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1 – 10 of over 12000Mirza Muhammad Naseer and Tanveer Bagh
Corporate social responsibility (CSR) promotes society, reduces risk, and encourages ethical business practices. Due to its relevance, we study how CSR influences firms'…
Abstract
Corporate social responsibility (CSR) promotes society, reduces risk, and encourages ethical business practices. Due to its relevance, we study how CSR influences firms' sustainable development. We analyze data from 427 New York Stock Exchange (NYSE)-listed firms from 2008 to 2022. The Refinitiv environmental and social score is used to measure CSR, whereas for firms' sustainable development we rely on corporate sustainable growth rate (SGR) and market-based metrics. The analysis employs various econometric techniques, including ordinary least square, fixed effect regression, two-stage least square, generalized method of moment, and simultaneous quantile regression. The results indicate that CSR has a positive and significant effect on firms' sustainable development across all models. This relationship supports the notion that socially responsible business can contribute to long-term financial sustainability in line with “stakeholder theory”, indicating that companies should accommodate the concerns of various stakeholders, including society and the environment, to achieve sustainable development. We evaluate how the conditional distributions of SGR and firms’ value are affected by CSR, categorizing them into high, moderate, and low regimes. The quantile regression estimates indicate that the effect of CSR is more pronounced at upper quantiles, followed by moderate and low regimes. These findings underscore the importance of considering CSR in assessing the SGR and enterprises market value. We also confirm that our results are robust under range of different econometrics' methods. Finally, we enlighten current literature, and our research has useful policy implications for management and investors.
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Gary Moore and Marc William Simpson
Using various proxies for the firms' return on equity (ROE) and retention ratios (b) the authors calculate 36 sustainable growth rates, on a rolling basis, for a comprehensive set…
Abstract
Purpose
Using various proxies for the firms' return on equity (ROE) and retention ratios (b) the authors calculate 36 sustainable growth rates, on a rolling basis, for a comprehensive set of firms over a 52-year period. The authors then assess the ability of these different sustainable growth rates to predict the actual, out-of-sample, five-year growth rates of the firms' earnings.
Design/methodology/approach
The authors compare the forecast to determine which method of estimating ROE and b produce the lowest mean-squared-errors and then determine the estimation method that works best for firms with different characteristics and for firms in different industries.
Findings
Overall, using the median ROE of all firms in the market and the 5-year average of the specific firm's retention ratio produces the lowest, statistically significant, forecast errors. Variations are documented based on firm characteristics, including dividend payout, level of ROE and industry.
Practical implications
The findings can guide practitioners in using the best earnings forecasting method.
Originality/value
Financial textbooks seem universally to suggest that one method of estimating the growth rate of a firm's earnings is to calculate the “sustainable growth rate” by multiplying the firm's ROE by the firm's b. At the same time, multiple methods of proxying for both ROE and b have been suggested; therefore, it is an interesting and useful empirical question, which, heretofore, has not been addressed in the literature, as to which estimation of the sustainable growth rate best approximates the actual future growth of the firm's earnings. The findings can guide practitioners in using the best earnings forecasting method.
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Hui Zhang and Shaoheng Li
This paper examines the direct and indirect effects of CEO intellectual capital on sustainable growth of small and medium-sized enterprises (SMEs) in China.
Abstract
Purpose
This paper examines the direct and indirect effects of CEO intellectual capital on sustainable growth of small and medium-sized enterprises (SMEs) in China.
Design/methodology/approach
It adopts a quantitative approach based on 3,474 unbalanced panel data in 836 Chinese listed SMEs from 2008 to 2017.
Findings
The findings reveal a significant positive relationship between CEO intellectual capital and sustainable growth of SMEs. The findings also reveal that dual innovation (exploitative innovation and exploratory innovation) has a partial mediating effect on the relationship.
Practical implications
It further provides an original contribution to identifying and testing the mediating effect of dual innovation on the relationship between CEO intellectual capital and sustainable growth of SMEs.
Originality/value
In contrast to most of the extant literature, which considers intellectual capital as a whole at the organizational level or focuses on employee intellectual capital, this paper highlights the role of CEO intellectual capital for SMEs’ growth. It provides an original contribution to identifying and testing the mediating effect of dual innovation on the relationship between CEO intellectual capital and sustainable growth of SMEs.
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Basing himself on the premise that present economic progress cannot follow the ‘Business as usual paradigm’ and hope for continued and unlimited progress, the author holds that we…
Abstract
Basing himself on the premise that present economic progress cannot follow the ‘Business as usual paradigm’ and hope for continued and unlimited progress, the author holds that we need to look into the larger dimensions of growth and development, which include social, environmental and other complex factors. So in this chapter, the author makes some pertinent suggestions for a sustainable growth model inspired by green growth and degrowth.
The first section evaluates the salient features of green growth and its drawbacks. It is followed by a discussion on the notion of degrowth, with its challenge to change the direction of growth (economic, ecological, social and cultural), without which human civilisation, as we know it today, may not survive. Finally, in the concluding chapter, based on these two notions of green growth and degrowth, an all-inclusive and sustainable regrowth model is propounded.
By creating an awareness of the need to shift development goals and Corporate Social Responsibility (CSR), the author argues that we could use economic regrowth strategically and responsibly to make the world more sustainable and viable. Responsible corporates will make their contribution to such an organic, resilient and sustainable regrowth and their CSR activities could be the starting point for this change, without which humanity's future is seriously threatened.
Finally, the author acknowledges that humanity has profited from the tremendous technological and economic progress we have made in the last four centuries, learnt from its mistakes and are ready to reorient ourselves individually and collectively towards a sustainable economic regrowth.
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Shalini Mittal, Shivani Chaudhry and Shailesh Singh Bhadauria
Introduction: Banking institutions are instrumental for lending support and steering the economy in the planned direction to achieve long-term goals. Sustainable development has…
Abstract
Introduction: Banking institutions are instrumental for lending support and steering the economy in the planned direction to achieve long-term goals. Sustainable development has become the focal point of new policies so that the economies attain inclusive growth. This needs substantial funding to accelerate industrial activity; hence, banks have to play a dominant role in helping such plans succeed. Banks need to look beyond their current framework and play a proactive role in promoting sectors focussed on sustainable development. Banks can prioritise lending to green initiatives to reduce carbon footprint, which will provide impetus to the goals laid out in the COP 26 United Nations (UN) Climate Change Conference. The chapter aims to identify the gap in investment for sustainable development and the funding support required from banks to help India achieve the desired sustainable goals. The chapter recommends that banks increase their green financing to provide the impetus for creating sustainable infrastructure.
Purpose: The present study aims to understand the banking sector’s importance in developing sustainable economic growth through lending practices. The study recommends certain practices for increasing focussed lending towards sustainable projects.
Methodology: In this study, the authors developed prepositions based on a literature review. Significant issues were raised based on the lending policies per the guidelines of Reserve Bank of India (RBI), and a solution was proposed by preparing a conceptual model.
Findings: The study offers a lending technique that can assist the financial sector in supporting sustainable economic growth.
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M. Mesut Badur, Ekrem Yılmaz and Fatma Sensoy
This paper aims to investigate the role of corruption and income inequality in three-dimensional sustainable development in the post-Soviet countries.
Abstract
Purpose
This paper aims to investigate the role of corruption and income inequality in three-dimensional sustainable development in the post-Soviet countries.
Design/methodology/approach
The methodology is based on dynamic panel regression with the fixed effects approach.
Findings
The authors' findings depict that increasing corruption and income inequality undermine sustainable development. Specifically, increasing corruption and income inequality negatively affect sustainable development. Moreover, unemployment and trade liberalization negatively impact sustainable development, whereas foreign direct investments (FDIs) positively affect sustainable development.
Practical implications
Policy implications enclose galvanizing strong institutions and redistributive policy mechanisms that the bottom income groups enjoy in promoting sustainable development to keep away the distressful phase of corruption and income inequality.
Originality/value
This is the first paper on corruption, income inequality and sustainable development in the post-Soviet countries employing a sustainable development index (SDI), which is calculated by considering three factors including economic, social and environmental development.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2023-0065
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As reaching UN Sustainable Development Goals 2030 has become the top agenda of the global companies, they have prioritized sustainability as a response to the grand challenges as…
Abstract
As reaching UN Sustainable Development Goals 2030 has become the top agenda of the global companies, they have prioritized sustainability as a response to the grand challenges as well as a potential source of competitive advantage. This chapter poses the question: whether and how can firms achieve a sustainable competitive advantage via sustainability? I critically examine the sustainability-based view of sustainable competitive advantage by arguing that in the changing global landscape we will need to re-think the accepted ideas as regards sustainability goals, sustainable development and the sustainable competitive advantage as the individual firm’s achievement. The chapter contributes to the ongoing debate by discussing the potential of de-growth ideas and principles to solve some of the contradictions and suggesting the questions for future research.
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This chapter examines the influence of external public borrowing resources on economic progress in Tunisia. The study focuses on two stages: First, the influence is studied in a…
Abstract
This chapter examines the influence of external public borrowing resources on economic progress in Tunisia. The study focuses on two stages: First, the influence is studied in a direct sense and then in an indirect sense, i.e., through a transmission channel of this influence. By applying the autoregressive distributed technique with staggered lags (ARDL), over a period ranging from 1986 to 2019, the results showed that the influence of external borrowing resources on growth seems to be unfavorable in the short term but positive in the long term, hence the importance of the empirical technique chosen. Second, three interaction variables were tested, namely total government expenditure, government investment expenditure, and the real effective exchange rate. The results obtained call for better attention to the channels identified to maximize the positive influence of external public debt on the country's economic progress.
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Isabella Melissa Gebert and Felipa de Mello-Sampayo
This study aims to assess the efficiency of Brazil, Russia, India, China, South Africa (BRICS) countries in achieving sustainable development by analyzing their ability to convert…
Abstract
Purpose
This study aims to assess the efficiency of Brazil, Russia, India, China, South Africa (BRICS) countries in achieving sustainable development by analyzing their ability to convert resources and technological innovations into sustainable outcomes.
Design/methodology/approach
Using data envelopment analysis (DEA), the study evaluates the economic, environmental and social efficiency of BRICS countries over the period 2010–2018. It ranks these countries based on their sustainable development performance and compares them to the period 2000–2007.
Findings
The study reveals varied efficiency levels among BRICS countries. Russia and South Africa lead in certain sustainable development aspects. South Africa excels in environmental sustainability, whereas Brazil is efficient in resource utilization for sustainable growth. China and India, despite economic growth, face challenges such as pollution and lower quality of life.
Research limitations/implications
The study’s findings are constrained by the DEA methodology and the selection of variables. It highlights the need for more nuanced research incorporating recent global events such as the COVID-19 pandemic and geopolitical shifts.
Practical implications
Insights from this study can inform targeted and effective sustainability strategies in BRICS nations, focusing on areas such as industrial quality improvement, employment conditions and environmental policies.
Social implications
The study underscores the importance of balancing economic growth with social and environmental considerations, highlighting the need for policies addressing inequality, poverty and environmental degradation.
Originality/value
This research provides a unique comparative analysis of BRICS countries’ sustainable development efficiency, challenging conventional perceptions and offering a new perspective on their progress.
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Discussions on tourism development address the urgent need to reduce the negative impacts of tourism on tourist destinations. Despite decades of trying to find potential ways to…
Abstract
Purpose
Discussions on tourism development address the urgent need to reduce the negative impacts of tourism on tourist destinations. Despite decades of trying to find potential ways to foster sustainability, however, current tourism development is still mainly driven by political interests and growth agendas. In spite of concepts intending to improve sustainable tourism development, negative dynamics, such as over-tourism and the exploitation of nature and local communities, dominate the current reality of tourism. This article focuses on the concept of degrowth as a potential solution for rethinking tourism policy and practices to ensure greater sustainability. Its aim is to explore the gap between these policies and the academic theories on instigating sustainable change, and the actual reality of the tourism industry, which is primarily driven by economic motivations such as growth.
Design/methodology/approach
To explore this dichotomy, this paper investigates the values of tourism lifestyle entrepreneurs. Small businesses are the most dominant group in the industry in terms of numbers. I contend that researching their viewpoint on current developmental trends could lead to valuable insights into how to tackle this gap between theory and reality. This paper also explores how the degrowth paradigm may promote sustainability in tourism, as well as the potential role that tourism lifestyle entrepreneurs could play in this development. The discussion is illustrated by a case study based on interviews with tourism entrepreneurs in Iceland.
Findings
The findings indicate that various tourism stakeholders have different approaches to growth, with many tourism lifestyle entrepreneurs tending to embrace degrowth practices by acting according to their value base, albeit sometimes unconsciously. This focus on aspects other than growth could potentially encourage tourism lifestyle entrepreneurs to contribute to sustainable development.
Research limitations/implications
The examples discussed in this paper are locally limited and cannot be generalized due to the small size of the interviewed sample group. The scalability of individual entrepreneurs’ impact is limited due to their small size.
Practical implications
The actions and values applied by these tourism lifestyle entrepreneurs demonstrate how degrowth can be manifest on a small scale: growth is only embraced up to a certain limit, so it oes not exceed social and environmental capacities; from that point on, community well-being plays the key role. This study demonstrates the untapped knowledge tourism lifestyle entrepreneurs could provide to rethinking the tourism industry.
Social implications
This study demonstrates the importance of shedding more light on ethical issues and values beyond growth in both academic and political discussions. Addressing tourism lifestyle entrepreneurs as smaller-scale actors of tourism degrowth could be a meaningful starting point for holistically rethinking tourism and give them a voice.
Originality/value
This research emphasizes untapped knowledge by acknowledging entrepreneurs and their potential for rethinking tourism development, concluding with recommendations for practice and policy.
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