In:
Journal of Business Strategy, Emerald, Vol. 31, No. 3 ( 2010-05-04), p. 5-11
Abstract:
Corporations and their leaders are coming under increasing pressure to achieve “sustainability.” Sustainable enterprises minimize harmful environmental impacts, are socially responsible, and create shareholder value. Design/methodology/approach Using secondary data, we compared the financial performance of recognized sustainability leaders to that of a carefully selected matched set of competitors. Findings The authors find that, on average, sustainability leaders outperform their competitors. However, this is true and only two out of three cases. Research limitations/implications While the authors utilized a relatively small sample with data that covers only a three‐year period, the use of secondary data from two different databases reduces concerns about common method bias. The clear implication of this analysis is that a commitment to sustainability does not harm financial performance and may, in fact, enhance performance. Practical implications The authors conclude with a set of recommendations for how top management teams can hit the sustainability sweet spot. Originality/value The concept of the sustainable enterprise is relatively new and little rigorous research has been conducted on its performance implications. The authors believe that the literature review, the research undertaken, and the practical implications will be of value to both scholars and to executive teams.
Type of Medium:
Online Resource
ISSN:
0275-6668
DOI:
10.1108/02756661011036655
Language:
English
Publisher:
Emerald
Publication Date:
2010
detail.hit.zdb_id:
2068174-4
detail.hit.zdb_id:
605131-5
SSG:
3,2
Permalink
