UNGC principles and SDGs: perception and business implementation

Abstract

PurposeThe purpose of this study is to analyze the perception of CSR policies and the implementation of UNGC management model in firms operating at a national and an international level. Specifically, in the framework of stakeholder theory, this work explores the relation between internationalization and the usage of UNGC management model in the design and implementation of successful CSR strategies. By doing so, new insights on CSR management to gain competitive advantage are provided.Design/methodology/approachThe present study analyzes impact of internationalization in their sustainability performance, as well as the relationship between the usage of the UNGC management model and the firm's sustainability performance. To achieve this goal, the Spanish firms subscribing to the UNGC were evaluated following the tenth anniversary of the Spanish UNGC Chapter's inauguration. Both internationalized companies and companies only operating at a national level were evaluated, first through a survey, followed by a focus group and lastly a qualitative analysis of their CSR performance reports.FindingsFindings show that perception of CSR performance and relevance allocated to CSR matters is consistent with the firms' practices. However, internationalization does not hold a relation with the companies' performance in sustainability matters as expected due to a series of factors. Similarly, the implementation of the UNGC management model does not correlate to the firm's perception and performance. The virtuous cycle can be created by honoring the social contract, yet the tools and management models shall be further tailored to ensure an effective win-win situation.Originality/valueThis study evaluates a company's perception and strategic involvement in sustainability, considering the UNGC 10 principles and SDG. Specifically, the role of internationalization and usage of the UNGC management model are evaluated. Consequently, researchers studying business strategy can incorporate the findings in strategic planning. Practitioners can learn the implications of CSR strategic planning using the UNGC management model and the limitations of this tool, to ensure sustainable growth of their firms. Moreover, work illustrates corporate results in sustainability matters after the first decade of the UNGC management model implementation in a specific UNGC Chapter.

Facing a global crisis - how sustainable business models helped firms overcome COVID

“…With regards to academia, the present study provides valuable insights to the TBL theory. Firstly, it has supported Albuquerque et al (2020)’s findings as well as tackling the gap identified by Mattera and Alba Ruiz-Morales (2020)’s study. In addition, the results obtained through this analysis complement the model established by Isaksson et al (2015) through a TBL framework.…”

“…This study further deepens on the results obtained by Mattera and Alba Ruiz-Morales (2020) understanding the impact of UNGC management models in building sustainable business model in the long-term. The firms analysed show in the energy sector in Spain following the UNGC management model and having long term sustainable strategies can positively impact long-term financial performance and the ability to better manage a crisis.…”

“…These are also strongly correlated to the 17 SDGs the UN deemed necessary to conduct by 2030 to ensure social and environmental wellbeing (UN, 2015). Mattera and Alba Ruiz-Morales (2020) established the links between the 10 UNGC principles and 17 SDGs in a business model context and how these can provide a significant advantage for firms operating worldwide.…”

Sustainability-oriented strategy and Sustainable Development Goals

“…The influence of the geographic scope: SDGs and multinational enterprises MNEs have a broad geographic scope, growth strategies, capabilities, degree of diversification, size, power and impact on the planet and society (Gupta and Govindarajan, 2000;Fleury and Fleury, 2011;Blowfield, 2012;Scheyvens et al, 2016;GapFrame, 2017;Muff et al, 2017;Ali et al, 2018;United Nations Global Compact, 2018;Van Zanten and Van Tulder, 2018;WBCSD, 2018;Mattera and Ruiz-Morales, 2020). The stakeholder pressure in MNEs in their home and subsidiary countries, and where they market their products and services.…”

“…The stakeholder pressure in MNEs in their home and subsidiary countries, and where they market their products and services. The argument is that MNEs suffer more pressure than enterprises doing business in only one country (North, 1990;Scheyvens et al, 2016;WBCSD, 2018;Lopez, 2020) what can lead them to consider global issues in strategies (Young and Tilley, 2006;Kramer and Porter, 2011;SDG Compass, 2016;Scheyvens et al, 2016;Van Zanten and Van Tulder, 2018;Mattera and Ruiz-Morales, 2020). Thus, a misdriven sustainability-oriented strategy would impose severe risks to their image and economic performance in a global dimension (MacLeod and Lewis, 2004;Scheyvens et al, 2016).…”