How Did Organizational Resilience Work Before and after the Financial Crisis? An Empirical Study

Abstract

The purpose of this paper is to assess the role of organizational resilience as an attitude, depending on the adoption of corporate governance, environmental and social practices (CESPs), in order to react to unexpected shocks, while preserving business sustainability. Organizational resilience is defined as the capacity for an enterprise to survive, to adapt and to grow in a turbulent change or unpredicted situation. Since organizational resilience is a latent path-dependent construct, it can be evaluated through long-term outcomes in an integrated perspective. The hypotheses are tested analyzing the economic performance of U.S. companies listed in Standard & Poor’s 500 index (S&P 500) and their environmental, social and governance (ESG) data has been extracted from Asset4. The period in the study covers 14 years, from 2002 to 2015, collecting the seven years before and after the 2008 financial crisis. The results of the empirical analysis highlight that economic performances of listed companies are influenced, over the 14 year period considered in the study, not only by the traditional sustainable pillars (SEPs), but also by the corporate governance ones (CESPs).

Analysis of the Sustainable Development Indicators in the OECD Countries

“…The implementation and progress toward the SDGs are in the interest not only of the United Nations or other intergovernmental organizations, but it is in the interest of researchers all over the globe. Some very interesting research was conducted in the field of academic accounting and its role in furthering achievement of the SDGs through enhanced understanding, critiquing and advancing of accounting policy, practice and theorizing [7], while some other researchers analyzed the differences between the traditionally discrete domains of financial reporting and sustainability reporting [20], they discussed the adoption of corporate governance, environmental and social practices in order to react to unexpected shocks, while preserving business sustainability [21]. The last but not the least, was the original research on evaluation of the quality of non-financial information in two selected EU Member States before the implementation of the EU Non-financial reporting Directive that should increase the quality of sustainability reporting of the companies [22].…”

A Social Enterprise Approach to Empowering Micro, Small and Medium Enterprises (SMEs) in Indonesia

“…In developed countries, SMEs can obtain many non-financial benefits from partnership with large organizations related to environmental and social issues, company performance, operational impact, and employee performance [42]. Palmi, et al [43] further note that organizations pursuing responsible social and environmental policies have lower financial uncertainty, higher sales growth, and better chances of survival, with no short-term profit disparities. Resilience is the key factor that allows companies to move beyond survival and succeed under complex, unpredictable, and challenging conditions [44].…”

Strategies in Times of Pandemic Crisis—Retailers and Regional Resilience in Würzburg, Germany

“…Consequently, COVID-19 combines a health emergency with an economic crisis, making it a shock that is global and systemic in nature. Even though anticipatory risk management systems (natural and financial disasters) have become more common practice in order to strengthen sustainable development pathways, the latest in the aftermath of the financial crisis 2007/08 [4], they are of little value in the realm of COVID-19 pandemic. Governmental measures undertaken to prevent the virus from spreading included the restriction of people being spatially mobile, of businesses opening their shops as well as of industries producing their goods.…”