Leveraging CSR for Sustainability: Assessing Performance Implications of Sustainability Reporting in a National Business System

Abstract

In the light of Agenda 2030 awareness of sustainability is steadily growing all over the world. Devastating phenomena like pandemics (Sustainable Development Goal 3 (SDGs—Agenda 2030)), poverty (Sustainable Development Goal 1 (SDGs—Agenda 2030)) as well as climate change (Sustainable Development Goal 13 (SDGs—Agenda 2030)) threaten humanity, calling for more sustainable solutions. Although economic growth (Sustainable Development Goal 8 (SDGs—Agenda 2030)) is one of the principal goals for a sustainable future, little research has been devoted to the interface of corporate social responsibility (CSR) and sustainability and their contribution to the financial sector, in view of sustainable banking. Even fewer are the studies concerning sustainable banking in Greece. This paper attempts a comparative overview of sustainability integration into businesses, focusing on the banking industry. The current theoretical analysis initially provides an extended review of the CSR and sustainability concepts, which is followed by a comprehensive analysis of non-financial disclosures (NFDs) and their business value, providing some evidence from Greece. The following sections refer to the performance implications and sustainability integration in the banking industry. Eventually, sustainable banking seems to enhance banking performance in a national business system. This is a very important deduction for sustainability to be both the cause and effect of corporate banking. Along with the discussion, some avenues for future research are highlighted.

The relationship between corporate environmental, social, governance issues and corporate sustainability in the financial sector: A managerial perspective

“…It is often alleged that sustainability reporting has positive ramifications for corporate sustainability performance only if this is perceived as an institutional obligation by the stakeholders (Sideri, 2021).…”

“…It is often alleged that sustainability reporting has positive ramifications for corporate sustainability performance only if this is perceived as an institutional obligation by the stakeholders (Sideri, 2021). As regards Greece, sustainability reporting has never been mandatory till the enactment of the relevant legislation.…”

“…Αs shown by a relevant investigation “ESG committed companies outperform the non‐committed ones” (Sideri, 2021: 11). Hence, ESG integration can contribute both to organizational and financial business performance.…”

“…Similarly, ESG commitment seems to reward banks with financial returns as well (Sideri, 2021). Although some research denies the existence of any relevant relationship (Soana, 2011), there is growing literature supporting the positive relationship between ESG and financial performance for the banking industry (Carnevale et al, 2012; Eccles et al, 2011; Eccles et al, 2014; Narwal, 2007; Simpson & Kohers, 2002; Wu & Shen, 2013), provided that the ESG principles are integrated into the banks' core business strategy.…”

Challenges to corporate social responsibility adoption for sustainability: A picture fuzzy approach

“…Due to important decisions made by the Euro Commission and European Parliament, the practice of CSR in Europe has evolved from philanthropy to obligatory action for companies operating within the EU (Arraiano & Hategan, 2019; Vollero et al, 2022). European companies have become actively involved in CSR activities and have begun operating according to international reporting standards (Sideri, 2021). This process was initiated by the increased interest in sustainable investments and the demand for informational reports about CSR, the environment, and social activities (Christensen et al, 2021).…”