Corporate Sustainability

Measurement, Reporting and Effects on Firm Performance

verfasst von: Paolo Tenuta, Domenico Rocco Cambrea

Verlag: Springer International Publishing

Buchreihe : SIDREA Series in Accounting and Business Administration

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

This book introduces readers to the main types of corporate sustainability practices. The first section examines both the ratings provided by international agencies and the various ESG (Environmental, Social and Government) indexes existing at 2021. In turn, the second part empirically investigates the relationship between the level of corporate sustainability and corporate financial performance among the large companies listed on the Milan Exchange FTSE-MIB 40 index for 2015-2019.

The book offers a comprehensive overview of current sustainability concepts and practices and illustrates how various companies are seeking to integrate them in their competitive strategy. Further, it fills a gap in the extant literature by analysing the origins, historical evolution and structure of the main rating agencies and ESG indexes. In addition, the empirical analysis of corporate sustainability’s impact on companies’ financial performance reveals the importance of collegial leadership – a commonly found feature of Italian family businesses that has not been considered in previous studies – as a moderating factor for reconciling sustainability initiatives and performance at family-run firms.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Introduction

Abstract

This part illustrates the main themes discussed in the book. Specifically, the topics developed in the three chapters are reviewed, highlighting the most significant aspects for business administration scholars and the main results that will be analyzed in detail in the sections of the book.

Paolo Tenuta, Domenico Rocco Cambrea

Chapter 2. Principles and Practices of Sustainability

Abstract

In the first chapter, we introduce the general topics related to sustainability concepts. In doing so, we review the main studies on Corporate Social Responsibility (CSR) and Corporate Sustainability (CS) subjects. The section provides a detailed explanation of the several arguments related to the corporate sustainability, describing the relationships between business ethics, corporate social responsibility, and sustainable development.

Based on the idea that corporate social responsibility is interconnected with sustainable development and general well-being, this chapter clarifies the concept of circular economy as a critical element in the transition towards a more sustainable future. The work identifies the central role of the circular economy in the debate on sustainability policy since it helps attain the three dimensions (economic, social, and environmental) of sustainable development. We review the sustainability principles and classify the management methods necessary to operate following a triple bottom approach according to what the companies should adopt for jointly maximizing the three contextual dimensions (economic, social, and environmental). In this way, the work presents the circular economy innovations as an essential tool for helping companies move toward CSR and sustainability.

Paolo Tenuta, Domenico Rocco Cambrea

Chapter 3. ESG Measures and Non-financial Performance Reporting

Abstract

In the second chapter, we analyze the ways of measuring Corporate Sustainability (CS) and the evolution of social and environmental disclosure (SED) that have taken place from the 1970s to today. Sustainability is a multidimensional concept for which evaluating the performance of companies in terms of sustainability must take into account various ESG criteria. To this end, we use as a source of data the information provided on the official websites of ESG rating agencies, from previous scientific articles and the websites of the major companies present in the ratings and indexes analyzed to identify the prominent rating companies and the most widespread ESG indexes and facilitate companies and investors in selecting organizations. We provide a valuable review of the leading rating agencies’ origins and the most popular ESG indexes.

We also examine the evolution of social and environmental disclosure (SED), which can be considered an example of corporate social and environmental sustainability.

Finally, we describe the Corporate Sustainability Reporting Directive (CSRD) 2021/0104, with which the European Commission sets itself the ultimate goal of bringing sustainability reporting to the same level as financial reporting.

The second chapter ends by indicating the first Exposure Drafts of standards relating to sustainability reporting by the International Sustainability Standards Board (ISSB).

Paolo Tenuta, Domenico Rocco Cambrea

Chapter 4. Corporate Sustainability and Financial Performance

Abstract

In the third chapter, we empirically verify the impact of Corporate Sustainability (CS), measured through ESG rates, on Corporate Financial Performance (CFP) in family and nonfamily firms. Furthermore, the empirical analysis examines the moderating role of collegial leadership, a board characteristic that occurs when several executive members sit on the board of directors, on the link between firm sustainability and company performance. The work refers to the total sample of Italian companies listed on FTSE-MIB, the largest market dedicated to the most Italian capitalized companies, for the years 2015–2019. Our findings regarding the whole sample of firms show that CS rates do not affect the financial performance of Italian FTSE-MIB companies. By looking at the different ownership structures (family firms vs nonfamily firms), the econometric analyses indicate that higher CS rates are negatively associated with family firms’ performance. The chapter concludes by showing that the negative relationship within family firm subsamples is positively moderated by the presence of more executive members on the board of directors of family companies.

Paolo Tenuta, Domenico Rocco Cambrea

Chapter 5. Future Research Directions

Abstract

This section describes the aspects that have not been developed in detail in the book and which, in turn, represent ideas for future research on the issues of corporate social responsibility and, more specifically, on the importance of implementing social responsibility activities in companies, also considering their ability to affect firm performance.

Paolo Tenuta, Domenico Rocco Cambrea

Chapter 6. Conclusions

Abstract

This section of the book reviews all the topics that have been covered in the three chapters in the book. After briefly reviewing the main topics addressed in the book, this paragraph highlights the most relevant conclusions for the scientific community and focuses on the contribution, expressed in terms of greater knowledgle of sustainability issues, which the book aims to suggest to all those who show interest in corporate sustainability activities.

Paolo Tenuta, Domenico Rocco Cambrea

Titel: Corporate Sustainability
verfasst von: Paolo Tenuta
Domenico Rocco Cambrea
Verlag: Springer International Publishing
Electronic ISBN: 978-3-031-11491-5
Print ISBN: 978-3-031-11490-8
DOI: https://doi.org/10.1007/978-3-031-11491-5