Search Results (1,509)

This study explores whether sustainability achievements—proxied through ESG (environmental, social, and governance) reporting—are associated with superior financial performance in Latvia’s manufacturing sector, where ESG maturity remains low and institutional readiness is still emerging. Building on stakeholder, legitimacy, signal, slack resources, and agency theories, this study applies a mixed-method approach (that consists of two analytical stages) suited to the limited availability and reliability of ESG-related data in the Latvian manufacturing sector. Financial indicators from three large firms—AS MADARA COSMETICS, AS Latvijas Finieris, and AS Valmiera Glass Grupa—are compared with industry averages over the 2019–2023 period using independent sample T-tests. ESG integration is evaluated through a six-stage conceptual schema ranging from symbolic compliance to performance-driven sustainability. The results show that AS MADARA COSMETICS, which demonstrates advanced ESG integration aligned with international standards, significantly outperforms its industry in all profitability metrics. In contrast, the other two companies remain at earlier ESG maturity stages and show weaker financial performance, with sustainability disclosures limited to general statements and outdated indicators. These findings support the synergy hypothesis in contexts where sustainability is internalized and operationalized, while also highlighting structural constraints—such as resource scarcity and fragmented data—that may limit ESG-financial alignment in post-transition economies. This study offers practical guidance for firms seeking competitive advantage through strategic ESG integration and recommends policy actions to enhance ESG transparency and performance in Latvia, including performance-based reporting mandates, ESG data infrastructure, and regulatory alignment with EU directives. These insights contribute to the growing empirical literature on ESG effectiveness under constrained institutional and economic conditions. Full article

The green renovation of existing residential buildings is a key way for the construction industry to achieve sustainable development and the dual carbon goals of China, which makes it urgent to make collaborative decisions among multiple stakeholders. However, because of divergent interests and risk perceptions among governments, energy service companies (ESCOs), and owners, the implementation of green renovation is hindered by numerous obstacles. In this study, we integrated prospect theory and evolutionary game theory by incorporating core prospect-theory parameters such as loss aversion and perceived value sensitivity, and developed a psychologically informed tripartite evolutionary game model. The objective was to provide a theoretical foundation and analytical framework for collaborative governance among stakeholders. Numerical simulations were conducted to validate the model’s effectiveness and explore how government regulation intensity, subsidy policies, market competition, and individual psychological factors influence the system’s evolutionary dynamics. The findings indicate that (1) government regulation and subsidy policies play central guiding roles in the early stages of green renovation, but the effectiveness has clear limitations; (2) ESCOs are most sensitive to policy incentives and market competition, and moderately increasing their risk costs can effectively deter opportunistic behavior associated with low-quality renovation; (3) owners’ willingness to participate is primarily influenced by expected returns and perceived renovation risks, while economic incentives alone have limited impact; and (4) the evolutionary outcomes are highly sensitive to parameters from prospect theory, The system’s evolutionary outcomes are highly sensitive to prospect theory parameters. High levels of loss aversion (λ) and loss sensitivity (β) tend to drive the system into a suboptimal equilibrium characterized by insufficient demand, while high gain sensitivity (α) serves as a key driving force for the system’s evolution toward the ideal equilibrium. This study offers theoretical support for optimizing green renovation policies for existing residential buildings in China and provides practical recommendations for improving market competition mechanisms, thereby promoting the healthy development of the green renovation market. Full article

Introduction and Objectives: Risk-sharing agreements (RSAs) have emerged as a key strategy for financing high-cost medical technologies while ensuring financial sustainability. These payment mechanisms mitigate clinical and financial uncertainties, optimizing pricing and reimbursement decisions. Despite their widespread adoption globally, Latin America has reported limited implementation, particularly for high-cost medical devices. This study aims to share insights from designing RSAs in the form of Outcome Protection Programs (OPPs) for medical devices in Latin America from the perspective of a medical devices company. Methods: The report follows a structured approach, defining key OPP dimensions: payment base, access criteria, pricing schemes, risk assessment, and performance incentives. Risks were categorized as financial, clinical, and operational. The framework applied principles from prior models, emphasizing negotiation, program design, implementation, and evaluation. A multidisciplinary task force analyzed patient needs, provider motivations, and payer constraints to ensure alignment with health system priorities. Results: Over two semesters, a panel of seven experts from the manufacturer designed n = 105 innovative payment programs implemented in Argentina (n = 7), Brazil (n = 7), Colombia (n = 75), Mexico (n = 9), Panama (n = 4), and Puerto Rico (n = 3). The programs targeted eight high-burden conditions, including Coronary Artery Disease, atrial fibrillation, Heart Failure, and post-implantation arrhythmias, among others. Private providers accounted for 80% of experiences. Challenges include clinical inertia and operational complexities, necessitating structured training and monitoring mechanisms. Conclusions: Outcome Protection Programs offer a viable and practical risk-sharing approach to financing high-cost medical devices in Latin America. Their implementation requires careful stakeholder alignment, clear eligibility criteria and endpoints, and robust monitoring frameworks. These findings contribute to the ongoing dialogue on sustainable healthcare financing, emphasizing the need for tailored approaches in resource-constrained settings. Full article

The rapid evolution of Industry 4.0 technologies has resulted in a scenario in which collaborative networks are essential to overcome the challenges related to their implementation. However, the frameworks to guide such collaborations remain underexplored. This study addresses this gap by proposing Business Rules and Goals Models to operationalize Industry 4.0 solutions through enterprise collaboration. Using the For Enterprise Modeling (4EM) method, the research integrates qualitative insights from expert opinions, including interviews with 12 professionals (academics, industry professionals, and consultants) from Brazilian manufacturing sectors. The Goals Model identifies five main objectives—competitiveness, efficiency, flexibility, interoperability, and real-time collaboration—while the Business Rules Model outlines 18 actionable recommendations, such as investing in digital infrastructure, upskilling employees, and standardizing information technology systems. The results reveal that cultural resistance, limited resources, and knowledge gaps are critical barriers, while interoperability and stakeholder integration emerge as enablers of digital transformation. The study concludes that successfully adopting Industry 4.0 requires technological investments, organizational alignment, structured governance, and collaborative ecosystems. These models provide a practical roadmap for companies navigating the complexities of Industry 4.0, emphasizing adaptability and cross-functional synergy. The research contributes to the literature on collaborative networks by connecting theoretical frameworks with actionable enterprise-level strategies. Full article

This study investigates the key factors enabling the transition from distributor-based models to direct operations among companies in Saudi Arabia, in alignment with Vision 2030’s goals of economic diversification and operational efficiency. The study is based on quantitative data collected from 528 questionnaire responses representing diverse industries and professional roles. The results highlight that technological integration and regulatory negotiation are essential for a smooth transition to direct operations. Furthermore, environmental sustainability practices and stakeholder involvement significantly affect the adoption of this transition, often acting as moderators and mediators. The findings emphasize the importance of aligning operational strategies with national development goals to enhance efficiency and resilience. This study also examines how transitioning to direct operations impacts financial efficiency and contributes to improved financial performance and sustainability. This study provides practical recommendations for policymakers and business leaders to address operational challenges and improve their financial and operational performance. Full article

According to the Formula 1 commitment to produce net zero carbon emissions by 2030, the present paper examines the environmental impact of Formula 1 logistics by means of a case study carried out from the point of view of an Italian company, with reference to the European Grand Prix. Logistics accounts for approximately 49% of the sport’s total emissions and accordingly, to reduce its carbon footprint, addressing the logistics activity is vital. Two scenarios are compared in detail: AS-IS, involving only road transport of assets, and TO-BE, in which a combined rail–road approach (i.e., intermodal freight) is implemented. While the AS-IS scenario is more cost-effective, it has a significant environmental impact in terms of CO₂ emissions; in contrast, though more complex and costly, TO-BE offers major advantages for environmental sustainability, including reduced emissions (approximately half compared to AS-IS) and improved efficiency through intermodal transport units. This study stresses that a combined transport system, facilitated by the European rail infrastructure, is a more sustainable option for Formula 1 logistics. However, achieving full carbon neutrality still represents a challenge that will require further innovations and collaboration among the stakeholders of this world. Full article

Promoting social equity is a global issue, and common prosperity is an important goal for human society’s sustainable development. This study is the first to examine climate risks’ impacts on common prosperity from the perspective of corporate employees, providing micro-level evidence for the coordinated development of climate governance and social equity. Employing data from companies listed on the Shanghai and Shenzhen stock exchanges from 2016 to 2023, a fixed-effects model analysis was conducted, and the results showed the following: (1) Climate risks are positively associated with the common prosperity of corporate employees in a significant way, and this effect is mainly achieved through employee guarantees, rather than employee remuneration or employment. (2) Climate risk will increase corporate financing constraints, but it will also force companies to improve their ESG performance. (3) The mechanism tests show that climate risks indirectly promote improvements in employee rights and interests by forcing companies to improve the quality of internal controls and audits. (4) The results of the moderating effect analysis show that corporate size and performance have a positive moderating effect on the relationship between climate risk and the common prosperity of corporate employees. This finding may indicate the transmission path of “climate pressure—governance upgrade—social equity” and suggest that climate governance may be transformed into social value through institutional changes in enterprises. This study breaks through the limitations of traditional research on the financial perspective of the economic consequences of climate risks, incorporates employee welfare into the climate governance assessment framework for the first time, expands the micro research dimension of common prosperity, provides a new paradigm for cross-research on ESG and social equity, and offers recommendations and references for different stakeholders. Full article

The main objective of this study is to analyse the relevance of financial performance as an accurate predictor of ESG scores for French companies from 2010 to 2022. To this end, Machine Learning techniques such as linear regression, polynomial regression, Random Forest, and Support Vector Regression (SVR) were employed to provide more accurate and reliable assessments, thus informing the ESG rating attribution process. The results obtained highlight the excellent performance of the Random Forest method in predicting ESG scores from company financial variables. In addition, the approach identified specific financial variables (operating income, market capitalisation, enterprise value, etc.) that act as powerful predictors of companies’ ESG scores. This modelling approach offers a robust tool for predicting companies’ ESG scores from financial data, which can be valuable for investors and decision-makers wishing to assess and understand the impact of financial variables on corporate sustainability. Also, this allows sustainability investors to diversify their portfolios by including companies that are not currently rated by ESG rating agencies, that do not produce sustainability reports, as well as newly listed companies. It also gives companies the opportunity to identify areas where improvements are needed to enhance their ESG performance. Finally, it facilitates access to ESG ratings for interested external stakeholders. Our study focuses on using advances in artificial intelligence, exploring machine learning techniques to develop a reliable predictive model of ESG scores, which is proving to be an original and promising area of research. Full article

This paper explores the strategic implications of technological adoption within shipping logistics service supply chains, with a particular focus on blockchain technology (BCT). When integrating new technologies, supply chain stakeholders evaluate associated risks alongside complexity, profitability, and operational challenges, which influence their strategic behaviors. Anchored in the concept of technology trust, this study examines how different risk preferences affect BCT adoption decisions and freight rate strategies. A game-theoretic model is constructed using a mean-variance utility framework to analyze interactions between shipping companies and freight forwarders under three adoption scenarios: no adoption (NN), partial adoption (BN), and full adoption (BB). The results indicate that risk-seeking agents are more likely to adopt BCT early but face greater freight rate volatility in the initial stages. As the technology matures, strategic variability declines and the influence of adaptability on pricing becomes less pronounced. In contrast, risk-neutral and risk-averse participants tend to adopt more conservatively, resulting in slower but more stable pricing dynamics. These findings offer new insights into how technology trust and risk attitudes shape strategic decisions in digitally transforming supply chains. The study also provides practical implications for differentiated pricing strategies, BCT adoption incentives, and collaborative policy design among logistics stakeholders. Full article

Packaging waste is a major environmental issue, making the transition to sustainable solutions imperative. This article proposes the concept of Shared Producer Responsibility (SPR) as a key approach to advancing sustainable packaging in the fast-moving consumer goods (FMCG) sector. The study explores how the United Nations Sustainable Development Goals (SDGs), environmental, social, and governance (ESG) reporting, and stakeholder engagement converge to support this transition. The research identifies current trends, challenges, and gaps in sustainable packaging practices through a systematic literature review (SLR) and analysis of sustainability and ESG reports from leading FMCG and packaging companies. The findings highlight the need for standardised reporting frameworks and improved stakeholder cooperation to enhance transparency and accountability in sustainability efforts. This study proposes a conceptual framework for accelerating sustainable packaging adoption through combining strategies like consumer education, regulatory incentives, and clear product labelling. The proposal to implement the concept of Shared Producer Responsibility emphasises the shared accountability of FMCG companies and packaging manufacturers in managing the full environmental lifecycle of packaging materials. This approach is crucial for achieving SDG 12 (responsible consumption and production) and SDG 13 (climate action) and driving more effective and sustainable packaging practices across the FMCG industry. Full article

The management of transfer pricing operations is considered from the perspective of modeling financial and accounting processes for various organizations, using agricultural enterprises as an example. It is demonstrated that the execution of transfer pricing operations between related parties—which may function as responsibility centers within an organizational holding structure—serves as a managerial lever influencing the financial income and expenses of individual business units. It is revealed that the developed model of managerial accounting for transfer pricing operations, grounded in tax compliance and the balancing of stakeholder interests, is based on two key aspects: first, to ensure the balanced development of the company’s business units, a list of key performance indicators (KPIs) is developed and integrated into a balanced scorecard (BSC), promoting the sustainable and stable operation and growth of the company; second, with access to this list of KPIs, the manager of each business unit can exert indirect influence over a segment of the final product’s value chain by selecting transfer prices that adhere to the arm’s length principle. The practical application of the proposed model is illustrated using previously formed economic operations from the research base. Full article

About one third of all food produced for human consumption is lost or wasted, leading to societal, economic and environmental challenges. This study identifies the most important food wastage (FW) leverage points and their interrelations with specific food chains. Semi-structured interviews were conducted across four different food chains (milk, poultry, potatoes and greenhouse-grown fruit and vegetables) from primary production to food service. The outcomes of the interviews were summarized via a systems approach and validated during co-creation sessions. A total of twenty-two FW leverage points were identified across the food chains, consisting of four major hotspots, six patterns of behaviours, six structures and six mental models. Common transformative leverage points across all food chains were damaged products, oversupply, regulations and standards that limit product use and a lack of prioritization of FW reduction. Additionally, this study found that co-creation sessions with stakeholders from across the food chains could facilitate the formation of coalitions of willing companies, encouraging collaborative efforts to reduce FW. Full article

In Europe, corporate sustainability reporting through the double materiality assessment was formally introduced with the Corporate Sustainability Reporting Directive in response to the European Sustainability Reporting Standards. The double materiality assessment is essential not only to determine the scope of corporate sustainability reporting but also to guide companies toward an efficient allocation of resources and shape corporate sustainability strategies. However, although EFRAG represents the technical adviser of the European Commission, there are numerous “interoperable” standards related to the assessment of double materiality, including the Global Reporting Initiative (GRI), or UNI 11919-1:2023. This research intends to systematically analyze similarities and divergences between the most widespread double materiality assessment standards at the global scale, highlighting their strengths and weaknesses and trying to identify a comparable path toward the creation of a set of common guidelines. This analysis is carried out through the systematic study of seven standards and by answering nine questions ranging from generic ones, such as “what is the concept of double materiality?”, to more technical questions like “does the standard identify thresholds?”, but adding original prospects such as “does the standard refer to different types of capital?”. Findings highlight that EFRAG, UNI 11919-1:2023, and GRI represent the most complete and least-discretionary standards, but some methodological aspects need to be enhanced. In the double materiality assessment, companies must identify key stakeholders, material topics and material risks, and must develop the double materiality matrix, promoting transparent disclosure, continuous monitoring, and stakeholders’ engagement. While comparability is principally required among companies operating within the same sector and of similar size, this does not preclude the possibility of comparing firms across different sectors with respect to specific indicators, when appropriate or necessary. Full article

This study aims to explore how Corporate Digital Responsibility (CDR) influences Jordanian banks’ performance. It focuses on four CDR dimensions—“social, technological, economic, and environmental”—and examines the mediating role of firm size in these relationships. This study is the first to empirically test the mediating effect of firm size in the relationship between CDR and firm performance in the Jordanian banking sector, providing a novel perspective on how digital ethics shape organizational success. Data were collected through a structured survey from 299 bank employees in Jordan. Structural Equation Modeling (SEM) was employed to assess the direct and indirect effects of CDR dimensions on firm performance, with firm size tested as a mediating variable. All four dimensions of CDR significantly and positively affect firm performance. Additionally, firm size plays a partial mediating role in the relationship between CDR and firm performance, indicating that larger banks may better leverage digital responsibility initiatives to enhance performance. The study relies on self-reported data from a single country (Jordan), which may limit generalizability. Future studies could adopt a longitudinal design or expand to other MENA countries for comparative analysis and broader insights. The findings suggest that Jordanian banks should invest in and prioritize CDR strategies, especially in economic and technological domains, to improve their organizational outcomes and stakeholder relationships. Enhancing firm size may amplify the positive impact of CDR. The findings of this study are robust, as validated by further analysis utilizing data from a customer survey. The results derived from customer viewpoints correspond with staff data, substantiating the beneficial influence of Corporate Digital Responsibility (CDR) on banking performance and affirming the substantial mediating effect of company size. Full article

This article describes a pilot project studying the potential benefits of using virtual reality (VR) in design reviews of cruise ship interiors. The research was conducted as part of a 2020–2022 research project targeting at sustainable shipbuilding methods. It was directly connected to an ongoing cruise ship building project, executed in cooperation with four companies constructing interiors. The goal was to use VR reviews instead of, or in addition to, constructing physical mock-up sections of the ship interiors, with expected improvements in sustainability and stakeholder communication. A number of virtual 3D models were created, imported into a virtual reality environment, and presented to customers. Experiences were collected through interviews and surveys from both the construction companies and customers. The results indicate that VR can be an efficient tool for design reviews. The designs can often be evaluated better in VR than using traditional methods. Material savings are possible by using virtual mock-ups instead of physical ones. However, it was also discovered that the visual rendering capabilities of the used software environment do not provide the realism that would be desired in some reviews. To overcome this limitation, more resources would be needed in preparing the models for VR reviews. Full article