Role Of Corporate Sustainability Research Articles

Digital technology innovation and corporate environmental, social, and governance performance: Evidence from a sample of listed firms in China

AbstractCorporate environmental, social, and governance (ESG) performance is gaining significance in global sustainable development. Corporations can improve ESG performance through digital technology innovation (DTI). However, few studies systematically examined the relationship between DTI and ESG performance. This study uses digital technology patent application data as a proxy for DTI to provide empirical evidence. Analysis of Chinese A‐share firms from 2009 to 2021 shows that DTI significantly improves ESG performance, particularly for small‐sized and non‐state‐owned firms. Mediation analysis indicates that DTI promotes ESG performance by increasing internal control quality and human capital. Institutional environment and government digital attention optimization enhances DTI's promotion effect on ESG performance. Firms with advanced digital transformation can better improve ESG performance through DTI. The findings expand the theoretical understanding of DTI's role in corporate sustainability and provide practical insights into how managers can leverage DTI opportunities to strengthen ESG performance.

Vendor sustainability performance and corporate customers' supplier selection

AbstractThis study investigates the impact of potential suppliers' sustainability performance (measured by environmental, social, and governance performance) on customer firms' supplier selection decisions. Our findings suggest that potential suppliers (vendors) with better sustainability performance are more likely to be selected as actual suppliers. Moreover, we find that customer firms with better sustainability performance, those operating in competitive industries, and state‐owned customer firms are more inclined to opt for sustainable suppliers. Furthermore, our analyses indicate that the positive influence of vendors' sustainability performance on the likelihood of being selected is more significant for vendors who hold non‐leading industrial positions or face high uncertainty. In addition, by focusing on actual customer‐supplier relationships, we find that customer firms benefit from collaborating with more sustainable suppliers. Overall, this study provides valuable insights into the role of corporate sustainability in supply chain management.

Why corporate sustainability initiatives fail to reduce deforestation and what to do about it

AbstractDeforestation is a complex environmental problem that has eluded a series of public policies and private‐sector interventions. The need to develop effective solutions to this problem is urgent because unabated deforestation exacerbates climate change, biodiversity loss, human rights violations, displacement of Indigenous communities, and breakouts of zoonotic diseases. This paper focuses on corporate‐led efforts to stop deforestation and identifies four reasons behind their failure: global trade and supply‐chain obscurity, power dynamics in supply chains, neglected consumption in emerging economies, and diluted goal setting. We call upon corporate sustainability scholars, specifically in entrepreneurship, marketing, strategy, and supply‐chain management domains, to dedicate efforts to develop novel corporate sustainability initiatives that can address the complex, rampant, and stubborn challenge of deforestation. We propose three broad areas of research to advance scholarship on the role of corporate sustainability in stopping deforestation: zero‐deforestation supply chains, zero‐deforestation consumption, and nature‐positive business models.

The Role of Corporate Sustainability and Its Consistency on Firm Financial Performance: Canadian Evidence*

ABSTRACTThis paper investigates the impact of corporate sustainability and the consistency of corporate sustainability efforts on firm financial performance in Canada. Using data on 266 Canadian companies over the 2007–2017 period, we find a significantly positive association between corporate sustainability performance and firm financial performance. In addition, we find that companies that perform consistently well on sustainability (i.e., consistent performers) achieve better financial performance compared to inconsistent performers. Thus, far from their being net costs/expenses, our results indicate that corporate sustainability performance and consistency in sustainability performance both provide net benefits and significantly impact financial performance positively, implying that corporate sustainability not only helps address the needs of the current and future generations but also has a positive effect on the corporate bottom line. Taken together, our results suggest that not only does corporate sustainability have a positive effect on firm performance, but better financial performance may be achieved through a committed—rather than a “tokenism”—approach to corporate sustainability.

An Investigation into Sustainability Reporting Practices of BSE-500 Listed Companies in India: An Empirical Analysis

Reporting and external corporate communication play an important role in corporate sustainability. Companies depend on society for the supply of various resources which are critical for their survival and hence are legally and morally bound to perform and report the benefits which they create to secure social acceptance. This paper attempts to explore and critically evaluate the extent of sustainability disclosures by Indian corporates. For this purpose, annual reports of 50 selected companies quoted in the BSE-500 index were taken as the data source. Content analysis and disclosure index method was applied to analyse the extent to which Indian corporates disclose information on three sustainability reporting metrics-environment, social, and governance in their annual reports in accordance with the Global Reporting Initiative Standards, 2016. The study found that although a high number of companies disclose sustainability information, there is no uniformity in disclosure practices. While information related to material and energy consumption, products, customers, and employee welfare were readily reported, disclosures related to environmental metrics were minimal. Further, Oil and Gas industry had the highest disclosures followed by the Cement industry. The Textile industry was found to be at the bottom. The paper provides an in-depth analysis of corporate sustainability reporting practices in India – item-wise, industry-wise and company-wise.

Network and government intervention influencing sustainability and business growth of SMEs: a study with Indian MSMEs

The role of corporate sustainability in driving business performance has been well researched in case of big corporations for developed nations. But in the case of small and medium enterprises (SMEs) very limited research has been conducted to explore the business benefit derived out of sustainable business practices. In spite of their contribution to the economy, most of the SMEs fail to maintain a sustainable growth path in the long run. The current paper tries to estimate how effective utilisation of their business network and government intervention influences the growth of SMEs through their sustainability performance. A self-administered questionnaire was developed and responses were collected from 200 SMEs in and around Kolkata. The data was analysed using partial least square techniques of structural equation modelling in SPSS. Results showed that both government intervention and network utilisation positively influence business growth of SMEs through their social and environmental sustainability. Also, the size of capital investment has a moderating effect on the strength of this relationship. The practical implication of the model in the Indian context has also been discussed along with future research possibilities.

Network and government intervention influencing sustainability and business growth of SMEs: a study with Indian MSMEs

The role of corporate sustainability in driving business performance has been well researched in case of big corporations for developed nations. But in the case of small and medium enterprises (SMEs) very limited research has been conducted to explore the business benefit derived out of sustainable business practices. In spite of their contribution to the economy, most of the SMEs fail to maintain a sustainable growth path in the long run. The current paper tries to estimate how effective utilisation of their business network and government intervention influences the growth of SMEs through their sustainability performance. A self-administered questionnaire was developed and responses were collected from 200 SMEs in and around Kolkata. The data was analysed using partial least square techniques of structural equation modelling in SPSS. Results showed that both government intervention and network utilisation positively influence business growth of SMEs through their social and environmental sustainability. Also, the size of capital investment has a moderating effect on the strength of this relationship. The practical implication of the model in the Indian context has also been discussed along with future research possibilities.

Employees’ collaborative use of green information systems for corporate sustainability: motivation, effort and performance

ABSTRACTGreen information system (GIS) innovation plays an important role in corporate sustainability, especially for the organizations in emerging economies that face both economic and environmental pressures. To support Sustainable Development, employees need to work together on tasks using all kinds of GIS functions like online collaboration and electronic workflow. Most researchers examine GIS implementation and usage at either the organizational or individual level, but few have studied the phenomenon from the perspective of technology-enabled collaboration. This study investigates the motivation, effort and performance of collective GIS use at the operational level. In addition, strategic-level variables including GIS Strategy, Green Image and Competitive Advantage are included in the research model. Results based on survey observations collected from China and USA support hypothesized relationships and reveal interesting cross-country differences. GIS Strategy provides overarching guidance on GIS-enabled collaboration, which yields long-term effects on Green Image and Competitive Advantage. The findings provide helpful insights on the best practices to promote GIS-enabled collaboration for corporate sustainability in countries and regions at different development stages.

Sustainability Balanced Scorecards and their Architectures: Irrelevant or Misunderstood?

In a recent systematic review of the Sustainability Balanced Scorecard (SBSC) literature in this journal, we developed a typology of architectures as a basis for the process of SBSC design, implementation, use, and evolution. This paper addresses a comment by Hahn and Figge (2016) designed to stimulate further research. We argue that the existing literature demonstrates that the SBSC management tool can play an important role in corporate sustainability. The SBSC architectures—as representations of goals and priorities—form an integral and iterative part of the corporate sustainability strategy-making process and therefore cannot be isolated from it. However, the concept as such should not be overloaded (e.g. as a tool for radical change). In this paper, we first reflect on the potentials and constraints of the SBSC in relation to (1) radical or transformational change and (2) measuring performance outcomes on the level of human–earth systems. Second, we discuss the importance of SBSC architecture concerning (1) how it enables the integration of sustainability into business organisations; (2) how both strictly hierarchical cause-and-effect chains and less hierarchical designs can allow companies to seek inclusive profits; and (3) the contingency-based use of generic architectures (i.e. using the sustainability strategy and value system to determine a fitting architecture) in contrast to its use as a diagnostic tool (i.e. the architecture revealing the sustainability strategy and value system).

The Role of Corporate Sustainability in a Low‐Cost Business Model – A Case Study in the Scandinavian Fashion Industry

AbstractThis multi‐level case study illustrates how corporate sustainability contributes to the low‐cost business model of a Scandinavian fashion company.Contrary to parts of the extant literature, we do not find that corporate sustainability directly adds measurable value (e.g. a better brand image); neither does it exert coercive control over critical supplier relationships. However, corporate sustainability minimizes the downside risk of the business model. It does so by (1) creating implicit contracts that reach beyond traditional ‘shareholder value’, (2) transferring risk to suppliers and (3) improving leadership by motivating management and employees, and by directing their attention to critical issues.For companies, we offer the insight that corporate sustainability is a necessary complement to shareholder value, even if the relationship is not obvious at first sight. We also suggest that concerted actions of companies or a positive connotation of certification create effective control over suppliers. As to public policy, we conclude that regulators could introduce mandatory disclosure of suppliers to facilitate controls through stakeholders, or alternatively an industry‐wide comply‐or‐explain code of conduct. We also address how regulators can take direct actions against countries with unsustainable labor policies. Last, we suggest future research topics, e.g. expanding the notion of a business model by interpreting ‘adding value’ as prevention of losses. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

Key challenges facing the SRI indices development in China

Purpose – The purpose of this paper is to map out the soft and hard infrastructures that may have contribute to the SRI indices development in China. As part of the research, the author particularly focuses on the governance, reporting and transparency of corporate sustainability issues in China.Design/methodology/approach – The author reviewed literature, new articles, research reports and documents of the two stock exchanges, Shanghai Stock Exchange and Shenzhen Stock Exchange, in China, to understand the current SRI development and the challenges and opportunities for SRI indices in the market.Findings – The major findings from this paper are four‐fold. First, as the government's influence in the market is still substantial, government leadership in promoting corporate sustainability and SRI is essential in China. Second, with the stock exchanges already taking a proactive role in corporate sustainability with the stringent listing regulations, they are the natural facilitators in having SRI indices an...