which aspects need to be considered for promoting and evolving SPMS with a focus on business processes?” The second phase involved comparing these approaches and presenting a conceptual proposal with the relevant aspects for promoting and evolving a corporate SPMS. Findings – In the literature review, the following aspects were considered relevant to promoting sustainability: strategy, integration, stakeholders, evolution over time and business processes. The conceptual proposal found each aspect relevant and complementary presented consideration for each, forming one SPMS pentagon. Research limitations/implications – The comparison between the approaches is conceptual. Practical implications – This study can help organizations address the evolution of their measurement systems systemically. Originality/value – The summaries of the main considerations and evaluation issues provide starting points for organizations, researchers and students involved in sustainability-related matters. The discussion presented here can help organizations identify the strengths and weaknesses of their measurement systems and provide a basis for the promotion and implementation of improvements.

Social Indicators in Corporate Sustainability Performance Measurement

The integration of social indicators in sustainability performance management systems has only recently gained momentum in research and corporate practice. Consequently, there is no unilateral unde...

The Sustainability Balanced Scorecard: A Systematic Review of Architectures

The increasing strategic importance of environmental, social and ethical issues as well as related performance measures has spurred interest in corporate sustainability performance measurement and management systems. This paper focuses on the balanced scorecard (BSC), a performance measurement and management system aiming at balancing financial and non-financial as well as short and long-term measures. Modifications to the original BSC which explicitly consider environmental, social or ethical issues are often referred to as sustainability balanced scorecards (SBSCs). There is much scholarly discussion about SBSC architecture and how it can be designed to relate performance dimensions, strategic objectives and the logical links among these elements. To synthesise the widely scattered research findings and publications on the SBSC, we conducted a thematic analysis based on a systematic literature review containing 69 relevant articles spanning a period of two decades. We found that sustainability-oriented modifications of the BSC architecture are motivated by instrumental, social/political or normative theoretical perspectives. Moreover, these modifications can be mapped with a typology of generic SBSC architectures. The first dimension of the typology describes the hierarchy between performance perspectives and strategic objectives and how it is related to the organisational value system. The second dimension describes how sustainability-related strategic objectives are integrated into SBSC performance perspectives and how this is related to corporate sustainability strategy. This study contributes to the development of the emerging SBSC literature and practice and, more generally, to research on corporate sustainability performance measurement and management. We conclude with a research agenda and implications for management.

Special volume of the Journal of Cleaner Production on “Integrating corporate sustainability performance measurement, management control and reporting”

Much has been written about “why” companies are involved in sustainability issues. Numerous papers have been published about their motivations such as the business case and stakeholder management. However, relatively little research has addressed the “how” question. Amongst the “how” questions, the one dealing with how companies can and do integrate sustainability performance measurement, management control, reporting and communication is particularly underexplored. How are companies involved in sustainability management through accounting and reporting? How are appropriate data obtained and how are they used to influence management decision making, management control, performance management and incentive systems when assessing the success of company sustainability? Reporting companies mainly collect data for lagging indicators. Although these are of potential use they mainly provide information about past performance, and are not relevant for management decisions. To improve sustainability performances (environmental, social and economic), firms also need to consider leading indicators. Current trends such as ‘Integrated Thinking and Integrated Reporting’ stimulate this way of thinking while encouraging firm’s managers to integrate sustainability issues within the firm’s vision, strategy, risk management, conventional management accounting, control and reporting systems. Although these elements are often addressed separately, it is becoming increasingly urgent that for effective improvement of sustainability performance all must be addressed in an integrated and holistic manner. How do and can companies integrate these different management areas, departments and rationales in such ways that help the firms to become true leaders in the transition to post fossil carbon societies? To motivate research on this topic The Environmental and Sustainability Management Accounting Network (EMAN) conference to be held on 27th and 28th March, 2014 will focus on the theme

Corporate sustainability performance and firm performance association: a literature review

The purpose of the present study is to conduct a review of the literature on the relation between corporate sustainability performance and firm performance. In this study corporate sustainability performance and firm performance measurement has been divided into different categories. Only empirical studies have been selected for the review. Research articles are classified based on certain measurement categories. Findings of this study suggest a positive relation between corporate sustainability performance and firm performance. Firm size and industry are the control variables used by the maximum number of studies. The results of the study support the fact of doing well pay well. The association between corporate sustainability performance and firm performance is an issue of ongoing debate among scholars and practitioners. This debate is supported by various ethical, religious, and emotional facts. The importance of this issue is major driven power of the empirical studies in this field of research. The positive relation between corporate sustainability performance and firm performance may be an important motivating factor for the practitioners to contribute more towards sustainable development. Results of this study will help both practitioners and academicians those are conducting research in the field of corporate sustainability performance measurement.

Corporate Sustainability Performance Measurement Systems: A Review and Research Agenda

Corporate sustainability performance measurement systems (SPMS) have been the subject of a growing amount of research. However, there are many challenges and opportunities associated with the design, implementation, use, and evolution of these systems that have yet to be addressed. The purpose of this article is to identify future directions for research in the design, implementation, use, and evolution of corporate SPMS. A concise review of key literature published between 2000 and 2010 is presented. The literature review focuses on research conducted at the both the individual corporation- and sector-levels. The review of published literature provides a basis for the identification of a structured set of 65 key research questions to guide future work. The research questions will be of interest to both practitioners and researchers in corporate sustainability performance measurement.

Updating corporate sustainability performance measurement systems

PurposeThe purpose of this paper is to present an approach for guiding the evolution of a corporate sustainability performance measurement system (SPMS).Design/methodology/approachA review of published literature highlights the need for further research on the evolution of corporate SPMSs. Building on existing research, the paper presents a three‐phase approach for structuring the evolution of a corporate SPMS: planning for an assessment of an SPMS; conducting an assessment; and following up on the results of the assessment. Key issues that must be addressed in each phase are highlighted and discussed.FindingsThe approach presented in the paper will help guide decision‐makers through the process of reviewing and updating their corporate SPMS. The guidelines will provide needed insight into the challenges and opportunities associated with the evolution of a corporate SPMS.Research limitations/implicationsThe approach presented in the paper is a conceptual model. Opportunities for further research are highlighted in the paper.Originality/valueThe paper focuses attention on the frequently overlooked process of reviewing and updating a corporate SPMS. The paper offers practical guidance, including an extensive set of assessment questions, related to the evolution of a corporate SPMS. The paper will be of interest to both practitioners and researchers in corporate sustainability performance measurement.

Setting a course in corporate sustainability performance measurement

PurposeThe purpose of this paper is to present situational, goal, and implementation diagnostic questions to guide the early stages in the development of a corporate sustainability performance measurement system (SPMS).Design/methodology/approachThe paper highlights that measuring corporate sustainability is a complex problem. It argues that significant time must be devoted to defining sustainability in the corporate context, surveying the internal and external environments in which the corporation operates, establishing goals and objectives for the SPMS, identifying how the SPMS will be used, and identifying resource needs at the very beginning of the process to create a SPMS. Key questions that must be addressed in each of these areas are highlighted and discussed.FindingsThe situational, goal, and implementation diagnostic questions will help decision‐makers to structure thinking and discussion around the key issues that all meaningful corporate SPMS will need to address. The diagnostic questions will help corporate decision‐makers understand their current situation, the challenges in developing a robust SPMS, the desired end state, and the options available.Research limitations/implicationsThe diagnostics are conceptual models and it is recognized that there is no optimal set of questions that will apply to all cases. With that in mind, the paper notes opportunities for additional research.Originality/valueThe diagnostics focus attention on the often neglected early stages of developing a corporate SPMS. They offer a novel approach to highlighting the key questions that must be addressed at the very beginning of the process. The diagnostics will be of interest to both researchers and practitioners in corporate sustainability performance measurement.

America's Children: Key National Indicators of Well-Being

Although Corporate Sustainability Performance Measurement (CSPM) has been a subject of growing interest both in academia and in practice, knowledge on which Corporate Sustainability (CS) aspects should be considered to account for CSPM is still limited. The purpose of this article is to compare the most widely used CSPM instruments to highlight their similarities and differences as well as to advance toward a more standardized list of sub-dimensions that should be covered when accounting for the economic, social and environmental dimensions of CS. We first conducted a systematic literature review to identify the most relevant CSPM instruments. This process yielded 9 instruments developed by different stakeholders (e.g., KLD, DJSI, GRI, Bansal, 2005). Second, we analyzed their content based on a systematic process. We found that the instruments differ quantitatively and qualitatively on how they measure CS, although there seems to be more consensus regarding the CS environmental dimension. Finally, we created a list of sub-dimensions that could be used as a reference for academics, practitioners and other stakeholders interested in measuring CS at the corporate level.