SUSTAINABILITY AS A CORPORATE VALUE CREATOR
Keywords:
sustainable development, corporate social responsibility, sustainable corporation, sustainable finance, sustainable value added, stakeholder value added
Abstract
The article explores current theoretical and practical approaches to expanded implementation of the principles of sustainable development paradigm within corporations. The essence of Sustainable Corporation and Sustainability as a factor of formation of the long-term corporation value is determined; the relationships between corporate social and financial performance are described; the existing methods for developing sustainability key performance indicators are discussed. The authors present a structural-logical scheme and algorithm of assessment of sustainable value added using indirect method. The scheme characterizes the distribution of the value among internal and external, financial and non-financial stakeholders.
References
Ambec, S., Lanoie, P. (2008). Does It Pay to be Green? A Systematic Overview. Academy of Management Perspectives, Vol. 22, 45–62. [in English].
Artiach, T., Lee, D., Nelson, D., Walker, J. (2010). The determinants of corporate sustainability performance. Accounting & Finance, Vol. 50, No 1, 31-51. [in English].
Attig, et al. (2013). Corporate Social Responsibility and Credit Ratings. Journal of Business Ethics, Vol. 117, 679-694. [in English].
Beardsell, J. (2008). The influence of CSR disclosure on corporate governance and company performance. SMC Working paper. [in English].
Brammer, S., Millington, A. (2008). Does it pay to be different? An analysis of the relationship between corporate social and financial performance. Strategic Management Journal, Vol. 29 (12), 1325-1343. [in English].
BSR report. (2018). Redefining Sustainable Business: Management for a rapidly changing world. [in English].
Clark, G., Feiner, A., Viehs, M. (2015). From the Stockholder to the Stakeholder: How sustainable can drive financial outerperformance. Oxford: Oxford University Press. [in English].
DBCCA Research. (2012). Sustainable Investing: Establishing Long-Term Value and Performance/ Climate Change Investment Research. [in English].
Elkington, J. (1997). Cannibals With Forks: The Triple Bottom Line of 21st Century Business. Oxford: Capstone Publishing. [in English].
Eppel, J. (1999). Sustainable development and environment: A renewed effort in the OECD. Environment, Development and Sustainability, Vol. 1, 41-53. [in English].
Fifka, М. (2012). The development and state of research on social and environmental reporting in global comparison. Wirtschaftsuniversitдt Wien, Austria. [in English].
Figge, F. (2001). Ein neues Maß zur Messung der Öko-Effizienz. Zeitschrift für angewandte Umweltforschung.14 Jg. Heft 1-4, 184-197. [in German].
Figge, F., Hahn, T. (2004а). Sustainable Value Added — Ein neues Maß des Nachhaltigkeitsbeitrages von Unternehmen am Beispiel der Henkel KGaA. Vierteljahreshefte zur Wirtschaftsforschung. Heft 73, 126-141. [in German].
Figge, F., Hahn, T. (2004в). Sustainable Value Added - measuring corporate contributions to sustainability beyond eco-efficiency. Ecological Economics.48. Jg. Heft 2, 173-187. [in German].
Global Reporting Initiative. (2011). Sustainability Reporting Guidelines, Amsterdam. [in English].
Hahn, T., Liesen, A., Figge, F. (2008). CO2-Performance deutscher Unternehmen - Eine wertorientierte Analyse. Umwelt Wirtschafts Forum. 16. Jg. Heft 2, 73-79. [in German].
Harrison, J. S., Bosse, D. A., Phillips, R. A. (2010). Managing for stakeholders, stakeholder utility functions, and competitive advantage. Strategic Management Journal, Vol. 31, 58-74. [in English].
Hauff, M., Kleine, A. (2009). Nachhaltige Entwicklung – Grundlagen und Umsetzung / München: Oldenbourg Wissenschaftsverlag. [in German].
Landis, C., Haller, A., Van Staden, C. (2015). The Measure of Value Added as part of Sustainability Reporting – A Comparative Study. Working Paper. [in English].
Lankoski, L. (2006). Corporate Responsibility Activities and Economic Performance: Why and How They are Connected. INSEAD Business in Society Centre. Faculty & Research. Working Paper. [in English].
Margolis, J. D., Walsh, J. P. (2003). Misery loves companies: Rethinking social initiatives by business/ Administrative Science Quarterly, Vol. 48, 268–305. [in English].
Margolis, J. D., Elfenbein, Н. А., Walsh, J. (2007). Does it pay to be good? A meta-analysis and redirection of research on the relationship between corporate social and financial performance. [in English].
Marom, I. Y. (2006). Toward a Unified Theory of the CSP-CFP Link. Journal of Business Ethics, Vol. 67 (2), 191 – 200. [in English].
Menz, K. M. (2010). Corporate social responsibility: Is it rewarded by the corporate bond market? A critical note. Journal of Business Ethics, Vol. 96, 117–134. [in English].
Mill, G. A. (2006). The Financial Performance of a Socially Responsible Investment Over Time and a Possible Link with Corporate Social Responsibility. Journal of Business Ethics, Vol. 63, No. 2, 131–148. [in English].
OECD. (2017). Investment governance and the integration of environmental, social and governance factors. [in English].
Olsen, E. (2009). Searching for Sustainability: Value Creation in an Era of Diminished Expectation. The Value Creators Report Boston Consulting Group. [in English].
Olsen, E., Stelter, D., Xhonneux, P. (2004). Value creators’ report: the next frontier – building an integrated strategy for value creation. Boston: The Boston Consulting Group. [in English].
Orlitzky, V., Schmidt, F. L., Rynes, S. L. (2003). Corporate Social and Financial Performance: A Meta-analysis. Organization Studies, Vol. 24 (3), 403 – 441. [in English].
Porter, M. E., Van der Linde, C. (1995). Green and Competitive: Ending the Stalemate. Harvard Business Review, Reprint 95507, 120 - 134. [in English].
Porter, M., Kramer, M. (2011). Creating Shared Value: How to Reinvent Capitalism — and Unleash a Wave of Innovation and Growth. Harvard Business Review, Vol. 89, No. 1/2, 62–77. [in English].
Preuss, L. (2011). Innovative CSR: A Framework for Anchoring Corporate Social Responsibility in the Innovation Literature. The Journal of Corporate Citizenship, 42, 17- 35. [in English].
Savitz, A., Weber, K. (2006). The triple bottom line: how today’s best-run companies are achieving economic, social, and environmental success – and how you can too. John Wiley&Sons, Inc. [in English].
Schoenmaker, D. (2017). Investing for the common good: a sustainable Finance Framework. Bruegel essay and Lecture series. Brussels. [in English].
Sustainable Investing: Establishing Long-Term Value and Performance (2012). Climate Change Investment Research. DBCCA. [in English].
The SIGMA project. (2003). The SIGMA Guidelines Toolkit: Sustainability accounting guide [in English]. Van der Laan, Van Ees, H., Van Witteloostuijn, F. (2008). Corporate Social and Financial Performance: An Extended Stakeholder Theory, and Empirical Test with Accounting Measues. Journal of Business Ethics, Vol. 79, 299-310. [in English].
Vasylchuk, I. (2014). Theoretical and Methodological Approaches to Determination of the Essence of the Sustainable Corporation. The Problems of Economy. Kharkiv: Scientific journal, No. 4, 256–261. [in Ukranian].
Visser, W. (2011). The Age of Responsibility: CSR 2.0 and the New DNA of Business, Journal of Business Systems. Governance and Ethics, Vol. 5, Nо 3, 7-22. [in English].
Ye, K. and Zhang, R. (2011). Do lenders value corporate social responsibility? Evidence from China. Journal of Business Ethics, Vol. 104, 197–206. [in English].
Artiach, T., Lee, D., Nelson, D., Walker, J. (2010). The determinants of corporate sustainability performance. Accounting & Finance, Vol. 50, No 1, 31-51. [in English].
Attig, et al. (2013). Corporate Social Responsibility and Credit Ratings. Journal of Business Ethics, Vol. 117, 679-694. [in English].
Beardsell, J. (2008). The influence of CSR disclosure on corporate governance and company performance. SMC Working paper. [in English].
Brammer, S., Millington, A. (2008). Does it pay to be different? An analysis of the relationship between corporate social and financial performance. Strategic Management Journal, Vol. 29 (12), 1325-1343. [in English].
BSR report. (2018). Redefining Sustainable Business: Management for a rapidly changing world. [in English].
Clark, G., Feiner, A., Viehs, M. (2015). From the Stockholder to the Stakeholder: How sustainable can drive financial outerperformance. Oxford: Oxford University Press. [in English].
DBCCA Research. (2012). Sustainable Investing: Establishing Long-Term Value and Performance/ Climate Change Investment Research. [in English].
Elkington, J. (1997). Cannibals With Forks: The Triple Bottom Line of 21st Century Business. Oxford: Capstone Publishing. [in English].
Eppel, J. (1999). Sustainable development and environment: A renewed effort in the OECD. Environment, Development and Sustainability, Vol. 1, 41-53. [in English].
Fifka, М. (2012). The development and state of research on social and environmental reporting in global comparison. Wirtschaftsuniversitдt Wien, Austria. [in English].
Figge, F. (2001). Ein neues Maß zur Messung der Öko-Effizienz. Zeitschrift für angewandte Umweltforschung.14 Jg. Heft 1-4, 184-197. [in German].
Figge, F., Hahn, T. (2004а). Sustainable Value Added — Ein neues Maß des Nachhaltigkeitsbeitrages von Unternehmen am Beispiel der Henkel KGaA. Vierteljahreshefte zur Wirtschaftsforschung. Heft 73, 126-141. [in German].
Figge, F., Hahn, T. (2004в). Sustainable Value Added - measuring corporate contributions to sustainability beyond eco-efficiency. Ecological Economics.48. Jg. Heft 2, 173-187. [in German].
Global Reporting Initiative. (2011). Sustainability Reporting Guidelines, Amsterdam. [in English].
Hahn, T., Liesen, A., Figge, F. (2008). CO2-Performance deutscher Unternehmen - Eine wertorientierte Analyse. Umwelt Wirtschafts Forum. 16. Jg. Heft 2, 73-79. [in German].
Harrison, J. S., Bosse, D. A., Phillips, R. A. (2010). Managing for stakeholders, stakeholder utility functions, and competitive advantage. Strategic Management Journal, Vol. 31, 58-74. [in English].
Hauff, M., Kleine, A. (2009). Nachhaltige Entwicklung – Grundlagen und Umsetzung / München: Oldenbourg Wissenschaftsverlag. [in German].
Landis, C., Haller, A., Van Staden, C. (2015). The Measure of Value Added as part of Sustainability Reporting – A Comparative Study. Working Paper. [in English].
Lankoski, L. (2006). Corporate Responsibility Activities and Economic Performance: Why and How They are Connected. INSEAD Business in Society Centre. Faculty & Research. Working Paper. [in English].
Margolis, J. D., Walsh, J. P. (2003). Misery loves companies: Rethinking social initiatives by business/ Administrative Science Quarterly, Vol. 48, 268–305. [in English].
Margolis, J. D., Elfenbein, Н. А., Walsh, J. (2007). Does it pay to be good? A meta-analysis and redirection of research on the relationship between corporate social and financial performance. [in English].
Marom, I. Y. (2006). Toward a Unified Theory of the CSP-CFP Link. Journal of Business Ethics, Vol. 67 (2), 191 – 200. [in English].
Menz, K. M. (2010). Corporate social responsibility: Is it rewarded by the corporate bond market? A critical note. Journal of Business Ethics, Vol. 96, 117–134. [in English].
Mill, G. A. (2006). The Financial Performance of a Socially Responsible Investment Over Time and a Possible Link with Corporate Social Responsibility. Journal of Business Ethics, Vol. 63, No. 2, 131–148. [in English].
OECD. (2017). Investment governance and the integration of environmental, social and governance factors. [in English].
Olsen, E. (2009). Searching for Sustainability: Value Creation in an Era of Diminished Expectation. The Value Creators Report Boston Consulting Group. [in English].
Olsen, E., Stelter, D., Xhonneux, P. (2004). Value creators’ report: the next frontier – building an integrated strategy for value creation. Boston: The Boston Consulting Group. [in English].
Orlitzky, V., Schmidt, F. L., Rynes, S. L. (2003). Corporate Social and Financial Performance: A Meta-analysis. Organization Studies, Vol. 24 (3), 403 – 441. [in English].
Porter, M. E., Van der Linde, C. (1995). Green and Competitive: Ending the Stalemate. Harvard Business Review, Reprint 95507, 120 - 134. [in English].
Porter, M., Kramer, M. (2011). Creating Shared Value: How to Reinvent Capitalism — and Unleash a Wave of Innovation and Growth. Harvard Business Review, Vol. 89, No. 1/2, 62–77. [in English].
Preuss, L. (2011). Innovative CSR: A Framework for Anchoring Corporate Social Responsibility in the Innovation Literature. The Journal of Corporate Citizenship, 42, 17- 35. [in English].
Savitz, A., Weber, K. (2006). The triple bottom line: how today’s best-run companies are achieving economic, social, and environmental success – and how you can too. John Wiley&Sons, Inc. [in English].
Schoenmaker, D. (2017). Investing for the common good: a sustainable Finance Framework. Bruegel essay and Lecture series. Brussels. [in English].
Sustainable Investing: Establishing Long-Term Value and Performance (2012). Climate Change Investment Research. DBCCA. [in English].
The SIGMA project. (2003). The SIGMA Guidelines Toolkit: Sustainability accounting guide [in English]. Van der Laan, Van Ees, H., Van Witteloostuijn, F. (2008). Corporate Social and Financial Performance: An Extended Stakeholder Theory, and Empirical Test with Accounting Measues. Journal of Business Ethics, Vol. 79, 299-310. [in English].
Vasylchuk, I. (2014). Theoretical and Methodological Approaches to Determination of the Essence of the Sustainable Corporation. The Problems of Economy. Kharkiv: Scientific journal, No. 4, 256–261. [in Ukranian].
Visser, W. (2011). The Age of Responsibility: CSR 2.0 and the New DNA of Business, Journal of Business Systems. Governance and Ethics, Vol. 5, Nо 3, 7-22. [in English].
Ye, K. and Zhang, R. (2011). Do lenders value corporate social responsibility? Evidence from China. Journal of Business Ethics, Vol. 104, 197–206. [in English].
Abstract views: 526 PDF Downloads: 209
Published
2018-04-06
How to Cite
Vasylchuk, I., & Slyusarenko, K. (2018). SUSTAINABILITY AS A CORPORATE VALUE CREATOR. Scientific Journal of Polonia University, 27(2), 90-100. https://doi.org/10.23856/2710
Section
Social Sciences
