Are firms with better sustainability performance more resilient during crises?

Abstract

This paper investigates the relationship between sustainability and financial performance using a sample of G7 firms from 2004 to 2020. We find a positive bidirectional relationship that firms with better sustainability performance are more profitable in the future and firms with better financial performance have higher subsequent sustainability performance. In addition, we test how two major crises (the financial crisis and the COVID‐19 pandemic) affect the sustainability‐financial performance relationship. Firms with better sustainability performance are hit harder on their financial performance, but the benefits of financial performance on sustainability are strengthened during the financial crisis. During the ongoing COVID‐19 crisis, firms with strong sustainability performance have been more resilient, and their financial performance has dropped less than firms with poor sustainability performance. However, the benefits of profitability on sustainability are weakened. Our results suggest that sustainability provides “insurance”‐like protection against economic downturns during COVID‐19 and mature sustainability offers economic benefits but not early‐stage sustainability. It expands the contingency perspective of sustainability–financial performance relationship to crisis management.

impact of ESG strategies integration on the operational and reputational risks

“…The results of the study of (Tasnia et al, 2020;Bătae et al, 2021) showed that there is a relation between the strategic environmental practices carried out by companies and reducing the operational risks and improving their management (Khorin & Krikunov, 2021;Pagani et al, 2021). Meanwhile, the study of (Shodiq, 2021;Al Hawaj & Buallay, 2022) showed that companies which have strategies oriented towards the environmental practices affect positively their economic and social performance and support their competitive advantage (Bătae et al, 2021;Lu et al, 2022).…”

دراسة واختبار العلاقة بین معدل النمو المستدام والأداء المالى والتشغیلى للشركات غیر المالیة المقیدة بالبورصة المصریة- من منظور محاسبى

“…‫البعض‬ ‫أشار‬ ‫فقد‬ ‫المستدام‬ ‫النمو‬ ‫لمعدل‬ ‫وبالنظر‬ (Amouzesh et al, 2011;Aifuma, 2020;Hongming et al, (Naeem et al, 2022) . ‫وبالتطرق‬ ‫األداء،‬ ‫ذلك‬ ‫ات‬ ‫لمؤشر‬ ‫البعض‬ ‫أشار‬ ‫فقد‬ (Amouzesh et al, 2011 Monalisa, 2016;Rahim, 2017;Sahin and Ergun, 2018;Aifuwa, 2020;Kolsi et al, (Uyar et al, 2020;Ramli et al, 2022) ‫ات.‬ ‫المؤشر‬ ‫تلك‬ ‫على‬ ‫المعدل‬ ‫ذلك‬ ‫تأثير‬ ‫لمدى‬ ، ‫الصدد‬ ‫ذلك‬ ‫وفى‬ ‫البعض‬ ‫اتفق‬ (Dewi and Monalisa, 2016;Aifuma, 2020;Pham et al, 2021;Lu et al, (Dewi and Monalisa, 2016;Kazempour et al, 2018;Uyar et al, 2020;Hongming et al, 2020;Zhou et al, 2021;Naeem et al, 2022;Ghardallou, 2022 (Hatono and Utami, 2016;Sahin and Ergun, 2018;Badawy, 2020;Pham et al, 2021;Ain et al, 2022;El Madbouly, 2022 (Amouzesh et al, 2011;Rahim, 2017;Mukerjee and Sen, 2018;Sahin and Ergun, 2018;Kazempour et al, 2018;Mumu et al, 2019;Uyar et al, 2020;Badawy, 2020;Kolsi et al, 2021;Ramli et al ‫منها‬ ‫التى‬ ‫السابقة‬ (Amouzesh et al, 2011;…”

“…‫أخير‬ ‫و‬ ‫ال‬ ‫اسات‬ ‫الدر‬ ‫لتحليل‬ ‫ووفقا‬ ‫سابقة‬ ‫منها‬ ‫التى‬ (Amouzesh et al, 2011;Emil et al, 2014;Dewi and Monalisa, 2016;Rahim, 2017;Sahin and Ergun, 2018;Aifuwa, 2020 (Amouzesh et al, 2011;Aifuwa, 2020;Hongming et al, 2020;Pham et al, 2021;Lu et al, 2022) (Aifuwa, 2020;Lu et al, 2022;Ramli et al, 2022;Ghardallou, 2022) . (Dewi and Monalisa, 2016;Hongming et al, 2020;Zhou et al, 2021;Ghardallou, 2022 Dewi and Monalisa, 2016;Hongming et al, 2020;Pham et al, 2021;Zhou et al, 2021;Ramli et al, 2022;Lu et al, (Lu et al, 2022;Naeem et al, 2022) . (Ujunwa, 2012;Emile et al, 2014;Rahim, 2017) ‫ويتناقض‬ ‫مع‬ (Li et al, 2015;Lu et al, 2022) .…”

“…(Dewi and Monalisa, 2016;Hongming et al, 2020;Zhou et al, 2021;Ghardallou, 2022 Dewi and Monalisa, 2016;Hongming et al, 2020;Pham et al, 2021;Zhou et al, 2021;Ramli et al, 2022;Lu et al, (Lu et al, 2022;Naeem et al, 2022) . (Ujunwa, 2012;Emile et al, 2014;Rahim, 2017) ‫ويتناقض‬ ‫مع‬ (Li et al, 2015;Lu et al, 2022) . (Sahin and Ergun, 2018;Aifuwa, 2020;Badawy, 2020;El Madbouly, 2022) .…”

Exploring the potential of SMEs to build individual, organizational, and community resilience through sustainability‐oriented business practices

“…While the commonly held view is that SMEs lack resilience due to limited capacities and resources for ex‐ante planning and preparation, their organizational agility and individual entrepreneurial qualities constitute an effective alternative means of resilience (Branicki et al, 2017; Sullivan‐Taylor & Branicki, 2011). More recently, the research perspective has broadened to look at how entrepreneurial and SME resilience affects community resilience, finding support for positive, mutual interaction (Adekola & Clelland, 2020; McNaughton & Gray, 2017; Steiner & Atterton, 2014), and a recent study found that during the COVID‐19 crisis, firms with strong sustainability performance were found to be more resilient, since their financial performance dropped less than firms with poor sustainability performance (Lu et al, 2022).…”