The Impact of Environmental, Social and Governance Dimensions of Corporate Social Responsibility on Economic Performance: Australian Evidence

Sila, Ismail; Çek, Kemal

doi:10.1016/j.procs.2017.11.310

Cited by 98 publications

(78 citation statements)

References 38 publications

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“…When separating the environmental (E), social (S) and corporate governance (G) facets from the ESG scores, various studies found that the impact of the three dimensions on the corporate financial/economic performance of the companies is dissimilar [22,49,52,67,68]. This finding supports the need for customizing the sustainability efforts of the companies according to the business context [7,67,70,73], as the impact of ESG components significantly varies across countries and sectors or industries [4,30,73,74]. The ESG contributions should be particularly directed towards the matter(s) that is/are generating the highest increase in the corporate value and economic-financial performance [71,75].…”

Section: Unravelling Esg Behaviormentioning

confidence: 99%

Mapping the ESG Behavior of European Companies. A Holistic Kohonen Approach

et al. 2019

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In the context of increased awareness for complying with the multiple requirements for sustainable development, the stakeholders need to have the proper information for analyzing the corporate behaviors from various perspectives. Thus, the purpose of this research is to investigate and map the sustainability patterns of European companies at the beginning of 2019, in order to uncover valuable insights into the corporate sustainable behaviors. The Environmental, Social and Governance (ESG) performances of 1165 European companies were considered by applying the Kohonen neural network for clustering purposes at three main levels: (1) ESG overall level, including country and sectoral perspectives; (2) ESG thematic level; (3) ESG four-folded innovative level (stakeholder, perspective, management level and focus views). All three analyses carried out show a three-clustering solution—Lower, Middle and Higher ESG clusters. Most firms are top ESG performers and the companies with good ESG scores also have more related controversies. The results highlight the sustainability profiles of the examined companies. Firstly, the environmental and social priorities are preferred over corporate governance targets. Secondly, companies tend to implement a business-customized ESG approach for achieving organizational efficiency and competitiveness. Thirdly, there is a higher consideration of employees, external-directed measures, operational issues and process-orientation in the corporate ESG performance and development. The ESG approach of the European reporting companies is mainly mature, strategic and long-term oriented, aimed to increase the corporate competitiveness and to support the societal well-being altogether.

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Section: Unravelling Esg Behaviormentioning

confidence: 99%

Mapping the ESG Behavior of European Companies. A Holistic Kohonen Approach

et al. 2019

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“…Investors with strong preferences for social responsibility are attracted towards firms with social goals (Mackey, Mackey, & Barney, ). Moreover, ESG issues are important for stakeholders (Sila & Cek, ). Stakeholders are the groups that are affected by, or can affect, a company's operations and decision‐making processes (Freeman, ).…”

Section: Introductionmentioning

confidence: 99%

Environmental, social and governance initiatives and wealth creation for firms: An empirical examination

et al. 2020

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This study examines the effect of environmental, social, and governance (ESG) activities on firm performance of 4,887 global companies. Mean difference test shows that firms with a high level of ESG activities are different from their low-ESG counterparts. The two-stage least square results suggest that ESG activities on (a) the welfare for internal stakeholders and best corporate governance practices are beneficial for firm performance and (b) antitakeover mechanisms (pollution control) adopted by firms are negatively (positively) valued by market players. Overall, this is the first study to examine the effects of ESG on the market-based and accounting-based performance of global firms.

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“…This is because the combination of these aspects will strengthen management practice to improve company performance (Tarmuji, Maelah, &Tarmuji, 2016). The ESG aspect provides a pleasant perception for stakeholders by ensuring that they will not get negative influences from company activities that are considered as unsustainable (Palazzo & Richter, 2005); (Yoon & Schwarz, 2006); (Sila & Cek, 2018). Whereas, Friede, Busch, &Bassen (2015) stated that rational investors must be oriented towards responsible and sustainable investment to fulfill company obligations and align them with the wider community.…”

Section: Introductionmentioning

confidence: 99%

The Effect of ESG Performance on Economic Performance in the High Profile Industry in Indonesia

Yawika¹,

Handayani²

2019

JIBE

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This study aims to examine the effects of ESG performance on economic performance. This research was conducted in 2015-2017 and produced 387 samples. The analysis technique used is multiple regression analysis with SPSS Statistics program 23. The results of the study show that ESG performance has a positive effect on economic performance. In further analysis, environmental performance and social performance shows that there is no influence on economic performance, except environmental performance which negatively affects market measurement. Conversely, governance performance has a positive effect on accounting measurements, but has a negative effect on market measurement. This condition due to the disclosure traditionof governance is longer applied in Indonesia than other sustainability aspects and the increasing value of the relevance of governance performance to stakeholders.

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The Impact of Environmental, Social and Governance Dimensions of Corporate Social Responsibility on Economic Performance: Australian Evidence

Cited by 98 publications

References 38 publications

Mapping the ESG Behavior of European Companies. A Holistic Kohonen Approach

Mapping the ESG Behavior of European Companies. A Holistic Kohonen Approach

Environmental, social and governance initiatives and wealth creation for firms: An empirical examination

The Effect of ESG Performance on Economic Performance in the High Profile Industry in Indonesia

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