Search Results (692)

Environmental, Social, and Governance (ESG) metrics have become a cornerstone to sustainable finance, yet their measurement and predictability remain constrained by data heterogeneity, methodological divergence, and disclosure bias. This study develops a comprehensive ESG prediction framework grounded in the Design Science Research paradigm, integrating advanced machine learning techniques with rigorous data preprocessing, feature selection, and temporal validation. Using firm-level data from Refinitiv and Bloomberg, the analysis distinguishes between ESG composite performance and disclosure-based robustness, addressing a critical gap in the literature. Ensemble learning models, including Random Forest and XGBoost, are evaluated alongside deep learning architectures using multiple sampling strategies and rolling-window validation. The results demonstrate that ESG performance is moderately forecastable, with ensemble methods consistently outperforming neural networks in structured datasets. In contrast, disclosure robustness exhibits lower predictability, reflecting its dependence on discretionary strategic reporting and institutional factors. The findings highlight the importance of data quality, model selection, and validation design in ESG analytics, while emphasizing the limitations of deep learning in tabular financial contexts. The integration of explainable artificial intelligence further enhances interpretability by identifying key predictors of ESG outcomes. Overall, the study contributes to the literature by providing a robust, interpretable, and methodologically rigorous framework for ESG prediction, with implications for investors, regulators, and corporate decision-making. Full article

The integration of environmental, social and governance (ESG) criteria into corporate and financial decision-making has become one of the most significant transformations in today’s financial markets. Growing regulatory pressure, stakeholder expectations and increased awareness of sustainability challenges have led companies and investors to incorporate ESG considerations into strategic and investment decisions. Despite the rapid spread of ESG practices, the academic literature presents conflicting and sometimes contradictory evidence regarding their economic implications and practical effectiveness. This article provides a review of the literature on the main academic contributions to ESG integration, focusing on three key dimensions: the economic benefits associated with ESG practices, the methodological and credibility challenges relating to ESG measurement, and the organisational and technological factors that enable effective ESG implementation. The findings indicate that ESG integration is generally associated with positive organisational outcomes, including improved financial performance, lower cost of capital, greater stakeholder trust and a reduction in firm-specific risk. However, the realisation of these benefits is not automatic and depends to a large extent on the credibility of ESG practices and information. Rather than endorsing the widely held view that ESG criteria are inherently capable of creating value, the analysis shows that the value-creating effect of ESG criteria depends crucially on the credibility of ESG practices and the quality of their implementation. The literature highlights significant methodological challenges, including rating divergence, the lack of standardised metrics, methodological opacity and the growing risk of greenwashing, which can undermine the reliability of ESG information. This paper proposes an deductive conceptual framework in which ESG effectiveness emerges from the interaction between value creation mechanisms, credibility constraints, and enabling organisational and technological factors. Full article

Technology is increasingly central to sustainability, yet frameworks built around the environmental–social–economic (E–S–Ec) triad and ESG disclosure regimes do not fully capture the governance problems created by interconnected digital and cyber–physical infrastructures. In this conceptual paper, Tech4.0 is used in a deliberately narrow working sense, focusing on AI-mediated decision systems, data/platform/cloud infrastructures, software dependency chains, and cyber–physical control environments in which opacity, infrastructural dependence, interdependence, and cascading failures create distinctive problems of governability and resilience. Against this background, the paper examines whether making the technological dimension explicit adds analytical value within sustainability architecture. It examines the case for treating Technological Sustainability (T) as a distinct analytical dimension/pillar insofar as it foregrounds system properties of the Technosphere that tend to be diluted when distributed across environmental, social, and economic categories. The paper then discusses the hierarchy T → Corporate Technological Responsibility (CTR) → Corporate Digital Responsibility (CDR) as a possible corporate-level operational pathway and outlines an exploratory measurement agenda structured around exposures, capabilities, and outcomes. Rather than offering empirical proof or a validated reporting architecture, the article provides a conceptual research program for later empirical inquiry into technological accountability under Tech4.0 conditions. Full article

This paper examines how the identification of climate risks relates to the declared scope of disclosures under the ESRS E1 standard, growing regulatory pressure, and potential inconsistencies between internal risk assessment and external reporting. It introduces a composite measure, the Climate Reporting Readiness Index (CRRI), which combines three elements: risk identification, declared disclosures, and the consistency between them. The study is methodological in scope and aims to propose a generalizable measurement framework. The results show a statistically significant negative association between the extent of risk identification and the scope of declared disclosures, indicating that broader internal recognition of climate risks does not necessarily translate into broader declared reporting. Differences between identified risks and disclosures are also observed, suggesting that reported information does not fully correspond to the scope of identified risks. Transition risks are identified more frequently than physical risks. Analysis of specific disclosures shows that the identification of transition risks is associated with a lower probability of declaring information on transition plans and policies, while no robust statistically significant relationship is found between physical risks and disclosures of financial effects. The findings highlight the practical need to strengthen the alignment between internal climate risk identification processes and external ESRS E1 disclosure practices, as these processes may remain partially disconnected in organizational practice. The proposed index provides a diagnostic tool for companies seeking to improve reporting processes, regulators monitoring preparedness for ESRS E1 implementation, and stakeholders assessing the credibility and maturity of climate-related disclosures. Full article

Mandatory Environmental, Social, and Governance (ESG) disclosure requirements—anchored in Corporate Sustainability Reporting Directive (CSRD), International Sustainability Standards Board (ISSB), and Task Force on Climate-related Financial Disclosures (TCFD)—have placed unprecedented demands on supply chain data quality and auditability. Blockchain technology, combining immutability, decentralised governance, and smart contract automation, has emerged as a candidate infrastructure for addressing verification deficits across multi-tier supply chains. To our knowledge, no prior systematic review has simultaneously examined the blockchain specifically for formal ESG transparency and sustainability reporting across all three ESG dimensions within the post-CSRD mandatory reporting landscape. This study presents a systematic literature review (PRISMA 2020). Scopus and Web of Science searches identified 1166 records (2016–2026); after deduplication, 761 unique records were screened, and after blinded screening (κ = 0.84), 96 studies were included. Five blockchain application typologies are identified (T1–T5), spanning provenance tracing, smart contract compliance, carbon accounting, supplier data aggregation, and ESG disclosure systems. A structural asymmetry is identified: governance is addressed in 96% of studies (77.1% under the strictest G-CONFIRMED recoding; 95.8% under the moderate interpretation, including borderline cases), the environmental pillar in 49%, and the social dimension in 21%, explained through institutional theory, with significant implications for CSRD and Corporate Sustainability Due Diligence Directive (CSDDD). Key barriers include scalability, interoperability, and the blockchain–GDPR (General Data Protection Regulation) tension. Three principal contributions are made: (i) a systematic typology of blockchain for ESG transparency; (ii) institutional-theory explanation of ESG dimension asymmetry; and (iii) a research agenda centred on AI–blockchain convergence and post-CSRD empirical studies. The review is limited to English-language peer-reviewed literature. Full article

The German industrial and energy sectors accounted for over 52% of national greenhouse gas emissions in 2024. This is influenced both by an ongoing demand for fossil fuels and the usage of emission-intensive raw and processed materials. With the current European directive on corporate sustainability reporting, a push is being made for companies to publish annual emission reports. However, as per a study conducted by the authors, small and medium-sized companies have difficulties accurately calculating emissions across their supply chain without relying on external service providers. As a scientific institute with a real production facility for metal machining, the ETA (Energy Technologies and Applications) Factory bridges the gap between academia and manufacturing enterprises. The authors have used this disposition to calculate scope 1–3 emissions for the factory as per the Greenhouse Gas Protocol across three years, while progressively attempting to automate data collection for all scopes. CO₂e emissions for the years 2022–2024 were 86.3 tCO₂e, 146.9 tCO₂e, and 86.1 tCO₂e, respectively. Emission categories were assessed in terms of relevance to the institute and subsequently used to analyze the emission activities of the factory. The highest contributor to emissions was electricity purchasing for 2022 and 2024, along with business travel for 2023. Within scope 3, the emissions produced by business travel showed the highest impact across all years, followed by either energy-related activities or purchased goods. The sensitivity of CO₂e factors was also investigated, showing discrepancies between 25% and 130% for the utilized CO₂e factor for steel. Automation of data collection benefits largely from implemented manufacturing systems, such as manufacturing execution systems or enterprise resource planning systems. Full article

The evolution from Industry 4.0 to Industry 6.0 represents a paradigm shift—moving from automation toward an integrated model that incorporates intelligentization, sustainability, and human-centric resilience. While numerous conceptual frameworks have been put forward, empirical research remains scarce, primarily because of the absence of standardized indicators derived from verifiable corporate disclosures. To fill this research gap, the present study develops three quantifiable indices—Intelligence (INT), Sustainability (SUS), and Resilience & Human-centric (RES)—by extracting data from the annual reports and ESG disclosures of 100 Chinese A-share manufacturing enterprises (covering 2022–2024). Fixed-effects panel regression models are employed to assess the impact of these indices on financial performance (ROA, ROE, EPS), market valuation (Tobin’s Q), and sustainability outcomes (ESG ratings). Our findings reveal that INT is the most significant predictor of profitability, with statistically significant positive effects on ROA and ROE—effects that are particularly pronounced among high-tech enterprises. This supports the view that digital capabilities serve as strategic assets. SUS also demonstrates a positive influence on performance, especially in non-high-tech enterprises, where eco-efficiency, regulatory compliance, and ESG-linked financing help offset technological disadvantages. RES contributes to operational and financial stability by enhancing human capital, safety protocols, and organizational practices that reduce performance volatility. Collectively, these results indicate that different types of enterprises follow distinct yet converging pathways toward Industry 6.0: high-tech enterprises capitalize on intelligence to generate innovation rents, while non-high-tech enterprises increasingly rely on sustainability and resilience as strategies to build legitimacy. This study makes significant contributions in three aspects: Methodologically, it differs from previous research that relies on questionnaires and interviews. Instead, it quantifies Industry 6.0 through auditable large-sample key indicators, enhancing the objectivity and operability of the indicators. Empirically, it provides the first empirical evidence on the development path of Industry 6.0 based on data from Chinese manufacturing enterprises. In practical terms, it offers clear references for enterprises and policymakers on the core indicators and their construction framework that should be prioritized during the transformation to Industry 6.0. By linking the index derived from enterprise disclosures with quantifiable performance results, this study effectively bridges the gap between theoretical conceptions and practical applications. It further emphasizes that Industry 6.0 is not merely a technological upgrade but a systematic transformation driven by digitalization, sustainability, and resilience aimed at enhancing enterprise performance and achieving sustainable industrial development. Full article

This study examines the association between Integrated Reporting (IR) quality and tax avoidance among South African listed firms from 2012 to 2021, and whether this relationship differs across the highest and lowest levels of IR quality. The extent to which the adoption of a Combined Assurance (CA) model strengthens the IR monitoring role in reducing tax avoidance, as well as the IR quality link with ESG-related implications of tax avoidance, are also explored. IR quality is directly derived from the EY Excellence in Integrated Reporting Awards ranking. This ranking evaluates firms’ adherence to the IR framework and is thus employed as a comprehensive proxy for IR quality. Tax avoidance is captured through multiple proxies. The main findings reveal no significant overall association between IR quality and tax avoidance, suggesting a decoupling between IR and tax behavior. However, when examining firms at the highest and lowest levels of IR quality, a significant negative relationship emerges only for the top performers (highest IR quality), indicating that IR constrains tax avoidance only when supported by a strong ethical corporate culture. Firms adopting CA exhibit higher tax avoidance, suggesting that IR and CA may be constrained by underlying corporate culture and used symbolically. Higher IR quality is also associated with lower tax avoidance relative to GDP and reduced potential revenue losses relative to government expenditures on education, health, and environmental protection. These findings contribute to the literature on IR, corporate governance, and tax avoidance, while also informing policymakers and regulators on the need to strengthen IR and CA frameworks through enhanced tax transparency requirements, thereby supporting equitable resource mobilization, institutional trust, and long-term sustainable development. Full article

Earnings management undermines financial transparency and threatens long-term corporate sustainability, particularly in emerging markets where principal–agent conflicts remain pronounced. In China’s capital market, performance-based incentives may motivate managers to manipulate reported earnings, thereby impairing investor protection and governance quality. Despite growing interest in enterprise risk management (ERM) as a holistic governance mechanism, empirical evidence on its effectiveness in constraining earnings manipulation remains limited. This paper investigates the governance role of ERM in mitigating both accrual-based earnings management (AEM) and real earnings management (REM) among Chinese listed firms over the period 2019–2024. Using panel regression models, this study examines whether higher ERM engagement is associated with lower levels of earnings manipulation. The results indicate that ERM is significantly and negatively related to both AEM and REM. These findings remain robust to alternative variable definitions, different sample period specifications, interaction analyses between accrual-based and real earnings management, alternative constructions of ERM (including PCA-based measures and exclusion of reporting-related components), and endogeneity tests using industry–year average ERM as a proxy. Further heterogeneity analyses reveal that the constraining effect of ERM on REM is more pronounced in firms audited by non-Big Four auditors, while the effect is weaker in Big Four audited firms. Overall, the evidence suggests that ERM functions as an effective internal governance mechanism that enhances financial reporting quality and supports sustainable corporate performance. This paper contributes to the sustainability and corporate governance literature by providing empirical evidence from an emerging market context and offers practical implications for regulators and corporate decision-makers seeking to strengthen risk governance frameworks. Full article

This conceptual framework paper critically evaluates the economic, regulatory, and accounting significance of transparent reporting on investments in employee happiness, emphasizing its potential to reduce information asymmetry in capital markets. We define employee-happiness investments as deliberate organisational expenditures and management practices designed to enhance employees’ overall life satisfaction. Information asymmetry, a condition that occurs when managers possess better information than investors, poses substantial risks including market inefficiencies, misallocation of capital, and increased costs of capital. Empirical evidence consistently illustrates that employee happiness is positively correlated with enhanced firm productivity, lower risk, and improved financial performance. Despite these clear linkages, current international accounting and regulatory frameworks do not adequately capture investments in employee happiness, with International Accounting Standard 38 mandating immediate expensing rather than balance sheet recognition due to identifiability and control constraints. This treatment could exacerbate informational disparities and may potentially hinder effective investor decision-making by obscuring strategic resource allocation patterns within aggregated expense line items. Drawing on recent studies and real-world financial outcomes, the paper argues for complementary disclosure reforms mandating standardized reporting of employee-happiness investments and outcomes as a crucial step toward more informed market assessments and sustainable corporate practices. Full article

Corporate social responsibility (CSR) has increasingly become a strategic and governance-relevant domain that depends on internal capability development to translate stakeholder and sustainability expectations into credible action. In emerging economies, higher education institutions (HEIs) are key arenas where future managers and intrapreneurs acquire human-capital foundations relevant to CSR-related strategy implementation. This exploratory study examines whether students’ self-reported transformational leadership (TL) is associated with entrepreneurial competencies (EC) that are relevant for responsible value creation and stakeholder-oriented execution. Using a quantitative, cross-sectional correlational design, we surveyed 207 senior undergraduate students from business-related programs in a private HEI in Peru. TL was measured using the MLQ-5X (transformational subscale), and EC were assessed through a content-validated and reliability-tested eight-dimension scale (networking, problem solving, achievement orientation, risk taking, teamwork, creativity, autonomy, and initiative). Given distributional characteristics, Spearman’s rho was used for hypothesis testing. Because the design was intentionally limited to first-order associations, no control variables or multivariate models were incorporated. Results show a strong, positive association between TL and overall EC (ρ = 0.822, p < 0.001), with statistically significant positive relationships across all EC dimensions (ρ = 0.709–0.807). These findings are consistent with a microfoundational view of CSR, indicating that leadership-related developmental behaviors are systematically aligned with competence bundles that may support CSR-related strategy enactment under stakeholder complexity and sustainability constraints. The study does not measure CSR outcomes or CSR communication directly; rather, it provides capability-level evidence with implications for HEI curricula and leadership development aimed at preparing graduates for responsible innovation and stakeholder-sensitive decision-making in emerging-economy contexts. Full article

Blue accounting has emerged as a reporting approach to enhance corporate transparency and responsible stewardship of marine ecosystems. This aligns particularly with Sustainable Development Goal (SDG) 14; however, its conceptual development and practical adoption remain uneven. This scoping review synthesises existing evidence on the enablers and barriers (determinants) influencing corporate blue accounting disclosure practices. Guided by Arksey and O’Malley’s five-stage framework, a structured search of Scopus, ScienceDirect, Wiley, and Google Scholar was conducted for peer-reviewed English-language studies published up to October 2025. Of 109 records identified, 19 met the inclusion criteria and were included in the thematic analysis. The findings indicate that corporate blue accounting disclosure practices are primarily driven by stakeholder and investor pressure, climate accountability commitments, reputational considerations, competitive positioning, and alignment with global sustainability agendas. Key barriers include the absence of standardised reporting frameworks, limited regulatory mandates, technical gaps, institutional capacity constraints, and the risk of symbolic disclosure (“blue-washing”). Together, these findings highlight that the adoption of blue accounting disclosure practices is shaped by a combination of enablers and barriers (determinants). Overall, the evidence suggests that blue accounting practices remain largely voluntary and lack consistency and comparability. Advancing uniform standards, clearer regulatory guidance, and organisational capacity development are necessary to strengthen the credibility and substantive contribution of corporate marine-related disclosures. Full article

In recent years, sustainability reporting has taken on an increasingly important role in corporate strategy discussions. Initially a voluntary tool, it has become a benchmark for measuring and communicating the environmental, social, and economic impacts of organizations in a structured way. In light of the Corporate Sustainability Reporting Directive (CSRD), the research assumes that reporting is a lever for change and organizational innovation. To test the hypothesis, the authors chose to use what is known as a ‘natural experiment’: they observed the experience of a particular type of company, benefit corporations, which are required to publish an annual impact report. The empirical investigation was conducted using content analysis methodology to read the impact reports, websites, and social media channels of the companies, as well as case studies through semi-structured interviews. The findings of this study suggest that sustainability reporting can play a role that goes beyond transparency and compliance. In the cases analyzed, the preparation of the sustainability or impact report appears to function as an organizational coordination mechanism that mobilizes internal and external stakeholders. Through this process, companies progressively develop shared interpretations of sustainability objectives, experiment with measurement practices and introduce organizational changes affecting work organization, production processes and value-chain relationships. Full article

Work-related stress is a significant concern among employees in multinational corporations, where workloads and performance expectations are high. This study examines pre–post changes associated with a Virtual Reality (VR)-based mindfulness intervention designed to support stress management after a workday. A sample of 134 corporate employees from multinational companies reporting moderate to high stress participated in the study. Physiological indicators, including heart rate and skin conductance, were recorded before and after the VR session, alongside self-reported measures of perceived stress and relaxation. The intervention consisted of immersive VR environments integrating guided breathing, calming narration, and natural landscapes. Results indicated significant reductions in physiological stress markers following the intervention compared to baseline levels, accompanied by improvements in self-reported relaxation, reduced tension, and enhanced mental clarity. These findings suggest that VR-based mindfulness is associated with short-term reductions in both physiological and perceived stress. VR-based mindfulness may represent a complementary and non-invasive approach to stress management in individuals exposed to high occupational demands. Future research using controlled designs and longitudinal approaches is needed to evaluate the sustained effects of repeated VR sessions and their integration into corporate wellness programs. Full article

This study examines the impact of digital transformation on enterprise operating costs and elucidates its underlying transmission mechanisms. Digital transformation is measured using a text-based indicator constructed from digital-transformation-related keyword frequencies in firms’ annual reports. Using an unbalanced panel of Chinese A-share listed firms from 2007 to 2023, we employ two-way fixed effects models, mediation analysis, and instrumental-variable estimation for empirical analysis. The findings reveal: (1) Digital transformation significantly reduces enterprise operating costs, with this conclusion maintaining robustness across a comprehensive series of endogeneity treatments and alternative specifications. (2) Enterprise innovation, highly skilled talent, and corporate governance appear to be important channels through which digital transformation contributes to cost reduction. The results are consistent with a complete mediation pattern for enterprise innovation, a partial mediation pattern for highly skilled talent, and a significant mediating role for corporate governance. (3) The cost-reducing effect appears more evident in state-owned enterprises, growth-stage enterprises, and firms located in eastern regions, while the central-region results suggest possible short-term cost increases. This study helps clarify the internal mechanisms through which digital transformation affects enterprise cost control and provides empirical evidence that may inform firms’ digital strategies and related policy design. From a sustainability perspective, these findings suggest that digital transformation may help improve resource efficiency, reduce organizational waste, and strengthen long-term resilience, thereby carrying potential implications for sustainable economic development. Full article