Corporate Sustainability Strategy Research Articles

Performance Effects of Corporate Sustainability Strategies Using a Semiotic Square Approach

Performance Effects of Corporate Sustainability Strategies Using a Semiotic Square Approach

Industry Heterogeneity and the Economic Consequences of Corporate ESG Performance for Good or Bad: A Firm Value Perspective

An investigation into the relationship between ESG performance and firm value is vital for formulating corporate sustainability strategies. This paper begins by providing a comprehensive overview of the ESG performance across all listed companies in the Chinese stock market. It then examines the effect of a firm’s ESG performance on its firm value, with a particular focus on the heterogeneity within various industries. Our results demonstrate that ESG performance standards are positively correlated with the firm value. Enhancements in ESG performance can significantly bolster a firm’s sustainability. Nevertheless, the degree and direction of the impact of corporate ESG performance on firm value are subject to variation across industries. These results have significant implications for the refinement of corporate ESG practice initiatives and ESG-oriented investors, inspiring them to consider the industry classification of firms in their operational and investment strategies related to ESG.

Quantifying Corporate Sustainability Strategies on the Road to Carbon Neutrality in Northern China

Quantifying Corporate Sustainability Strategies on the Road to Carbon Neutrality in Northern China

Beyond traditional supply chain management: Addressing sociopolitical challenges in increasingly turbulent global trade landscape

AbstractAn increasing number of sociopolitical issues, including international wars, armed conflicts, decoupling of economic powers, deglobalization, nationalism, protectionism, sanctions, tariff wars, political tensions, and other sociopolitical forces affecting global supply chains (GSCs) and supply chain management (SCM) strategies. Amidst these sociopolitical factors, the global trade landscape is undergoing a seismic shift. This paper examines the complex web of these sociopolitical aspects, their impact on SCM strategies, and their implications for GSCs. The systematic literature review approach is used for this research, which entails the following steps: selecting and assessing pertinent sources, summarizing and synthesizing the literature, examining challenges and opportunities, articulating conclusions, and pinpointing prospective directions for future research. The findings of this study reveal that these sociopolitical factors have significant impacts on multiple facets of SCM, such as sourcing strategies, supplier relationships, risk management, and overall supply chain resilience. In addition, the study presents a roadmap for businesses to effectively navigate these difficulties, which involves diversifying supply chain networks, integrating corporate sustainability strategies, and implementing environmental, social, and governance factors into business operations. The originality of this research lies in its integrated and holistic approach to the integration of sociopolitical factors into SCM theory and practice.

Accounting graduates’ perceptions on sustainability

PurposeThis study aims to test whether the perceptions of graduates of accounting-related degrees on the implications of companies’ commitment to sustainable development strategies can be influenced by certain factors associated with their previous training and characteristics.Design/methodology/approachThe study is based on measuring and analyzing the assessment carried out by a sample of students graduating in degrees that include accounting subjects for five consecutive years, from 2016–2017 to 2020–2021, both inclusive. Nonparametric statistical tests are used to determine the type of association between the factors that characterize the graduates and their degree of agreement with the training they received and its relationship with their role in implementing corporate social responsibility (CSR) and sustainability strategies in the company.FindingsThe study’s significant findings reveal that the respondents’ perception of the training they received and their opinion of certain benefits provided by sustainable development and CSR strategies in organizations are positively related. This insight is crucial, as it suggests that the training graduates receive plays a pivotal role in shaping their understanding and support for sustainability. The respondents’ opinions do not vary depending on their personal and/or work characteristics, except in the type of contract, as significant differences are observed between the self-employed and temporary or nonworking workers and between those with a permanent contract and those who are linked to the company with a temporary contract.Originality/valueIn a field where most studies focus on employee–employer relationships and human resource management policies, this research stands out. It delves deeper, not just into employees’ perception of sustainability but also into the causes of this perception. It explores what factors may be influencing employees’ opinions on sustainability, and importantly, it extends this analysis to graduates who will be in charge of these issues. This work covers a significant gap in the research, incorporating the study of variables such as personal characteristics and work-related aspects of employees and the training received in accounting matters.

Drivers, barriers and key practices of corporate sustainability strategy implementation in hotels

This paper analyzes the implementation of corporate sustainability strategies (CSS) in hotels, identifying key factors and practices as perceived by middle-managers. Using qualitative methods, we conducted initial and in-depth interviews with owners, top-managers, and 37 middle-managers from various departments of a hotel chain in the Canary Islands. An existing literature-informed CSS implementation framework guided our analysis, revealing nine key factors that act as drivers, barriers, or both to CSS implementation. We identified crucial practices including paper-use reduction, employee well-being, plastic-use reduction, energy efficiency, recycling, water management, air quality, social contribution, food waste management, and green chemicals, noting varying relevancies across departments. Particularly, work-wellbeing, plastic-use reduction, and energy efficiency showed the highest alignment with CSS. Our findings offer insights into the practical application of CSS, underscoring the importance of tailoring department-specific practices to overarching sustainability goals to bolster organizational sustainability strategies.

Unlocking success: key elements of sustainable business models in the wooden multistory building sector

Few studies have investigated the processes and strategic interactions among the Wooden Multistory Construction (WMC) industry actors, its customers, and local policymakers. Further insights into this field are needed for a sustainability transition in the construction sector. This study aims to explain WMC’s corporate sustainability strategies for co-creation with customers and municipalities. This was based on interviews with key informants in the sector and WMC actors using three case studies in Sweden. Our interviews focused on business processes, interactions with users and municipalities, sustainability, and innovation in the WMC market. The findings reflect the notion of a slow transition in the Swedish WMC market toward using more wood as a bearing structure, which is supported by the competitive advantages and climate performance of wood. The three case studies indicated that the corporate focus is currently placed on incremental improvements in operations, price competitiveness, and successful project management. However, in contexts where wood construction is seen as a unique advantage, collaborations between the construction industry and end users have developed and served as novel platforms for WMC market development. The study concludes that WMCl growth hinges on the industry’s housing offerings prioritizing quality, affordability, and swift construction.

Corporate sustainability strategy: From definitional ambiguity toward conceptual clarification

AbstractThe concept of corporate sustainability strategy (CSS) suffers from considerable definitional ambiguity. Rather than attempting to create a universally acceptable CSS definition, this study scrutinizes the various uses of different existing definitions. Our two‐step methodology began with a systematic literature review to identify different topical perspectives on CSS. Next, a purposeful sampling approach allowed for a more detailed review of each perspective. As a result, we identified and discussed eight topical perspectives: means‐and‐ends, hierarchical, materiality, geographic‐scope, management‐approach, maturity, actor‐and‐process, and contingency perspectives. These were then compared and integrated into a shared conceptual CSS framework. We found the means‐and‐ends perspective to be most fundamental, as it frames how sustainability shapes the purpose and constraints of strategizing. We refine this perspective by distinguishing among indifferent, instrumental, intrinsic, and integrated CSSs. We conclude with discussions on limitations, suggestions for future research, and managerial implications.

Developing CSR communication strategies to increase sustainable behaviors from the perspective of spiritual capital

AbstractMany companies pursue sustainability and rely on communication to convince consumers of their sustainability efforts. This study examines the impact of corporate sustainable communication strategies from the perspective of spiritual capital. Results indicate that communication framed in strength, personal well‐being, and mobilizability positively affects consumers' trust and sustainable behavior intentions through perceived spirituality. This study also clarifies gender differences. It offers a simple yet rigorous theoretical framework to evaluate sustainable communication strategies. The conceptualization and development of these measures is an important step for future studies that evaluate sustainable communication effects. To our knowledge, this study is the first attempt to explore the dimensions of perceived spirituality and evaluate their roles in sustainable communication. It finally offers practical suggestions for business sustainable communication strategies.

Firm Characteristics and Sustainable Development of Zenith Bank Plc in Nigeria

Firms are increasingly implementing sustainable development strategies in response to increased business rivalry in trade and commercial activities and stakeholder pressure. Firms that have regard for future resource availability are mindful of resource sustainability. Hence, this study investigated the nexus between firm characteristics and sustainable development of Zenith Bank PLC in Nigeria. Secondary time series data for this study were collected from annual financial statement and accounts of Zenith Bank for a period of ten years from 2013 to 2022. The information collected on the study variables; firm size (FMSZ), financial leverage (FLEV), return on total assets (ROTA) and sustainability disclosure (SUSD) were evaluated using the Ordinary Least Square regression method in an ex post facto study design. The result obtained shows that FMSZ and FLEV has positive and significant relationship with sustainable development, while ROTA has positive but not significant relationship with sustainable development. The study concluded that firm characteristics have a significant relationship with sustainable development of Zenith Bank in Nigeria. It was recommended among others that the management of Zenith bank should be aware that factors such as company size, financial leverage and profitability are important determining elements when deciding on her corporate sustainable development policies and strategies.

Consultants as discreet corporate change agents for sustainability: Transforming organizations from the outside‐in

AbstractDespite their central role in the construction and development of the market for virtues as well as in the design, implementation, and evaluation of corporate sustainability strategies and governmental sustainability policies, sustainability consultants remain at best “hidden” corporate change agents. In this paper, we bring sustainability consultants back to the fore to account for how these actors discreetly regulate and shape contemporary sustainability transformations from the outside‐in. We do so first by unpacking various roles of consultants as engineers, market builders, power vehicles, boundary workers, issue translators, and soft regulators; then we conceptualize how, through these roles, they contribute to empowering, legitimizing but also potentially supplanting and undermining the activities of corporate change agents operating inside corporations. We finally propose some research orientations for studying further the role of sustainability consultants in corporate transformations toward sustainability.

Personality typologies and their implications for corporate sustainability strategies

Objective - This study delved into the intricate dynamics between individuals' psychological well-being and their roles within the corporate realm. Methodology/Technique – By scrutinizing the potential impact of personality types on adopting sustainable corporate strategies, the research identified six distinct personality types grounded in autonomy and self-control factors. Employing the Ryff scales of psychological well-being, the study engaged 1,110 residents of Latvia, unearthing valuable insights into the interplay between individual well-being and the successful implementation of sustainable corporate strategies. Finding – These findings contribute a unique perspective to existing literature, deepening our comprehension of how diverse personality types influence and respond to sustainability initiatives. Novelty – The research, thus, guides the formulation of more effective strategies and fosters a corporate culture that embraces sustainability as a fundamental value. Type of Paper: Empirical JEL Classification: M14, I12, Q56, D23, O15. Keywords: Typology, Personality types, Autonomy, Self-control, Sustainable corporate strategies. Reference to this paper should be referred to as follows: Dombrovskis, V; Titova, N; Ļevina, J. (2023). Personality typologies and their implications for corporate sustainability strategies, GATR-Global J. Bus. Soc. Sci. Review, 11(4), 81–92. https://doi.org/10.35609/gjbssr.2023.11.4(2)

Corporate sustainable development strategies: Under the collaborative governance of government and the public

AbstractAs a problem of multiple failures, effective solutions to environmental problems require overcoming the limitations of single environmental policies and using collaborative governance with multiple regulatory instruments. Based on this, this study examines how collaborative governance between government‐led environmental regulation and public‐participatory environmental regulation can more effectively promote sustainable development strategies for firms. Using data from Chinese listed firms in heavy pollution industries from 2006 to 2019, we constructed a collaborative governance model, and found that (1) government‐led environmental regulation has a significant impact on end‐treatment but no impact on the source treatment of firms; (2) collaborative governance between government‐led and public‐participatory environmental regulation has a significant impact on source treatment but no impact on end‐treatment; (3) mechanism analysis shows that improving long‐term orientation and increasing corporate sustained investments are potential channels of the collaborative governance effect. These findings not only advance our understanding of the policy mix effects of different environmental regulation tools, but also have important policy implications for deepening collaborative governance practices in promoting sustainable development.

Company commitments and practices on nutrition and environmental sustainability in Belgium

Abstract Introduction INFORMAS developed a Business Impact Assessment for benchmarking and monitoring company commitments and practices on nutrition and environmental sustainability (BIA-Obesity & BIA-Sustainability). The aim of this study is to assess the transparency, comprehensiveness and specificity of company commitments in Belgium, as well as their related practices. Methods We selected 38 companies across supermarkets, quick service restaurants, catering companies, and packaged food, infant formula and non-alcoholic beverage companies, according to market share data in Belgium. For BIA-sustainability, company commitments were assessed for a series of indicators in 10 domains (corporate sustainability strategy, packaging, emission, energy use, water and discharge, biodiversity, food waste, environmental compliance, animal-based products and sustainable products). For BIA-Obesity, company commitments were assessed for a range of indicators across 6 domains (corporate nutrition strategy, product reformulation, product labeling, product and brand promotion, product accessibility and relationships with other organizations). Performance metrics to evaluate the size of efforts undertaken by food companies to improve their practices, alongside their commitments are under development. Results There is a wide variation in scores for transparency, comprehensiveness and specificity of commitments related to environmental sustainability across companies within sectors. Most companies have some overarching commitments for reducing environmental impacts but increasing sustainable or plant-based products within portfolios were hardly addressed in the commitments. In general, scores for BIA-Obesity are lower than those for BIA-Sustainability in Belgium. Conclusions During the workshop detailed results of these assessments in Belgium will be presented, as well as linkages between BIA-Obesity and BIA-Sustainability and commitments in relation to practices.

3.A. Workshop: Accountability of the European food industry to improve food systems for public and planetary health

Abstract Currently, unhealthy food environments are a major influence on food and beverage choices and nutritional status throughout Europe. Improving population diets for both public health and environmental sustainability requires a comprehensive response from multiple stakeholders, including governments, private sector organisations, non-government organisations, and consumers. Amongst these groups, companies across the food industry have been highlighted by the World Health Organization (WHO) and other international organizations as having an important role in addressing obesity and chronic diseases (NCDs) as well as unsustainable food systems. The need for broad-based action has led to an increased focus on increasing the accountability of several sectors in the food industry for taking action to address the problem, including through rigorous monitoring and benchmarking of their commitments and performance against independent targets. The INFORMAS (International Network for Food and Obesity/NCDs Research, Monitoring and Action Support) developed the Business Impact Assessment on population nutrition and obesity (BIA-Obesity) and the Business Impact Assessment on sustainability (BIA-Sustainability) to assess the commitments and practices of several food industry sectors (packaged food and non-alcoholic beverages, quick service restaurants, supermarkets, caterers) in relation to both obesity prevention and sustainable food systems. The tools consist of a range of indicators across 6 action areas for BIA-Obesity (corporate nutrition strategy, product reformulation, product labeling, product and brand promotion, product accessibility and relationships with other organizations) and 11 action areas for BIA-Sustainability (packaging, energy use, emissions, water and discharge, biodiversity, climate change adaptation, food loss and waste, environmental compliance, relationships with other organisations, corporate sustainability strategy and reducing ruminant-based products). In addition, methods have been developed to assess the corporate political activities as well as the market structure and dynamics of several food industries. Corporate political activities of the food industry across sectors are generally assessed using a range of publicly available data sourced from the industry itself, governments, the media and other sources. The workshop will discuss the latest findings on the commitments, practices, market structure and dynamics and corporate political activities of the food industry in relation to both obesity prevention and sustainable food systems across food industry sectors in Europe, as well as the next steps, both in terms of innovations in methodologies, different target sectors as well as in terms of using the results for better holding to account these actors in order to address obesity as well as unsustainable food systems in Europe. Key messages • Monitoring and benchmarking the commitments and practices of the food industry across sectors is key to increase accountability for action. • Substantial changes to the structural and regulatory conditions of corporate food systems are needed to improve population and planetary health.

Sustainable strategy as a lever for corporate legitimacy and long-term competitive advantage: an examination of an emerging market multinational

PurposeThe purpose of this paper is to examine the process of integrating sustainability into the corporate strategy of an emerging market multinational enterprises (EMNE) to achieve and maintain corporate legitimacy over time. The research explores how deploying a corporate sustainability strategy enhances the company’s long-term competitive relevance by creating and maintaining corporate legitimacy and transferring practices based on sustainable development goals within the organization.Design/methodology/approachThe study adopts a qualitative single-case design, focusing on a corporate energy services company (Interconexión Eléctrica S.A.) operating in volatile, uncertain and turbulent environments.FindingsThe findings indicate that integrating sustainability into the corporate strategy enables subsidiaries to effectively meet global requirements, considering internal and external pressures. This integration also fosters the development of unique capabilities and the internalization of standards, addressing liabilities in foreign markets, thus providing a competitive advantage and safeguarding corporate legitimacy among stakeholders.Originality/valueThis research contributes to the international business literature by providing insights into strategy development and implementation in EMNEs. Specifically, it demonstrates how a Latin American emerging multinational enterprise (multilatina) adopts new sustainability strategies to enhance its business competitiveness. The study also offers guidance for emerging market companies on developing sustainability strategies and transferring them to subsidiaries operating in complex institutional environments. Furthermore, the research provides a rationale for governments and civil society organizations on why firms are committed to sustainability, highlighting its positive impact on firm’s competitiveness and survival in international markets.

Effect of servitization on performance in manufacturing firms: A mediating effect model of digitalisation moderated by ESG performance

Servitization and digitalisation are current trends in high-quality sustainable development in manufacturing firms. To clarify how manufacturing companies can improve their environmental, social, and governance (ESG) performance through servitization and digitalisation, this study develops a moderated mediating effects model for analysis and further investigates corporate heterogeneity. This study uses the CSMAR and WIND databases and official website of the National Bureau of Statistics of China to obtain relevant data from 2013 to 2020. Python software was used to crawl corporate annual report data from the CNINFO Website for collation and analysis, obtaining a total of 1261 companies with 9379 sample values. The findings are as follows: (i) Servitization of manufacturing enterprises can significantly enhance their performance. (ii) The service-oriented transformation of manufacturing enterprises can significantly enhance their performance through digitalisation. In contrast to the capabilities of the practical application of digital technology, digital transformation primarily manifests itself as the capability of digital underpinning technology and the practical application of digital technology. (iii) The ESG performance of companies can positively regulate the promotion of service-oriented manufacturing enterprises towards digital transformation, as well as directly foster the development of digital transformation in the manufacturing industry. When examining the individual components of ESG performance, environmental and social performance have a positive effect on regulating the promotion of service-oriented manufacturing towards digital transformation and directly driving the digital transformation of manufacturing companies. However, the governance performance does not have a significant effect. Additionally, environmental performance can restrain the positive effect of digital transformation on performance in manufacturing companies. (iv) Manufacturing companies in the eastern part of the country are improving their performance mainly by promoting digitisation, whereas those in the central and western regions are improving their profitability mainly through servitization. This study reveals the mechanism of ESG performance and the role of servitization and digitalisation of manufacturing companies on performance and suggests new paths for the development of corporate sustainability strategies.

Toward a view of integrating corporate sustainability into strategy: A systematic literature review

AbstractIn recent years, research on corporate sustainability integration strategies has witnessed a significant growth in interest. However, contributions remain disjointed and fragmented, preventing the emergence of a cohesive understanding of the current research state. This study uses a systematic review of 126 articles from Web of Science (WoS) and Ebsco to extract a seven‐dimensional integrated view of corporate sustainability integration strategies. Our review's contributions are threefold: (1) we enrich the corporate sustainability strategies literature by identifying the focuses and themes of recent publications; (2) we address the research's fragmentation issue by presenting the sustainability implementation strategies in an integrated view with the essential interdependencies shown at different hierarchical levels and across organizational dimensions simultaneously, (3) we present the theoretical and managerial implications and discuss in detail the crucial interdependencies of sustainability integration strategies. The study finishes with a conclusion highlighting potential avenues for future research.

AUDIT COMMITTEE FEATURES, SUSTAINABILITY DISCLOSURE, AND CORPORATE PERFORMANCE IN CHARLOTTE FINANCIAL SERVICE COMPANIES

This study delves into the intricate relationships between Audit Committee (AC) characteristics, sustainability disclosure standards, and corporate performance within the domain of Charlotte's Financial Services Companies. The primary objective is to investigate the complex interplay between AC attributes and the extent of sustainability-related data dissemination among financial entities based in Charlotte. Leveraging a comprehensive dataset spanning 2016 to 2020, covering 537 organizations, the study endeavors to unearth the fundamental mechanisms that underlie the connection between AC characteristics and sustainable disclosure practices. The findings of this study hold significant potential for shedding light on sustainability disclosure practices within Charlotte's financial sector. The central claim posits that robust ACs, emblematic of effective governance processes, may serve as conduits for elevating sustainability disclosure standards. This study introduces a pioneering paradigm, bridging the pivotal role of audit committee characteristics with sustainability disclosure requisites and corporate performance. Empirical support underpins the hypothesis of a positive association between select AC characteristics and the extent of sustainability disclosure. These findings provide actionable insights for managers and practitioners to cultivate specialized governance approaches that bolster sustainable disclosure, ultimately enhancing overall business well-being. By elucidating the intricate interplay between AC characteristics, sustainability disclosure, and company performance in the unique context of Charlotte's Financial Services Companies, this study advances our current understanding and adds to the growing body of research in corporate governance and sustainability strategies. The implications extend beyond Charlotte, offering a conceptual blueprint for fostering sustainable practices through effective governance structures in the financial services industry.

Profitable Corporate Sustainability Strategies and Processes Achieve Competitive Advantage in the Construction Industry

Profitable Corporate Sustainability Strategies and Processes Achieve Competitive Advantage in the Construction Industry