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Article
Publication date: 25 July 2022

Hoshiar Mal, Manishkumar Varma and Niraj Kumar Vishvakarma

The use of natural resources by organizations has a significant impact on society, resulting in business firms playing a vital role in developing sustainable development…

Abstract

Purpose

The use of natural resources by organizations has a significant impact on society, resulting in business firms playing a vital role in developing sustainable development. As a result, corporate sustainability has become an integral aspect of a company’s vision and policy in the modern days. Companies issue sustainability reports based on various criteria and metrics, thereby attempting to gain a competitive edge. This study aims to assess and prioritize the numerous factors that influence corporate sustainability performance.

Design/methodology/approach

The analytic hierarchy process (AHP) is used to prioritize the identified determinants of corporate sustainability performance based on the literature. Several experts from business and academia were engaged to build a comparison matrix for assessing the various aspects of corporate sustainability performance. As a result, various corporate sustainability determinants were determined and prioritized following an extensive literature review using the AHP.

Findings

The most critical component for companies is an economic indicator. Developing environmentally and socially responsible suggestions must be a priority for the organization’s economic performance. Economic performance is believed to be most heavily influenced by innovation and in the other category like environmental and social performance are highly influenced by environment management policies and shareholder responsibility, respectively. Researchers’ findings suggest that to promote sustainability, top executives should devote all of their attention to innovation, environment management policies and shareholder responsibility.

Research limitations/implications

These studies are primarily concerned with developed countries. And, the other fundamental constraint of the AHP study is that the rating scale adopted in the analysis is conceptual. Therefore, pairwise comparisons with a variety of indicators have the potential to introduce bias into the results.

Practical implications

This paper proposes a methodical and operational technique for selecting the ultimate priority of sustainability indicators when it comes to exploiting competitive information on business performance. The paper also recommended sustainability rating technique might be carried out once every six months to improve the overall quality and performance of the organization.

Originality/value

The advantages of adopting and executing corporate sustainability are enormous, and managers must determine whether sustainability is profitable or not. This question prompts further inquiries. For example, what are the numerous critical determinants of corporate sustainability performance? Several scholars throughout the world are looking at it for this reason. As a result, it is essential to comprehend and prioritize the various determinants of corporate sustainability performance.

Book part
Publication date: 13 August 2018

Chaminda Wijethilake and Athula Ekanayake

Purpose – The purpose of this paper is to develop a framework which sheds new light on how sustainability control systems (SCS) can be used in proactive strategic

Abstract

Purpose – The purpose of this paper is to develop a framework which sheds new light on how sustainability control systems (SCS) can be used in proactive strategic responses to corporate sustainability pressures.

Design/Methodology/Approach Corporate sustainability pressures are identified using insights from institutional theory and the resource-based view of the firm.

Findings – The paper presents an integrated framework showing the corporate sustainability pressures, proactive strategic responses to these pressures, and how organizations might use SCS in their responses to the corporate sustainability pressures they face.

Practical Implications – The proposed framework shows how organizations can use SCS in proactive strategic responses to corporate sustainability pressures.

Originality/Value – The paper suggests that instead of using traditional financial-oriented management control systems, organizations need more focus on emerging SCS as a means of achieving sustainability objectives. In particular, the paper proposes different SCS tools that can be used in proactive strategic responses to sustainability pressures in terms of (i) specifying and communicating sustainability objectives, (ii) monitoring sustainability performance, and (iii) providing motivation by linking sustainability rewards to performance.

Book part
Publication date: 16 September 2022

Amina Mohamed Buallay

This chapter discusses and investigates the sustainability reporting across different sectors. The first section discusses and investigates the relationship between…

Abstract

This chapter discusses and investigates the sustainability reporting across different sectors. The first section discusses and investigates the relationship between sustainability reporting and primary sector's performance (Agriculture and Food Industries Sector and Energy Sector). The second section discusses and investigates the relationship between sustainability reporting and secondary sector's performance (Manufacturing Sector). The final section discusses and investigates the relationship between sustainability reporting and tertiary sector's performance (Banks and Financial Services Sector, Retail Sector, Telecommunication and Information Technology Sector, and Tourism Sector).

Article
Publication date: 29 March 2022

Linh-TX Nguyen

This study aims to investigate the relationship between corporate sustainability performance and earnings management in emerging East Asian economies.

Abstract

Purpose

This study aims to investigate the relationship between corporate sustainability performance and earnings management in emerging East Asian economies.

Design/methodology/approach

The authors base on the triple bottom line approach to measure corporate sustainability performance. In terms of earnings management, two models are applied to detect real activities manipulation and discretionary accruals. The authors use panel data analysis of 410 listed non-financial firms in emerging East Asian economies from 2016 to 2020 that are collected from the Thomson Reuters Eikon database.

Findings

The authors find a negative influence of corporate sustainability performance on real activities manipulation and discretionary accruals. The findings highlight the long-term perspective of sustainable development strategies in relation to earnings management. The authors conclude that sustainable firms in emerging East Asia are less likely to engage in earnings management.

Practical implications

The study would be of interest to investors who need more detailed assessments of financial reporting quality to facilitate their investment decision-making and to policymakers who need more understanding of business practices and reporting behaviors of East Asian firms.

Originality/value

The study has shed light on the role of corporate sustainability performance in constraining earnings management and the role of corporate ethics in providing transparent and reliable financial reporting in emerging East Asian economies.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 27 August 2021

Khairul Anuar Kamarudin, Akmalia M. Ariff and Wan Adibah Wan Ismail

This study aims to investigate whether board gender diversity is associated with corporate sustainability performance and whether industry-level product market competition…

Abstract

Purpose

This study aims to investigate whether board gender diversity is associated with corporate sustainability performance and whether industry-level product market competition moderates the effect of board gender diversity on corporate sustainability performance.

Design/methodology/approach

This study uses international data extracted from global ESG data set from Thomson Reuters (Refinitiv) database. Using data of 23,137 firm-year observations from 37 countries, the authors perform regression analyses to examine the hypotheses.

Findings

The findings show that firms with high board gender diversity exhibit high corporate sustainability performance. The authors also find firms in highly competitive industries to have low corporate sustainability performance. In highly competitive industries, the positive relationship between board gender diversity and corporate sustainability performance is weakened. The results are robust to various specification tests such as alternative measures for corporate sustainability performance, board gender diversity, product market competition and also the use of propensity score matching to address endogeneity issue. Overall, the results support the prediction that board diversity and product market competition play a substitutive role in influencing corporate sustainability performance.

Research limitations/implications

This study offers empirical evidence that the appointment of female directors is a useful way to improve a firm’s corporate sustainability performance, hence, providing significant benefits in terms of stakeholders’ values and corporate reputation.

Practical implications

This study provides useful insights to investors and policymakers that intense industry competition might mitigate the role of board governance, particularly board gender diversity, in enhancing corporate sustainability performance.

Originality/value

Using an international data set, where the observations operate in various market and institutional differences, this study is able to extricate the positive impact of board gender diversity and product market competition on corporate sustainability performance. This study corroborates evidence that sustainability strategy and initiatives are reflections of integrated factors, including corporate governance as internal driver and market forces faced by firms as external driver.

Details

Journal of Financial Reporting and Accounting, vol. 20 no. 2
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 1 July 2021

Amel Kouaib, Asma Bouzouitina and Anis Jarboui

This paper explores how the tension between a firm's CEO overconfidence feature and externally observable hubris attribute may determine the level of corporate

Abstract

Purpose

This paper explores how the tension between a firm's CEO overconfidence feature and externally observable hubris attribute may determine the level of corporate sustainability performance. This work also contemplates the impact of the moderator “corporate governance practices.”

Design/methodology/approach

This study uses a sample of 658 firm-year-observations using a sample of European real estate firms indexed on Stoxx Europe 600 Index from 2006 to 2019. To test the developed hypotheses, feasible generalized least square (FGLS) regression is applied.

Findings

Findings suggest that a good corporate governance score strengthens the positive effect of the psychological bias (CEO overconfidence) on corporate sustainability performance while it fails to attenuate the negative effect of the cognitive bias (CEO hubris).

Research limitations/implications

The research provides an overview of the impact of CEO personality traits on the corporate sustainability performance level in the European real estate sup-sector. As corporate governance can have a major impact to control these traits, the authors recommend European real estate companies to improve their corporate governance practices.

Originality/value

This study contributes to the existent literature this gap with two empirical novelties: (1) providing a novel insight into sustainability involvement using a sample of European real estate sup-sector and (2) investigating the moderating effect on the link between CEO psychological and cognitive biases and sustainability performance. This study provides empirical evidence that entrenchment problems arising from CEO hubris would not be mitigated by a good corporate governance practice.

Article
Publication date: 3 October 2019

Pornanong Budsaratragoon and Boonlert Jitmaneeroj

The purpose of this study is to investigate the causal interrelations among the four pillars of corporate sustainability, which indicate a firm’s contribution to…

2434

Abstract

Purpose

The purpose of this study is to investigate the causal interrelations among the four pillars of corporate sustainability, which indicate a firm’s contribution to environmental, social, governance and economic activities. Moreover, this study identifies the critical drivers of corporate sustainability by focusing on the levels of market developments and geographical regions.

Design/methodology/approach

Based on corporate sustainability data of 2,725 global companies in 2016, this study uses a combination of analytical techniques including cluster analysis, data mining, partial least square path modeling and importance performance map analysis.

Findings

This study finds that companies in European developed markets exhibit the highest-ranking of corporate sustainability. In line with the social impact hypothesis, environmental, social and governance performance positively affects economic performance. Moreover, there is strong evidence of causal relationships and synergistic effects among the four pillars of corporate sustainability. In accordance with the institutional theory, the patterns of causal directions and the critical pillars depend on levels of market developments and geographical regions. Overall, social and environmental pillars are among the most critical drivers of corporate sustainability.

Research limitations/implications

The methodology does not aim to provide a new weighting scheme for calculating the corporate sustainability index.

Practical implications

Corporate managers should consider sustainability practices in all dimensions to benefit from synergistic effects among environmental, social, governance and economic activities. Furthermore, corporate sustainability strategies should not be generalized across countries with different levels of market developments and geographical regions.

Originality/value

This study prioritizes environmental, social, governance and economic pillars of corporate sustainability in emerging and developed markets across geographical regions.

Details

Measuring Business Excellence, vol. 23 no. 3
Type: Research Article
ISSN: 1368-3047

Keywords

Article
Publication date: 16 March 2015

Praveen Goyal, Zillur Rahman and Absar Ahmad Kazmi

The purpose of this paper is to identify and prioritize the corporate sustainability practices to improve the corporate sustainability performance in the manufacturing…

1592

Abstract

Purpose

The purpose of this paper is to identify and prioritize the corporate sustainability practices to improve the corporate sustainability performance in the manufacturing sector. Further, these practices are being prioritized to find out the essential practices to ensure logical allocation of limited resources.

Design/methodology/approach

It examines the corporate sustainability practices which have been shortlisted from both the literature review and experts judgment. Then, analytic hierarchy process has been used to assess the identified 12 practices of corporate sustainability and to find their priorities for improvement of the corporate sustainability performance.

Findings

Based on the hierarchical model developed in this study, the analysis reveals market value, environment management and strategy, research and development, pollution prevention, corporate governance and investor responsibility, which have been found to be the most important practices in improving the corporate sustainability performance.

Practical implications

The findings of the study would be useful to the practitioners in the proper allocation of scarce resources to optimize the corporate sustainability performance of firms, especially the manufacturing entities.

Originality/value

It is a fact that multi-faceted nature of corporate sustainability includes both subjective and objective dimensions. Therefore, prioritization of corporate sustainability at the factor level is one of the important contributions to the literature that has been addressed in the present study. The results of this paper may be generalized to the other sectors.

Details

Journal of Modelling in Management, vol. 10 no. 1
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 14 August 2017

Guler Aras, Nuray Tezcan, Ozlem Kutlu Furtuna and Evrim Hacioglu Kazak

The purpose of this paper is to measure Garanti Bank’s corporate sustainability performance along with the main indicators of economic, social and environmental factors…

1311

Abstract

Purpose

The purpose of this paper is to measure Garanti Bank’s corporate sustainability performance along with the main indicators of economic, social and environmental factors, taking into consideration of the governance indicators.

Design/methodology/approach

Recent global economic developments indicate that the main corporate sustainability indicators of economic, environmental and social factors are insufficient for the sustainability practices of the companies. Along with these indicators, a good administrative structure should be evaluated as a whole to measure the sustainability performance. For measuring corporate sustainability performance of the bank along with the economic, environmental, social and governance dimensions of corporate sustainability, content analysis, entropy and technique for order preference by similarity to ideal solution (TOPSIS) methods are used with a total of four corporate sustainability reports published by Garanti Bank within the period of 2010-2014.

Findings

The results depict that the sustainability performance of Garanti Bank tends to increase during the time span. Among all dimensions, economic dimension has the highest impact on overall sustainability performance, as it has the highest weight in entropy. On contrary, governance dimension has the lowest impact on overall performance.

Research limitations/implications

This paper has implications in enhancing the understanding of corporate sustainability measurement both using content analysis, and TOPSIS particularly in a developing country, although it is limited by the size of the corporate sustainability reports and time span.

Originality/value

This paper attempts to reveal an emerging banking sector specific corporate sustainability materiality. This is the first study in Turkey which includes both qualitative and quantitative data analysis techniques considering the content analysis and TOPSIS.

Details

Meditari Accountancy Research, vol. 25 no. 3
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 3 October 2016

Najul Laskar and Santi Gopal Maji

The purpose of this paper is to look into the sustainability practices of Indian firms in terms of the quality of disclosure, the impact of corporate sustainability

1623

Abstract

Purpose

The purpose of this paper is to look into the sustainability practices of Indian firms in terms of the quality of disclosure, the impact of corporate sustainability performance (CSP) on firm performance and the appropriateness of the sustainability reporting guidelines followed by the firms.

Design/methodology/approach

The present study is based on secondary data collected from annual reports and corporate sustainability reports of 28 listed Indian non-financial firms from 2008-2009 to 2013-2014. Content analysis is used to calculate the score in terms of level (binary coding system) and quality of disclosure (four-point scale). These scores are further used to examine the impact of CSP on firm performance by using an appropriate regression model.

Findings

The study finds that the average level of disclosure is 88 per cent, whereas the quality of disclosure is nearly 80 per cent. The influence of CSP (in terms of level and quality disclosure) on firm performance is positive and significant. Moreover, the study also reveals that the Global Reporting Initiatives framework is not sufficient enough to publish the sustainability report of any business concern. The outcomes of the study, thus, indicate that sustainability practices of Indian firms are not myth but approaching toward reality.

Originality/value

It is the first comprehensive study in India to analyze the corporate sustainability reporting practices encompassing different dimensions of sustainability.

Details

Social Responsibility Journal, vol. 12 no. 4
Type: Research Article
ISSN: 1747-1117

Keywords

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