Search Results (750)

This study evaluates the effectiveness of the B Impact Assessment (BIA) as a catalyst for integrating sustainability into industrial firms through a qualitative case study of LC Paper, the first B Corp-certified tissue manufacturer globally and a pioneer in applying BIA in the pulp and paper sector. Based on semi-structured interviews, organizational documents, and direct observation, this study examines how BIA influences corporate governance, environmental practices, and stakeholder engagement. The findings show that BIA fosters structured goal setting and the implementation of measurable actions aligned with environmental stewardship, social responsibility, and economic resilience. Tangible outcomes include improved stakeholder trust, internal transparency, and employee development, while implementation challenges such as resource allocation and procedural complexity are also reported. Although the single-case design limits generalizability, this study identifies mechanisms transferable to other firms, particularly those in environmentally intensive sectors. The case studied also illustrates how leadership commitment, participatory governance, and data-driven tools facilitate the operationalization of sustainability. By integrating stakeholder and institutional theory, this study contributes conceptually to understanding certification frameworks as tools for embedding sustainability. This research offers both theoretical and practical insights into how firms can align strategy and impact, expanding the application of BIA beyond early adopters and into traditional industrial contexts. Full article

Tropical forests continue to experience high levels of habitat loss and degradation, with wildfires becoming a frequent component of human-modified landscapes. Here we investigate the response of palm species to the conversion of old-growth forests to successional mosaics, including forest patches burned during wildfires. Palms (≥50 cm height) were recorded once in 2023–2024, across four habitat classes: terra firme old-growth stands, regenerating forest stands associated with slash-and-burn agriculture, old-growth stands burned once and twice, and active cassava fields, in the Tapajós-Arapiuns Extractive Reserve, in the eastern Brazilian Amazon. The flammability of palm leaf litter and forest litter were also examined to assess the potential connections between palm proliferation and wildfires. A total of 10 palm species were recorded in this social forest (including slash-and-burn agriculture and resulting successional mosaics), with positive, negative, and neutral responses to land use. Species richness did not differ among forest habitats, but absolute palm abundance was greatest in disturbed habitats. Only Attalea spectabilis Mart. (curuá) exhibited increased relative abundance across disturbed habitats, including active cassava field. Attalea spectabilis accounted for almost 43% of all stems in the old-growth forest, 89% in regenerating forests, 90% in burned forests, and 79% in crop fields. Disturbed habitats supported a five-to-ten-fold increment in curuá leaves as a measure of habitat flammability. Although curuá litter exhibited lower flame temperature and height, its lower carbon and higher volatile content is expected to be more sensitive to fire ignition and promote the spread of wildfires. The conversion of old-growth forests into social forests promotes the establishment of palm-dominated forests, increasing the potential for a forest transition further fueled by wildfires, with effects on forest resilience and social reproduction still to be understood. Full article

In the context of pursuing the goal of strategic imperatives of sustainable development, the ESG performance of enterprises has become a key yardstick for measuring their comprehensive environmental contribution and economic efficiency. Enhancing ESG performance has far-reaching significance in promoting green and sustainable development of enterprises and society. Drawing on the upper echelons theory, this paper investigates the impact of the chief executive officer’s (CEO’s) green experience on corporate environmental, social, and governance (ESG) performance, utilizing a sample of publicly listed Chinese companies from 2011 to 2023. The study demonstrates that CEOs with green experience significantly enhance corporate ESG performance, a conclusion that remains consistent following a series of rigorous robustness checks. Mechanistic analysis reveals that CEOs’ green experience primarily facilitates corporate ESG performance enhancement through green innovation initiatives. Furthermore, CEO discretion amplifies the positive influence of green experience on ESG performance. Heterogeneity analysis demonstrates that the influence of the CEOs’ green experience on ESG performance is more pronounced in high-tech enterprises, in markets characterized by lower levels of competition, and in firms situated in regions exhibiting higher degrees of social trust. These findings impart both theoretical and practical implications for enhancing corporate ESG performance and offer novel strategic perspective to advance environmental stewardship, social responsibility, and corporate governance frameworks. Full article

In an era where sustainable development is increasingly a core strategic issue for businesses, how top management, as the architects of corporate strategy, can achieve a synergy of economic, social, and environmental benefits through internal management mechanisms to promote corporate sustainability is a central focus for both academia and practice. This study aims to explore how Executive Cognitive Flexibility (CF) influences Firm Performance and to uncover the mediating effects of Non-market Strategy. We use panel data from Chinese A-share listed companies between 2016 and 2022 to examine and empirically analyze this mechanism. Our findings indicate that CF has a positive impact on Firm Performance. This relationship is realized through the pathway of Non-market Strategy, specifically manifesting as a reduction in Corporate Social Responsibility (CSR) and an increase in Corporate Political Activity (CPA). Further analysis reveals that the impact of executive cognitive flexibility on firm performance is differentially influenced by internal and external environmental contexts. The findings of this study provide important practical insights and policy recommendations for companies on cultivating executive cognitive flexibility, optimizing non-market strategies, and enhancing firm performance in various internal and external environments. Full article

Prior research often portrays Corporate Social Responsibility (CSR) as a coercive institutional force compelling firms to passively conform for legitimacy. More recent studies, however, suggest firms actively pursue CSR to gain sustainable competitive advantages. Yet, how and when CSR buffers firms against adverse shocks of crises remains insufficiently understood. This study addresses this gap by using multiple regression analysis to examine the buffering effects of CSR investments during the COVID-19 crisis, which severely disrupted capital markets and firm valuation. Drawing on signaling theory and CSR literature, we analyze the stock market performance of China’s A-share listed firms using a sample of 2577 observations as of the end of 2019. Results indicate that firms with higher CSR investments experienced significantly greater cumulative abnormal returns during the pandemic. Moreover, the buffering effect is amplified among firms with higher debt burdens, greater financing constraints, and those operating in regions with stronger social trust and more severe COVID-19 impact. These findings are robust across multiple robustness checks. This study highlights the strategic value of CSR as a resilience mechanism during crises and supports a more proactive view of CSR engagement for sustainable development, complementing the traditional legitimacy-focused perspective in existing literature. 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 study investigates the impact of outsiders’ demand for more information (or transparency) on corporate social responsibility (CSR) initiatives. Drawing on a dataset of U.S. companies from 2010 to 2023, CSR performance is measured using ASSET4 ratings, while CSR disclosure levels are captured through the number of words and sentences in reports. Utilizing within-industry and -firm OLS regressions, our analyses reveal a positive relationship between the demand for more information and future CSR investments, showing that firms with higher demand for information not only enhance their CSR performance but also expand the length of their CSR reports. These results suggest that increased pressures for information encourage organizations to engage more deeply with social responsibility, resulting in more robust CSR activities and more comprehensive reporting practices. This study contributes to the existing literature by highlighting the strong predictive role of outsiders’ demand for more information in promoting CSR investment and disclosure, and by offering important insights for policymakers and practitioners on fostering corporate responsibility through enhanced transparency. Full article

Background: Emerging economies face a strategic imperative to transform their supply chains, aiming for economic resilience, environmental responsibility, and social inclusivity. Methods: This study, employing the Decision-Making Trial and Evaluation Laboratory (DEMATEL) method, identified and prioritized key drivers for this sustainable transformation. Results: Expert input from supply chain professionals in various industrial sectors revealed five critical factors: top management commitment, stakeholder engagement, regulatory alignment, technological capability, and internal integration. Notably, technological capability and internal integration emerged as the most influential causal drivers, acting as crucial enablers for deeper, systemic change. These findings offer actionable insights for decision-makers in designing more effective transition strategies for logistics and supply chain systems, especially amidst rapid industrialization and escalating sustainability pressures. Conclusions: This research significantly contributes to the growing literature on strategic supply chain redesign, providing practical guidance for firms navigating sustainability transitions within complex, resource-constrained environments. Full article

This study investigates how climate-resilient city construction (CRCC) influences the Environmental, Social, and Governance (ESG) performance of Chinese listed firms, employing a difference-in-differences (DID) model with firm-year data from 2012 to 2023. The empirical results demonstrate that CRCC exerts a significant positive effect on firms’ ESG performance, with particularly pronounced improvements in the environmental and social dimensions. The mechanism analysis reveals that strengthening government environmental guidance and stimulating firms’ environmental response strategies are the key channels via which CRCC improves firms’ ESG performance. The heterogeneity tests show more pronounced effects for the central–eastern regions, state-owned firms, non-regulated industries, and non-heavily polluting sectors. A further analysis indicates that better ESG performance drives firms to increase their environmental investment, upgrade their value chains, and enhance new quality productive forces. This study extends the framework of ESG determinants by integrating climate adaptation policies, offering insights for urban climate governance and firms’ low-carbon transitions. Full article

Marked by a highly diverse workforce, the Indian construction industry faces ongoing challenges in fostering employee engagement and minimizing organizational withdrawal. This study examines the role of diversity climate in influencing psychological and physical withdrawal behaviors among construction professionals, assessing job satisfaction as a mediating variable. Grounded in Social Exchange Theory, the research employed a quantitative survey approach, gathering responses from 318 professionals across the sector. Partial least squares structural equation modeling (PLS-SEM) was used to test the hypothesized relationships. Results indicate that reduced psychological (β = –0.462, f² = 0.465, p < 0.01) and physical withdrawal (β = –0.311, f² = 0.194, p < 0.05) are associated with more positive perceptions of the diversity climate. Furthermore, this relationship is partially mediated by job satisfaction, with diversity climate positively influencing job satisfaction (β = 0.618, p < 0.001), which in turn reduces withdrawal tendencies (indirect effect on psychological withdrawal β = −0.094, p < 0.01 and physical withdrawal β = −0.068, p < 0.01). These results show that encouraging a supportive diversity climate not only helps but is also absolutely necessary for enhancing job satisfaction, lowering withdrawal behavior, and retaining trained talent. The findings offer concrete evidence that construction firms and policymakers should prioritize inclusive human resource strategies that directly improve project outcomes, reduce attrition, and enhance workforce engagement in the Indian construction sector. Full article

This study investigates the yield-seeking behavior of income-oriented institutional investors, who are essential players in financial markets. While external pressures compelling firms to “reach for yield” are well-documented, the firm-level behavioral drivers underlying this phenomenon remain largely underexplored. Drawing on the behavioral theory of the firm, this study argues that an investor’s performance relative to their social aspiration level (the peer average) influences their yield-seeking decisions, and that this effect is moderated by “portfolio slack,” defined as unrealized gains or losses. To test this theory in the context of persistent low-yield pressure, this study constructs and analyzes a panel dataset of Japanese life insurance companies from 2000 to 2019. The analysis reveals that these investors increase their portfolio income yield after underperforming their peers and decrease it after outperforming. Furthermore, greater portfolio slack amplifies yield increases after underperformance and mitigates yield decreases after outperformance. In contrast, organizational slack primarily mitigates yield reductions after outperformance. This research extends the behavioral theory of the firm to the asset management context by identifying distinct performance feedback responses and proposing portfolio slack as an important analytical construct, thereby offering key insights for investment managers and financial regulators. Full article

This paper examines the relation between corporate social responsibility (CSR) and firm financial performance—a topic that continues to generate debate among academics and practitioners. We focus on firms included in the 100 Best Corporate Citizens (BCC) rankings from 2009 to 2022, a list that highlights companies recognized for CSR transparency and performance. Using panel data regression analyses and matched sample comparison, we examine whether BCC firms outperform their peers. Our findings show that, relative to matched firms not included in the rankings, BCC firms demonstrate significantly stronger future operating performance. Among BCC firms, CSR rankings are positively associated with future operating performance, although this positive relation has diminished in more recent years. Furthermore, we find no significant association between operating performance and most individual CSR component rankings except for employee relations. Finally, our evidence indicates that more socially responsible firms engage in less tax avoidance and pay higher audit fees, suggesting that CSR-oriented firms exhibit stronger ethical considerations across a broad range of corporate activities. This study contributes to the CSR literature by providing updated empirical evidence and practical insights for stakeholders evaluating corporate behavior and outcomes through the BCC rankings. Full article

As freshwater scarcity becomes increasingly severe under climate change, physical water risk has emerged as a critical financial concern for firms in water-intensive industries. This study explores whether and how physical water risk influences firms’ cost of equity, and whether corporate social responsibility (CSR)—both its overall level and structural differentiation—modulates this relationship. Using panel data from 849 Chinese listed companies in water-intensive sectors between 2011 and 2022, we find that physical water risk significantly elevates equity capital costs. While a strong CSR performance buffers this effect, CSR differentiation—reflected in uneven CSR engagement across different domains—undermines or even reverses this moderating role. Additional heterogeneity analyses show that these patterns are more pronounced in large and non-state-owned enterprises. These findings deepen our understanding of how environmental risks are priced in capital markets and offer strategic insights for firms seeking to manage sustainability-related financial exposures. Full article

In the context of increasing consumer environmental awareness (CEA), firms are progressively adopting corporate social responsibility (CSR) strategies that seek to align profitability with environmental objectives. This paper develops a mathematical model to explore the implications of CSR under two distinct scenarios: one that incorporates both social and environmental impacts and another that focuses solely on environmental concerns. The analysis is situated within a spatial mixed duopoly, where a CSR-oriented firm competes with a purely profit-maximising rival. A game-theoretical framework is employed, in which the CSR firm’s objective function is modelled as a weighted sum of private profits and the environmentally driven welfare of consumers. Equilibrium analysis demonstrates that CSR engagement improves market outcomes relative to a benchmark without CSR and generates positive externalities for the non-CSR firm. Moreover, the scenario prioritising environmental impact alone yields superior sustainability and welfare outcomes for both consumers and firms, despite identical demand and product differentiation conditions. These findings enhance our understanding of how CEA interacts with CSR strategies in imperfectly competitive markets, offering valuable insights for managerial decision-making and the formulation of environmental policy. Full article

In 2020, the Chinese government announced the “Dual Carbon” goals, making carbon responsibility the most prominent focus within the Environmental, Social, and Governance (ESG) practices of Chinese firms. This shift creates a new type of ESG-washing, a practice involving the selective disclosure of information that portrays the firm in a favorable light, thereby leading stakeholders to overestimate its ESG performance. In this study, we define a novel type of ESG-washing behavior called “ESG carbonwashing”, in which firms disproportionately highlight their carbon responsibility initiatives while overlooking other dimensions of ESG. By adopting a strategy of excessively emphasizing their carbon-related efforts in ESG activities, these firms mislead stakeholders about their overall ESG performance. Using a sample of 59 high-carbon-emitting firms listed on the Shanghai and Shenzhen A-share markets from 2018 to 2022, we construct a systematic framework to measure the extent of ESG carbonwashing and further analyze its temporal and industry-level variations. Our key findings indicate that: (1) ESG carbonwashing has significantly increased alongside the rollout of the “Dual Carbon” policy; (2) there are significant inter-industry differences, with the steel and aviation sectors exhibiting the highest levels of ESG carbonwashing, while the building materials industry shows the lowest. This study offers valuable guidance for ESG information users in detecting and mitigating carbonwashing practices, while also providing robust empirical support for refining relevant regulatory frameworks. Full article