Sustainable Wealth Creation Research Articles

Corporate Citizenship and Wealth Maximisation: A Re-evaluation of Stakeholder Theory Using Evidence from Listed Industrial Goods Firms in Nigeria

Based on stakeholder theory, the study examined the extent to which firm involvement in corporate citizenship influences the wealth maximisation of listed industrial goods firms in Nigeria. While corporate citizenship was measured using corporate donations, the proxy for wealth maximisation was market value of the firms. Ex-post facto research design was used on a population of thirteen listed industrial goods firms in Nigeria, from which a sample size of nine was purposively selected. Secondary data were gleaned from the firms’ annual reports from 2013 to 2023 (11 year interval). Panel Cross-section Heteroskedasticity LR Test was conducted while White cross-section standard errors and covariance was applied to correct the heteroskedasticity anomaly. In addition, Residual Cross-Section Dependence Test was carried out of which Cross-section Seemingly Unrelated Regression was used to address the issue of cross-sectional dependence. Therefore, the hypothesis were tested using estimates from Panel Estimated Generalised Least Squares, which revealed that involvement in corporate citizenship significantly and positively influences wealth maximisation among listed industrial goods firms in Nigeria (β = 32.79912; p-value = 0.000). In conclusion, firms that engage in meaningful corporate citizenship are likely to build stronger relationships and this, in turn, contributes to increased sustainable wealth creation. We recommend that senior management of listed industrial goods firms in Nigeria should prioritise and formalise their corporate citizenship initiatives as integral parts of their corporate strategies in order to ensure that the community development efforts they make are not ad hoc but embedded in the firm's strategic planning and operations.

The impact of environmental, social and governance score on shareholder wealth: A new dimension in investment philosophy

Recently, there has been significant research on the environmental, social, and governance (ESG) aspects of wealth generation. Managers have tried to attract investors for sustainable growth by pushing for ESG investments. This study attempts to determine the relationship between ESG scores on shareholders' wealth and define possible selection criteria for future investments. Notably, there are funds and investment avenues that are specifically designed for ESG themes, urging toward sustainable wealth creation. However, investors' focus remains on their returns and wealth creation. In recent years, reporting ESG scores has become standard practice for most rating agencies to report the financial health of companies. Thus, this study employs a linear regression model to analyze the impact of ESG scores on the equity returns of 225 Indian companies. The results show empirical evidence of the positive impact of the governance (G) factor on equity returns, while it reports the negative impact of the environmental (E) factor on equity returns. Moreover, the impact of the social (S) factor is found to be insignificant. Therefore, we conclude that financial motivations may be needed to trigger E− and S- factor practices by companies. It is important for companies to be very conscious of their governance practices to improve their shareholders’ wealth.

Transforming Linear Production Chains into Circular Value Extended Systems

Different schools of thought, theories, and concepts have been developed to diminish the social and environmental impact that the take–make–dispose linear economic model has produced. Such is the case of industrial ecology (IE) and circular economy (CE). However, the principles and guidelines in IE literature are focused more on resource efficiency without considering the social externalities. In the same sense, CE literature has not brought clear guidance about how to circularize linear businesses and is mainly focused on recycling strategies, which could be the least profitable and attractive option among the circular business models (CBM). Based on the sustainable wealth creation through disruptive innovation and enabling technologies (SWIT) framework and the business model framework, we have developed a roadmap to transform linear value chains into an industrial ecology cluster of zero-waste chains and enabling institutions called a circular value extended system (CVES), which is able to exploit non-usual business opportunities of waste and residue revaluation. This systemic approach opens the possibilities of creating a socially inclusive, environmentally resilient, and economically viable system of capital. A case study is presented to clarify the design process and application of the framework. Our contribution entails guidelines to transform linear value chains into a cluster of circular economy systems capable of producing sustainable increasing returns to benefit multiple regional stakeholders.

A Micro-Political Analysis of Local Governance in Nigeria: The Case of Irepodun Local Government Authority

The study examined local government autonomy and local government service delivery in Nigeria. the study discovered that, Nigerian local government needs to be autonomous in the discharge of its statutory responsibility, if ongoing agitation for local government autonomy from different quarters in Nigeria is given an approval, this will strengthen local government’s service delivery. The study discovered that some states in Nigeria oppose local government autonomy due to political and economic considerations. The study further revealed that Irepodun local government (the micro-case study) in Nigeria is not totally autonomous. Although, local governance is transparent and accountable in Irepodun Local Government, especially in the identification, formulation and execution of its projects, Irepodun local government authority has a huge financial challenge in carrying out service delivery. The study therefore recommends that; the state joint local government account should be abolished from the Nigerian constitution to enable allocation of funds directly to the local governments from Federation account. they should also put a stop to the persistence deduction from the monthly allocation of local governments. Again, states should henceforth be made to remit regularly the constitutional 10% of their internally generated revenue to the local government authorities. Irepodun local government and other local government authorities in Nigeria emplace more efforts on sustainable wealth creation rather than depending solely on the grants from the federal and state governments.

Proverbs 28:19–22 and proliferation of sports betting amongst African youths

Work is integral to human existence, and a veritable means for both individual and societal development. Over time, human prosperity and societal advancement have been credited to application of both physical and mental abilities into resourceful ventures that resulted in wealth and prosperity. When this approach to wealth generation is negated and one resorts to shortcuts, the adverse implication is glaring on both the individual and society at large. The problem that necessitated this study is the quest for quick riches devoid of hard work amongst many African youths. In recent times, sports betting has high patronage amongst youths as it is considered a fast means to alleviate poverty. This research study analysed the importance of hard work as a panacea to poverty against the backdrop of sports betting proliferation amongst African youths. The study was carried out in the light of a Biblical wisdom literature text in Proverbs 28:19–22. This pericope was considered to be appropriate because it includes explicit sayings that extol hard work and bring to light the dangers of unrealistic ventures and haste to riches. The research design adopted was exegetical, whilst the methodology was rhetorical analysis. Exegesis refers to critical explanation or interpretation of a given biblical passage; rhetoric is the art of effective or persuasive speaking or writing. The data were collected from primary (Bible) and secondary sources (books, journals, online resources and Bible commentaries). This study beckoned on African youths to engage their physical and mental ability into resourceful enterprises and shun anti-work ventures.Intradisciplinary and/or interdisciplinary implications: The article unequivocally challenges the involvement of African youths in worthless pursuits and the inordinate desire for quick riches, and thus, advocates youths to embrace hard work. The study contributes to Old Testament modern discourses on youths and sustainable wealth creation. Its related disciplines are exegesis or hermeneutics, entrepreneurial economics and practical theology.

Entrepreneurship Development Among Black Youths in South Africa: A Choice or Neccesity?

Black-youth-owned enterprises are essential to sustainable development and wealth creation for rural-based municipalities like the Vhembe District Municipality, where they can play a pivotal role in economic growth. This paper aims to explore the socio-economic determinates of entrepreneurship trends among Black youths in the Vhembe District Municipality. The investigation focused on youths living in the Vhembe District Municipality in Limpopo province, South Africa. The study used judgmental non-probability sampling to sample the participants. The study used qualitative research to collect and analyse data. The unstructured interview was used to gather data from the participants. Thematic analysis was used to analyse the data collected. The study findings revealed that Black youths in the Vhembe District decided to be entrepreneurs to empower their communities, escape underemployment and scarcity of jobs, create jobs, and stimulate economic growth. The paper recommends that the Department of Women, Youth and Persons with Disabilities in the Presidency, in collaboration with the Department of Small Business Enterprise Development and the National Youth Development Agency, should provide a two-year internship for young Black entrepreneurs in foreign companies that specialize in mining, technology, creative industries, and agriculture. When these Black youth return home, the government should set aside a Presidential Youth Fund to assist them to start their own businesses in the same industry.

KEY ELEMENTS OF SOCIAL ENTERPRISE MANAGEMENT: CASE STUDY OF IRRIGATION WATER MANAGEMENT, KHAMMOUANE DISTRICT, LAO PDR

This research aimed to study key elements of social enterprise management in irrigation water management in Khammouane Province through the use of constructivism and participatory action research. Moreover, strategies of inquiry and case study were also applied. Its 12 key Informants were selected by the author using purposive sampling method and divided into 3 following groups: 1) government officials and academicians involving the irrigation water management; 2) private business sector in agriculture; and 3) other related person and group of farmers in Khammouane Province. The data were collected through in-depth interviews along with data analysis by means of content and document analysis. The study results showed that the adoption of enterprise management concept according to business principles focusing on sustainable wealth creation for society should have contributory characteristics and elements for efficient irrigation water management, namely, participation in ownership, mutual help in community management, fair sharing, government support, innovation and competitiveness, enhancement of community’s role and strength; clear formulation of common policies, organizational vision, management under business principles focusing on promotion of social stability, collaborative learning, training, constant monitoring for evaluation, enforcement of rules and regulations to control water resource use and profit sharing in doing business to generate income for members. Besides, the relevant agencies needed to focus on and formulate policies for promotion and development of social enterprise in Lao PDR the achievement of both business operations and social impacts. This would pave the way to the sustainable development of economy, society and environment in Lao PDR.

Decoupling Economic Development from the Consumption of Finite Resources Using Circular Economy. A Model for Developing Countries

Sustainable development is a major concern for developing and developed economies as economic growth has to led to scarcer and more expensive resources. Although countries have established public policies focusing on resource and energy efficiency, there is an increasing need for a coordinated industrial strategy able to create sustainable wealth through a holistic management of natural resources, capable of “decoupling” economic growth from resource extraction and natural deterioration. Consequently, the objective of the present research is to develop a decoupling model able to create increasing economic returns, reducing the social gap and regenerating the natural capital for regions in developing countries. Departing from a literature review on peer reviewed articles on successful industrial cases of decoupling around the world, we contrasted the linear production model with the United Nations Environment Program (UNEP)’s current four decoupling indicators in order to propose a more robust model. The result was an eight-factor decoupling model that used a well-supported framework for sustainable wealth creation named “circular value ecosystem” (CVES). By using system dynamics, we deployed the proposed framework using system dynamics modeling in order to improve the understanding of our proposal. We found that this model, with the proper regional conditions in developing countries, can: (1) reduce, through substitution, the consumption of natural resources; (2) produce alternative economic increasing returns; (3) reduce the negative environmental impacts; and (4) create self-sustainable wealth for the economy, the environment, and the social development of most stakeholders of these regions. Decoupling economic growth represents a complex and challenging task whose successful implementation can only be achieved if managed at a regional level with a systemic approach.

Beyond the Conventional Development Approaches: Evolving and Institutionalizing the Strategic Framework for Sustainable Wealth Creation and Development in Odukpani Local Government Area of Cross River State, Nigeria

Abstract Given the low level of economic development and the attendant burgeoning social vices at local level in Nigeria, this study illuminates on the strategic framework for sustainable wealth creation in Odukpani Local Government Area of Cross River State. The study argues that rather than the constant reliance on the ‘one size fits all’ analysis which has fundamentally blurred the minds of development experts and policymakers, greater emphasis should be placed on context-driven and specific studies. Among other things, the study notes that context-driven studies would enable each local government identify problems peculiar to it and evolve problem-solving measures consistent with local realities and demands. In the context of the present study, we share the optimism that Odukpani Local Government Council should prioritize wealth creation as basis for stimulating economic growth and development in the area. The study relies on triangulation of data involving interviews with key stakeholders, on-the-spot observation, participatory rural appraisal and information derived from relevant literature.

From interest tax shield to dividend tax shield: A corporate financing policy for equitable and sustainable wealth creation

This study critically analyzes debt-incentivized corporate tax and financing policy and provides an Islamic perspective to this important tax deductibility debate. This study advocates that the corporate tax incentive to debt (interest tax shield) be abolished and shifted to equity (dividend tax shield). Later, we use the implications of our proposed taxation policy to reframe the firm financing model and modify M & M's firm valuation model. We use a scenario-based simulation technique and conduct various policy experiments to assess the impact of conventional and proposed tax regimes on levered and zero-levered firms and their values. We find that aligning corporate financing policy with the fundamentals of Islamic finance helps restrain corporate indebtedness and promote profit and loss sharing. According to our proposed model, firms have a reduced cost of financing, tend to be more stable, and are value oriented, especially when they avoid debt to the maximum extent. We further propose that an optimal dividend payout ratio may lead to aggregate equilibrium amongst cost of financing, firm value, and corporate tax contribution to the economy. This study provides new contributions to the discipline of Islamic corporate finance.

Building resilience: A self-sustainable community approach to the triple bottom line

The purpose of this paper is to assess, theoretically and empirically, the governance approach associated with the formation of the circular value ecosystem (CVES) within the Sustainable Wealth creation based on Innovation and enabling Technologies (SWIT) framework. The SWIT framework is designed to interlink economic models, policies and strategies so as to introduce and convert residue, waste and by-product chains into multiple increasing returns cycles. Unlike regional circular economy cases in Germany, Japan and China where governments or industry have taken the lead on such initiatives - a top-down governance approach, the SWIT framework was developed for regions where government support for eco-initiatives is weak and where the participation of community stakeholders is critical – a bottom-up governance approach. The ecological, social and economic dimensions of the system are explored so as to ascertain the key stakeholders critical to the governance of the circular value ecosystem (CVES). We seek to answer: What stakeholders must be incorporated in a bottom-up CVES governance approach for the SWIT framework to be able to restore environmental resilience while creating economic returns and social benefits in rural communities? We report the results of an action research case – both successes and challenges – which sought to test this community-driven bottom-up governance approach on a rural community in Mexico. Our findings suggest that a bottom-up governance approach requires a deep understanding of the social, political, environmental and economic characteristics of the community as well as civic collaboration.

Wealth creation in developing countries: linking techno-economic-social networks

Some European countries have benefited from programs involving the creation of alliances of techno-socio-economic networks. In developing countries, their competitiveness based on industrial clusters are non-existent because of their poor regional enabling conditions required for assembling complex organisational interactions. To help alleviate this situation, a 'wealth creation based on innovation and enabling technologies' model (WIT) was developed. Within this framework, the economic growth is articulated by a systemic enabling environment, capable of supporting network economies, industrial ecosystems and regional innovation systems, with a purpose: to transform regions with scarce resources, hostile conditions and poor associativity into poles of regional attractiveness and competitive clusters of companies capable of producing high economic value strongly inter-related with the social and environmental capital in their communities. A more recently version of the WIT model, was developed, which adds sustainable wealth creation, called SWIT, which articulates all the stakeholders of the biosphere system of capitals.

Beyond sustainability. Transforming industrial zero-valued residues into increasing economic returns

Excessive industrialization is creating enormous economic gaps, chaos and unequal societies that are approaching dangerous limits. Simultaneously, large quantities of residues, waste and ecological footprints have been created in detriment to the natural environment and the quality of life of most of the planet's population, mainly in developing regions. This presents most innovators with a new dilemma: Invest in sustainable long-term projects with low economic returns, or innovate in short-term incremental production and negotiate the environmental harm caused by an excessive industrialization. In fact, a significant milestone emerges from these arguments. Somehow, we must reverse the perverse cycle created by industrialization and transform the current ecological footprint into valuable assets, for all sub-systems of the biosphere. A proposal has been designed to go beyond sustainability and create sustainable wealth, based on the modification of the conventional growth paradigm, that can be used to regenerate regional natural resources and simultaneously be economically competitive and capable of offering important social benefits to the community. The proposed framework, SWIT (Sustainable Wealth creation based on Innovation and Technology) has been developed to provide multiple businesses of zero-value residue industrial ecology processes (ZRIES), inserted into circular value ecosystems (CVES), all managed and governed by a sustainable sharing value system for the benefit of a community. Several cases of the application of the sustainable wealth creation framework, mainly in developing countries, are described.

Securing Our Nation's Economic Future: A Sensible, Nonpartisan Agenda to Increase Long-Term Investment and Job Creation in the United States

These days it has become fashionable to talk about whether the incentive system for the governance of American corporations optimally encourages long-term investment, sustainable policies, and therefore creates the most long-term economic and social benefit for American workers and investors. Many have come to the conclusion that the answer to that question is no. As these commentators note, the investment horizon of the ultimate source of most equity capital — human beings who must give their money to institutional investors to save for retirement and college for their kids — is long. That horizon is much more aligned with what it takes to run a real business than that of the direct stockholders, who are money managers and are under strong pressure to deliver immediate returns at all times. Americans want corporations that are focused on sustainable wealth and job creation. But, there is too little talk accompanied by a specific policy agenda to address that incentive system. This paper proposes a genuine, realistic agenda that would better promote a sustainable, long-term commitment to economic growth in the United States. This agenda should not divide Americans along party lines. Indeed, most of the elements have substantial bipartisan support. Nor does this agenda involve freeing corporate managers from accountability to investors for delivering profitable returns. Rather, it makes all those who represent human investors more accountable, but for delivering on what most counts for ordinary investors, which is the creation of durable wealth by socially responsible means. The fundamental elements of this strategy to promote long-term American competitiveness include: (i) tax policy that discourages counterproductive behavior and encourages investment and work; (ii) investment policies to revitalize our infrastructure, address climate change, create jobs, and close our deficit; (iii) reforming the incentives of and enhancing the fiduciary accountability of institutional investors; (iv) reducing the focus on quarterly earnings estimates and improving the quality of information provided to investors; and (v) an American commitment to an international level playing field to reduce incentives to offshore jobs, erode the social safety net, and pollute the planet.

Sustainable Rural Development and Wealth Creation

In this article, the authors argue that better data and research on rural wealth creation are greatly needed and present a conceptual framework to help guide such research. The authors then discuss five observations about rural wealth creation, based on examples drawn from the recent literature on emerging energy industries in rural America. The cases show that the types of data needed to draw conclusions about wealth effects of new development are highly contextual. The framework can help researchers think about the types of data needed to assess policy.

Lessons from the 2007-2008 Crisis: The Benefits from a "Soft" Methodological Pluralism in the Analysis of Financial Markets

The article argues that contemporary financial markets and financial innovation can be analysed from a number of perspectives and theoretical standpoints. The 2007-2008 financial crisis stimulates an evaluation of the importance of interdisciplinary approaches in the analysis of a remarkably complex financial system. The article provides an argument in support of the application of a "soft pluralism" in policy related to financial regulation. Particularly softer versions of pluralist methodologies enable financial analysts and professional practitioners to work on the new regulation of financial markets, and to implement the design of a dynamic and fair capitalism. Therefore, soft pluralism is relevant for providing a clear definition of the bases for sustainable wealth creation and the maximisation of the benefits from globalisation through a plurality of perspectives.

A new framework for the analysis of contemporary financial markets: the need for pluralistic approaches

Interdisciplinary approaches are essential to properly evaluate an economic and financial system that is increasingly complex and globally interrelated. With reference to the work of the philosopher Peter Godfrey-Smith, it is argued that a more pronounced interdisciplinarity in the social sciences would enable a flourishing of pluralism in economics. By adopting clearly defined research strategies and objectives, scholars with different academic backgrounds can successfully work on common projects. A better integration of economic, social and behavioural sciences will favour the establishment of new frames of thinking and new analytical tools which are much needed in contemporary financial regulation. Financial markets, defined as competitive markets in financial instruments such as stocks, bonds, loans and derivatives, represent a research subject that may be analysed from a plurality of angles and frames, including a sociological one. In practice, such a plurality of perspectives could favour sustainable wealth creation and contribute to maximizing the benefits from economic globalization.

Regen: The Industry Responsible for Cell-Based Therapies

Today, we have a global healthcare industry dependant upon three main pillars: pharmaceuticals, biopharmaceuticals and medical devices. To this list will soon be added a fourth and equally important new pillar, the cell therapy industry. Whilst presently small in overall size and poorly defined in composition, it is none the less universally recognized as an emerging new healthcare sector capable of delivering substantial health benefits as well as sustainable wealth creation.

Integrated supply chain risk management

Integrated supply chain risk management (ISCRM) has become indispensable to the theory and practice of supply chain management. The economic and political realities of the modern world require not only a different approach to supply chain management, but also bold steps to secure supply chain performance and sustainable wealth creation. Integrated supply chain risk management provides supply chain organisations with a level of insight into their supply chains yet to be achieved. If correctly applied, this process may optimise management decision-making and assist in the protection and enhancement of shareholder value.

Agriflection: A Learning Model for Agricultural Extension in South Africa

Prosperity—continuous and sustainable wealth creation—is an elusive goal in South African smallholder agriculture. This paper suggests that agricultural extension can facilitate realising this objective if an appropriate approach to extension can be developed. To develop such an approach requires that the definition of extension and the assumptions on which that definition rests are challenged. The objective of such an interrogation would be to reshape principles and assumptions so that extension can be re-cast enabling extension to strengthen the capacity of people engaged in agriculture and thereby tap the agricultural potential of rural communities. Such an approach would need to give practical expression to South Africa's policies to revitalise rural agrarian communities, putting them on a pathway to enduring prosperity. This paper proposes the Agriflection extension model. The model arises out of fundamental changes in thinking about extension. Incorporating elements of livelihoods approaches and learning theory, Agriflection is a learning model that shifts i) the context and locus of learning, ii) what is learned, and iii) the learning process. The model fosters a culture of continuous reflective learning that is submitted as the highest purpose of extension. The model suggests that prosperity can be realised through engaging smallholder farmers in scientific discovery, innovation and technology development based not on what they lack, but on what they have.