Corporate sustainability reporting currently fails to provide the information needed for companies, their investors and society to address mounting environmental risks because predominant reporting requirements focus heavily on firm-level risks, neglecting cumulative impacts on climate and nature. Recently, sustainability reporting has also been critiqued for the administrative burden it places on companies. Corporate reporting may seem far removed from sustainability science but is, in fact, a critical lever in directing corporate practice. A golden opportunity therefore exists for sustainability science to simultaneously help reduce, refine and improve sustainability reporting by identifying the most prioritized mandatory environmental disclosures and support the development of an open-access disclosure repository. This would radically improve the ability of investors, regulators, and public agencies to appraise environmental pressures, improve corporate accountability, and mitigate growing systemic risks. Treating environmental data with the rigor granted to financial data is fundamental to align capital with sustainability objectives.

Purpose This study aims to examine the transformative potential of strategic corporate sustainability responsibility (SCSR) as a profit-enhancing strategy for businesses, in contrast to traditional corporate social responsibility, which predominantly emphasises reputation management. Design/methodology/approach To achieve the aim of this study, a qualitative case study analysis method was adopted, grounded in stakeholder and shared value theory. The research examines partnership dynamics between leading corporations, such as Unilever, Microsoft and Coca-Cola, and organisations like Oxfam and the World Wildlife Fund. It uses case studies and annual reports to assess the impact of socially responsible corporate sustainability initiatives. Findings Key findings reveal that SCSR initiatives align closely with corporate objectives, fostering stronger stakeholder relationships, uncovering new revenue streams and enhancing profitability while integrating social responsibility. Moreover, partnerships between the private sector and the voluntary sector are identified as a critical strategy essential for achieving these outcomes. Research limitations/implications The limitations of the study include its focus on specific case studies, indicating that further research could improve the generalisability of the findings across diverse industries. Originality/value This research not only reinforces the profitability of SCSR but also highlights its transformative potential in addressing pressing global challenges. It establishes a clear roadmap for businesses seeking to lead in social impact, sustainability and profitability, and emphasises the importance of partnerships with the voluntary sector as integral to the success of SCSR initiatives.

ABSTRACT An increasing number of firms disclose sustainability information as part of their strategic disclosure decisions, reflecting incentives to influence stakeholders’ assessments of firm performance and legitimacy. Given the considerable discretion firms possess over the content and framing of such disclosure, economic research has increasingly adopted the reference point effect framework and impression management theory to analyze opportunistic behavior in sustainability reporting. This paper reviews the literature on reference point effect and impression management and applies these two frames to examine corporate sustainability disclosure strategies. Building on this, we integrate a conceptual model for analyzing corporate sustainability reporting behavior. In this model, decision makers compare sustainability performance with reference points and choose between symbolic disclosure and substantive disclosure depending on the outcomes. When sustainability performance falls below the reference point, firms tend to adopt symbolic disclosure strategies to influence stakeholders’ perceptions. In contrast, when performance exceeds the reference point, firms are more likely to engage in substantive disclosure to foster a favorable corporate image. We conclude by outlining directions for future research, highlighting the importance of reference point selection, the extension of impression management behaviors, and the development of explanatory frameworks to better understand the motivations underlying corporate sustainability reporting.

This research investigates the effects of corporate sustainability reporting and audit committee characteristics on company value, with the mediating variable being profitability. The research focuses on Indonesian listed companies to understand how sustainability practices and governance mechanisms influence firm valuation in an emerging market context. The research uses a quantitative methodology using panel data from 89 Indonesian publicly listed companies over the period 2021–2023, resulting in 267 firm-year observations. Corporate sustainability reporting is measured using a comprehensive Global Reporting Initiative (GRI)-based disclosure index, while audit committee effectiveness is assessed through independence, expertise, and activity frequency. Tobin’s Q ratio is used to calculate company value, and return on assets quantifies profitability. To test the direct and indirect connections, mediation analysis applies bias-corrected bootstrap procedures suitable for panel data. The results indicate a significant positive impact of sustainability reporting on firm value, with no significant mediation by profitability. Audit committee characteristics demonstrate a negative association with firm value and profitability, counter to established theory, suggesting contextual factors in the Indonesian market. Findings extend stakeholder and legitimacy theories, emphasizing value creation beyond immediate profitability. Received: 18 August 2025 | Revised: 4 January 2026 | Accepted: 23 January 2026 Conflicts of Interest The authors declare that they have no conflicts of interest to this work. Data Availability Statement Data are available on request from the corresponding author upon reasonable request. Author Contribution Statement Widaryanti Widaryanti: Conceptualization, Methodology, Validation, Formal analysis, Investigation, Resources, Data curation, Writing - original draft, Writing - review & editing, Visualization, Project administration. Luhgiatno Luhgiatno: Resources, Writing - review & editing, Supervision, Project administration. Riana Sitawati: Conceptualization, Methodology, Validation, Formal analysis, Investigation, Writing - review & editing.

ABSTRACT National institutions are widely assumed to foster corporate sustainability, yet their effects on ESG engagement can vary across contexts and firm types. Drawing on institutional theory and the socioemotional wealth (SEW) perspective, we examine how national institutional quality relates to ESG performance among large listed European family firms. Using ESG scores from Refinitiv and governance indicators from the Worldwide Governance Indicators, we find that higher government effectiveness, regulatory quality, and rule of law are associated with lower ESG performance, while voice and accountability, political stability, and control of corruption show no significant relationship. We interpret this pattern as a substitution mechanism: when institutions credibly enforce baseline standards and confer legitimacy, the marginal strategic value of additional voluntary ESG engagement declines—especially for family firms attentive to autonomy, control, and reputational preservation. The study contributes to institutional theory by specifying a boundary condition to institutional complementarity and to family business research by explaining how SEW‐consistent priorities shape the strategic meaning of ESG under different institutional configurations. From a policy perspective, the findings suggest that, alongside stringent reporting and compliance regimes, complementary incentive‐based instruments and targeted support may be needed to sustain proactive ESG strategies beyond compliance among European family firms.

Environmental Regulation and Corporate Sustainability: A Review of Green Innovation Mechanisms and Performance Outcomes

Purpose This study aims to identify the determinants of ESG-washing in the pharmaceutical sector, focusing on governance and management factors that influence companies’ deceptive sustainability practices. Design/methodology/approach A sample of 140 global pharmaceutical companies listed between 2016 and 2022 was analysed using the generalized method of moments system methodology to test the hypotheses related to governance and management variables affecting ESG-washing practices. Findings The results reveal that ESG-washing is present in the pharmaceutical sector, with certain governance factors playing a significant role. Specifically, larger board sizes, female representation on boards and ISO 14001 certification are associated with an increase in ESG-washing practices. Conversely, the presence of experienced directors and higher investments in research and development are found to reduce ESG-washing tendencies. Practical implications Stricter regulations and governance reforms are needed to prevent ESG-washing in the pharmaceutical sector. Investors and consumers should critically assess corporate sustainability claims. Social implications ESG-washing undermines public trust, delays environmental interventions and weakens workplace ethics. Regulatory and societal pressure will increase, demanding authentic sustainability efforts. Persistent ESG-washing may damage the pharmaceutical industry’s reputation, leading to stricter regulations and declining consumer confidence. Originality/value This study provides a novel contribution to the literature by examining ESG-washing determinants in the pharmaceutical sector. This area has received limited attention. The findings offer critical insights for regulators, investors, managers and civil society, aiding the development of effective strategies to mitigate ESG-washing and promote genuine sustainability efforts in the industry.

The reality of rising greenhouse gas emissions and global temperatures underscores the urgency of transitioning to a net-zero energy system. Modern radiotherapy contributes to the total healthcare domain emissions. As the global incidence of cancer rises, expanding treatment capabilities is critical. However, sustainability in high-emission healthcare disciplines is equally paramount. This paper explores the academic knowledge base and practical strategies for understanding and managing emission contributions to align with sustainability goals. The European Union's Corporate Sustainability Reporting Directive and climate disclosure frameworks in Australia and New Zealand require certain organisations, including large hospitals and radiotherapy networks, to report their direct and indirect emissions. Climate disclosure frameworks emphasise transparency and resilience to climate risks, supported by methodologies such as the Greenhouse Gas Protocol and ISO 14064. The study narratively examines existing literature and practical solutions through engaged scholarship and provides insights into modelling radiotherapy emissions guided by the principles of the Corporate Sustainability Reporting Directive. Radiotherapy emissions are a small but significant share of healthcare emissions, with indirect emissions dominating. They are estimated at 6.75 Mt. CO2e, accounting for approximately 0.3% of global healthcare emissions. While sustainable construction and innovative technologies reduce upstream impacts, downstream greenhouse gas reductions remain limited despite travel minimisation efforts. By advancing sustainability in radiotherapy, this work contributes to the broader healthcare sector's efforts to mitigate climate impacts and aligns with international climate commitments.

This paper examines the influence of the Corporate Sustainability Reporting Directive (CSRD) on ESG strategies among companies listed on the Nairobi Securities Exchange (NSE), employing an exploratory design that combines quantitative and qualitative analysis of five leading NSE issuers to assess how CSRD-shaped disclosure practices influence ESG risk management within the Kenyan capital markets context. While the findings reveal that ESG reporting has expanded following the 2021 NSE guidance, alignment with core CSRD features remains uneven, particularly with respect to double materiality assessments and independent assurance, underscoring the need for the Capital Markets Authority and the NSE to strengthen enforcement mechanisms and provide targeted capacity-building initiatives that bring Kenyan ESG reporting into closer alignment with evolving global standards.

Despite growing interest in circular economy practices, limited empirical research explains how circular-oriented HR systems translate into measurable sustainability outcomes, particularly within manufacturing SMEs operating under resource constraints. This study investigates whether and under what conditions Circular Human Resource Management (CHRM) contributes to corporate sustainability by examining the mediating role of green thinking and the moderating role of environmental management investment (EMI). Drawing on the Natural Resource-Based View and Institutional Theory, the study addresses the gap between symbolic adoption of circular HR practices and their substantive sustainability impact. Data were collected from 616 senior and middle managers in environmentally exposed manufacturing SMEs in Turkey and analyzed using confirmatory factor analysis and moderated mediation techniques. The findings indicate that CHRM is positively associated with corporate sustainability, both directly and indirectly through green thinking, although the strength of these effects depends on the level of environmental investment. Specifically, sustainability gains are significantly stronger in firms that complement cognitive capabilities with tangible environmental infrastructure. These results suggest that circular HR practices alone are insufficient without supportive organizational investment. The study contributes by clarifying the conditional mechanisms through which employee-centered circular capabilities generate sustainability value and by delineating boundary conditions in SME contexts.

Despite ecological evidence demonstrating the harmful impacts of light pollution (LP) and the tangible economic benefits associated with implementing “dark-sky-friendly” technological policies, there is still a lack of analyses examining how the hospitality industry approaches artificial light at night (ALAN) mitigation within the framework of corporate sustainability strategies. The aims of this article are (a) to determine whether the issue of LP and the principles of sustainable lighting design are addressed in the strategic documents of the three largest international hotel chains (Marriott International, Jin Jiang International, and Hilton Worldwide) and (b) to assess to what extent and with what level of specificity these issues are discussed compared to other categories of environmental impact. The study is based on a content analysis of official ESG strategies, reports, and internal operational guidelines (n = 6) of selected globally operating hotel brands. Additionally, the analysed documents were compared with the guidelines of global organisations combating LP and certifying accommodation facilities (Dark Sky International and the Starlight Foundation). The results indicate that ALAN-related issues are largely absent from the examined documents, and references to lighting focus primarily on energy efficiency. These findings suggest that leading hotel chains should strategically integrate LP mitigation into their ESG frameworks—by adopting measurable standards aligned with international guidelines—to strengthen environmental credibility and reduce ecological risk exposure.

Differentiating between authentic corporate compliance and strategic avoidance is of paramount importance for the evaluation of carbon-emission reduction policies. Leveraging China’s Total Carbon-Emission Control Policy (TCP) as a quasi-natural experiment, the influence of carbon regulations on corporate ESG performance was investigated in this study. Three significant patterns were identified by analyzing data of Chinese non-financial A-share listed companies from 2009 to 2023 through a difference-in-differences (DID) design. First, after the implementation of the TCP, the ESG performance of firms demonstrated an increase of 0.1309 on the Huazheng ESG index, indicating substantial compliance. Second, the positive impact is more obvious in state-owned enterprises, enterprises located in the eastern regions, large-scale enterprises, and industries with high pollution, which possess stronger institutional capacity and enforcement. Third, the mechanism analysis reveals that the TCP exerts opposing forces: it promotes ESG performance via green innovation while simultaneously increasing rent-seeking costs. The net positive effect implies that substantial compliance prevails. These findings passed robustness checks. The results suggest that carbon regulations can propel corporate sustainability when institutional design achieves a balance between targets and transparency, offering insights for the climate policies of emerging economies.

The circular economy is a production and consumption model that maintains the usefulness of products over time, reducing waste that generates pollution. It constitutes a value for corporate sustainability. The objective of this study was to identify the relationship between internal social capital and green competencies with the circular economy in companies in the tourism sector through a structural equation model. Managers from 39 hotels and 106 restaurants in Mexico participated. Internal social capital was assessed in its cognitive, relational, and structural dimensions; green competencies were assessed through the dimensions of ecological knowledge, ecological skills, and green attitudes; and the circular economy variable was measured through the dimensions of green purchasing, internal environmental management, and return on investment. The results of the structural analysis showed a good fit for the model, demonstrating a strong influence of internal social capital on green competencies and a direct and positive relationship between these variables and the circular economy. It is concluded that it is necessary to build internal social capital oriented toward the development of green competencies to strengthen the circular economy model in organizations, as a value for preserving the environmental conditions required for survival on the planet.

ABSTRACT The rise of environmental, social, and governance (ESG) investing has illuminated long‐standing concerns over the ability for sustainability rating schemes to accurately convey sustainability‐related performance of firms. This study theorizes and empirically examines how a detailed and transparent rating methodology influences what information firms choose to disclose and how such influence may further decouple the rating from societal outcomes the rating seeks to address. I replicate the scoring methodology of a prominent disclosure mechanism and rating scheme (CDP) and examine the relationships between firm motivation and capacity for strategic response to ratings and carbon emissions. Findings indicate that firms closely attend to rating methodology, both applying greater effort to aspects of disclosure carrying greater rating value and altering disclosure when rating value prescribed by the methodology changes over time. More significantly, higher ratings are not on average associated with better carbon emissions performance.

Corporate sustainability actors often work in office-based settings, spatially and symbolically removed from the ecosystems their work seeks to protect. Management scholars emphasize ecological embeddedness—long-term, place-based immersion in ecosystems—as foundational to ecological sensemaking and sustainable practice. How, then, does ecological orientation emerge without sustained immersion? Drawing on in-depth interviews with sustainability professionals, we examine retrospective accounts of formative experiences with biodiversity and nature. We introduce ecological light bulb moments (ELBMs): vivid, direct or mediated encounters with biodiversity and nature, retained for their emotional intensity, sensory vividness, and cognitive salience. The ELBMs serve as enduring interpretive anchors influential in shaping ecological commitments, even without sustained ongoing immersion in professional work. We contribute to theory by extending ecological embeddedness beyond continuous immersion to include episodic, symbolic, and affective experiences, and by theorizing—drawing on the retention component of sensemaking—how retained experiences may condition early stages of meaningful ecological sensemaking despite professionals’ spatial and symbolic distance from ecosystems.

Purpose This study aims to examine whether employees who adopt or lease an electric vehicle (EV) through their organisation perceive stronger corporate environmental responsibility (perceived CER) and whether this signal is associated with stronger environmental self-identity (ESI) and, in turn, stronger pro-environmental behaviour (PEB) at work and at home. Design/methodology/approach Survey data were collected from 2,949 EV drivers in The Netherlands. Employees who adopted an EV through their organisation were compared with those who adopted an EV privately. A sequential mediation model (PROCESS Model 6) tested associations through perceived CER and ESI across five PEBs. Findings Employees who adopted an EV via their company reported higher perceived CER than private EV adopters. Perceived CER was positively associated with ESI, which in turn was related to stronger pro-environmental behavioural intentions in both workplace and household contexts. The results suggest that corporate EV provision may function as a visible organisational cue that encourages PEB across domains. Practical implications Visible, high-impact sustainability initiatives such as corporate EV provision may strengthen perceived CER and ESI, encouraging employee PEBs both inside and outside the organisation. Originality/value To the best of the authors’ knowledge, this study is the first to examine corporate EV adoption as a visible organisational action associated with perceived CER. It introduces EVs as an organisational cue signalling environmental responsibility. It provides evidence on the links between corporate sustainability actions, ESI and cross-domain pro-environmental behavioural intentions using a large sample of EV drivers.

Purpose This study aims to examine the impact of environmental, social and governance (ESG) practices on the financial performance of family-owned firms in Mexico. It investigates explicitly whether ESG integration leads to improved outcomes and how the unique governance structures of family firms moderate this relationship. Design/methodology/approach This study utilizes panel data from 128 Mexican listed companies between 2014 and 2022, employing a fixed-effects model to examine the relationship between ESG practices and financial performance, as measured by returns on equity (ROE), return on assets (ROA) and operating margin. Family ownership is analyzed as a moderating factor, and robustness checks include dynamic Generalized Method of Moments (GMM) models and winsorization to control for outliers. Findings The results show that family firms integrating ESG – particularly environmental initiatives – exhibit significantly higher ROE and operating margins than nonfamily firms. However, the effect on ROA is selective, appearing only in robustness and subsample analyses. ESG adoption within family firms offers partial performance benefits, primarily through environmental and governance practices, which align with their long-term orientation and socioemotional wealth priorities. Originality/value This paper contributes to the literature by offering empirical evidence from an emerging economy, highlighting the nuanced impact of ESG integration on family firms. It advances socioemotional wealth theory in the context of corporate governance and sustainability, offering practical insights for investors, policymakers and family business leaders.

Corporate sustainability rankings have become integral to global governance but their growing influence contrasts sharply with limited progress on urgent societal challenges. This raises critical questions about the value of rankings and the conditions under which rankings may drive substantive adoption of corporate social practices. In the context of the Corporate Human Rights Benchmark (CHRB), we find that (non)reactivity to rankings emerges under different combinations of commitment alignment, pressure and capacity for organizational transparency. Specifically, we find that societal pressure amplifies commensuration, capacity enables self-disciplining, while rankings can be ignored or avoided when commitment or pressure are absent. Furthermore, we find that lacking capacity leads to superficial or symbolic compliance depending on the pressure faced by ranked organizations. Our study advances research on rankings by reframing reactivity through a configurational lens, demonstrates how external–internal alignment fosters substantive implementation of social practices, and identifies the conditions under which rankings contribute to pluralistic governance in business and human rights.

How does a critical mass of women in audit committees shape renewable energy practices?

This study examines the impact of corporate sustainability practices on firm performance, sustainable development, and value by focusing on ESG performance, sustainability committees, and sustainability reporting. While prior literature documents a general association between ESG performance and firm value, limited attention has been paid to the role of sustainability governance structures and their contribution to sustainable development outcomes, particularly SDGs disclosure, in a multi-country setting. Sustainable development is proxied by an SDGs disclosure index constructed using firm-level disclosures aligned with the 17 Sustainable Development Goals based on LSEG (Refinitiv) ESG item-level data. The analysis controls for firm size, leverage, profitability, industry-, and country-level institutional factors to ensure robust results. Using panel data comprising 36,438 firm-year observations from 6073 companies across OECD member countries from 2017 to 2022, this study employs a fixed-effects model based on diagnostic tests, including the Hausman and Breusch–Pagan tests. The findings revealed that higher ESG performance scores positively influence both sustainable development outcomes and market value. Moreover, the presence of sustainability committees and broader sustainability reporting further strengthens these relationships. These results highlight the importance of institutional sustainability governance in translating ESG commitments into measurable firm values and SDG-related outcomes. This study provides novel empirical evidence on how sustainability-focused governance mechanisms enhance corporate contributions to sustainable development, offering important implications for managers and policymakers as well as directions for future research.