The impact of sustainable governance and practices on business performance: an empirical investigation of global firms
by Pratim Datta; Venugopal Gopalakrishna-Remani; Karoly Bozan
International Journal of Sustainable Society (IJSSOC), Vol. 7, No. 2, 2015

Abstract: In a globally-competitive market, can sustainable policies and operations sustain business performance? Considering the current substantial focus on sustainable practices in companies around the world, this study investigates the effects of sustainable practices on overall business performance. This research forwards a hypothesised framework that traces interlinkages between sustainability governance, supply chain (SC) operations and business performance followed by a time-lagged empirical investigation using archival data for Fortune-100 global environmentally-sustainable companies in line with World Summit on Sustainable Development (WSSD) green productivity measures. The study surprisingly reveals the disparity in translating governance policies in sustainable SC practices and dismal direct effects of sustainable SC practices on business performance. However, lackluster direct effects are mitigated by institutionalised sustainable reporting transparency that positively impacts overall business performance, highlighting the imperative role of sustainability reporting as a prerequisite to financial performance in a global market.

Online publication date: Tue, 16-Jun-2015

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