Corporate Sustainability Strategy Research Articles

Corporate Sustainability Strategies and Decision Support Methods: A Bibliometric Analysis

Sustainability is becoming an increasing issue for decision-makers and scholars worldwide and many managers understand the significance of the strategic approach of corporate sustainability. However, they face difficulties in aligning sustainable development and strategic management as well as to implement it in practice. Thus, the purpose of this paper is to conduct a bibliometric analysis exploring the integration of strategic management, decision-making and corporate sustainability, providing a framework of interrelated issues according to the current literature in this area. 72 peer-reviewed papers were analyzed based on Webster’s and Watson’s (2002) methodology. The results of this review revealed that the number of publications in this domain has increased in the last decade, and there is a need to foster research (especially empirical) in this field because managers should find out ways to implement, in action, corporate sustainability strategies and integrate their action plans with their business strategy. This review concludes with a framework that includes the most commonly addressed issues of this topic and provides opportunities and challenges for further research.

The Impact of Corporate Sustainability and Digitalization on International Banks’ Performance

AbstractWe analyse the implications for international banks of two contemporary megatrends: corporate sustainability (CS) and digitalization. The digital environment and the availability of massive data from customers generate asymmetric information for banks to the detriment of customers, who experience individual vulnerabilities such as privacy rights. This can hinder the positive influence of digitalization in banks’ performance, with relevant managerial and political implications. In this context, the reputation generated by CS strategies can constitute a credence factor that reduces customers’ fears of opportunistic behavior and information asymmetries. We test and find support for our hypothesis over a panel data of large international banks from developed countries. Our findings shed light on the mutual reinforcement of CS and digitalization strategies in enhancing banks’ market performance and efficiency.

Inventing Regenerative Sustainability

Despite growing engagement by business practitioners in regenerative sustainability, there is little research into what factors contribute to its successful implementation. This paper offers first steps to close that gap. It examines theoretical foundations of and proposes empirical research for studying such innovative business practices. Our literature review draws on research in natural sciences, organization and management studies, corporate sustainability, and business strategy to theoretically (1) define regenerative sustainability, (2) explore how adopting principles of regeneration can help firms achieve “true business sustainability” (Dyllick & Muff, 2016: 163), and (3) assess potential benefits, obstacles, and enablers of such radically different business models. We then propose an in-depth interpretive case study methodology to empirically investigate the phenomenon of interest, namely how proactive firms effectively enact regenerative sustainability principles. The paper closes with potential implications of the proposed study for management theory and practice and offers ideas for future research.

Managerial Perceptions of Firms’ Corporate Sustainability Strategies: Insights from Croatia

Although corporate social responsibility (CSR) has gained increasing academic attention, we lack a solid understanding of how managerial perceptions underpin firms’ sustainability practices. This study interprets and sheds light on managers’ perceptions of sustainability activities under various stakeholder domains in Croatia through a multi-theoretical approach. Using 21 semi-structured interviews with managers, the study reveals that sustainability activities in the research context tend to focus more on environmental issues and customer service, as well as employees and supplier domains. The study further establishes three distinct levels of sustainability commitments by firms. These stages include sustainability as a minimal response, corporate culture-driven, and committed response. These findings, as a whole, are insightful and enable us to advance research on sustainability by elucidating how managerial perceptions underpin firms’ strategic sustainability activities. The contributions to theory and practice are also discussed.

A Retrospective and Foresight: Bibliometric Review of International Research on Strategic Management for Sustainability, 1991–2019

Over the past 30 years, scholars have been calling for modern management theory and research to consider how strategic management tools could be applied to enhance corporate sustainability. While strategic management for sustainability has emerged as a multidisciplinary field, the existing knowledge base has yet to be systematic reviewed. This paper responded to the literature gap by conducting a bibliometric review of strategic management for sustainability. The paper aimed to document the landscape and composition of this literature through the analysis of 988 relevant Scopus-indexed documents. Data analyses found that the strategic management for sustainability knowledge base remained an emergent field with increasing interests from diverse groups of international scholars in various fields, particularly in environmental science, engineering, and strategic business management. Over the past three decades, the literatures have been continuously grown from a few publications in the early 1990s to almost 1000 documents to date. The review found that the most influential journals and authors of this knowledge base were international in scope but predominately from Western developed countries. Five Schools of Thought from author co-citation analysis revealed the intellectual clustering composition of the knowledge base on strategic management for sustainability: corporate sustainability strategy, sustainable waste management, strategic sustainability systems, strategic sustainability management and entrepreneurship, and sustainability assessment strategy. Key topics addressed in this research include the distribution of documents across the most highly cited journals, reflecting the breadth, quality and influential scholars in the strategic management for sustainability knowledge domain, naming of the influential scholars in the field and identification of contemporary foci and research front in the existing literature through the keyword co-occurrence analysis and co-word map. The strategic management for sustainability field has evolved from the key topics related to the green movement at the policy-driven macro level (i.e., ecological or environmental protection/impact, water/waste management and natural resource conservation) to the practicality in organizations with the topics related to social strategic responsibility and business management issues (i.e., corporate strategy, project management, supply chain management, information management, adaptive management, corporate sustainability). In addition to a retrospective, insightful prospective interpretation, practical implication, limitations and future research direction are discussed.

Can you have your cake and eat it? Investigating trade-offs in the implementation of green initiatives

Is it possible for manufacturing or service businesses that pursue green initiatives to ‘have it both ways’? In the words of some researchers in the corporate sustainability field, the answer is ‘no’. According to those authors, executives who attempt to implement a green agenda in their firms will encounter tensions/trade-offs at various levels and in different forms. Assessment of these trade-offs is a critical issue in the formulation and implementation of corporate sustainability strategies. Similarly, some authors in the operations management field affirm that, due to the limitations of all manufacturing and service systems, trade-offs in their operations are inevitable. In order to provide insights into these important issues, our paper investigates potential trade-offs in the implementation of a green initiative in a SME that manufactures cleaning products. The results show that there is a trade-off between the green initiative pursued by the SME and its overall production costs. Interestingly, once other problems were resolved, this trade-off did not stop the SME from implementing the green initiative. Important implications for practitioners and researchers are discussed, and opportunities for future investigations are outlined.

The Corporate Sustainability Strategy in Organisations: A Systematic Review and Future Directions

The corporate sustainability strategy in organisations is a current topic and set in Agenda 2030 for sustainability, and so this study aims to map the literature on the subject through a bibliometric analysis. From 97 documents identified and analyzed, the results obtained show the fragmentation and hiatus between the planning of a global strategy and inclusion therein of a sustainable strategy. Furthermore, these results provide the construction of a framework as an auxiliary tool for managers of different organisations to implement a sustainable strategy, this being the main contribution of the study. In addition, the theoretical contribution of this study is to obtain evidence that the resources and market position of organisations is crucial to the successful implementation of this type of strategy, in which the resource-based view and competitive advantage proved to be appropriate to support the same. The contribution to the practice showed the importance of having full involvement and commitment of all stakeholders in this implementation, so that the organisations acquire the so ambitious internal and external legitimacy. Finally, some limitations, indications for future research are draw.

Measuring causal relations and identifying critical drivers for corporate sustainability: the quadruple bottom line approach

Purpose The purpose of this study is to investigate the causal interrelations among the four pillars of corporate sustainability, which indicate a firm’s contribution to environmental, social, governance and economic activities. Moreover, this study identifies the critical drivers of corporate sustainability by focusing on the levels of market developments and geographical regions.Design/methodology/approach Based on corporate sustainability data of 2,725 global companies in 2016, this study uses a combination of analytical techniques including cluster analysis, data mining, partial least square path modeling and importance performance map analysis.Findings This study finds that companies in European developed markets exhibit the highest-ranking of corporate sustainability. In line with the social impact hypothesis, environmental, social and governance performance positively affects economic performance. Moreover, there is strong evidence of causal relationships and synergistic effects among the four pillars of corporate sustainability. In accordance with the institutional theory, the patterns of causal directions and the critical pillars depend on levels of market developments and geographical regions. Overall, social and environmental pillars are among the most critical drivers of corporate sustainability.Research limitations/implications The methodology does not aim to provide a new weighting scheme for calculating the corporate sustainability index.Practical implications Corporate managers should consider sustainability practices in all dimensions to benefit from synergistic effects among environmental, social, governance and economic activities. Furthermore, corporate sustainability strategies should not be generalized across countries with different levels of market developments and geographical regions.Originality/value This study prioritizes environmental, social, governance and economic pillars of corporate sustainability in emerging and developed markets across geographical regions.

Micro-level translation of corporate sustainability: When strategy meets practice in the Danish hospitality sector

Abstract Corporate Sustainability provides a frame of reference for making business behaviour more ethical and environmentally sound. Despite good intentions, however, Corporate Sustainability strategies come with the risk of being decoupled from organizational practices. This article addresses this inconsistency by examining how Corporate Sustainability strategies are transformed into organizational work practices in the hospitality sector, where waste generation and the consumption of water and energy are major environmental liabilities. This paper is based on a micro-level inquiry into three Danish hotels in which the translation perspective in organizational research is adopted to analyze how both managers and front-line employees engage in translation work. Two modes of organizational translation are distinguished: first, high-mode translation, signifying upper management’s transformation of ideas about sustainability into strategies, standards and new labels in order to signal uniqueness; and secondly, operational-mode translation, where lower-level managers and front-line employees (a) adapt and appropriate sustainability strategies designed by top management, and (b) themselves engage as employees in bottom up-driven sustainability translation. This study offers new insights into the micro-level translation of Corporate Sustainability, complementing the strategic perspective that has hitherto dominated research into Corporate Sustainability.

Generational Variation of the Antecedents of Corporate Sustainability Strategies in Family Firms

Researches on generational variation of antecedences of non- economic strategies of family firms are limited. We partially bridge this gap in the literature by theoretically and empirically establi...

Are Sustainable Banks Efficient and Productive? A Data Envelopment Analysis and the Malmquist Productivity Index Analysis

Corporate sustainability is the integration of environmental protection, financial benefit, and social responsibility into management and business operations. There is insufficient evidence for its relationship with operating performance and productivity. Furthermore, it becomes doubtful when investors standardize corporate sustainable strategies. This study evaluates the performance and productivity of sustainable banks, exploring practical issues by providing supporting evidence. A two-stage performance evaluation is employed with the integration of data envelopment analysis (DEA) and Malmquist productivity index (MPI) to evaluate sustainable bank performance and productivity for 9 years (2010–2018) in comparison with non-sustainable banks. DEA is used to define dynamic benchmarking, and MPI builds on time-series analysis. The results of our study reveal that sustainable banks are more efficient and productive. The productivity of sustainable banks and non-sustainable banks was influenced by external and internal factors, respectively.

Smart technologies and corporate sustainability: The mediation effect of corporate sustainability strategy

The focus of this paper is on the relation between smart technologies and corporate sustainability. Specifically, the purpose of this paper is to empirically examine the mediating role of corporate sustainability strategy between smart technologies and corporate sustainability. By building on a survey of 280 SMEs, the results show that corporate sustainability strategy fully mediates the relation between smart technologies and environmental sustainability, and smart technologies and social sustainability. Moreover, smart technologies have a direct significant influence on economic sustainability, but the relationship is also partly mediated by corporate sustainability strategy. Smart technologies do not have a direct influence on environmental or social sustainability.

Business Contributions to Sustainable Development: A Study of Leading US Retailers

There is an increasing recognition of the role businesses can play in contributing to the transition to a more sustainable future and a growing number of large companies have developed corporate sustainability strategies and policies designed to manage their environmental, social and economic impacts. That said, primary research into how companies are addressing and contributing to sustainable development faces a number of a number of challenges but it is important that examinations of these contributions are included in environmental studies curricula.

Business models and business cases for financial sustainability: Insights on corporate sustainability in the Swedish farm-based biogas industry

In recent years, Swedish farmers have begun investing in biogas technology in an attempt to become more sustainable. Biogas production from organic waste on farms combines renewable energy production with increased resource efficiency. However, many farmers have found this activity less profitable than expected. This paper investigates the corporate sustainability strategy used by Swedish farm businesses, in particular how this strategy influences the development of business models and business cases for sustainability in the effort to increase economic profitability from biogas production. A questionnaire, administered to farm business managers, was used to collect the paper’s empirical data. The study’s findings show that the farmers currently use a reactive corporate sustainability strategy that hinders profits because biogas production is realized as an indirect financial business case for sustainability. The study concludes that the farmers could benefit financially from biogas production if they adopted a proactive corporate sustainability strategy. Such a strategy, if adopted, enables the development of a business model for sustainability, the capture of sustainable value for stakeholders, and the creation of biogas production as a direct financial business case for sustainability. This study contributes to the literature on business cases for sustainability, specifically in how their creation is connected to, and influenced by, the corporate sustainability strategy and by related business model changes. The study adds to our understanding of how sustainable investments can contribute to long-term, sustainable business success.

Explaining consumer choice of low carbon footprint goods using the behavioral spillover effect in German-speaking countries

The aim of the research was to investigate how to stimulate sustainable consumer behaviors that lead to a lowering of the carbon footprint. Because of environmental challenges at the individual and societal levels, researchers agree that behavioral change is necessary. We argue that when already performing a sustainable behavior, this behavior can spill over to other sustainable actions, even to more difficult ones. First, we studied whether a positive behavioral spillover occurs between product categories and whether the spillover effect depends on the ease or difficulty of the sustainable behavior. Second, we investigated whether high awareness of sustainability determines the spillover between categories. We conducted three online experiments in Central Europe, investigating whether spillover takes place between behaviors assigned to the same category (transport or food) or between behaviors assigned to different categories (transport or food). In all three studies participants had to make two independent decisions. In studies 1a (N = 281) and 1b (N = 195), the effect of the ease/difficulty of the behavior was tested. In study 2 (N = 164), awareness of CO2 emission reducing effects was manipulated. Findings revealed a behavioral spillover between sustainable choices. Consumers who behave sustainably by choosing a CO2 emission reducing option in the first decision (related to either transport or to food) were more likely to show sustainable behavior in the second decision. The difficulty of performing a sustainable behavior did not impact the spillover effect. By manipulating awareness of negative effects of CO2 emissions specifically, a positive spillover effect was found. Results thereby confirm behavioral spillover effects. Although it appears that the difficulty or ease of a behavior did not matter for the spillover effect, awareness of consequences of sustainable behavior did. The research contributes to the field of sustainable consumption by suggesting the positive behavioral spillover effect as means to increase sustainable choices. This may stimulate corporate sustainability strategies of companies. Moreover, increasing problem awareness strengthens the sustainable behavior. Education in sustainable development may address this.

Integrating Sustainability with Corporate Strategy to Enhance Organizational Performance

The purpose of this study is to review and analyze the sustainability practices performed by the organizations so as to enhance their performance and retain their place in the competitive environment. The nstudy will also critically examine the reasons behind the adoption of corporate sustainable practices by Indian organizations. Further, the scope and benefits of the integration of the traditional Indian values in the corporate sustainable strategies have been explored along with the contribution of the sustainable corporate practices in the betterment of the environment. To attain the stated objectives, the current literature in the said study domain has been critically appraised. The study reveals confounding results, where it is found that the fundamental factor that forced the corporates to integrate sustainable practices in their processes is the pressure from the government and the local community prevailing in the place where the organization is operational. This review offers valuable areas which can be further pursued by academicians in the present domain of research.

Business group affiliation & corporate sustainability strategies: Role of fungible resources

In spite of an overwhelming importance of business groups in the economic development of many countries, systematic inquiry on how the business groups and their affiliated firms approach and contri...

Business Group Affiliation and Corporate Sustainability Strategies of Firms: An Investigation of Firms in India

In spite of an overwhelming importance of business groups (BG) in the economic development of many countries, systematic inquiry on how the BGs and their affiliated firms approach and contribute to shared value creation and sustainable development is rare. In this paper we address this research gap by investigating two related questions—do BG-affiliated firms differ from non-BG firms in their corporate sustainability strategy (CSS) and how does BG affiliation influence the relationship between stock of fungible resources and CSS of firms? Drawing from the BG literature we theorize that BG-affiliated firms tend to adopt of both environmental and social sustainability strategies more than non-BG firms. We also argue that although according to resource-based view, the stock of fungible resources of firms positively influences CSS, BG affiliation negatively moderates the relationship between stock of fungible resources and CSS of firms. Stock of fungible resources matters less for BG-affiliated firms in undertaking CSS as they have access to resources of the BG network. We test our theoretical predictions using a proprietary data set of 163 Indian publicly listed firms, out of which 76 are BG-affiliated firms belonging to 74 BGs. The data for corporate environmental and social sustainability strategies have been obtained by administering a survey instrument among the top level executives of the participating firms. We find support for our theoretical predictions that signify that BGs and their affiliates make important contributions to shared value creation and sustainable development in emerging economies like India.

Circular economy in corporate sustainability strategies: A review of corporate sustainability reports in the fast‐moving consumer goods sector

AbstractDespite the increasing interest of business and academic research toward Circular Economy, the investigation of its uptake by industry remains limited. To contribute to filling this gap, we perform a systematic review of 46 corporate sustainability reports in the Fast‐Moving Consumer Goods sector aiming to explore how companies incorporate the Circular Economy concept in their sustainability agenda. We focus on (i) companies’ uptake of Circular Economy, (ii) the relationship between Circular Economy and sustainability and (iii) the Circular Economy practices presented. Our results show that Circular Economy has started to be integrated into the corporate sustainability agenda. Most reported activities are oriented toward the main product and packaging, focusing on end‐of‐life management and sourcing strategies, and to a lesser extent on circular product design and business model strategies. Most identified collaborations are with businesses, whereas initiatives addressing consumers are largely missing although considered critical for the transition toward Circular Economy.

Rethinking sustainability in the tour-operating industry: Worldwide survey of current attitudes and behaviors

Abstract This study aims to assess tour operators’ sustainability orientation and engagement and to determine whether variations among different tour operators exist, that is, from different continents, with different targets and dimensions. A survey among tour operators worldwide was conducted. A total of 204 answers were obtained with a worldwide coverage. Results affirm relatively high sustainability orientation and engagement and that the more sustainability-oriented the tour operators are, the more sustainability-engaged they are. Moreover, results show that smaller tour operators, specializing in nature and cultural tourism, and owning accommodation facilities are also highly engaged in sustainability. Significant differences are observed among regions, with higher engagement for African and Asian tour operators compared with European ones. This study proposes the development of a new approach to sustainability in this sector: by introducing corporate sustainability strategies, tour operators can maintain their economic capital while preserving natural and social capital.