Corporate Sustainable Development Research Articles

Corporate governance, technological innovation, and corporate performance: Evidence from China

Corporate governance plays an important role in achieving high-quality economic development and sustainable corporate development. In recent years, as listed companies face increasing challenges in social responsibility issues such as environmental pollution and financial fraud, corporate governance has received widespread attention from academics and practitioners. In particular, technological innovation has attracted much attention to the development of enterprises. This paper also explores the intermediary mechanism of technological innovation based on the output measurement method of technological innovation. This study selected data from companies listed on the A-share main board of the Shanghai and Shenzhen Stock Exchanges in China from 2012 to 2022, aiming to explore the relationship between corporate governance and corporate performance. At the same time, we further analyzed the impact of corporate governance on corporate performance based on the mediating role of technological innovation. The research results show that equity balance degree, board size, and executive incentives all have a positive impact on corporate performance. Technological innovation has a certain mediating effect on independent variables (equity balance degree, board size, and executive incentives) and corporate performance. This study clarifies the controversy about the relationship between corporate governance and corporate performance and deepens the understanding of this relationship. It also provides empirical support for listed companies to pay attention to and improve corporate governance levels and enhance innovation capabilities. By exploring the interplay between governance mechanisms, innovation processes, and performance outcomes, researchers can gain a deeper understanding of how organizations can leverage governance practices to drive innovation-led growth and sustainable success.

The Influencing Mechanism of Managerial Myopic Behavior on Enterprise Sustainable Development Performance: Evidence Based on Listed Companies in China

Corporate sustainability is a key concern in today’s world. This research examines the relationship between managerial myopic behavior and corporate sustainability performance in Chinese A-share listed companies from 2013 to 2022. Based on behavioral finance theory and time orientation theory, our research provides novel insights into how time preference in managerial decisions significantly affects corporate sustainable development. We also investigate how myopic behavior by managers can adversely affect a company’s sustainable development performance. Using a robust dataset, we describe the mechanisms by which managers’ myopic behavior affects sustainability performance, especially in two aspects: financialization of assets and green innovation capability. The results of our research show the following: (1) managers’ myopic behavior adversely affects corporate sustainability performance; (2) asset financialization and green innovation capability play mediating roles; and (3) unlike the findings of the existing research, this study found that the linear moderating effect of media attention plays a significant “inverted U-shaped” moderating role in the relationship between the two influences.

Analysis of the Board Oversight and Accountability Mechanism under UK Company Law

This paper focuses on the legal framework and the effectiveness of the board oversight and accountability mechanism within UK company law, highlighting its importance and challenges in ensuring sustainable corporate development and protecting investor interests. UK company law aims to protect stakeholders by regulating directors' behaviour, addressing issues such as conflicts of interest and inadequate information disclosure that hinder effective supervision. As remedies, this study suggests enhancing training for board members, improving information disclosure, and incorporating independent directors to mitigate conflicts of interest and increase oversight transparency and efficiency. Through case analysis, this paper further explicates the implementation outcomes and challenges faced, providing references for corporate governance improvement. Ultimately, the research underscores that refining the oversight and accountability mechanisms is crucial to elevate corporate governance standards, fostering long-term corporate prosperity.

Corporate governance for sustainable development: A study on mechanism configuration

There is a dearth of configuration analysis on the factors that constitute corporate governance mechanisms within the framework of corporate sustainable goals in existing literature. Specifically, the impact mechanisms related to various combined mechanisms have not been comprehensively defined. This study employs Qualitative Comparative Analysis (QCA) approach to explore the effects of various configurations of corporate governance mechanisms on sustainable development, based on a sample of 2959 Chinese listed companies. Our analysis identifies four distinct pathways that facilitate the achievement of sustainable development goals: 1) enlarging board size, providing managerial incentives, establishing sustainability committees, and enhancing corporate transparency; 2) promoting board diversity, providing managerial incentives, establishing sustainability committees, and enhancing corporate transparency; 3) reducing ownership concentration, providing managerial incentives, establishing sustainability committees, and enhancing corporate transparency; 4) encouraging individual investment, providing managerial incentives, establishing sustainability committees, and enhancing corporate transparency. Additionally, a comparative analysis of different pathways has revealed substitutional relationships between board size and diversity, ownership concentration and investor structure, while highlighting the complementary relationship of managerial incentives, sustainability committees, and corporate transparency. Challenging the erstwhile linear research paradigm, this study contributes to understanding the pathways for achieving sustainable development goals from a configurational perspective and elucidates the relationships between corporate governance mechanisms. It offers novel and comprehensive evidence for examining the intricate nexus between corporate governance mechanisms and sustainable development. Keywords: Stakeholder theory; Sustainable development; Corporate governance mechanisms; Mechanism configurations; fuzzy-set Qualitative Comparative Analysis (fsQCA).

An exploration of operational efficiency, market efficiency, and sustainable development in the banking industry

AbstractSustainable development is the primary goal of the current global economic transformation. The banking industry, as an intermediary institution within the financial system, not only serves as a crucial foundation for national economic development but also plays a key role in the global transition to sustainability and a low‐carbon economy. Banks can leverage the influence of financing to direct funds towards sustainable ventures and simultaneously develop green financial products, guiding ordinary consumers to make more environmentally friendly choices. How the banking industry can effectively improve operational efficiency while considering sustainable development is one of the key focuses of ongoing development in the banking sector. The main aim of this study is to incorporate the aspect of sustainable development into the evaluation of operational efficiency, aligning with the goals of corporate sustainable development. It allows for an analysis of how decision‐makers in the banking industry can adjust resources to maintain stable and sustainable profitability while promoting sustainable development. This study selected 13 financial holding banks and 19 non‐financial holding banks in Taiwan as research subjects, covering the period from 2016 to 2021. Utilizing a meta assurance regions (AR) parallel dynamic two‐stage slacks‐based measure model with “operational stage” and “market and sustainability parallel stage,” the research explores the efficiency performance of banks considering sustainable development. It examines the differences in efficiency performance at various stages among different types of banks. The research findings are as follows: (1) among the banking industry in Taiwan, operational stage efficiency ranks the highest, followed by sustainable stage efficiency, while market stage performance lags behind. (2) Financial holding banks outperform non‐financial holding banks on average in operational stage, market stage, and sustainable stage efficiency. (3) Fubon Financial, TFH, CATHAY HOLDINGS, and SKFH are benchmark performers among financial holding banks. (4) Non‐financial holding banks exhibit a higher average technical gap ratio compared to financial holding banks, indicating that non‐financial holding banks have fewer inefficient areas to improve. However, the technical efficiency of both groups of banks approaches each other over the years. (5) In the sustainable stage, financial holding banks demonstrate superior environmental indicators and corporate treatment efficiency compared to non‐financial holding banks.

Challenges and Responses to ESG Risk Management

As Environmental, Social, and Governance (ESG) considerations gradually gain global prominence, the demand for ESG risk management by corporations is rapidly increasing. This is not only a manifestation of social responsibility, but also a prerequisite for sustainable corporate development. ESG risk management is not only crucial for the long-term interests of corporations themselves, but also influences investment decisions and public perceptions of corporations. However, in the implementation process, challenges such as uncertainty in data quality, regulatory compliance, the diversification of stakeholder needs, and the complexity of strategic integration have been encountered. To effectively address these issues, corporations need to establish and enhance ESG data quality management systems, adapt to and proactively respond to regulatory changes, strengthen communication with investors and other stakeholders, and promote deep integration of ESG strategies across various departments and levels within the corporation. This article will explore the challenges faced by ESG risk management and propose corresponding strategies and recommendations.

Sustainable development goals disclosure and analyst forecast quality

PurposeThis study aims to investigate the relationship between corporate sustainable development goals (SDGs) disclosure and analyst forecast quality.Design/methodology/approachThe study focuses on a sample of 95 Italian-listed companies preparing the mandatory non-financial declaration (NFD) according to the Global Reporting Initiative (GRI) standards over a five-year period (2017–2021), corresponding to an unbalanced sample of 438 observations. Analyst forecast quality was proxied by earnings forecast accuracy (FA) and earnings forecast dispersion (FD), built on data retrieved from the Refinitiv database. A manual content analysis was performed on NFDs to derive an SDG disclosure score (SDGD) for each sampled company.FindingsThis study provides empirical evidence suggesting that voluntary SDG disclosure matters to the capital market in that it helps enhance the information environment of companies, evidenced by improved analyst forecast quality. In particular, this study highlighted that SDG disclosure positively influences analyst FA while negatively affecting analyst FD.Research limitations/implicationsThis study focuses on the Italian context, which has idiosyncratic characteristics regarding the structure of the financial market, the composition of corporate ownership and experience in non-financial reporting practices.Practical implicationsThis study indicates to corporate managers that following GRI standards may represent the right way to better integrate SDG disclosure in corporate non-financial reports and increase the relevance of such information for investors and other capital market participants.Originality/valueTo the best of the authors’ knowledge, this is the first study that empirically examines the association between SDG disclosure and analyst forecast quality.

Corporate Social Responsibility and Sustainable Development in India

Corporate Social Responsibility and Sustainable Development in India

Board skill diversity and corporate environmental responsibility: the moderating effects of formal and informal pressures

Purpose This study aims to investigate the impact of board skill diversity (BSD) on corporate environmental responsibility (CER). In addition, this study explores the moderating effects of formal regulatory pressure and informal media pressure. Design/methodology/approach This study uses Chinese high polluting companies as the sample and uses regression analysis. Robustness checks, including instrumental variable regression, Heckman two-stage model and propensity score matching method, are performed to test the robustness of the results. Findings The findings suggest that BSD significantly improves CER performance. Both formal regulatory pressure and informal media pressure strengthen the positive impact of BSD on CER. Further channel analyses reveal that BSD improves CER performance by promoting corporate proenvironmental behaviors rather than by restricting environmental violations; skill diversity of executive directors has a more significant effect on CER than that of independent directors. Finally, the moderating effect of regulatory pressure is only significant after the implementation of the Environmental Protection Law, and the moderating effect of media pressure mainly concentrates on negative media coverage. Practical implications The involvement of directors with more diverse skills is essential to improve corporate proenvironmental behaviors. Companies should select qualified directors with different skills to further improve their performance on environmental protection and sustainable development. Social implications Regulators and standard-setters should develop efficient guidelines on corporate board governance to enhance the positive role of companies in environmental and sustainable development. Originality/value This study broadens the research on the determinants of CER by examining the influence of BSD on CER and the moderating roles of various stakeholder pressures, thereby providing a deeper understanding of corporate environmental performance and sustainable development.

Recognition of Ethics and Sustainability: A Case Study of Coca-Cola

Corporate ethics and sustainable development are receiving increasing attention in today’s society. More and more companies are realizing that ethical and sustainable development is not only a requirement for fulfilling social responsibility but also a key factor for achieving long-term growth and sustainable competitive advantage. As a result, companies are integrating ethics and sustainability into their strategies, decisions, and operations to achieve both business success and social benefit. However, some companies shout sustainability and environmental protection slogans; the actual practice differs from the claim. This paper combined the planning and actual data of the Coca-Cola Company and found that the Coca-Cola Company was suspected of greenwashing. While Coca-Cola does contribute to the environment, there is a difference between what it does and what it says. As for the possibility of this problem, the article also makes a relative solution and assessment.

Evaluating Mandatory Corporate Social Responsibility Disclosure Policies and Sustainability Development Goals Achievement in Indonesia

<div class="WordSection1"><p><em>The enactment of the 2007 Company Law confirms Indonesia’s requirement for mandatory disclosure of Corporate Social Responsibility (CSR). However, there has not been any research specifically examining CSR activities from the report disclosed. Only a few studies have examined the mandatory disclosure of CSR for companies whose core business does not directly include natural resources but whose activities significantly impact the environment. Therefore, this research aimed to evaluate and analyse the mandatory disclosure of CSR through company annual reports, taking a sample of listed textile businesses in Indonesia and the correlation with the achievement of Sustainability Development Goals (SDGs). The findings showed that the mandatory disclosure regulations in 2007 Company Law and Financial Service Authority Regulation Number 51/ POJK.03/2017 failed to improve optimal CSR implementation by textile companies in Indonesia. Various textile companies focused more on community development while paying little attention to environmental concerns. Additionally, detailed and explicit provisions were lacking in achieving the SDGs target. Reformulation of CSR disclosure policies was necessary to regulate reporting procedures, content, and criteria for environmental aspects of the programs in annual reports while correlating with </em><em>the targets of the 2030 SDGs policy.</em></p></div>

Data assets and corporate sustainable development: evidence from ESG in China

This paper studies the impact of data assets generated inside firms on their Environmental, Social, and Governance (ESG) performance. Using a sample of listed firms in China from 2010 to 2020, we find that firms that use data assets have better ESG performance. Further analyses show that data assets improve ESG performance by enhancing operational capacity and improving monitoring. Furthermore, the impact of data assets on ESG performance is more pronounced for firms with lower asset turnover rates, weaker market power, and higher agency costs, and in scenarios where mandatory ESG disclosure is absent and CEOs have IT-related backgrounds. This paper enriches the literature by shedding light on the role of data assets in sustainable development and corporate social value creation and has practical implications for data governance in the digital era.

Corporate Governance and the Sustainable Development

Nowadays the issues of sustainable development are everywhere around us. Everybody talks about sustainability in all aspects of our life. It is becoming also part of the agenda of the business world not only for the small and medium size companies, but also for the big corporations. Gradually environmental and social issues begin to pose new topics in the agenda for board meetings of the big corporations. The corporate governance begins to pay more and more attention not only to the return rate of the investments but also to the footprint that the company has on the society. In this framework we decided to examine the relationship and interconnectivity between corporate governance and sustainable development. The research that backed this paper encompasses literature survey and analysis, on one hand and empirical research on another. This paper present some of the results from our survey showing the changes that occur in the corporate governance and the position of the managing boards of directors due to the sustainable development policy applied worldwide.

Environmental regulatory intensity, green finance and corporate green sustainable development performance

In the “14th Five-Year Plan” period, the emphasis is made on green and low-carbon initiatives, which has become a defining feature of China's development, and it is of great significance to help enterprises realize green and sustainable development under the guidance of environmental regulation to achieve the goal of “dual-carbon”. At first, this research analyzes the decision-making process between the government and enterprises under environmental regulation using the evolutionary game model. Moreover, using the TOPSIS method, this paper constructs the indicators of corporate green sustainable development performance, and empirically examines the impact of the intensity of environmental regulation on the green sustainable development performance of enterprises based on the data of Chinese A-share listed enterprises from 2010 to 2022. A noteworthy positive correlation between the intensity of environmental regulation and the sustainable green development performance of enterprises is unveiled by the results. Mechanism tests suggest that the intensity of environmental regulation has a positive impact on the green sustainable development performance of enterprises through enhancing green finance and green technological innovation. Moreover, this effect tends to be more pronounced for enterprises that are in the mature life cycle, with green executive team, and high media attention. The research presented in this study contributes to establishing a novel theoretical foundation for corporate sustainable development.

Can the Opening of High Speed Rail Boost Corporate ESG? - Empirical Evidence from China

ESG provides quantitative indicators of corporate sustainable development, which is currently an important reference basis for evaluating the development of enterprises in various countries. However, fewer scholars have studied corporate ESG performance based on the perspective of high-speed railway opening. Therefore, this paper takes China, where high-speed rail is developing rapidly, as the study area, and uses the relevant data of Chinese listed companies from 2010 to 2021 to study the relationship between high-speed rail opening and corporate ESG performance. We find that (1) the opening of high-speed rail will enhance firms' ESG performance. (2) Firms with higher external attention have better ESG performance. (3) Financing constraints play a moderating role.

From symbolic to substantive green innovation: How does ESG ratings optimize corporate green innovation structure

Green innovation, primarily substantive green innovation, is critical for improving corporate sustainable development. In contrast to existing literature, this paper examines how environment, society, and governance (ESG) optimizes corporate green innovation structure from an innovation motivation perspective. Based on A-share listed firms, this study reveals a significant enhancement of ESG ratings in corporate green innovation structure, verifying that ESG ratings can promote the shifting from symbolic to substantive green innovation. This impact operates mainly through the monitoring and incentive effects. This paper theoretically enriches the related research and emphasizes the necessity of ESG construction for sustainable development in emerging economies.

The Role of Tangguh Development Projects in Achieving Welfare for the Papuan Community

Purpose: The purpose of the study is to determine and analyze the role of the Tangguh Development Project in realizing the welfare of the Papuan people. Methods: Describe the methodology used in the study, such as data collection methods, analysis techniques, and any relevant frameworks or theories employed to assess the impact of the Tangguh Development Project on Papuan welfare. This could involve surveys, interviews, case studies, or statistical analysis. Results and Discussion: Present the findings of the study regarding the role of the Tangguh Development Project in promoting the welfare of the Papuan people. Discuss the positive impacts, if any, as well as any shortcomings or challenges faced by BP Tangguh in fulfilling its commitments. Analyze the discrepancies between BP's claims and the actual conditions on the ground, particularly in the economic sector. Implications of the Research: Discuss the implications of the findings for various stakeholders, including BP Tangguh, the Indonesian government, local communities in Papua, and environmental advocacy groups. Address the potential socio-economic, environmental, and political implications of the Tangguh Development Project on Papuan welfare and broader regional development. Originality/Value: Highlight the original contributions of the study to the existing literature on corporate social responsibility, sustainable development, and resource extraction projects in indigenous or marginalized communities. Emphasize the value of the research in informing future policy decisions, corporate practices, and community engagement strategies aimed at promoting inclusive development and equitable distribution of benefits from resource projects like the Tangguh Development Project.

Can green funds improve corporate environmental, social, and governance performance? Evidence from Chinese-listed companies.

Green funds play pivotal roles in driving corporate sustainable development. Utilizing data from Chinese publicly listed companies from 2010 to 2021, we examine the impact of green funds on corporate environmental, social, and governance (ESG) performance and the underlying mechanisms. The research findings claim that green funds positively affect corporate ESG performance. Mechanism analysis systematically demonstrates that green funds contribute to elevated corporate ESG performance by alleviating financial constraints, enhancing managerial efficiency, and fostering green innovation. Heterogeneity analysis further underscores that the effect of green funds is particularly potent in companies with high external attention. Furthermore, green funds also play significant roles in production capabilities and economic value. This research enriches the micro-level evidence on the development of green funds and furnishes substantial implications for sustainable development.

Retraction Note: How digitalization works in promoting corporate sustainable development performance? The mediating role of green technology innovation.

Retraction Note: How digitalization works in promoting corporate sustainable development performance? The mediating role of green technology innovation.

The Effect of Corporate Social Responsibility and Sustainable Development Practices on Employer Branding—A Case Study of an International Corporation Operating in Poland

Corporate social responsibility (CSR) and sustainable development practices and employer branding (EB) significantly influence the effectiveness of recruitment processes, human resource management (HRM), and an employer’s image. The main aim of this study was to assess the effectiveness of internal and external CSR practices in an international corporation operating in Poland. The empirical study consisted of two stages. In the first stage, an in-depth interview was conducted with a group of managers in the examined company. In the second stage, the company’s employees and local residents (non-employees) were surveyed with the use of questionnaires. The study demonstrated that CSR activities addressing environmental issues were most effective. External CSR practices received greater recognition among white-collar (office) employees, whereas blue-collar (manual) employees were more appreciative of internal CSR measures—in particular, financial support schemes. The effectiveness of internal and external CSR practices has been rarely compared in the literature, and the present study was undertaken to fill in this knowledge gap.