Corporate sustainability

About: Corporate sustainability is a research topic. Over the lifetime, 3517 publications have been published within this topic receiving 94075 citations.

Impact of gender diversity on social and environmental performance: evidence from Malaysia

Abstract: Purpose - This study is guided by the upper echelon theory and argues that the role of females on boards of directors may differ between cultures. In a culture where the community has a significant humane orientation, female directors may pay much more attention to the social issues of corporate sustainability rather than environmental issues. Therefore, this study differentiates between the social and environmental performances of companies to examine whether the presence of females on the boards of directors of Malaysian firms could affect social and environmental performances differently. Design/methodology/approach - This study uses a sample of firms listed in Bursa Malaysia and develops two disclosure indices to measure social and environmental performances. Three proxies of female directors are used in the empirical models. The ordinary Least Square is used to test the hypothesis. Findings - The empirical results suggest a positive association between social performance and the presence of female directors on the board of directors of Malaysian firms. However, no association was found between environmental performance and the presence of female directors on those boards. These results confirm the prediction of this study that the female directors of Malaysian firms pay more attention to social issues than to environmental ones. Originality/value - This is the first study to examine the effects of the presence of female directors on Malaysian firms’ boards of directors on social and environmental performance. It also contributes to the upper echelon theory by illuminating the importance of gender diversity in influencing the social and environmental behaviors of corporate leaders. The results provide the important implication that the association between a firm’s social and environmental performance and gender diversity depends on the culture within which the company operates.

Indicators in Social Life Cycle Assessment: A Review of Frameworks, Theories, and Empirical Experience

Abstract: Summary Industrial ecology (IE) and life cycle sustainability assessment (LCSA) are increasingly important in research, regulation, and corporate practice. However, the assessment of the social pillar is still at a developmental stage, because social life cycle assessment (SLCA) is fragmented and lacks a foundation on empirical experience. A critical reason is the absence of general standardized indicators that clearly reflect and measure businesses’ social impact along product life cycles and supply chains. Therefore, we systematically review trends, coherences, inconsistencies, and gaps in research on SLCA indicators across industry sectors. Overall, we find that researchers address a broad variety of sectors, but only few sectors receive sufficient empirical attention to draw reasonable conclusions while the field is additionally still largely an a-theoretical one. Furthermore, researchers overlook important social core issues as they concentrate heavily on worker- and health-related indicators. Therefore, we synthetize the most important indicators used in research as a step toward standardization (including critical challenges in applying these indicators and recommendations for their future development), highlight important trends and gaps (e.g., the focus on worker- and health-related indicators and the a-theoretical nature of the SLCA literature), and emphasize critical shortcomings in the SLCA field organized along the key phases of design, implementation, and evolution through which performance measurement approaches such as SLCA typically progress in their development and maturation. With this, we contribute to the maturation and establishment of the social pillar of LCSA and IE.

CSR needs CPR: Corporate sustainability and politics

Abstract: Corporate sustainability has gone mainstream, and many companies have taken meaningful steps to improve their own environmental performance. But while corporate political actions such as lobbying can have a greater impact on environmental quality, they are ignored in most current sustainability metrics. It is time for these metrics to be expanded to critically assess firms based on the sustainability impacts of their public policy positions. To enable such assessments, firms must become as transparent about their corporate political responsibility (CPR) as their corporate social responsibility (CSR). For their part, rating systems must demand such information from firms and include evaluations of corporate political activity in their assessments of corporate environmental responsibility.

Does Corporate Governance Affect Sustainability Disclosure? A Mixed Methods Study

Abstract: This research paper aims to understand the impact of corporate governance (CG) on economic, social, and environmental sustainability disclosures. This paper adopted an explanatory sequential mixed methods approach. The data regarding corporate governance and sustainability disclosure were collected from top 100 companies listed on the Pakistan Stock Exchange (PSE) for the period ranging from 2012 to 2015. In addition to the quantitative data, we collected qualitative data through interviews with five board members of different companies. Overall, our results indicate that CG elements enhance sustainability disclosures. This study concludes that a large board size consisting of a female director and a CSR committee (CSRC) is better able to check and control management decisions regarding sustainability issues (be they economic, environment, or social) and resulted in better sustainability disclosure. This paper, through quantitative and qualitative analysis, provides a methodological and empirical contribution to the literature on corporate governance and sustainability reporting in emerging and developing countries.