Exploring the relationship among ESG, innovation, and economic and financial performance: evidence from the energy sector

Pinheiro, Alan Bandeira; Panza, Graziela Bizin; Berhorst, Nicolas Lazzaretti; Toaldo, Ana Maria Machado; Segatto, Andréa Paula

doi:10.1108/ijesm-02-2023-0008

Cited by 20 publications

(11 citation statements)

References 52 publications

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“…Even simple changes can be innovative; it is up to the organisation to determine the level of innovation they will explore. The work by Pinheiro et al . (2023) investigated the impact of innovation on environmental, social and governance (ESG) elements and overall performance of organisations.…”

Section: Always Growingmentioning

confidence: 99%

Growth that supports longevity: the impact of innovation on ESG performance

2023

ASR

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Sustainable development has gained popularity not just in the business landscape, but among stakeholder as well. This has cause organisations to be more aware of elements relating to sustainability. While the previous focus was on environmental aspects; many organisations are now integrating a more holistic approach to sustainability that covers the various spheres of economic, social, environmental and philanthropic. Previously, sustainability was more common among industries that had a direct impact on the environment. Sectors such as energy and manufacturing were more linked to sustainability concerns. However, as the concept evolved, its reach spread to all organisations and the concept itself encompassed more than just the environment aspect. The pressure for organisations to act in a more sustainable manner also increased. Beyond just paying lip service to these elements, many stakeholders are concerned about the detailed workings around these areas that organisations are involved in. If organisations cannot back up their claims of sustainable practices with visible results, then it can lead to more severe consequences. The term "greenwashing" has risen to define organisations makes claims regarding their environmental efforts that cannot be substantiated. With the increased access of technology as well as information, such claims can easily be checked by most individuals. Therefore, it is important that organisations are careful about the claims they make and can ensure that there is evidence to support them.

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Section: Always Growingmentioning

confidence: 99%

Growth that supports longevity: the impact of innovation on ESG performance

2023

ASR

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“…The selected countries are members of the ALADI group, which is the largest Latin American integration group, with thirteen member nations. Although the literature agrees that social responsibility is a strategy for maximizing stakeholder value and has a positive impact on the environment (Galinato et al, 2022;Heras-Saizarbitoria et al, 2022;Pinheiro et al, 2023), there is a lack of evidence on which factors may influence social responsibility in the context of emerging economies (Wang and Zhang, 2022).…”

Section: Corporate Governancementioning

confidence: 99%

“…, 2022; Heras-Saizarbitoria et al. , 2022; Pinheiro et al. , 2023), there is a lack of evidence on which factors may influence social responsibility in the context of emerging economies (Wang and Zhang, 2022).…”

Section: Introductionmentioning

confidence: 99%

Corporate governance meets corporate social responsibility: evidence from Latin America

Pinheiro,

dos Santos,

da Silva

et al. 2023

ARLA

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PurposeThis study aims to examine the effect of corporate governance mechanisms on social responsibility in Latin America.Design/methodology/approachThe hypotheses were tested using a sample of 371 companies based in eight Latin American countries, resulting in 4,823 observations.FindingsThe results show that more independent boards, with greater female representation and the presence of a sustainability committee lead companies to behave more ethically. The findings indicate that corporate governance mechanisms play an important role for companies to engage in social responsibility actions.Practical implicationsGovernments can use these findings to draft regulations that encourage Latin American companies to disclose more non-financial information and to support a more diverse board composition. The evidence shows that the quality of national governance plays a key role in times of crisis by encouraging more responsible behavior by companies.Originality/valueThis study broadens the scope of application of agency theory and the resource-based view by demonstrating that the board of directors is a unique composition and that organizations must understand how to balance external and internal members on their boards in order to achieve higher social and environmental performance.

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“…ESG data is a non-financial disclosure that does not follow a conventional structure like financial data (Buallay, 2019). The ESG performance of corporations in the energy industry is critical since this segment directly consumes natural resources while also emitting the most CO2 into the environment (Pinheiro et al ., 2023). As a result, society expects better levels of ESG performance (Lu et al ., 2019).…”

Section: Introductionmentioning

confidence: 99%

What drives environmental, social and governance (ESG) performance? The role of institutional quality

Pinheiro,

dos Santos,

Cherobim

et al. 2023

MEQ

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PurposeThis study aimed to investigate the role of the country's institutional quality on the environmental, social and governance (ESG) performance of its companies.Design/methodology/approachOver a four-year period (2016–2019), the study examined the ESG performance of 412 organizations situated in 19 countries. ESG performance was the dependent variable, and the independent variables were rule of law, economic freedom, education index and international trade freedom. These factors described the institutional quality of countries in the authors’ study.FindingsThe findings reveal that institutional quality has a major impact on ESG performance. Companies engage in more ESG practices when they operate in countries with greater economic freedom and international trade freedom. The authors corroborated the core assumption of institutional theory (IT), which argues that organizational behavior is determined by the country's institutional setting.Research limitations/implicationsThe findings, like all research, should be interpreted with caution. The authors’ research focused solely on large energy corporations. As a result, the conclusions cannot be applied to small companies or other industries. ESG performance can also be measured using different datasets.Practical implicationsIf managers want their companies to perform better in terms of ESG, the authors recommend that they form a CSR committee and sign the Global Compact. This study may be valuable to international policymakers because they can underline that greater economic freedom, better education and greater international trade freedom all promote higher ESG performance.Originality/valueTo the best of the authors' knowledge, nearly all of research explores the relationship between ESG and financial performance. As a result, this study built on past research by investigating how national aspects affect corporate ESG performance.

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Exploring the relationship among ESG, innovation, and economic and financial performance: evidence from the energy sector

Cited by 20 publications

References 52 publications

Growth that supports longevity: the impact of innovation on ESG performance

Growth that supports longevity: the impact of innovation on ESG performance

Corporate governance meets corporate social responsibility: evidence from Latin America

What drives environmental, social and governance (ESG) performance? The role of institutional quality

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