Two-Lenses Model to Unfold Sustainability Innovations: A Tool Proposal from Sustainable Business Model and Performance Constructs

This research combines corporate sustainability performance and sustainable business model concepts to improve the corporate sustainability of organizations. The main objective of this article is to propose and apply a tool to identify sustainable innovation opportunities through a structured brainstorming process while providing a systemic business perspective and a strong multi-stakeholder orientation. The present qualitative research was carried out in two phases. The first phase consisted of a critical analysis of literature that enabled the proposition of the Two-Lenses Model (2LM) for sustainability innovation. The corporate sustainability performance lens encompasses strategic drivers, business processes, capabilities, stakeholders’ satisfaction and contributions. The sustainable business models lens considers value proposition, value creation and delivery system and value capture and sharing. The second phase consists of applying the 2LM in two industrial cases. The results show that the proposed model has the potential to trigger the identification of opportunities through two mechanisms: misalignments between performance dimensions and gaps in stakeholder satisfaction. Further research opportunities lie on deepening into these findings and investigating the implementation process for the identified innovation opportunities.

CORPORATE SUSTAINABILITY PERFORMANCE AND FINANCIAL PERFORMANCE: MODERATING EFFECT OF BOARD COMPOSITION

This study analyzes the moderating effect of the composition of female directors and the composition of independent directors on CSP and ROA. The purpose of this study is to analyze the effect of the disclosure of Corporate Sustainability Performance (CSP) on the Return on Assets (ROA) as a proxy for the company's financial performance. The population of this study is companies listed on the SRI-KEHATI index during the period November 2016– October 2019. The research hypotheses were tested using linear regression analysis and moderated regression analysis. The study results found that CSP has a significant effect on the company's ROA. The better and more complete the CSP disclosure, the higher the ROA. Furthermore, the composition of female and independent directors does not significantly affect CSP on corporate financial performance. This study implies that female directors and the composition of the independent board are more for compliance with regulatory requirements.

Hybrid Approach to Corporate Sustainability Performance in Indonesia’s Cement Industry

This study aimed to create a solid framework for decision-making in Indonesia’s cement industry, emphasizing those factors which bring about the most impactful results. The framework was developed using the fuzzy Delphi method, the fuzzy decision-making trial and evaluation laboratory, and a fuzzy Kano model. This study builds a hierarchical structure to approach the impact of corporate sustainability performance. We classify important factors into causes or effects and further identify those factors which are critical to improving the performance of Indonesia’s cement industry. Although corporate sustainability performance is a crucial topic in today’s business environment, sustainability strategies remain underrated in Indonesia. We confirm the validity of 19 factors within the following dimensions: environmental impact, social sustainability, economic gain, technological feasibility, and institutional compliance. The sub-dimensions of community interest, risk-taking ability, and regulatory compliance were identified as causes of perceived risks and benefits. In contrast, the following factors were identified as critical to improving corporate sustainability performance: renewable energy resources, contributions to charity, the perception of management regarding technology as a differentiator, and firm readiness to collaborate with high-tech companies.

Relationship between corporate sustainability performance and corporate financial performance: evidence from U.S. companies

Research background: Sustainable development at the enterprise level is understood as the integration of economic, environmental and social dimensions aimed at meeting the needs of all firm?s stakeholders in the present and in the future. Therefore, it is crucial to evaluate the relationship between economic, environmental and social sustainability performance of a company and its financial performance. Purpose of the article: Considering the business model for sustainability as well as the debatable results of empirical research on the relationship between corporate sustainability performance (CSP) and corporate financial performance (CFP), the essential aim of the paper is to answer the question whether the improvement of corporate sustainability performance in its all particular dimensions brings about higher total revenues (TR) of a company. Methods: The main method of empirical research is panel regression models based on Cobb-Douglas production function, which has been extended to include variables of corporate sustainability scores. The selection between pooled OLS model, random-effects model and fixed-effects model has been made with the use of the F test, the Breusch-Pagan test and the Hausman test. Additionally, descriptive statistics and the Pearson correlation coefficients have been analyzed. The empirical studies were conducted in the period 2014?2019 among the 59 largest U.S. companies listed in the Fortune 500 ranking between 2015?2020. Findings & value added: The research hypothesis assuming the existence of positive relationship between corporate sustainability performance (CSP) at both aggregate and disaggregate levels and corporate financial performance (CFP) expressed by TR cannot be positively verified. It means that the improvement of corporate sustainability performance in environmental, social and governance dimensions does not lead to an increase in TR of a company, as some empirical studies suggest.

Implementation of Environmental Management System (ISO 14001) in Supporting the Achievement of Corporate Sustainability Performance in the Pulp and Paper Manufacturing Industry in Indonesia

Objectives: This study analyses the implementation of an environmental management system based on the ISO 14001 standard, which can support corporate sustainability performance in the pulp and paper manufacturing industry in Indonesia. This study discusses the results of previous researchers related to the implementation of environmental management systems in supporting the achievement of corporate sustainability performance. Research Methodology: The research method used is a case study approach in five organizations from three pulp and paper manufacturing companies in Indonesia that have implemented environmental management systems. Collecting data through a questionnaire completed by representatives from organizations across the companies studied. Findings: Management commitment and implementation of internal audits that focus on environmental management and activities are the main factors contributing to the achievement of environmental performance. Meanwhile, the achievement of environmental performance is influence by employees' increased competence in the environmental field, programs to reduce energy consumption, and hazardous and toxic waste. Practical implications: The implementation of an environmental management system supported by an increase in environmental performance can improve the company's reputation, process efficiency and compliance with environmental regulations and requirements, that three things contribute to company performance, especially in the pulp and paper manufacturing industry. Novelty: This research contributes to the concept of a strong relationship between the implementation of environmental management systems and environmental performance in supporting the achievement of corporate sustainability performance, especially in the pulp and paper manufacturing industry in Indonesia.

Effect of mandatory sustainability disclosure announcements:cross-country evidence

Purpose This study aims to examine whether announcements of mandatory sustainability disclosure affect corporate sustainability performance (CSP). Design/methodology/approach The authors use a quasi-experiment provided by mandatory sustainability disclosure announcements that occurred in 21 countries from 2006–2016. A difference-in-differences method is adopted. The authors restrict the drawing of all candidate treatment and control firms to a pool of firms that did not disclose sustainability information one year before the announcements. Findings The authors find that the announcements of mandatory sustainability disclosure are positively related to CSP. The positive effect is more pronounced for firms in countries with higher anticipation effects and lower awareness effects. Specifically, the authors find that the effect of the announcements is more pronounced in a country where the rule of law is higher and stakeholders are less likely to initiate communication about sustainability with firms, and with fewer active participants in and signatories to the United Nations Global Compact initiative. The findings hold under different robustness analyses. Originality/value The study enriches the knowledge about the effect of the announcements of comprehensive mandatory sustainability disclosure by analysing the consequences of these announcements. In the contribution to this growing stream of research, the authors provide evidence on the consequences of the announcements based on a cross-country sample and importantly, focusses on the non-economic consequences.

Product market competition, board gender diversity and corporate sustainability performance: international evidence

Purpose This study aims to investigate whether board gender diversity is associated with corporate sustainability performance and whether industry-level product market competition moderates the effect of board gender diversity on corporate sustainability performance. Design/methodology/approach This study uses international data extracted from global ESG data set from Thomson Reuters (Refinitiv) database. Using data of 23,137 firm-year observations from 37 countries, the authors perform regression analyses to examine the hypotheses. Findings The findings show that firms with high board gender diversity exhibit high corporate sustainability performance. The authors also find firms in highly competitive industries to have low corporate sustainability performance. In highly competitive industries, the positive relationship between board gender diversity and corporate sustainability performance is weakened. The results are robust to various specification tests such as alternative measures for corporate sustainability performance, board gender diversity, product market competition and also the use of propensity score matching to address endogeneity issue. Overall, the results support the prediction that board diversity and product market competition play a substitutive role in influencing corporate sustainability performance. Research limitations/implications This study offers empirical evidence that the appointment of female directors is a useful way to improve a firm’s corporate sustainability performance, hence, providing significant benefits in terms of stakeholders’ values and corporate reputation. Practical implications This study provides useful insights to investors and policymakers that intense industry competition might mitigate the role of board governance, particularly board gender diversity, in enhancing corporate sustainability performance. Originality/value Using an international data set, where the observations operate in various market and institutional differences, this study is able to extricate the positive impact of board gender diversity and product market competition on corporate sustainability performance. This study corroborates evidence that sustainability strategy and initiatives are reflections of integrated factors, including corporate governance as internal driver and market forces faced by firms as external driver.

Gender diversity and corporate sustainability performance: empirical evidence from India

Purpose This study aims to attempt to evaluate and establish the relationship between gender diversity (GD) on the board and corporate sustainability performance. Design/methodology/approach A sample of 212 non-financial companies listed on the National Stock Exchange has been considered for a period of 2013–2014 to 2018–2019. For the purpose of the analysis, this study has conducted the static panel data model analysis and also some diagnostics tests to arrive at robust results. Findings This study, from its analysis, interprets that GD or the proportion of women directors in the company plays a significant role in the decisions related to the sustainability performance of the company. Alongside GD, the profitability of the company, measured in terms of Tobin’s Q, and firm size are also seen to have a positive impact on the sustainability performance of the company. Practical implications This study from its findings contributes to the existing works of literature by highlighting the impact of GD on the sustainability performance of the firm. This study thus recommends the recruitment of an ample number of females in the top-notch positions of the board to create a gender-diverse management team to reap the benefits of leadership styles of both genders. Originality/value Very few studies have been conducted on the dynamics of women’s directorship, especially in an emerging economy like India. This study thus tries to fill this important gap in the literature by examining the relationship between board GD and sustainability performance of Indian firms.

The Mediating Role of Responsible Innovation in the Relationship between Stakeholder Pressure and Corporate Sustainability Performance in Times of Crisis: Evidence from Selected Regions in China

Responsible innovation, as a new management paradigm that balances the need for profit growth and the appeal of social value, plays an important role in taking into account corporate economic, social and environmental performance. It provides new ideas for driving enterprises to become more risk-resistant and sustainable in times of crisis. However, existing research on responsible innovation has mostly focused on content issues, and there is a lack of sufficient research and empirical studies on its effectiveness in business organizations. Based on the stakeholder theory and the research logic of “pressure–behavior-performance”, this study investigates the formation mechanism of responsible innovation and its impact on corporate performance. Through empirical research on 306 Chinese sample data, the results show that stakeholder pressure has a positive impact on corporate sustainability performance and responsible innovation plays a partially mediating role in this relationship. Flexible routine replication positively moderates the relationship between stakeholder pressure and responsible innovation, while positively moderating the mediating role that responsible innovation plays between stakeholder pressure and corporate sustainability performance. This study contributes to helping enterprises recognize the importance of responsible innovation in responding to stakeholder pressure and promoting corporate sustainability performance in times of crisis.