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Corporate social responsibility (CSR) and corporate sustainability have gained prominence in the major capital markets. In Brazil, the São Paulo Stock Exchange (BM&FBovespa) has created the Corporate Sustainability Index (ISE) and the Carbon Efficient Index (ICO2), responsible for indicating the performance of sustainable companies. Therefore, this study proposes to examine and compare the stock returns of the sustainability index member companies with the returns of companies out of these indexes. In this methodology we selected the two principal negotiability indexes of that market (IBOV and IBrX50), which are indexes that meet the most traded stocks of BM&FBovespa, and calculated the average daily returns of the four indexes in order to make performance comparisons over the period 2005–2014, based on nonparametric statistical tests. Our findings indicate that the average returns of sustainability indexes were higher, but these differences were not statistically significant, confirming previous evidence. Additionally, by means of a cointegration test, we found that the indexes are cointegrated in the long term. These findings are limited to the analyzed emerging market and are also subject to the limitations of the estimated models. Thus, we can infer that presence in the sustainability indexes does not indicate statistically significant higher returns, which means that companies with sustainable practices in Brazil are not only concerned with economic performance, but also with social, cultural, and environmental issues. The main findings are aligned with the concept of triple bottom line, even in the case of an emerging market.

This chapter reviews recent developments in sustainability regarding cities of the world. Using the approach of a literature review, this chapter highlights sustainability innovations in the context of cities. The chapter identifies several indexes which assess quality of life (QOL) or prosperity in cities of the world. One web-based index which relies heavily on the inputs of citizens around the world is Numbeo. The literature review identifies ways cities have pursued climate change mitigation through encouragement of electrical vehicles and alternative modes of transportation. Innovations that have become controversial in cities are also identified. Analysis of Numbeo suggests this index shows promise of future value for researchers interested in city QOL—specifically its pollution perceptions index. As urbanization continues with more than half of the world's population now residing in cities, interest in the sustainability of cities will intensify. Sustainability indexes for cities are now being developed. Analysis of Numbeo's novel approach to gauging the pollution of cities through the reports of hundreds of thousands of individuals living around the world suggests that this approach holds promise for future development. While other disciplines have taken focus on city sustainability, this is the first study within the domain of marketing research to provide an overview of city sustainability for marketing researchers and to analyze a new way of measuring a component of city QOL—perceptions of city pollution. Results suggest that valuable results will likely be forthcoming as researches continue developing city sustainability measures and indexes in the future.

The chapter describes the recent history of Sustainability Indices in three Latin American countries: Brazil, Mexico, and Chile. In these countries, local Stock Exchanges have been recently launching their own Sustainability Indices. This ongoing trend may indicate a particular way of addressing Socially Responsible Investment (SRI) in the region. The chapter relies on secondary data, mainly documents published by the Stock Exchanges themselves, and on some selected academic and practitioner oriented articles. All three countries present some common features. In all cases, local stock markets launched Sustainability Indices, and their composition has been publicly available from the beginning. Consequently, SRI is now developing in the region in a different way from that of developed markets. The chapter is based on secondary data only. Further research may involve interviews and surveys with different stakeholders (i.e., investors, quoted companies, public officials). The illustration of a different way of developing an SRI market may help public officials and investors from other countries, either in Latin America or elsewhere, who intend to promote SRI. There are few studies on SRI in Latin America, and comparative research between different countries in the region is still rare.

The main problem addressed by this research is the current debate between the negative and positive effects of industrial clusters. This debate is a result of gaps between theoretical implications and empirical evidence in both the classical agglomeration theory and the agglomeration lifecycle theory. The purpose of this study is to propose a framework for developing an index measuring both organizational cluster involvement and organizational supply chain including the three pillars (economic, social, and environmental). Furthermore, the index acts as a quantitative predictor of the stages of the life cycle of industrial clusters. Adopting a case study methodology, the applicability of the index development framework is demonstrated. First, cross-sectional exploratory interviews are performed to locate items measuring the three pillars of organizational sustainability within Egyptian communication industry. Second, an explanatory, cross-sectional approach is applied gathering data from eight professionals related to involvement and supply chain sustainability of their organizations. Analytical hierarchical process is used for weighting and aggregating individual item metrics into two indicators (Saaty, 1980). Measuring, managing, and controlling capabilities of organization's supply chains outweighs the need to manage risks. The proposed framework aids firms within a cluster in making timely decisions about what needs addressing to improve supply chain sustainability performance. Hence, all environmental, social, and economic capabilities can be effectively monitored and controlled.

The aim of this chapter is to explore sustainability research and findings in Slovenia, including Slovenia’s paths toward sustainable future on three different levels: situational or macro-level, transformational or mezzo-level and action formation or micro-level. Changes toward sustainability can only be made through the interaction of all levels. Besides the economic situation, both environmental and social dimensions are also important parts of sustainability. Slovenian consumers tend to be aware of sustainability issues and have formed positive attitudes about this concern, which is also reflected at the macro-level indices, indicating Slovenia’s sustainable position compared to other countries in Eastern and Southern Europe. Some sustainability guidelines, albeit not necessarily systematic activities, are adopted by companies and thus are moving the Slovenian economy forward in this area. This chapter can serve as a basis to develop some general pointers of how sustainability in Slovenia can be further addressed and developed.

The chapter examines and describes the impact of the Central American Free Trade Agreement (CAFTA-DR) environmental provisions and the UN Global Compact initiatives on environmental sustainability of member countries at a national level and at a firm level.

Composite indexes (Human Development Index, Ecological Footprint Index, and Biocapacity) are used to determine CAFTA-DR country level sustainability. Firm level sustainability is based on a qualitative survey of companies using the Global Reporting Initiative framework and UN Global Compact participation.

Based on the methodology used CAFTA-DR member countries cannot be considered environmentally sustainable. Despite the lack of integration between initiatives proposed by different institutions, firm level sustainability trends are positive and encouraging.

Free access to Ecological Footprint and Biocapacity scores is limited. The research focused on surveying CAFTA-DR and UN Global Compact sustainability initiatives. However, there are many other entities and institutions not included in this research that also encourage sustainability.

The need of a concerted effort to align different organizations and institutions regarding sustainability initiatives in the CAFTA-DR region is apparent.

CAFTA-DR includes environmental provisions that are complementary to the UN Global Compact environmental principle. The synergies between these initiatives should be actively explored.

We compare the financial stock performance of companies that participate in the Carbon Efficient Index (ICO2) and those that participate only in market-wide indices of the BM&FBovespa (the IBOV, IBrX50, and IBrX100). The data includes the daily quotations of the shares from these four indices for September 2010 to December 2014. We exclude companies from market-wide indices that also participated in the ICO2. We use the stock market and average volume liquidity indices in order to analyze liquidity. We employ financial indicators to analyze the performance of the indices. Returns of companies participating in the ICO2 exceed those of all other companies except those participating in the IBrX50. The returns of all indices are statistically similar. There is a proven long-term equilibrium relationship between the indices’ returns. The ICO2 does not present obvious superiority in terms of the Sharpe and Jensen indices, although the results surpass those of the market-wide indices. Although the financial performance of sustainable companies does not surpass that of other companies, the economic benefits are similar. Thus, even though the financial result presents no significant difference, it is crucial to acknowledge that investing in sustainable stocks does not result in financial loss; rather, it has a positive environmental impact. The literature connecting the performance of the shares of the ICO2 and broad indices is scarce. Our study improves understanding of how company stocks can generate economic benefits to both society and companies.

The chapter aims to bridge theory-practice by proposing an in-depth examination of three cases of companies accused of greenwashing, namely Volkswagen for Dieselgate, Nestlè and Golden Agri-Resources (a palm oil plantation company included in DJSI). The chapter thus reflects on deliberate communicative practices and organisational processes that lie beyond the most visible manifestations of greenwashing. Drawing on these cases, common communication errors and practices of corporate misconduct in corporate sustainability are disclosed. Readers, such as practitioners, who are not interested in academic mechanisms and more in the practical effects of the phenomenon can appreciate the analysis of the cases linked with the presentation of a series of principles and guidelines. Managerial solutions to contrast the different types of greenwashing risks, and to reduce associated negative effects on corporate image and reputation, are presented.