Corporate Sustainability Research Articles

환경경영이 경영자보상에 미치는 영향 : 기관투자자 및 개인투자자를 중심으로

[Purpose]This study aims to analyze the impact of ESG management, particularly carbon emission reduction performance, on CEO compensation and to empirically examine the differential impact by investor type. [Methodology]The study analyzed manufacturing firms listed on the Korea Exchange from 2013 to 2022, using financial and environmental data. Multivariate regression analysis was applied to understand the relationship between carbon emission performance and executive compensation, and to assess the differential impact between institutional and individual investors. [Findings]The study found that higher carbon emission performance is associated with higher CEO compensation, with a stronger positive relationship in firms with a higher proportion of institutional investors. [Implications]Incorporating carbon emission reduction performance into CEO compensation can incentivize sustainable management, with institutional investors playing a crucial role in enhancing firms’ ESG performance and improving corporate sustainability.

A Fuzzy-Set Qualitative Comparative Analysis for Understanding the Interactive Effects of Good Governance Practices and CEO Profiles on ESG Performance

The impact of corporate governance mechanisms has been examined directly and independently, considering that such characteristics compete to explain environmental, social, and governance (ESG) performance. However, the nexus may be more complex than that suggested by most scholars, and more research is needed. This study applied a fuzzy-set qualitative comparative analysis to a sample of Spanish-listed companies in 2018–2020 to explore how good governance practices interact with CEO profiles to promote corporate sustainability practices. Our analysis discovered the importance of establishing sustainability committees and identified five pathways shaping governance practice bundles. Specifically, listed companies with a high code of good governance (GGC) compliance and a sustainability committee improve high ESG performance globally and for each ESG dimension. Furthermore, the effect is more relevant than the effect of the CEO profile, requiring either CEO duality (pathway 1) or extended CEO tenure (pathway 2). Concurrently, findings indicate three CEO profile configurations for GGC-neutral firms, providing companies with more flexibility in CEO selection. Two suggest that younger CEOs with longer tenure tend to be more motivated to engage in the G and S pillars (pathways 3 and 5). The third indicates that CEOs of older age and early tenure improve the E pillar (pathway 4).

Leader Attention to Information and Sustainability Performance

In contemporary business practice, sustainability has emerged as a focal point for understanding value creation. This study examines how leader attention influences sustainability performance. Specifically, it investigates two dimensions of leader attention: search intensity, which pertains to the depth and thoroughness of exploration, and search selection, which involves the criteria used to prioritize sustainability issues. This study employed a quantitative approach utilizing a survey methodology. Data collection of 30 SMEs was conducted through a postal survey, targeting the Malaysian service sector listed in the directory of the Federation of Malaysian Manufacturers (FMM). Data is analyzed using PLS-SEM to investigate perceptions regarding leader attention towards corporate sustainability performance. Employing the ABV theory, the findings indicate that search intensity positively impacts both corporate financial and non-financial performance, highlighting the importance of comprehensive information-gathering and analysis processes. However, the study does not find a significant relationship between search selection and financial performance, suggesting a limited impact of specific information search strategies. These results underscore the pivotal role of leader attention in shaping organizational sustainability performance. The study contributes to understanding how leader attention enhances sustainability and provides valuable insights for organizations. Despite its contributions, future research could explore mechanisms through which search intensity influences financial outcomes and consider moderating factors across industries and regions. In conclusion, this research emphasizes the importance of data-driven decision-making and comprehensive information search processes for corporate financial and non-financial performance in today's information-rich environment.

Corporate Environmental Reporting: Do Firms Operating in Environmentally Sensitive Sectors Disclose Enough?

Corporate environmental disclosure has been increasing steadily as it is an essential factor for sustainable development. However, this factor seems to be insufficientl recognised within the Nigerian corporate world. The objective of this study is to assess the level of corporate sustainability disclosures in environmentally sensitive industries in Nigeria. This study is based on secondary data obtained from annual reports of firms listed on the Nigerian Exchange Group (NGX). Data used were collected from 45 sampled companies listed under 6 environmentally sensitive sectors for the 2021 financial year. Content analysis was applied to measure the level of environmental disclosures. The Environmental Disclosure Index (EDI) was prepared based on the Global Reporting Initiative (GRI) Standards. This research used independent sample t-test, analysis of variance, and the Kruskal-Wallis test as techniques of analysis. There were statistically significant differences in firms’ disclosure levels based on environmental certifications. The agriculture industry made the highest environmental disclosure, whereas the companies in the natural resources industry disclosed the least. It was found that companies revealed maximum information on their energy and environmental compliance initiatives, while there was inadequate information in other areas of environmental disclosure, such as supplier environmental assessment, effluents and wastes, and materials. The study provides implications for the strict adoption of a systematic reporting framework, especially for environmentally sensitive firms, while offering insights to guide policymakers, regulatory bodies, industry associations, and businesses in Nigeria to promote transparency and responsible environmental reporting.

Сучасні аналітичні інструменти відповідального ведення бізнесу та впровадження стандартів єс для сталого розвитку в агропродовольчому секторі

Directions for ensuring the agricultural sector’s functioning in full-scale war conditions require modern analytical tools. They should be aimed at preserving the chain’s efficiency: “production – processing – storage – supply of food products to the population”. In the conditions of post-war recovery, by EU requirements, it is necessary to provide a digital platform for business analytics and subsequently diversify the development of agricultural production based on sustainable development, environmental friendliness, and circularity, increase the capitalization and investment attractiveness of enterprises, the formation of competitive market institutions, which will involve increasing the efficiency of agricultural production management of resources, strengthening of food security of the state, development of multi-organization, increase of export of goods with higher added value, provision of comfortable living conditions in the countryside. The significance of implementing the EU directive on the proper verification of the sustainable development of agricultural and food enterprises, considering environmental and social standards, cannot be overstated. This directive provides a framework for due Diligence tools, which are crucial for checking the economic activity of a food company and stages of Due Diligence diagnostics, measures for assessing the business reputation of a food company. In the work, a thorough analysis and assessment of the risks that arose during the martial law in Ukraine was carried out, an example of a Due Diligence B2B case is given – the merger of agro-food companies in the agricultural sector. The components of technical, commercial, operational and ESG verification, risk management components, business reputation assessment and predictive modeling of possible future scenarios and financial support and their reflection in the annual sustainable development report are covered. The introduction of the EU Directive on due diligence of the sustainable development of enterprises (Corporate Sustainability Due Diligence Directive) creates new challenges and opportunities for Ukrainian agri-food companies. To maintain access to the European market and strengthen business reputation, enterprises must implement sustainable development strategies that must meet environmental standards and respect human rights. This will contribute to strengthening their positions in the international arena and increasing competitiveness. Keywords: agro-food sector, sustainable development reporting, European standards, Due Diligence, post-war recovery, environmental standards, social standards, investment attractiveness, risks, business reputation, business analytics.

Regional digitalization and corporate ESG performance

Against the backdrop of rapid digitalization growth and deep integration with the real economy, companies are faced with more extensive and complex social responsibilities. Based on the data of 1178 A-share listed companies in China's Shanghai and Shenzhen markets from 2014 to 2021, this study empirically analyses the impact of regional digitalization on corporate ESG performance by constructing a double-difference model using the establishment of China's National Pilot Zone for the Innovative Development of the Digital Economy. This paper found that regional digital construction can improve corporate ESG performance by enhancing corporate environmental information disclosure, improving the scale of social donations, and enhancing risk resilience. In addition, the higher the level of public environmental concern in the region, the more obvious the enhancement of digital construction on corporate ESG performance. The contribution of regional digital construction to corporate ESG is also stronger in firms with high executive environmental awareness than in those with low. At the same time, this paper also responds to some scholars' questioning of corporate ESG by verifying that corporate ESG report disclosure is motivated by corporate sustainability rather than self-impression management from the dimensions of corporate management's manipulation of information and the corporate's actual environmental behavior. This paper enriches the research on the impact of the external digital environment on corporate ESG performance. It is of great significance for developing countries to promote the active participation of enterprises in ESG practices through the opportunity of digital development.

Who gains favor with green investors amidst climate risk?

PurposeThis study aims to investigate the impact of climate risk disclosure by listed companies on the entry of green investors. It seeks to understand how proactive climate risk disclosure can attract green investment and the underlying mechanisms that facilitate this process.Design/methodology/approachTextual analysis is employed to assess the extent of climate risk disclosure in annual reports. The research constructs indicators for green investor entry and applies regression analysis to examine the relationship between climate risk disclosure and green investment, considering various mediating variables such as positive online news coverage, ESG scores, and corporate reputation.FindingsGreen investors are more likely to invest in companies with higher levels of climate risk disclosure. This relationship is robust across different types of firms, with non-state-owned, non-high-tech, large-scale firms, and those in the Eastern region showing a stronger attraction to green investors. Climate risk disclosure promotes green investment through the “signal transmission” mechanism, enhancing corporate reputation and ESG performance.Originality/valueThis paper extends the traditional theory of external incentives for corporate green development to include autonomous incentives through active climate risk disclosure. It provides new insights into the theory of corporate sustainable development and offers practical recommendations for enhancing corporate green development pathways. The study’s comprehensive approach and use of extensive data contribute valuable knowledge to the field of green investment and corporate sustainability.

Sustainability: Is It a Strategic Management Research Fashion?

This article aims to identify the relationship between sustainability and strategic management to determine whether sustainability can be considered a strategic management research fashion. This involves a bibliometric analysis of recent academic literature from 2021 to 2023 to identify the latest academic research, key trends, collaboration and keyword networks within this relationship. The analysis was conducted using two datasets from the Scopus database. These datasets focus on English-language journal articles on business, management and accounting. The first covers academic research on strategic management, while the second expands to sustainability and sustainable development. The results show that strategic management research focusing on sustainability has recently grown faster (24.70%) and with higher funding frequency (22.4%) than the whole strategic management research field (14.30% and 17.5%, respectively). Furthermore, the geographical analysis of co-authorship identified articles from 88 countries, suggesting a broad interest in this relationship. Notably, the strategic management network mapping revealed a unique, sustainable development, corporate social responsibility, and sustainability cluster. Moreover, extended mapping revealed four clusters: strategic and innovation-driven sustainability, operational corporate sustainability, crisis management and environmental economics, and sustainable supply chain and resource management. The thematic analysis further highlights well-developed sustainability and strategic management research topics like digitalisation, circular economy, sustainable supply chain management, sustainable development goals, industry 4.0, COVID-19, environmental sustainability, etc. that are contributing to the progress of sustainability and strategic management research. The results thus confirm the rapid growth and widespread coverage of research on sustainability and strategic management, highlighting sustainability as a strategic management research fashion.

Institutional Investors and Corporate Social Responsibility (CSR): A Comprehensive Review of Theoretical Frameworks and Empirical Insights

In the evolving discourse of Corporate Social Responsibility (CSR), the role of institutional investors stands out as a pivotal area of exploration. This work delves deep into the intricate interplay between these investors and CSR, emphasizing its significance in the modern corporate landscape. Drawing upon the Institutional, Legitimacy, Agency, and Resource-Based View theories, this paper elucidates how societal norms, alignment with societal expectations, and strategic asset perspectives shape corporate behavior toward CSR. In this work, we highlight the diverse strategies and objectives of institutional investors, such as pension funds and hedge funds, and their profound influence on the CSR landscape. Our findings underscore that these investors not only steer corporations toward sustainable actions but also redefine the very essence of corporate responsibility. The conclusions drawn emphasize the need for synergistic regulations and incentives, aligning with the CSR objectives of these influential stakeholders. Furthermore, the significance of this study lies in its potential to guide future research, especially in understanding the nuanced roles of different investor types and their global implications. In summation, this paper offers a comprehensive insight into the institutional investor-CSR dynamic, spotlighting its profound responsibility and potential in shaping the future of corporate sustainability.

The Impact of Board of Directors on the Disclosure of Sustainable Development of Listed Firms

Vietnam is a developing country with many remarkable achievements. However, in recent years, economic and social development in Vietnam still relies heavily on the exploitation of natural resources; labor productivity is still low; production technology and consumption models still use a lot of energy and raw materials and emit a lot of waste. Vietnam's development process is facing many severe challenges, with potential risks of unsustainable development such as climate change, environmental pollution, depletion of natural resources, etc. Therefore, Vietnamese firms need to be aware that economic development is always associated with environmental protection activities and social responsibility. This study is conducted to investigate the impact level of the disclosure of sustainable development of Vietnamese listed firms. The study determines the impact of board of directors on the level of sustainable development information disclosure of these firms. Data was collected from annual reports, corporate sustainability reports, management reports, and financial reports of 345 firms in 2023. The results reveal that the level of disclosure of sustainable development of Vietnamese listed firms is low, no firm discloses 100% fully, some firms do not publish sustainable development information. The findings also show that the level of mandatory disclosure of sustainable development is higher than the level of voluntary disclosure of sustainable development. The research results show that The board of directors factors do not impact the level of mandatory disclosure of sustainable development. There are four determinants related to the board of directors that impact the level of voluntary disclosure of sustainable development, including board size, board independence, the proportion of foreign BOD members, the chairman-cum-CEO have a positive impact (in the same direction) on the level of disclosure of sustainable development. Based on the findings, several recommendations are proposed for promoting the disclosure of sustainable development information on the side of Vietnamese listed firms.

Advancing fiscal transparency in Latin American countries: new findings in reports on tax sustainability in Chile

PurposeThe objective of this study is to generate new fiscal transparency indicators based on fiscal sustainability reports voluntarily disclosed by Chilean companies, leaders in Latin America in the issuance of green, social and sustainability corporate bonds (OECD, 2023a; OECD, 2018).Design/methodology/approachThe sample included the analysis of sustainability reports of 30 Chilean companies with the highest market capitalization published in the period 2021. A correlation was carried out for each of the companies in the sample with the intention of detecting differences between several groups of paired dichotomous variables. For this, Cochran's Q test was used; the McNemar test; the Friedman test; the Wilcoxon test; the Levene test and the Kruskal−Wallis test were also used.FindingsIn the case of the companies in the sample, for the 2021 period there was an increase in disclosures of tax strategies compared to the study carried out by Faúndez-Ugalde et al. (2022) for the period 2020. However, there is still a lower degree of compliance in reporting fiscal risks and “country by country” information.Practical implicationsThe commitment of companies to assume tax transparency standards improves their behavior in compliance with their tax obligations and provides greater certainty to develop actions to mitigate their tax risks.Social implicationsThe results demonstrate practical implications, where fiscal sustainability reports can enhance the work of tax administrations by defining indicators of good fiscal practices.Originality/valueThis study expands the research on the fiscal sustainability standards of Chilean companies, thus providing a deeper understanding of their performance regarding fiscal transparency.

ESG ratings and corporate success: analyzing the environmental governance impact on Chinese companies’ performance

This study explores the impact of ESG ratings on corporate performance, focusing on achieving sustainable development and corporate sustainability through innovation within the context of high-quality global economic growth. In recent years, ESG ratings have garnered significant attention in the financial sector, influencing corporate strategy and performance management. While some argue that ESG activities might detract from profitability, others highlight that firms with strong ESG performance can access low-cost capital, thereby enhancing overall performance. Using a sample of China’s A-share listed companies from 2009 to 2021, this research examines the influence and mechanisms of ESG ratings on corporate performance. The findings indicate a significant positive relationship between ESG ratings and corporate performance, which remains robust after rigorous testing. Mediation analysis reveals that ESG ratings improve corporate performance by alleviating financing constraints and enhancing corporate reputation. Furthermore, the performance-enhancing effects of ESG ratings are more pronounced in firms with robust internal controls and private enterprises. This research provides empirical evidence to support stronger ESG investment and the refinement of the ESG rating system.

The business case for sustainability: six takes on a cultural artefact

ABSTRACT The business case as the prime mover of business decision-making retains an iron grip on the public imagination and the business school curriculum. Recent studies suggest its influence may be exaggerated, and that its depiction as totalising is somewhat cartoonish. We survey the role and effects of the business case in corporate sustainability efforts. Rather than examining its validity or correctness, we approach the business case as a commonly employed cultural artefact. We argue that the business case is neither sufficient nor necessary for sustainable innovation, and examine how it operates as a fixation and impediment, as well as occasional enabler. We conclude by laying out paths for sustainability champions to innovate with and beyond the business case.

The knowing–doing gap: Family SMEs and sustainability in Germany and Sweden

ABSTRACT The article compares family small and medium-sized enterprises (SMEs) from Germany and Sweden with a large family company in their work on corporate social responsibility and sustainability. This study aims to understand how and why (small) family firms work with sustainability. In total, 14 interviews were conducted with family firms in different industries. Large family companies are a benchmark, as they have worked with these questions since 2000. However, family SMEs also work with these issues. It is the family owner-managers who actively work with these questions. Accordingly, findings are of relevance for family firms and their managers, working with sustainability.

The Effect of Corporate Sustainability Performance Moderated by Liquidity, Stock Price Volatility, Institutional Ownership, And Concentrated Ownership On Profitability

This research needs to be done to develop previous studies by adding other variables, especially non-economic variables. This study aims to analyze corporate sustainability performance (CSP) controlled by company size and leverage variables on profitability moderated by liquidity, concentrated ownership, stock price volatility, institutional ownership in consumer goods companies listed on the IDX from 2018 to 2022. This study adds institutional ownership and concentrated ownership as moderating variables as well as company size and the use of debt (leverage) or loans as control variables. The sample withdrawal method in this study used a purposive sampling method of 37 companies with a total sample size of 185 with the regression results of the fixed effect model equation, and random effect. The results of this study indicate that there is no significant effect of CSP on profitability, liquidity moderates the effect of CSP on profitability, stock price volatility does not moderate the effect of CSP on profitability, concentrated ownership does not moderate the effect of CSP on profitability, institutional ownership moderates the effect of CSP on profitability and there is a significant effect of company size and debt use on profitability. Managerial implications to increase CSP and probability, the company's efforts include increasing the liquidity ratio, being more careful in taking debt and must ensure the company's ability to cover the debt. In addition, it seeks to improve performance, innovate and be responsive and sensitive to reading market opportunities

Environmental protection laws and regulations in healthcare

The European Union and the German federal government have initiated aclimate protection program with guidelines and laws that, for the first time, hold the healthcare sector accountable. The legal provisions have far-reaching implications for hospitals. This article presents the specific provisions to be observed and the best practices for implementing the necessary measures. This study aims to provide aconcise overview of the legal provisions to be observed in the healthcare sector and to highlight support services for implementation. Selective internet research on legal provisions for the healthcare sector and guidance on approach. The EU Corporate Sustainability Reporting Directive (CSRD) with taxonomy came into force on January5, 2023. The Climate Protection Act, which was amended in April 2024, the Energy Efficiency Act (EnEfG), which came into force in January 2024, and the Supply Chain Sustainability Obligations Act (LKSG) are the most important German legal frameworks to be observed. The EU regulations and the German government's laws pose new challenges for hospitals, but are also an opportunity to tackle the necessary measures to reduce greenhouse gas equivalents in astructured manner. Achieving climate neutrality by 2045 is in everyone's interest and can only succeed if all sectors contribute. The healthcare sector has not yet been held accountable, despite its significant contribution of approximately 5% to national greenhouse gas emissions. The legal provisions now trigger anecessary transformation but also pose challenges in day-to-day operations, requiring support services.

Integrated Management System To Improve Corporate Sustainability Performance The Case Study In The Pharmaceutical Manufacturing Industry

This study aims to investigate the mediating factors of achieving quality, environmental and social performance concerning the sustainability of pharmaceutical manufacturing companies. Effective implementation of an integrated management system is essential in achieving business process performance to improve the company’s sustainability performance. The priority of the pharmaceutical industry is to satisfy the requirements of quality assurance and product safety. Thus, a balance is required toward implementing an integrated management system. This research was conducted in one of the pharmaceutical manufacturing companies in Indonesia. Data were collected using questionnaires and interviews with respondents and analysed using generalised structural component analysis (GSCA). Results of this study show that implementing an integrated management system can improve social performance and corporate sustainability. The implications of this study indicate that the balanced implementation of the integrated management system has not been effectively achieved. Consequently, a strategy is required to evaluate the quality and environmental performance achievements and to improve the implementation of the integrated management system in a balanced manner.

Environmental Social And Governance (ESG) And Corporate Governance in ASEAN A Threshold Effects of Corporate Strategy 1

Sustainable development goals (SDGs) constitute 17 sets of goals to be achieved by the end of the said year. The SDGs prioritize problems associated with hunger, inequality, climate change, environmental destruction, peace, and justice for a better global future (United Nations, 2018). This study has two objectives, first, to examine the relationship between corporate governance mechanisms and corporate sustainability performance across ASEAN-listed companies. Second, to explore the threshold effect of corporate strategy in a nexus relationship between corporate governance mechanisms and corporate sustainability performance. This study uses 118 companies in ASEAN-5 countries as study’s sample. The period covers from 2011-2020. Both fixed effect model and fixed effect threshold regression are employed to capture linear and nonlinear estimation, respectively. The study validates the female directors and the independent directors on ASEAN boards positively impacts corporate sustainability. Intriguingly, the intervention of corporate strategy will mitigate the low company’s ESG score while strengthening the link between corporate governance and ESG score. This study has practical implications for companies, investors, and regulators looking to in incorporate ESG factors into capital expenditure decisions and reporting.

Under the ESG Dome of China

Implementing ESG is crucial for China’s modernization journey and corporate sustainability. To deeply understand the current standing of ESG in China, this study leverages online data richness using text mining techniques, specifically Latent Dirichlet Allocation (LDA) and ego network analysis. LDA is utilized to identify prevalent discussion topics on ESG, while ego network analysis is applied to examine the relationships and influences among key stakeholders. The scientific aim of this research is to identify prevalent ESG discussion topics, examine the relationships and influences among stakeholders, and determine core ESG focus areas on Chinese society. The findings highlight popular discussion topics such as ESG investment, the ESG notion, green finance transformation, and ESG rating. These topics underscore China’s growing concern for environmental protection and social responsibility. The core discussion areas focus on sustainable development, company social responsibility, and eco-friendliness, framing harmonized progress across economic, social, and environmental realms. Interestingly, governance discourse is sparse; the reasons are analyzed. Through the analysis of online discussions on China’s ESG, this study aims to enhance policymakers’ and participants’ understanding of the true status of China’s ESG, being of practical significance for policy formulation and appropriate ESG strategies.

Determinants of corporate leverage and sustainability of small and medium‐sized enterprises: The case of commercial companies in Ecuador

Determinants of corporate leverage and sustainability of small and medium‐sized enterprises: The case of commercial companies in Ecuador