Corporate Sustainability Practices Research Articles

Carbon reduction and corporate sustainability: Evidence from low-carbon city pilot policy

The enhancement of corporate environmental, social, and governance (ESG) performance represents a crucial aspect of the broader green transformation agenda. Using a DID design, this paper examines the impact of China's low-carbon city pilot (LCCP) policy on the corporate ESG performance. Our findings demonstrate that the construction of LCCP exerts a positive influence on corporate ESG performance in pilot regions, particularly in industries and areas with high carbon emission intensity. Channel analyses reveal that LCCP policy heightens the environmental concerns of local governments and the public. Furthermore, LCCP policy has a crowding out effect with firms located in the surrounding cities. This paper responds to the calls for the determinants of ESG and enriches the understanding of policy impacts on corporate sustainability practices.

Exploratory analysis of zero waste theory to examine consumer perceptions of sustainability: A covariance-based structural equation modeling (CB-SEM)

IntroductionThe analysis of corporate and consumer sustainability practices is currently the focus of several scientific disciplines due to their environmental impact and diversity. ObjectiveThis research aims to create a hierarchy of consumer perceptions of zero waste thinking that can guide government decisions regarding university communities' sustainability efforts. To achieve the objectives of this study, Hungarian university citizens (students, faculty, staff) as potential zero waste consumers in Győr were involved in a purposive sampling approach. MethodsThis study adopted the Covariance-Based Structural Equation Modeling (CB-SEM) methodology to prove the hypotheses related to the 7Rs regarding Zero Waste perceptions of university citizens. The rethink element of the hierarchy was defined as the default condition for the 7 R application and therefore remained at the top of the hierarchy as an endogenous variable. ResultsThe study concluded that it is possible to adapt a business 7 R framework for consumer use, but only 5Rs can be applied. The analysis was conducted at a 90% confidence level, under which condition the independent variables together explain 87% of the variance of the rethink factor. The results show that the four constructs, namely rot (β =0.12, ρ<0.1), reduce (β =0.21, ρ<0.1), recycle (β =0.26, ρ<0.05), and reuse (β =0.43, ρ<0.05) significantly affect rethinking. Based on these regression weights, a hierarchy of importance can be established. In line with the original 7 R business concept, rethink is at the top of the hierarchy, followed by the other elements. ConclusionsThe results suggest that the zero waste attitudes of university citizens are currently limited to the 5Rs, which should require government leadership to strengthen these factors or a more consistent presence and support for the 2Rs that are missing from the established model. Governments can use the results of this research in their sustainability-related decisions.

The Effect of Corporate Social Responsibility and Sustainable Development Practices on Employer Branding—A Case Study of an International Corporation Operating in Poland

Corporate social responsibility (CSR) and sustainable development practices and employer branding (EB) significantly influence the effectiveness of recruitment processes, human resource management (HRM), and an employer’s image. The main aim of this study was to assess the effectiveness of internal and external CSR practices in an international corporation operating in Poland. The empirical study consisted of two stages. In the first stage, an in-depth interview was conducted with a group of managers in the examined company. In the second stage, the company’s employees and local residents (non-employees) were surveyed with the use of questionnaires. The study demonstrated that CSR activities addressing environmental issues were most effective. External CSR practices received greater recognition among white-collar (office) employees, whereas blue-collar (manual) employees were more appreciative of internal CSR measures—in particular, financial support schemes. The effectiveness of internal and external CSR practices has been rarely compared in the literature, and the present study was undertaken to fill in this knowledge gap.

Corporate sustainability practices and financial performance: The moderating role of corporate controversies and Shariah screening

AbstractThis study examines the effects of corporate sustainability practices (CSP) on corporate financial performance (CFP). The study also examines the moderating role of corporate controversies and shariah compliance on the CSP‐CFP relationship. The results support the positive relationship between CSP and CFP. The study also finds that corporate controversies have a negative impact on financial performance and a negative moderating role on the CSP‐CFP relationship. This study also finds that Shariah compliance has a positive moderating role but loses its power when interacting with corporate controversies in influencing the impact of the CSP‐CFP relationship. An important implication of this study is that firms affected by controversy must find ways to mitigate the negative impact.

Assessing the evolution of banking reputation literature: a bibliometric analysis

PurposeThe concept of banking reputation has gained significant attention due to its relevance in the banking industry. A strong reputation has become crucial for a bank’s success, as it affects trust, credibility and stakeholders' perceptions. However, understanding and managing reputation in the banking sector involves several challenges. This study aims to analyze the field of banking reputation research through bibliometric analysis.Design/methodology/approachIt explores the evolution of research in this area, identifies key journals, articles and authors, examines the main research streams, and identifies research fronts and opportunities for future advancement.FindingsThe findings reveal that banking reputation research has evolved over time, with multiple perspectives and viewpoints. Key journals and authors in the field are identified, and leading research streams are highlighted. The study also uncovers the conceptual and intellectual structure of the research domain, providing insights into the complex and multidimensional nature of banking reputation. Furthermore, the study emphasizes the importance of corporate social responsibility, sustainability practices and gender diversity in shaping a bank’s reputation. These factors play a significant role in attracting and retaining customers, accessing financial markets and securing funding.Research limitations/implicationsThe results contribute to the existing body of knowledge and provide researchers and practitioners with valuable insights for further exploration.Originality/valueThe paper concludes by outlining potential avenues for future research in the field of banking reputation.

From waste to wealth: Policies to promote the circular economy

This policy article addresses the urgent need for a comprehensive policy framework to advance the circular economy, a crucial strategy in mitigating the global waste and pollution crisis. It seeks to bridge the research gap by evaluating and structuring circular economy policies across various governance levels, employing an ecological economics perspective. Through a synthesis of literature and case studies, the article examines the effectiveness of regulatory policies, economic incentives, and voluntary measures, and confronts the cultural, behavioral, economic, regulatory, technical, and logistical barriers to implementation. The findings underscore the importance of integrated policy approaches, such as extended producer responsibility, environmental taxes, and corporate sustainability practices, offering actionable insights for stakeholders. This contribution is significant for its strategic recommendations, which are vital for transitioning towards sustainable development and operationalizing the circular economy in practice.

University of Pannonia Sustainability index (UPSi) for corporate sustainability

This paper explores the concept of corporate sustainability and the role of sustainability indi-cators in achieving the United Nations’ Sustainable Development Goals (SDGs). It emphasizes the need for companies to integrate sustainability principles into their strategies and operations while minimizing negative impacts on the environment, society, and economy. The study highlights the importance of using relevant sustainability indicators to measure and assess corporate sustainability performance. In this context, we developed the University of Pannonia Sustainability index (UPSi), a comprehensive indicator that monitors sustainability performance and supports decision-making in sustainability developments. A case study was conducted to demonstrate the effectiveness of UPSi in assessing corporate sustainability practices. The findings showcase the practical application of UPSi in identifying strengths, weaknesses, and areas for improvement in sustainability efforts. The examined public institution could improve its performance primarily in management indicators and in relation to greening and transportation, namely the use of renewable energy sources, zero-emission vehicles and sustainability-related expenses solutions can be proposed. This paper contributes to the field of corporate sustainability by offering a framework and tool to evaluate and enhance sustainability performance, thereby fostering a more sustainable future.

A Critique on Theoritical Framework for Adoption of Corporate Sustainability Practices: Iintegrating Institutional Motives, Stakeholder Motives, and Managerial Motives

Purpose: This literature review seeks to advance knowledge of the area of theories on motivation for corporate sustainability efforts as it has been researched by earlier experts. Corporate sustainability has gained more attention in academics and business since the 1990s. Still, there is a lack of literature in the area of motivational theories for corporate sustainability. This particular review paper offers an analysis of 30 articles from journals covering the area of business and management that were published between 2002 and 2022. The paper provides a summary of the growth of corporate sustainability, as well as various definitions, and theories that have been put into practice to motivate corporate sustainability efforts.&#x0D;  &#x0D; Method: The researcher employed a literature search strategy, drawing from prior review articles, to investigate corporate sustainability theories and related studies by reputable academics. The electronic search focused on business and management publications, using keywords like sustainability and motivating theories for corporate sustainable adoption. The search was limited to the most recent two decades. Each identified work underwent screening to assess its essential relevance to motivational theories of corporate sustainability.&#x0D;  &#x0D; Findings: The results show that the field of corporate sustainability is still developing and that several theories have been employed to measure the motives of corporate sustainability. We believe that despite the similarities and connections between the three theories: institutional theory, stakeholder theory, and managerial motives, they are complementary rather than competing. Most significantly, they can be combined with and connected to corporate sustainability activities to provide a multi-theoretical view of the motivations behind such practices.&#x0D;  &#x0D; Research Implication: This study provides a theoretical framework that can be applied to studies of corporate sustainability, particularly when attempting to understand why organizations motivate to adopt corporate sustainability.&#x0D;  &#x0D; Origonality/Value: This theoretical model can be used as a conceptual foundation for empirical research on the drivers of corporate sustainability initiatives in a variety of settings. To gain a deeper comprehension of corporate sustainability adoption, it makes an effort to gain valuable insights into more than one single theory.

A Critique on Theoritical Framework for Adoption of Corporate Sustainability Practices: Iintegrating Institutional Motives, Stakeholder Motives, and Managerial Motives

Purpose: This literature review seeks to advance knowledge of the area of theories on motivation for corporate sustainability efforts as it has been researched by earlier experts. Corporate sustainability has gained more attention in academics and business since the 1990s. Still, there is a lack of literature in the area of motivational theories for corporate sustainability. This particular review paper offers an analysis of 30 articles from journals covering the area of business and management that were published between 2002 and 2022. The paper provides a summary of the growth of corporate sustainability, as well as various definitions, and theories that have been put into practice to motivate corporate sustainability efforts.&#x0D;  &#x0D; Method: The researcher employed a literature search strategy, drawing from prior review articles, to investigate corporate sustainability theories and related studies by reputable academics. The electronic search focused on business and management publications, using keywords like sustainability and motivating theories for corporate sustainable adoption. The search was limited to the most recent two decades. Each identified work underwent screening to assess its essential relevance to motivational theories of corporate sustainability.&#x0D;  &#x0D; Findings: The results show that the field of corporate sustainability is still developing and that several theories have been employed to measure the motives of corporate sustainability. We believe that despite the similarities and connections between the three theories: institutional theory, stakeholder theory, and managerial motives, they are complementary rather than competing. Most significantly, they can be combined with and connected to corporate sustainability activities to provide a multi-theoretical view of the motivations behind such practices.&#x0D;  &#x0D; Research Implication: This study provides a theoretical framework that can be applied to studies of corporate sustainability, particularly when attempting to understand why organizations motivate to adopt corporate sustainability.&#x0D;  &#x0D; Origonality/Value: This theoretical model can be used as a conceptual foundation for empirical research on the drivers of corporate sustainability initiatives in a variety of settings. To gain a deeper comprehension of corporate sustainability adoption, it makes an effort to gain valuable insights into more than one single theory.

An examination of the impact of corporate sustainability practices on decision-making for Chinese investors

This paper examines the impact of corporate sustainability practices on Chinese investors' decision-making within China's unique CSR framework shaped by government directives. Through focus group discussions with 36 MBA participants from Zhejiang University, the study reveals a general preference for prioritising sustainability in investment appraisal, reflecting the Chinese government's strong stance on CSR. Trust in CSR disclosure depended on historical accuracy and third-party verification. As China strengthens its sustainability directives, this study predicts greater integration of sustainability metrics in China's investment strategies and highlights the symbiotic relationship between state policies, corporate practices and investor perceptions.

Corporate Sustainability Through the Presence of Women in Boards: Empirical Evidence from Developing Economy

Abstract The purpose of this study is to address the emerging concept of women on boards as a solution to breaking gender barriers in boardrooms and its influence on sustainability reporting in Sri Lankan companies. The study aims to explore the relationship between the representation of women on boards and sustainability reporting, while also investigating the potential role of gender diversity in promoting sustainability in social, economic, and environmental spheres. The research adopts a comparative approach to examine the degree of women on boards and the level of sustainability reporting in Sri Lanka. The study utilizes the resource dependency theory, contingency theory, and agency theory as theoretical frameworks to analyze the association between women directors on boards and sustainability performance. Archival data from the highest market capitalization companies during the period of 2016 to 2019 is collected from audited annual financial statements. The study reveals a significant positive relationship between the presence of women on boards and sustainability reporting in Sri Lanka. It addresses the empirical and contextual gaps in this area, providing valuable insights into the positive impact of gender diversity on corporate sustainability practices in the Sri Lankan context. The research emphasizes the pragmatic solution of including women’s voices in the boardroom to foster gender diversity and create an interest in sustainability, which is an emerging trend in the country. Overall, this study adds valuable knowledge to the fields of corporate governance, gender diversity, and sustainability reporting.

Corporate Sustainability Practices: A Systematic Literature Review and Bibliometric Analysis

Corporates are the major users of environmental and human resources for production and related processes. While wealth maximization was prioritised in the past, international organizations and governments now advocate for sustainable practices to protect the ecosystem and vulnerable communities. This article analyses corporate sustainability research to find the literature gap for future researchers. A bibliometric analysis cum systematic literature review was conducted on 116 articles selected from the Scopus database. Corporate sustainability research has gained popularity since 2015, and most studies were undertaken in developed countries. The stakeholder theory is widely used in these studies. The content analysis helped identify themes like determinants of sustainability, relationship between sustainability and firm performance, and sustainability compliance levels. Future studies may assess the impacts of sustainability on factors other than financial performance, such as earnings management, cost of capital, and market risk, and non-financial aspects, such as employee performance and customer relations. Areas like corporate sustainability auditing and assurance offer promising avenues for future exploration. Policy-makers are urged to raise awareness about sustainability among companies and stakeholders to achieve sustainable development.

Does corporate sustainability disclosure mitigate earnings management: empirical evidence from Jordan

AbstractThis paper aims to investigate the relationship between sustainability disclosure practices and earnings management in the Jordanian context. Based on an analysis of 66 non-financial firms listed on ASE, spanning the period of 2017–2020. The findings revealed that companies' compliance with the disclosure of sustainability improves their ethical behavior, which limits earnings management practices and increases the reliability of their financial statements. The findings have implications for regulators, corporate executives, practitioners, policymakers, top management, and business partners. More corporate sustainability practices present more trustworthy information and more sustainable performance of the economic. To the best of the authors’ knowledge, this is the first study to examine the relationship between the extent of sustainability disclosure and earnings management in Jordanian firms. Moreover, two models were used for earnings management, which adds value to the existing literature.

Corporate Sustainability Practices in Indian Automobile Industry: Enhancing Government Initiatives, Economic Improvements, and Environmental Practices

Even though automobile manufacturers are striving to address sustainability issues by introducing corporate sustainability practices, there is limited studies related to this issue. This study aims to identify valid and accurate CSP, analyze causal interrelationships between aspects under uncertainty, and propose the criteria for practical implementations. This study proposed six aspects and seventy-three criteria. By employing a Fuzzy decision-making trial and evaluation laboratory (DEMATEL), our result confirms 39 criteria out of 79 original criteria. The most important aspects were organizational structure, societal features, technological utilization, actions taken by the government, and innovative ideas. The most significant criteria are assurances of security and auditing, sponsorship of sporting or recreational projects and gifts, support for arts and culture, awards related to social sustainability, internal control mechanisms, environmental management systems, and product environmental impacts. This research contributes to the existing corpus of knowledge by identifying the fundamental CSP characteristics required to facilitate the achievement of sustainable organizational goals, and then identifying the causal interrelationship between those characteristics. In addition, this study offers suggestions for policy makers to focus on governmental initiatives business social consciousness, technological innovation, and sustainable organizational culture in order to enhance CSP.

Determinants of sustainability reporting: A systematic literature review

AbstractSustainability reporting has been widely acknowledged as a crucial corporate sustainability practice and recently received increasing attention from regulators, standard‐setters, practitioners, and researchers. Motivated by the abundance of work, and the variety of theoretical perspectives and existing evidence, this paper explores how the research on sustainability reporting determinants has developed over time and what is known and not known about this topic. To address this question, we conducted a systematic literature review of articles on sustainability reporting determinants published in ABS‐ranked journals between 2002 and 2021. Building on Lozano et al. (2015) framework of corporate sustainability theories, our findings provide an updated overview of factors driving sustainability reporting and the determinants still under debate. Furthermore, to fill existing gaps and inspire future research developments, findings suggest further work focus on non‐listed companies, environmentally sensitive industries, underexplored geographical areas, and qualitative methods. Finally, the paper has implications for managers and policymakers.

The Impact of Chief Sustainability Officers on Environmental Performance of Korean Listed Companies: The Mediating Role of Corporate Sustainability Practices

Chief sustainability officers and sustainability consultants have become increasingly common today as many organizations have become more aware of their impact on the environment and society at large. With the growing importance of integrating sustainability into business, many firms are appointing chief sustainability officers to manage and oversee the sustainability affairs of their firms at various levels. However, very little is known about the chief sustainability officer and the sustainability management team. This study investigates the potential importance of the chief sustainability officer (CSO) and the sustainability management team toward the firm’s environmental performance. Using a sample of Korean-listed companies for the year 2017–2020, this study aims to investigate the relationship between appointment of the chief sustainability officer and a firm’s environmental performance. It also explores the possible mediating role of corporate sustainability practices (CSP) in this relationship, utilizing Baron and Kenny’s method to analyze the mediating role. First, the regression analysis was conducted to assess the impact of the presence and role of CSO on the firm’s environmental performance. Subsequently, the firm’s CSP was then introduced into the regression analysis as a mediator, to evaluate its influence on the relationship between the chief sustainability officer and the firm’s environmental performance. We found that CSP completely mediated the relationship between CSO and environmental performance. This study contributes empirically to the growing literature on the relevance of sustainability management officials and their impacts on the firm’s environmental performance.

Sustainability Practices and Firm Performance: Evidence from Listed Companies in India

Purpose: The impact of corporate sustainability practices on the firm performance of Indian-listed businesses was investigated in this study.   Theoretical Framework: The present research investigated the stakeholder theory’s application to corporate sustainability initiatives. Many recent studies have claimed that the theory encompasses a wide range of other elements that can affect the firm's valuation in addition to its purely economic value (Martin, 2022; Bodhanwala, 2022 ). To ensure firm performance in the current dynamic business environment, it is crucial to evaluate the scope of value creation from a stakeholder perspective in this context.   Design/Methodology/Approach: The corporate sustainability practices of 65 listed Indian firms were evaluated using the ESG score from the refinitive database of Thomson Reuters, and the firm performance was evaluated using the ROA (return on assets) score from the Prowess IQ database. The presented hypotheses were tested using single and multiple regression models for the study period of 2017–2021.   Findings: Findings suggest that the sustainability practices of listed companies in India had a significant positive impact on the firm performance. On detailed analysis, it was further found that among the three sustainability variables, social and governance activities of firms had a significant positive impact on firm performance while environmental activities had a negative insignificant association with firm performance.   Research, Practical &amp; Social Implications: The findings of this study highlight the importance of supporting sustainable enterprises and properly reporting them in order to enhance firm-level performance. The study’s findings may also assist the business in piquing the interest of various stakeholders in reference to its sustainability initiatives and aid it in luring more investors.   Originality/Value: The study’s empirical data can be used by different governmental and regulatory agencies to help them take the necessary steps to support different sustainable business practices.

Sustainability performance, executive compensation, market value, and say-on-pay voting adoption: evidence from the STOXX Europe 600

PurposeThis study aims to investigate the link between carbon emissions and market value for nonfinancial companies in the STOXX Europe 600 index, with a specific focus on the moderating effect of executive compensation.Design/methodology/approachTo achieve the study’s purpose, this study uses data from the STOXX Europe 600 index between 2010 and 2021. The researchers use ordinary least squares regression analysis to examine the relationship between carbon emissions and market value while taking into account the moderating effect of executive compensation. The study also uses additional tests, such as the dynamic two-step system generalized method of moments regression and the difference in differences method.FindingsThe study reveals four key findings. First, there is a statistically significant negative relationship between carbon emissions and market value. Second, executive compensation has a negative moderating effect on the association between carbon emissions and market value. Third, Say-on-Pay regulations can encourage companies to adopt environmentally responsible practices, which can positively impact their market value. Finally, the study shows that the Paris Agreement motivates companies to prioritize sustainability, leading to potentially higher market values for those that are more environmentally responsible.Practical implicationsThis study highlights the importance of considering environmental sustainability in corporate decision-making. It suggests that prioritizing sustainability can lead to financial benefits, as companies with lower carbon emissions tend to have higher market values. The findings also have important implications for regulators and investors.Originality/valueThis study provides novel insights into the link between carbon emissions and market value and the moderating effect of executive compensation. It also sheds light on the potential impact of Say-on-Pay regulations and the Paris Agreement on corporate sustainability practices and market values.

Long-term Business Sustainability Through Corporate Governance

Effective corporate governance and sustainability practices can help a company build trust with stakeholders, reduce risks, and improve financial performance. They can also help a company demonstrate its commitment to responsible business practices and increase its credibility and transparency. However, companies that fail to address these issues may face reputational damage, financial losses, and regulatory penalties. Thus the role of corporate governance in long-term business sustainability is significant. The primary objective of this study is to investigate the concept of long-term business sustainability, with particular emphasis placed on the value that organizations bring to their stakeholders and shareholders, mainly through a discussion of the connection between corporate governance. The study analyses the numerous environmentally responsible business practices that are now in place by developing the findings by conducting a comprehensive literature review. Conclusions were drawn about the relationship between corporate governance and long-term business viability based on the literature review after discussing the result.

Corporate social responsibility and sustainability practices: mediating effect of green innovation and moderating effect of knowledge management in the manufacturing sector

Purpose This study aims to examine the roles of corporate social responsibility (CSR), green innovation (GI) and knowledge management (KM) in boosting sustainable practices (SPs). It also investigates the mediating effect of green innovation and the moderating effect of KM in the relationship between CSR and SPs. Design/methodology/approach Using measurement scales adapted from existing studies, a quantitative methodology with causal and deductive reasoning was used on data from an online survey with 322 respondents in manufacturing firms in the United Arab Emirates. Findings There was no direct significant positive relationship between CSR and SPs; the mediating role of GI was evident, whereas the moderating role of KM was not present. Research limitations/implications Only manufacturing enterprises are considered in this study, with a single geographical case study highlighting CSR efforts. Practical implications The findings reveal the positive influence of GI on CSR and SPs. This study contributes to the understanding of the influence of green processes and product innovation on applying social, environmental and sustainability practices to enhance the overall productivity, compliance, performance and well-being of the community. Originality/value This study collectively explores the causal relationships between these factors, besides offering new insights into the manufacturing industry in an emerging market.