Showing papers on "Corporate sustainability published in 2021"

Traders as sustainability governance actors in global food supply chains: A research agenda

Abstract: Corporate actors are rapidly gaining ground as nontraditional forms of authority that shape sustainability governance efforts in global food supply chains. This paper highlights the critical, but underresearched role of traders—companies whose core business lies in the movement and exchange of agricultural commodities between producers and manufacturers—in linking corporate sustainability ambitions to on‐the‐ground impacts. Drawing on a systematic analysis of the major transnational corporations trading cocoa, coffee, and palm oil, we present advantages and potential pitfalls of relying on traders as implementers of sustainability governance and outline a future research agenda that focuses on producer‐level impacts, changes in supply chain organization and power dynamics, and traders' interactions with state and other nonstate actors. At the intersection of supply chain management, political economy, geography, and global governance, research on traders as key sustainability governance actors also provides novel opportunities for interdisciplinary work and stakeholder engagement.

Gender diversity and corporate performance: Emphasis on sustainability performance

Abstract: In this research, we empirically investigate the impact of the board's female representation on corporate financial and sustainability performance after the introduction of the minimum gender quotas in Italy in 2011 (Golfo‐Mosca Law). We studied the 40 companies of the FTSE‐MIB index for 3 years 2016–2018. Using yearly regression analysis, pooled analysis, and differential analysis, we find that the female involvement on both boards has almost no significant effect on the financial performance; however, a significant association is found with the corporate sustainability performance. The robustness checks using differential analysis confirm the later relationship in which firms that improved female representation had also an ethical score upgrade. Interestingly, we also provide that there is an optimal level of gender quotas that maximizes sustainability performance and beyond that, a negative impact on performance might be detected.

Corporate Social Responsibility, Sustainability, Sustainable Development and Corporate Sustainability: What Is the Difference, and Does It Matter?

Abstract: The terms “corporate social responsibility” (CSR), “sustainability”, “sustainable development” and “corporate sustainability” (CS) are critical terms for developing, analysing and evaluating public and private policy goals. These terms are used to make decisions about investment, policy development, and strategy creation. The terms emerged in different fields of endeavour at different points in time. Accordingly, they have different meanings; however, over time they have come to be used interchangeably mixing up policy agendas, confusing managers, regulators, activists and the public at large. We demonstrate that CSR is the best term for focusing on individual business organisations, “corporate sustainability” is an organisation level environmental policy, “sustainable development” is a public policy, and “sustainability” is the broadest term encompassing global local and organisational levels.

Future-Proofing Capitalism: The Paradox of the Circular Economy for Plastics

Abstract: The marine plastics crisis sparked a wave of corporate interest in the circular economy, a sustainable business model that aims to eliminate waste in industrial systems through recycling, reduction, reuse, and recovery. Drawing on debates about the role of corporations in global environmental governance, this article examines the rise of the circular economy as a dominant corporate sustainability concept, focusing on the flagship example of the circular economy for plastics. It argues that corporations across the plastics value chain have coordinated their efforts to contain the circular economy policy agenda, while extending their markets through developing risky circular economy technologies. These corporate strategies of containment and proliferation represent attempts to “future-proof” capitalism against existential threats to public legitimacy, masking the implications for environmental justice. The paradox of the circular economy is that it seems to offer radical challenges to linear “take-make-waste” models of industrial capitalism, backed by international legislation, but it does not actually give up on unsustainable growth. We need to tackle the plastics crisis at its root, dramatically reducing the global production of toxic and wasteful plastics.

The impact of Logistics 4.0 on corporate sustainability: a performance assessment of automated warehouse operations

Abstract: The purpose of this study is to gain a better understanding of the impacts of Logistics 4.0 initiatives (focusing on automated warehousing systems) on the economic, environmental and social dimensions of firms' sustainability performance. To achieve this objective, a new framework for the assessment of sustainable warehousing in the 4.0 era is developed.,The framework, developed via the item-objective congruence index, Q-sort method and interviews with experts, is employed to assess performance changes through management interviews in two warehousing companies after the implementation of automation technologies.,Most aspects of both companies' sustainability performance are considerably improved (e.g. productivity, accuracy, air emission, worker safety and supply chain visibility); however, the outcome for some criteria might be worsened or improved depending on each company's solutions and strategies (e.g. increasing electricity bills, maintenance costs and job losses).,The findings provide insight into the effective implementation of warehousing technologies. The proposed framework is also a valid and reliable instrument for sustainability assessment for warehousing operators, which companies can utilise for self-assessment.,This paper contributes to establishing a body of literature that explores the previously unclarified effects of Logistics 4.0 on firms' sustainability performance. The proposed framework, which captures critical concerns of corporate sustainability and technological adaptation, is also the first of its kind for warehouse performance assessment.

Organizations’ Management of the COVID-19 Pandemic: A Scoping Review of Business Articles

Abstract: The objective of this study was to analyze the early COVID-19 crisis management practices implemented in organizations based on a scoping review of relevant business articles published on this issue in newspapers and magazines between March and May 2020. In total, after applying inclusion and exclusion criteria on 2707 potentially relevant articles, 246 articles describing organizational initiatives to manage COVID-19 were selected and analyzed in detail. The results of this study highlight the opportunities and threats arising from the pandemic as well as the most innovative measures put in place, particularly in the areas of health, human resources management (HRM), work organization, social and environmental responsibility, and crisis management. The description of the main practices identified and their illustration through various examples show the importance of corporate sustainability in managing the pandemic and demonstrate the cross-cutting nature of this crisis, which affects most corporate functions simultaneously. This study also makes it possible to identify certain leaders’ approaches that can be considered exemplary or, in contrast, that should be avoided, while highlighting the paradoxes and difficulties of assessing corporate social responsibility in times of crisis.

Perceived Green Human Resource Management Practices and Corporate Sustainability: Multigroup Analysis and Major Industries Perspectives

Abstract: The substantial focus on achieving corporate sustainability has necessitated the implementation of green human resource management (GHRM) practices. The purpose of this paper is to reveal the industries’ perspective of the impact of GHRM practices (i.e., green recruitment and selection, green pay and rewards, and green employee involvement and green training) on corporate sustainability practices. Data were collected from 200 human resource professionals in major industrial sectors of a developing country. Partial least squares structural equation modelling was used to test the study hypotheses and multigroup analysis (MGA) between industrial sectors. The findings show a positive impact of three GHRM practices, i.e., green recruitment and selection, green pay and rewards, and green employee involvement on corporate sustainability. However, green training has no significant association with corporate sustainability, which is interesting. Furthermore, the multigroup analysis (MGA) revealed partial and significant differences among different sectors. The results provide more contextualized social, environmental, and economic implications to academics and practitioners interested in green initiatives. To date, limited research has been conducted to investigate whether GHRM practices can be an effective strategy in increasing corporate sustainability in a developing country context. Particularly, the industry’s perspective on the subject matter was rather absent in the existing literature. The present study fills this gap and contributes to the existing literature by providing the industry’s perspective on GHRM and corporate sustainability.

Coming in from the Cold: A Longitudinal Analysis of SDG Reporting Practices by Spanish Listed Companies Since the Approval of the 2030 Agenda

Abstract: Despite the apparent commitment of large Spanish corporations to the SDGs, information about their documented contribution to the 2030 Agenda is still scarce. This article aims to explore this gap by investigating the extent to which Spanish listed companies have been reporting on the SDGs since the approval of the 2030 Agenda. The paper contributes to the country-level analysis of SDG reporting by performing a longitudinal analysis over the 4-year period encompassing 2016 to 2019. It contributes to management science by assessing Corporate Sustainability performance through adherence to the SDGs and testing what the facilitators of SDG reporting have been during the first 4 years since the adoption of the 2030 Agenda. Findings reveal a low commitment of Spanish listed companies to sustainability reporting. Nevertheless, they also uncover how those companies that publish non-financial reports are increasingly reporting on the SDGs. Additionally, there is also a growing tendency among CEOs to mention the SDGs in their letters to stakeholders. Furthermore, a positive link is established between the adoption of GRI reporting standards or being a signatory of the UN Global Compact and SDG reporting. Similarly, those companies that publish Integrated Reports are more likely to consider the SDGs in their disclosures than those that publish Standalone Reports or Annual Reports. Nonetheless, there is a growing tendency to gravitate from producing Integrated Reports to producing Annual Reports. Owing to the breadth of these results and their relevance to academics and practitioners alike, this study can help build future evidence-based accountability literature and policy on the SDGs at the Spanish and European levels.

Analyzing companies' interactions with the Sustainable Development Goals through network analysis: Four corporate sustainability imperatives

Abstract: The alignment between corporate strategies and the Sustainable Development Goals (SDGs) can be an indicator of long‐term sustainability success. But which types of companies are most, and which are least, aligned with the SDGs? This paper scores how 67 economic activities—as a proxy for companies' operations and the goods or services they deliver—interact with 59 SDG targets. It then uses network analysis to define which activities are most and least aligned with the SDG Agenda. The results reveal four types of corporate activities, each having a strategic sustainability imperative: (i) “core activities” predominantly generate positive, while having few negative, impacts on the SDGs, challenging companies to scale their contributions to further align with the SDG Agenda; (ii) “mixed activities” have moderate/high degrees of both negative/positive impacts, posing a decoupling imperative; (iii) “opposed activities” provide few benefits yet cause significant adverse impacts, implying that companies must transform in order to better align with the SDGs; and (iv) “peripheral activities” have immaterial positive and negative impacts, creating an imperative to explore innovative avenues for creating SDG contributions. Detailed network graphs are presented that map companies' interactions with the SDGs and guide the creation of corporate sustainability strategies. Policy implications include the potential for using companies' activities as a lever for adopting a “nexus approach” to the SDGs.

A hybrid MCDM model based on DEMATEL and ANP for improving the measurement of corporate sustainability indicators: A study of Taiwan High Speed Rail

Abstract: The purpose of this study was to improve the sustainability measurement of indicators by using corporate social responsibilities (CSR) reports, examine the degree of interaction between these indicators, and analyze the trend of the performance towards the CS goals set up over the past years. If managers review and identify key indicators regularly, these key indicators will help arrive at long-term performance goals, which will also be an essential reference for the transportation industry's business decision-making. Most of the selected indicators suffer from a significant technical problem: all of the measurement dimensions are independent, leading to inadequate indicators for measuring CS/CSR. Our calculations consider the interrelationships and effects among the evaluation dimensions and indicators to precisely rank and select indicators. This study's value is that it provides HSR with a direction for measuring and improving their CSR to develop sustained competitive advantage over the long term. This study implemented Taiwan's Railway Transportation Corporate as a case study and applied the DEMATEL-ANP Based Method (DANP) to analyze and standardize discrete indicator and synthetic performance indices using critical indicators from CSR reports. The results showed that the Service Quality (SQ), Operation Effect, and Customer Satisfaction (CS) were ranked the top three key factors, and the discrete indicators and synthetic performance indices of the corporate were all positive and consistent with the trend of its sustainable development.

The influence of managers' awareness of climate change, perceived climate risk exposure and risk tolerance on the adoption of corporate responses to climate change

Abstract: Uncertainties posed by climate change limit companies' ability to understand implications of global warming on business and society at large, hampering the adoption of tangible organizational responses to climate change. Understanding climate action thus requires to investigate influential factors of decision‐making under uncertainty, which implies acknowledging managerial interpretations and perceptions about climate issues. Drawing insights from the literature on climate inaction and from corporate sustainability literature, the present study examines awareness of climate change and perceived exposure to climate risks as antecedents of corporate responses to climate change, drawing on a survey of managers of Italian manufacturing companies. In addition, the study tests the moderation of risk tolerance on the relation between perceived climate risk exposure and climate action, suggesting that risk attitudes are a significant factor of decision‐making under climate uncertainty. The results support the hypothesis of the model and thus provide several contributions to the literature on business and climate change. Managerial implications and avenues for future research are also discussed.

Evaluation of strategic and financial variables of corporate sustainability and ESG policies on corporate finance performance

Abstract: Over the past few decades, there has been a sharp increase in interest by investment professionals to become more socially responsible with regards to their decision making relating to their choice...

Identifying the moral–practical gaps in corporate social responsibility missions of Vietnamese firms: An event-based analysis of sustainability feasibility

Abstract: This research aims to improve stakeholder engagement, particularly local businesses, in addressing environmental problems and taking on both ecological conservation and social responsibilities. A structured dataset was built to track all major environment‐related events in Vietnam. Findings, which were extracted from 344 news reports and 75 environmental events, highlight the lack of participation on Vietnamese businesses in sustainable development, with existing corporate activities still driven by practical concerns, that is, profitability. Notably, a minimum of one governmental agency was involved in 82.6% of the events categorized as environmentally damaging, with investigative or administrative tasks being their dominant role. Going forward, there is a need for systematic information collection and public disclosure on business and government involvements in environmental events. Given that Vietnam is expected to be hard hit by climate change, a better understanding of corporate sustainability issues would be beneficial to both the firms and society in the long run.

Corporate uptake of the Sustainable Development Goals: Mere greenwashing or an advent of institutional change?

Abstract: The United Nations’ Sustainable Development Goals (SDGs) are increasingly used by corporations for benchmarking and communicating their sustainability performance. The SDGs have several features that make them attractive for this purpose, including their universality, specificity and, in many cases, direct linkage with corporate outcomes. Corporations typically disclose their engagement strategies and outcomes voluntarily without the aid of standardized and externally verified reports. This creates a risk of corporations misusing the SDGs for “greenwashing” and “impact washing” their activities, for example through selective reporting of favorable information. Inaccurate and non-transparent disclosure can also introduce information asymmetries that distort decision-making by investors and other stakeholders. Increasing institutional change towards new measurement frameworks (such as GRI and SASB standards) and regulatory oversight to monitor disclosure (e.g., the EU’s Non-Financial Reporting Directive) is likely to improve transparency and reliability in sustainability reporting. This study critically examines the prospects of institutional changes that facilitate the integration, measurement, and reporting of corporate sustainability in general and the SDGs in particular. It also explores emerging innovations in corporate governance and regulation that seek to improve the integration of sustainability issues in corporations and financial markets.

Shortcomings in reporting contributions towards the sustainable development goals

Abstract: Despite stakeholder pressure boosts companies to help achieve the sustainable development goals (SDGs), only 36% of Spanish firms have implemented a corporate strategy towards the 2030 Agenda. Furthermore, the correlation between the SDGs and corporate sustainability reporting systems has barely been studied. This research aims at identifying gaps in reporting on corporate contributions in the SDGs by examining the global reporting initiative (GRI) standards and annual reports disclosed by the Spanish industry leaders in the Dow Jones sustainability world index in 2018 and 2019. Findings revealed a high inconsistency between GRI disclosures and actions performed by firms. Intangibility, omission of negative impacts, poor standardization, diversity of criteria and lack of comparability are the main features of corporate reporting employed by enterprises. The design of a quantitative framework that enables the standardization and measurement of positive and negative corporate contributions in the achievement of the SDGs was suggested.

The impact of sustainability reporting quality on the value relevance of corporate sustainability performance

Abstract: The value relevance of corporate sustainability performance (CSP) has been studied from different theoretical perspectives, yielding inconclusive evidence. Therefore, it is imperative to revisit corporate sustainability performance relevance for investors. This study explores the value relevance of corporate sustainability performance by studying the impact that the quality of sustainability reporting has on it. It employed the panel data of 247 firms from 2012 to 2016 for the best 30 green capital markets ranked by the Global Green Economy Index. The results indicated that investors value corporate sustainability performance (achieved through social, economic, and corporate governance dimensions only) and the quality of sustainability reporting. However, the environmental dimension of CSP lacks financial materiality for investors. Furthermore, the quality of sustainability reporting plays an instrumental role in the value relevance of the corporate governance dimension because it is perceived as an alternative corporate governance mechanism by investors. The findings are useful for practitioners, regulators, and other stakeholders interested in understanding the value relevance of corporate sustainability performance and quality of sustainability reporting.

Is it necessary to centralize power in the CEO to ensure environmental innovation

Abstract: Using data from a sample of 4863 international firms corresponding to the period 2002–2017, this paper examines the role that chief executive officer (CEO) power plays in environmental innovation and the impact that these strategies have on financial performance. Both issues have been the subject of considerable debate in the literature, with opposite views and contradictory findings. The results indicate that investing in environmental innovations related to the use of clean technologies, ecological production processes, and the design, manufacture and commercialization of environmentally sustainable products requires that CEOs have a greater degree of power in order to support projects that do not entail a higher return in the short and medium terms. Additionally, the results show that the negative economic effect of eco-innovation reverses in the fourth and fifth years after environmental innovations were implemented. Thus, this study supports the view regarding a “bright side” of CEO power with regard to corporate sustainability.