Next Article in Journal
The Challenge to Foster Foreign Students’ Experiences for Sustainable Higher Educational Institutions
Previous Article in Journal
Efficiency of Different Integrated Agriculture Aquaculture Systems in the Red River Delta of Vietnam
Article Menu
Issue 2 (February) cover image

Export Article

Open AccessReview
Sustainability 2018, 10(2), 494; https://doi.org/10.3390/su10020494

The Impact of Sustainability Practices on Corporate Financial Performance: Literature Trends and Future Research Potential

1
College of Business, Abu Dhabi University, P.O. Box 59911, Abu Dhabi, UAE
2
Jagran Lakecity Business School, Jagran Lakecity University, Bhopal 462044, India
*
Author to whom correspondence should be addressed.
Received: 10 December 2017 / Revised: 19 January 2018 / Accepted: 9 February 2018 / Published: 13 February 2018
(This article belongs to the Section Economic, Business and Management Aspects of Sustainability)
View Full-Text   |   Download PDF [1071 KB, uploaded 13 February 2018]   |  

Abstract

This paper presents an analysis of the literature concerning the impact of corporate sustainability on corporate financial performance. The relationship between corporate sustainable practices and financial performance has received growing attention in research, yet a consensus remains elusive. This paper identifies developing trends and the issues that hinder conclusive consensus on that relationship. We used content analysis to examine the literature and establish the current state of research. A total of 132 papers from top-tier journals are shortlisted. We find that 78% of publications report a positive relationship between corporate sustainability and financial performance. Variations in research methodology and measurement of variables lead to the divergent views on the relationship. Furthermore, literature is slowly replacing total sustainability with narrower corporate social responsibility (CSR), which is dominated by the social dimension of sustainability, while encompassing little to nothing of environmental and economic dimensions. Studies from developing countries remain scarce. More research is needed to facilitate convergence in the understanding of the relationship between corporate sustainable practices and financial performance. View Full-Text
Keywords: corporate sustainability; financial performance; sustainability practices; sustainability impact; csr; economical sustainability; environmental sustainability; social sustainability; corporate social performance; corporate environmental performance corporate sustainability; financial performance; sustainability practices; sustainability impact; csr; economical sustainability; environmental sustainability; social sustainability; corporate social performance; corporate environmental performance
Figures

Graphical abstract

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

Share & Cite This Article

MDPI and ACS Style

Alshehhi, A.; Nobanee, H.; Khare, N. The Impact of Sustainability Practices on Corporate Financial Performance: Literature Trends and Future Research Potential. Sustainability 2018, 10, 494.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top