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This study examines the impact of environmental activity management (EAM) on triple bottom line (TBL) performance and the role that sustainability strategies play in mediating these relationships. Data were collected using a survey of Australian managers and analysed using structural equation modelling (SEM). The findings indicate that each of the three levels of EAM – Environmental Activity Analysis, Environmental Activity Cost Analysis, and Environmental Activity Based Costing – influence-specific aspects of performance, either directly and/or indirectly through environmental and social sustainability strategies. The findings suggest that managers could enhance their use of EAM practices through the use of sustainability strategies in order to enhance performance. This study provides empirical insight into the impact that EAM practices and environmental and social sustainability strategies have on all three aspects of TBL performance.

Research in the field of corporate social responsibility (CSR) has grown exponentially in the last few decades. Nevertheless, significant debate remains about the relationship between CSR performance and corporate financial performance (CFP). This is particularly true for the case of Chinese state-owned enterprises (SOEs). The purpose of the current study is to empirically test the relationship between CSR and CFP. We use data for 66 Chinese SOEs listed on the Shanghai and Shenzhen stock exchanges. The results are interesting in that they are not consistent with similar studies using US and other Western market data. We find a significant negative relationship between CSR performance and CFP. The results are discussed in light of the preferential government treatment afforded to Chinese SOEs, and social welfare requirements imposed on such entities. Implications for Chinese policy-makers are discussed.

Despite all the attempts developed so far to measure corporate social performance in the last decades, a standard metric for it is still missing. In this work, the author tries to understand why is this the case. To do so, the author has reviewed 69 relevant metrics developed in the literature since the 1970s until today, covering approaches based on social, reputational, and environmental ratings, as well as several others constructed ad hoc by reputated scholars. The author analyzes each of them through a double optics, checking if they meet the minimum requirements to be considered standard and truly social. The research reveals that the main factor that prevents such a standard is the lack of truly social orientation of the existing metrics.

Project networks are an increasingly salient organisational temporary form to deal with complex problems. It remains unclear, however, whether and how project networks adapt over time, and hence implement changes, both within the span of the specific project, and across projects. The authors apply the performance feedback (PF) perspective to explore how adaptive responses to PF are organised and absorbed within project networks. The authors investigate these matters in the area of humanitarian and development aid efforts, which represent complex social issues. In this context, project networks involve a multitude of actors at different distances from the implementation field, ranging from the donor, through an international Non-Governmental Organisation (NGO), to the NGO’s country offices, local NGOs and the beneficiary communities. This study’s qualitative findings, which the authors generate through an abductive analytical process, highlight that project networks dealing with complex social issues face six paradoxes based on work by DeFillippi and Sydow: the distance, difference, identity, learning, temporal and performance paradoxes. Collective goal setting, adaptive monitoring and evaluation practices, and continuous re-negotiation of aspiration levels emerge as coping mechanisms enabling project networks to internalise insights from the field and translate them into adaptive behavioural responses, mainly at the intra-project level. The authors contribute to a better understanding of adaption in these temporary forms, and particularly in its behavioural consequences. The study also advances knowledge on the PF perspective, through its application in temporary settings, on the level of the project network and in the context of complex social issues, where organisational arrangements strive to pursue multiple interdependent goals.

We examine the perceived influence of externally generated firm ratings of corporate social responsibility (CSR) on voting for shareholder-sponsored CSR proposals. Using stakeholder and legitimacy theories, we introduce two rationales that relate shareholder voting decisions to the firm’s CSR performance: the complementary perspective where investors rely on management’s branding or image of the firm for CSR performance, and the sufficiency perspective where shareholders consider legitimacy effects of firm CSR performance. Our examination of 473 CSR shareholder-sponsored proposals during the 2013 to 2015 proxy seasons reveals a negative relationship between support for shareholder-sponsored CSR proposals and CSR strengths, particularly for social and environmental CSR strengths. We also find a positive relationship between support for shareholder-sponsored CSR proposals and CSR concerns, particular in the area of environmental CSR concerns. These results partially support the sufficiency perspective that incorporates shareholder legitimacy concerns. When companies have poor CSR performance, shareholders may view further CSR initiatives as beneficial to the firm.

In this chapter, I develop a theoretical framework to address the financial–social performance debate in strategy research, drawing on literatures on institutional logics and organizational forms.

I test the theoretical framework using an exploratory empirical approach based on ideal types with global microfinance data. A joint consideration of financial and social performances of microfinance organizations (MFOs) helps classify them into four ideal types – self-sustainable, mission-drifting, failing, and subsidized. I examine how an MFO’s organizational form and the configurations of institutional logics of the nation within which it is embedded jointly explain which ideal type the MFO falls into.

Based on a study of 1455 MFOs in 98 countries between 1995 and 2007, I show that the interactions between national institutional logics and organizational forms add significant predicting power in estimating MFOs’ ideal types. Explaining the intricate relationships between the financial and social performance of MFOs thus requires a simultaneous consideration of both the configuration of national logics and organizational forms.

The theoretical framework introduced in this chapter builds on recent developments in the institutional logics perspective and research on organizational forms, extending our understanding of the financial–social performance relationship among organizations. It also advances the social entrepreneurship literature by focusing our attention on various institutions at both national and organizational levels that may facilitate or inhibit social venture efficacy.

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).

Purpose – These last three years, the global reputation of microfinance has been damaged by some major crises, notably in India. The Microfinance Investment Vehicles (MIVs), funded by public money and socially inclined investors, are believed by observers to be part of the causes of the crises (von Stauffenberg & Rozas, 2011). As a consequence, they now have to demonstrate their commitment to the social mission of microfinance. This chapter aims at putting forward the debate on MIVs’ ability to effectively contribute to the social mission of microfinance by analyzing how they integrate social performance in their investment decisions.

Methodology/approach – Analysis of interviews with microfinance fund managers based on a framework of recognized impediments to a socially responsible approach in investing.

Findings – While social performance is recognized by respondents to be an important topic for the industry, fund managers still do not give a strong role to social criteria in investment decisions. The findings of the qualitative analysis in the chapter demonstrate that this is linked to a number of major impediments such as the tendency to believe that microfinance is social per se, the lack of standardization in social performance tools, and also a loose regulation regarding social reporting.

Research limitations/implications – The findings of the study are limited due to the relatively small sample size and the focus on fund managers’ answers only. Future research could investigate the viewpoints of different stakeholders in the investment process, such as the back investors of microfinance funds or the regulatory institutions.

Originality/value – To the best of our knowledge, this is the first attempt to get insights on the impediments to a stronger focus on social performance by MIVs, with the application of a recognized framework from the Socially Responsible Investment (SRI) literature.

With the increasing understanding of stakeholders on sustainability aspects for the business, companies are nowadays paying more attention to environmental and social issues. This study aims to examine the relationship between Environmental, Social, Governance (ESG) Index and firms’ value. Moreover, this study also examines how the controversy score influences the company’s value. The authors employ a dataset of 1.356 companies from 22 countries in Asia which representing the Asian market from 2014 to 2018. This study shows that ESG index score and controversy score are statistically significant, affecting the firms’ value, measured by Tobin’s Q. From the individual tests, the findings of this study indicate that ESG-environmental, ESG-social, and ESG-governance, individually affect the firms’ value. This study suggests that providing disclosure on ESG aspects is essential, not only to increase company value but also to show the company resilience and sustainability. On the other hand, ESG controversy score surprisingly indicates a positive relationship with the company value. The result implies that controversies provide a positive signal to the investor because controversies could provide a signal to the public of companies’ willingness to have transparency and accountability.

While management control and performance measurement research and practices have advanced significantly in the last decades, the research and applications to social impacts and social purpose organizations are underdeveloped. This chapter reports on three research studies that have important implications for future research and practice in the use of management control and performance measurement to solve global societal challenges.

This chapter provides new frameworks and performance measurement approaches used in three recent series of research projects. It also provides the results of this extensive research in using existing theories and managerial practices to improve success and the measurement of success in for-profit and nonprofit organizations that are focused on increasing their positive social impacts.

This research that spans more than 20 years and includes numerous projects and research methods in many countries has discovered a prior lack of application of existing theories, approaches, tools, and measures that are fundamental to management control and performance measurement. It found that much work is still needed in both academic research and managerial practices to apply them effectively in social purpose organizations and suggests areas for future research.

By reviewing the literature comprehensively and doing a series of related research projects, this analysis provides a foundation for future research in the applicability of management control and performance measurement approaches to the measurement and improvement of the social impacts of both for-profit and nonprofit organizations.