Search Results (42)

Addressing the needs of society and the environment has become vital for organizations’ survival in the current business context. Stakeholders increasingly demand ethical practices, environmental responsibility, and a commitment to social well-being as integral components of sustainable business strategies. The study aims to explore and analyze Sustainable Human Resource Management (SHRM) practices within the context of sustainability reporting measures, specifically Environmental, Social, and Governance (ESG) and the Global Reporting Initiative (GRI). By identifying and categorizing best practices in Corporate Social Responsibility (CSR) and SHRM, the study intends to highlight the role of HRM in sustainability reporting and give actionable insights for organizations to improve their reporting strategies and integrate HRM more effectively into sustainability frameworks. The methodology adopted is bibliometric analysis, as it enables the identification of connections between various studies, authors, and topics across a large body of research. Concerning SHRM and ESG, 932 papers were analyzed, while 442 papers were considered for SHRM and GRI. The main findings reveal a lack of specific studies on SHRM within the ESG and GRI reporting, highlighting the need to include topics directly related to human resources in these reports to enhance the relevance and comprehensiveness of sustainability reports for various stakeholders. These results contribute to a deeper understanding of trends in integrating sustainable practices into human resource management and highlight the need for future academic studies to incorporate the analysis of HR-related components—both in terms of processes and their impact on stakeholders—within sustainability reporting. This reinforces the idea that ESG and GRI reporting should not be viewed solely through environmental or financial lenses but as comprehensive measures encompassing social and human capital dimensions, prompting a rethinking of traditional approaches. Full article

In the context of low-carbon transformation, manufacturing enterprises are facing great pressures, and they need to improve their capability in order to successfully respond to these changes and achieve sustainable development. Based on the concept of organizational resilience, this paper proposed the concept of carbon resilience, representing the ability of an organization to keep stable, adapt, and evolve in the context of low-carbon transformation and tried to explore the role of carbon resilience in enterprises’ environment, social, and governance performance (ESG performance) and the conditional roles of coercive pressure, normative pressure, and the mimetic pressure between companies. Empirical research selected the data of Chinese A-share-listed manufacturing companies between 2012 and 2021 as research samples. Using the regression analysis method, the theoretical model was verified. The results show that carbon resilience can promote ESG performance. Moreover, coercive pressure and normative pressure promote the relationship between carbon resilience and ESG performance, whereas mimetic pressure inhibits the relationship. This study provides managerial implications for the government, society, and manufacturing enterprises, especially laying out a realistic approach to improving ESG performance from the perspective of carbon resilience. Full article

Responsible investments are becoming increasingly relevant in stakeholder decision-making, propelled by the emphasis on sustainable development. Specifically, enterprises should acknowledge the significance of creating value for multiple shareholders based on the environment, society, and corporate governance. In this article, we contribute to the theoretical and empirical literature on corporate environmental, social, and governance (ESG) performance in China. This paper employs a two-way fixed-effect model to examine the influence of ESG activities on financial performance, focusing on 3268 Shanghai and Shenzhen A-share companies that have consistently participated in such activities from 2011 to 2022. The findings indicate that improvements in ESG practices positively influence corporate financial performance, with property rights and industry categorization moderating this relationship. Furthermore, agency cost, financing cost, social reputation, market power, and enterprise innovation partially mediate ESG performance and financial performance. This study encourages enterprises to integrate sustainable value creation into the national development strategy, thereby achieving harmonious economic and social development. Full article

In recent years, “environment, society and governance” (ESG) has attracted widespread attention. As an investment philosophy focused on long-term value creation and non-financial performance indicators, ESG addresses internal governance challenges and fosters high-quality economic and social development. This study uses panel data analysis of 9125 observations from 1305 eligible companies to examine the relationship between ESG ratings, financing constraints, corporate research and development (R&D), and total factor productivity (TFP). It focuses on heavily polluting enterprises listed on the Shanghai and Shenzhen A-shares from 2012 to 2022. The findings show that (1) ESG ratings significantly impact TFP for the better, and (2) financial limitations act as a go-between for the ESG ratings and TFP connection, and (3) corporate R&D also serves as a mediator between ESG ratings and TFP. These findings offer valuable insights for shaping corporate ESG strategies, driving green transformation, enhancing productivity, advancing sustainable development, and supporting high-level environmental protection. Full article

For several years, commercial banks in Poland have been reporting activities related to the impact on the environment, society, and corporate governance (ESG). However, only new guidelines, mandatory for many entities, including banks, will allow for comparing these reports, which will be of great importance mainly for investors. The forms of these reports were and still are different, difficult to compare in individual years, and difficult to compare between banks. The article aims to present the banks’ preparation for the new reporting rules based on the latest ESG reports. The research was conducted in four groups of commercial banks operating in Poland. These are the largest companies listed in the WIG Banks sub-index of the Warsaw Stock Exchange. Gaps in the preparation of these banks for non-financial reporting were identified. The non-financial reports of the banks studied have significant information potential that can be used by various stakeholder groups, including investors, customers, employees, regulators, and local communities. However, the comparability of ESG reports is one of the key challenges faced by both reporting banks and users of these reports. The research results can be used both in scientific works and by bank representatives to improve non-financial reports. Full article

A company’s “value” is increasingly influenced by three criteria: the way it acts to protect the environment, its attitude towards society and the principles of corporate governance it has adopted. That is the Environmental, Social and Governance (ESG) acronym, and it has substantial impact on company value. To further understand the ESG landscape in business research, this article aims to analyze the existing literature and present the current state of knowledge, main trends, and future perspectives. Through the Scopus database, the authors examine a sample of 1034 articles spanning from 2006 to 2022. VOSviewer and Biblioshiny packages are used for performance analysis and visualization of the publication trends, the conceptual structure of the field and the research collaborations. The results suggest that the publication and citation trends of ESG register an upward trend over time. In terms of research institutions, most of the influential ones emanate from the US, while a significant percentage of articles were published in top-tier financial journals. Science mapping via co-authorship analysis bifurcates the sample into six clusters and reveals the major themes and their evolution. Keyword analysis unfolds emerging trends that could be further explored. Given the breadth of the sustainability field and the ever-changing business environment, this paper is of great practical importance in motivating companies to engage in ESG activities. To the authors’ knowledge, no other study has attempted a comprehensive and detailed BA covering multiple aspects and dimensions of ESG in the corporate research field. The theoretical framework of this paper fills this gap and offers an in-depth synthesis of all published papers, providing invaluable insights to scholars, the business community and regulatory authorities, and creating alternative research paths for aspiring researchers. Full article

The concept of sustainability has developed significantly from an unrealistic abstract ideology to a framework that can measure companies’ environment, society and corporate governance (ESG) performance. While extensive research has established some relational impacts of ESG performance on debt capital cost (DCC), this paper contends that a comprehensive review of these impacts is incomplete without screening them through the lens of climate risk (CR). Companies are subjected to CR that comprises physical and transition factors resulting from climate change. This paper aims to unravel the missing link between CR and ESG performance, and the consequent impacts on DCC. This paper illustrates using Chinese companies that operate in an emerging economy with robust industrial activities under intense global scrutiny to achieve emission reduction and meet carbon neutrality goals. Through considering CR, the impacts of ESG performance on DCC are explained using panel data and mediation effect tests with A-share listed enterprises on the Shanghai and Shenzhen stock exchanges from 2016 to 2020. The findings show that ESG performance significantly and negatively affects DCC, with debt default risk playing a mediating role. The negative effect of ESG performance on DCC is more significant in non-polluting enterprises and non-state-owned enterprises. Full article

The strategic adoption of digital technologies has increasingly been recognized as a crucial driver of cost reduction and operational efficiency in enterprises. It optimizes production processes and promotes sustainable growth. In this context, understanding the specific impact of digital transformation on enterprises’ environmental, social, and governance (ESG) performance holds significant practical value for promoting sustainable development in China’s economy and society. This study focused on Chinese A-share listed enterprises from 2010 to 2022, specifically exploring the role of digital transformation in enhancing ESG performance from the perspective of human capital. Our findings reveal that digital transformation significantly augments their ESG performance. Notably, the improvements are more pronounced in non-state-owned enterprises compared to state-owned ones. Specifically, digital transformation initiatives contribute to ESG performance enhancement by increasing the extent of high-quality labor and elevating the skill levels of the existing workforce. Furthermore, environmental regulation moderates the positive impact of corporate digital transformation on the quantity and skill level of labor, thus influencing firm-level ESG performance. The study sheds light on the transformative role of digital transformation and its implications for ESG performance improvement by elucidating the mechanisms through which digital transformation affects human capital and interacts with regulatory environments. Full article

Organizations are facing increasing pressure to be transparent about their performance and to accept responsibility for their impacts on both society and the environment. The role of ESG is essential from a reporting standpoint. New regulations are forcing organizations to focus more on cascading ESG risk management in order to ensure that the various ESG objectives are analyzed and monitored at the group and subsidiary levels. This article employed the results of an empirical study conducted on risk management concerning shared service centers in Poland. In addition, a case study was conducted based on their internal reports and financial statements. At this stage, SSCs are focusing solely on financial risks and are ignoring the broader perspective. Thus, the promotion of ESG practices in organizations currently represents the most critical factor. ESG-related activities should be cascaded to company subsidiaries, especially those that employ internally separated processes, operate globally and are responsible for end-to-end processes. Based on an analysis of financial statements, few entities currently even consider operational risks, including ESG-related risks. Companies should re-examine their internal governance approach so as to ensure the effective cascading of ESG objectives to the lower levels of the organizational structure. Full article

A company’s ESG (environmental, social, and government) performance is an indicator of its sustainable development. In practice, enterprises should focus on improving their governance structure and improving their governance level to achieve sustainable development and long-term value. Based on a sample of China’s A-share-listed companies from 2014 to 2022, this paper obtains data from the WIND and CSMAR databases and finally selects 14,757 observed values. With ESG performance as the explained variable and Pledge as the explanatory variable, the relationship between major shareholders’ equity pledges and ESG performance is explored using a regression analysis. The results show that the correlation coefficient, β1, between corporate ESG performance and the pledge ratio of major shareholders is −0.0167, which is significantly negative at the 1% level, indicating that the equity pledges of major shareholders will have a negative impact on corporate ESG performance, and ESG performance shows that the pressure of controlling shareholders’ equity pledges mainly reduces the performance of companies in the areas of social responsibility (S) and governance (G) and does not have a significant impact on environmental construction (E). Further research shows that under the same conditions, compared with state-owned enterprises, the equity pledge behavior of major shareholders of private enterprises has a more significant impact on corporate ESG performance. This study is a good attempt at examining the sustainability of corporate ESG performance. Full article

This study empirically examines factors that can influence the sustainable corporate performance of Korean business-to-business (B2B) companies with the help of unique survey data. Factors such as technological capability, the chief executive officer (CEO)’s risk-taking propensity, B2B seller skill, and key account management (KAM) are analyzed to clarify their impact on sustainable financial and non-financial performance. In particular, given that environment, society, and governance (ESG) reporting has recently been widely recognized as an important evaluation factor for companies, we look at the mediating effects of ESG management on sustainable business performance. The results show that the CEO’s risk-taking propensity and B2B seller skill significantly impact the company’s sustainable financial performance, while technological capability and the CEO’s risk-taking propensity significantly impact sustainable non-financial performance. The fact that a CEO’s risk-taking propensity affects both sustainable financial and non-financial performance indicates the importance of entrepreneurial competency in the sustainability of the company. Furthermore, the findings reveal that ESG management plays a crucial role in sustainable corporate performance. The mediating role of ESG management allows technological capability, B2B seller skill, and KAM to influence sustainable financial performance significantly. Likewise, all of the explanatory factors contribute to the company’s sustainable non-financial performance through ESG management. The findings are important for both practitioners and scholars because they emphasize the need to establish an optimal ESG management strategy for corporate survival and sustainability. Furthermore, this study underscores that ESG management should be implemented by all organizational members, from CEOs to employees. Future research will include more comprehensive samples and analyze various strategic factors not covered in this study to derive effective ways by which companies can increase their performance and sustainability. We will also explore the factors that contribute to good ESG management practices. Full article

Decent Work is considered essential to the facilitation of a transition to greener, fairer, more prosperous, and more just societies. Decent Work represents a fundamental component of the Sustainable Development Goals (SDGs) and a crucial facet of European Union (EU) environment, social, and governance (ESG) norms. Despite its prominence, the precise definition and materiality of Decent Work is obscure and remains subject to limited consensus. To understand these critical gaps, we conducted a comprehensive review with a systematic search of the literature on the subject, encompassing both scientific research and institutional publications. Our review encompassed 517 papers, with a particular focus on three key areas: (1) delineating the constituents of Decent Work, (2) exploring the materiality of Decent Work, and (3) examining how firms value, measure, and report Decent Work. The domain of regulated reporting for Decent Work and its material impact is relatively nascent, resulting in limitations in effectively measuring its tangible, material effects towards a green and just transition. Consequently, our review, with a systematic search of the literature, uncovered notable gaps within the body of literature concerning Decent Work, its substance for ESG materiality regulations, and its conspicuousness for a just transition. Furthermore, our review serves as a critical foundation for fostering discussions and emphasises the practical implications of enumerating the materiality of Decent Work, without which a just transition would be unattainable. By highlighting these deficiencies, we aim to enhance the understanding and implementation of the materiality of Decent Work within the broader context of ESG and the green transition. Full article

As a comprehensive concept that integrates the environment, society, and corporate governance, little is known about whether and how Esg affects firm development, as the concept of sustainable development is deepened and promoted. Therefore, the purpose of this paper is to investigate the impact of Esg performance on corporate development. This paper selects the data of A-share-listed companies from 2010 to 2020 as samples, utilizes the linear regression model to empirically study the impact mechanism of Esg performance on enterprise development, and considers transmission pathways. It is found that the development of high-technology firms is more significantly affected by Esg performance than the development of non-high-technology firms. It is further found that Esg performance can promote enterprise development by reducing financing constraints. Meanwhile, corporate innovation can enhance the promotion effect of Esg performance on corporate development. After the robustness tests of instrumental variables and the lagged effects, the research conclusions still hold. Full article

Corporations that prioritize Environment, Social, and Governance (ESG) considerations tend to have a more sustainable approach to business operations with a lower impact on the environment and society. Extant literature is available on the impact of ESG on firm performance, risk-taking, profitability, the cost of capital, cash flows, and default risk. However, very little is known about the role of ESG performance in shaping the current and future value of a corporation. Similarly, hi-tech firms, being a part of the rapidly growing sector of the world, are facing greater scrutiny from investors, regulators, and consumers to demonstrate their commitment to sustainability and social responsibility. This paper investigates the effect of ESG performance on the corporate present and future value of top global tech leaders for a period of eight years (2010 to 2017). Panel data techniques such as the fixed effects model and random effects model based on the Hausman test were used to observe this relationship. Earnings per share (EPS) and the price-to-earnings ratio (PE ratio) were used as a measure of firm current and future value, respectively. The results revealed that ESG has a significantly positive association with both proxies of corporate value of the top global tech companies. However, as compared to EPS, it had a more pronounced impact on the PE ratio of the sampled firms. Unlike many earlier studies that claimed that the ESG score impacts firm performance in the corresponding period, the present research is novel, as it asserts that investors are not only benefiting from firms’ higher investment in ESG through an increase in EPS but are also highly optimistic about the future performance of the firm and thus are paying more for each dollar of earnings. These finding contribute to the existing body of literature on the ESG and firm value nexus and are supported by the stakeholder theory of corporate social responsibility. Thus, policymakers for the tech sector should pay keen attention to firms’ ESG performance to earn the long-term trust of shareholders. Full article

The pursuit of economic growth remains a consistent focal point in the development of nations. However, this heightened emphasis on economic expansion has precipitated a global environmental crisis (e.g., climate change, air pollution, etc.). Numerous countries have announced targets and commitments aimed at mitigating carbon emissions. Enterprises are the mainstay of economic development. In the context of low-carbon development, the current challenge faced by enterprises lies in transforming their business philosophy and value orientation to achieve a harmonious integration of economic growth and carbon emission reduction. Consequently, within the framework of sustainable development, the stability and developmental trajectory of enterprise value have emerged as prominent research subjects in recent years. As the concept of sustainable development gradually permeates society, there has been widespread attention from various sectors toward evaluating corporate environmental, social and governance (ESG) performance. This study focuses on listed companies in China’s manufacturing industry as the research subject. Drawing upon the principal–agent theory, stakeholder theory, upper echelon theory and tournament incentive theory, we aim to validate the feasibility of selecting a top management team that aligns with the characteristics of sustainable development during enterprise transition. By constructing a structural equation model and conducting hypothesis testing under the premise of limited rationality among top management, we explore how green incentives provided to top management impact both enterprise transition toward sustainability and enhancement of corporate value. Additionally, we investigate how demographic characteristics of top management contribute to amplifying the role of green incentives on corporate value. The results show that executive green incentives and top management team characteristics positively impact the corporate environment, social and government (ESG) performance and that implementing environment, social and government aspects can improve corporate value. Upon further analysis, it is found that there is a moderate degree of coupling between top management team characteristics and executive green incentives in promoting better ESG performance and enhancing corporate value. This study provides empirical evidence of the favorable economic outcomes associated with environmental, social and governance (ESG) performance, which offers valuable insights for companies to consider when selecting and incentivizing executives, as well as for government departments aiming to enhance environmental, social and governance (ESG) incentive policies. Full article