Good corporate governance and corporate sustainability performance in Indonesia: A triple bottom line approach

The composite governance mechanisms and sustainable economic performance of Pakistan's textile industry

This study examines the influence of corporate governance mechanisms on the sustainable economic performance of the textile industry in Pakistan. Performance is measured by using a global reporting initiative (GRI 201-1), an economic performance approach. The composite corporate governance mechanism index (CGMI) construction consists of five sub-indices: board of directors, disclosure and transparency, audit committee, shareholder rights, and remuneration committee. The empirical analysis demonstrated the consistency of the fixed effect model through the Hausman model specification test for data from textile firms listed on the Pakistan Stock Exchange from 2008 to 2023. However, the investigation has invoked the Generalized Method of Moments (GMM) estimation model to check its robustness. The findings indicated the positive empirical relationship between the composite CGMI and sustainable economic performance, supported by modified theoretical logics: agency theory, stewardship theory, stakeholder theory, resource-based theory, and transaction-cost theory. The findings support policymakers, regulators, and managers in executing appropriate governance mechanisms with reduced agency cost and transaction costs and improve sustainable performance.

CEO-TMT overseas experience differences and firm performance: A self-categorization theory perspective

Based on upper echelons and self-categorization theories, this study empirically examines the relationship between CEO-top management team (TMT) overseas experience differences and firm performance and the moderating effects of hometown connectedness, ownership nature, and environmental dynamics. We use data on Chinese manufacturing listed companies from 2012 to 2021. The results show that CEO-TMT overseas experience differences significantly and negatively affect firm performance. Hometown connectedness positively moderates this relationship; as CEO-TMT hometown connectedness increases, the negative impact of CEO-TMT overseas experience differences on firm performance decreases. Finally, state ownership and higher environmental dynamics mitigate the negative relationship between CEO-TMT's overseas experiences and firm performance.

Greenhouse gas emissions and corporate social responsibility in USA: A comprehensive study using dynamic panel model

This study addresses the issues of Greenhouse Gas Emission and corporate social responsibility of firms in USA. This paper estimates various econometrics estimations varying from multivariate regression, static panel modes and dynamic panel models. Finally, to control the endogeneity problem dynamic panel model is preferred to capture the relationship of greenhouse gas emissions and corporate social responsibility. The result of the study shows a positive and significant relationship between greenhouse gas emission and corporate social responsibility. Further, it is also observed that firms with better corporate social responsibility performance can reduce greenhouse gas emissions. This is the first research that attempts to explore two-way relationships between greenhouse gas emission and corporate social responsibility by using various estimation techniques varying from multivariate, OLS to dynamic panel GMM. From a policy point of view, corporate social responsibility plays an important role in managing and reducing greenhouse gas emissions, ultimately creating a secure environment for all parties while improving business performance. Policymakers should create policies to control greenhouse gas emissions and enhance corporate social responsibility.

Business transformation through sustainability based on Industry 4.0

The growing global concern with sustainability has driven companies to rethink their business model and seek new ways to operate and face this challenge. Industry 4.0 (I4.0) has shown itself capable of contributing to the development or reformulation of organizational processes to make them more competitive and sustainable. Thus, this article aims to propose drivers for the development of corporate sustainability via I4.0. To this end, a literature review and content analysis were used as research methods to identify and analyze, in recent scientific literature, boosting elements that enable organizational processes to become more sustainable via I4.0. Based on these elements, six drivers were systematized and proposed: strategy; product and process design; energy and material resources; people; smart production; and supply chain. Each driver was discussed in light of the scientific literature to generate recommendations for companies to develop the economic, social, and environmental dimensions of sustainability. The main theoretical-scientific contribution of this work is the deepening and expansion of the knowledge block that articulates corporate sustainability with I4.0, which strengthens the basis for the development of new research on these topics and creates a reference for the analysis and discussion of empirical studies. As an applied-managerial contribution, the drivers proposed in this work will provide organizations and their managers with a point of reference to effectively move towards sustainability, making their businesses greener, fairer, and more profitable. A limitation of this study is that the proposed drivers were based on the 30 most cited articles and did not consider other sources, such as documentation from companies. Therefore, for future studies, we suggest increasing the article base and include organizational repositories and identify how SMEs can become sustainable through I4.0 in a way that strengthens the social dimension of sustainability.

The Role of Green Innovation in the Effect of Corporate Social Responsibility on Firm Performance

Indonesia’s government policy recommends that medium and large companies carry out corporate social responsibility programs. These programs provide sustainability for the company because they can involve community social relations, economic growth, and increasing environmental awareness. This study aimed to test corporate social responsibility on firm performance with green innovation as a mediation. This study used PROPER companies in 2015–2019, which were chosen using a purposive sampling method involving annual reports and financial reports, yielding 253 companies as a sample. Data were obtained from the Indonesia Stock Exchange and tested using STATA. This study indicates that corporate social responsibility can increase green innovation in companies with the stability of environmentally friendly materials, emission reductions for the surrounding community, and saving energy use. Corporate social responsibility has a positive effect on firm performance because the company has maintained the continuity of the process. After all, it has a harmonious relationship with the community. Furthermore, green innovation positively affects firm performance because the company can reduce energy use and utilize environmentally friendly resources. Therefore, green innovation can mediate the influence of corporate social responsibility and firm performance. This research contributes to senior managers who are part of their company’s top management to understand the critical role of corporate social responsibility in maintaining the company’s sustainability by paying attention to the part of the company’s environment and implementing government regulations. Corporate social responsibility can maintain good stakeholder relations and increase green innovation and firm performance. Theoretical contributions can enrich research related to the context of sustainable performance.