Corporate Sustainability Strategy Research Articles

Exploring the impact of artificial intelligence on the pursuit of SDGs: Evidence from European state‐owned enterprises

AbstractIn the context of European state‐owned enterprises (SOEs), this study examines whether the adoption of artificial intelligence (AI) facilitates the pursuit of sustainable development goals (SDGs) and how this relationship varies across the 17 individual SDGs. Results from panel and logistic regression models reveal a statistically significant positive association between AI adoption and SDGs pursuit. Additionally, the findings suggest that AI primarily supports environmental SDGs, with a more limited impact on societal and economic SDGs. The study offers practical implications for managers, investors, and policymakers. For managers, investing in AI may enhance corporate sustainability strategies. Investors with ethical concerns are encouraged to prioritize enterprises increasingly adopting AI. Finally, the study urges policymakers to explore new pathways that more effectively promote the pursuit of SDGs through AI.

Are Good Deeds Rewarded?—The Impact of Traditional Morality and Modern Responsibility on Green Innovation

The essence of intergenerational sustainability emphasizes the necessity of incorporating altruistic thinking and culture. While prior studies primarily examined corporate innovation strategies from a self-interested lens, this paper aims to investigate the drivers of corporate green innovation from an altruistic perspective. Analyzing a sample of Chinese A-share listed companies from 2011 to 2019, we employ both the OLS model and the mediation effect model to explore how traditional morality and modern responsibility impact corporate green innovation, as well as the mechanisms underlying this relationship. Our findings reveal that both traditional morality and modern responsibility significantly enhance corporate green management innovation, with social trust serving as a key mediating factor. Furthermore, traditional morality and modern responsibility play distinctive roles depending on the stage of economic development: traditional morality primarily influences green innovation in the early stages of economic development, whereas modern responsibility becomes more influential as development progresses. This study provides meaningful insights for research and practice in corporate sustainability, business ethics, and innovation strategy.

Digitalization's influence on corporate sustainability strategies in the context of new environmental law

Following the implementation of the new environmental law, this paper investigates the impact of digitalization on corporate sustainability, grounded in digital economy strategies and sustainable development principles. Utilizing a sample of Chinese A-share listed companies from 2015 to 2021, the study explores how corporate digitalization influences their sustainable development and the underlying mechanisms involved. The findings indicate that corporate digitalization significantly improves sustainable development, with internal control quality and financing constraints acting as partial mediators in this process. Based on these findings, recommendations are provided to help Chinese listed companies implement the sustainable development strategies.

Sustainable Management Practices in the Circular Economy: Balancing Environmental and Economic Goals

The transition to a circular economy has become a crucial component of sustainable management practices, aimed at minimizing waste and maximizing resource efficiency. the integration of circular economy principles into corporate sustainability strategies, focusing on how companies can balance environmental goals with economic performance. By analyzing case studies from various industries, the research highlights successful approaches to reducing resource consumption, extending product lifecycles, and fostering innovation through closed-loop systems. the circular economy presents significant opportunities for enhancing sustainability, it also requires organizations to navigate complex challenges such as supply chain restructuring, stakeholder engagement, and regulatory compliance. recommendations for businesses to effectively implement circular economy practices, ensuring long-term viability and contributing to global sustainability objectives.

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

Exploring strategic corporate sustainability management in family businesses: A systematic literature review

AbstractThe escalating demands from legislative authorities and stakeholders for companies to adopt corporate sustainability measures underscore the growing importance of strategic sustainability management. Despite the efforts made by companies in this domain, the strategic management of sustainability in family businesses remains an under-researched area. To address this gap, we conducted a systematic literature review covering the period from 2006 to 2022, on the topic of strategic sustainability management in family businesses. Our investigation encompasses a content analysis of 98 relevant studies. Our research question is: “What aspects are taken into account by family businesses in their corporate sustainability strategies?” We tackle this issue through a methodological triangulation of qualitative and quantitative methods. Our results yield three clusters of strategies for corporate sustainability in family businesses: (1) Family values and succession planning; Stakeholder relations and communication; (2) Risk taking, Inventions, and Technologies; and (3) Entrepreneurship and Intrapreneurship. In addition, we systematically present a range of descriptive indicators, including the research methodologies applied and the geographic focus of the published literature. This research contributes significant insights for scholars and practitioners alike, providing valuable guidance in this field. Moreover, our study paves the way for further investigations into the strategies that influence sustainability within the context of family businesses. By shedding light on this critical area, we aim to foster a more sustainable and informed approach to corporate practices among family-owned enterprises.

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.

How Do Carbon Credits Influence Corporate Sustainability Practices?

Climate change is the pivotal challenge of this modern era, which needs broad sustainability practices in different sectors. Industrial sectors are at the core of climate impact mitigation, considering that these industries belong to the most significant GHG emitters, and one of the critical tools in this fight is carbon credits. Carbon credits allow an organization to offset its GHG emissions through purchase; the latter is generated through specific projects that reduce or avoid GHG emissions. In this paper, the carbon credit issue has become part of corporate sustainability strategies, given their implications for how business is done, incentives, and the challenges inherent in this approach. Given the rise in sustainability goals and regulations, carbon credits foster a better financial foundation and corporate reputation. However, fraud, lack of transparency, and price volatility remain challenging. Critics claim that reliance on carbon credits undermines genuine emission reductions and extends environmental injustices. Case studies on carbon credit use vary from large corporations like Microsoft and Shell to SMEs like Illy. The effective use of carbon credits calls for a balanced mix of direct emission reductions and carbon offsetting that will create significant sustainability impacts. This paper underlines that the full integration of carbon credits within a company-wide corporate sustainability strategy allows the challenges linked to climate change to be comprehensively met.

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.