Social responsibility in new ventures: profiting from a long‐term orientation

Wang, Taiyuan; Bansal, Pratima

doi:10.1002/smj.1962

Cited by 430 publications

(363 citation statements)

References 118 publications

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“…Other approaches to measurement include efficiency, in terms of value created per unit of environmental or social damage [35,36]. Several other measurement tools exist, such as qualitative sustainability initiatives, benchmarking standards, and survey-based approaches [37,38]. While each approach has its critics, researchers argue in favor of separating sustainability into its three dimensions for operational level decision-making.…”

Section: Measures Of Total Sustainabilitymentioning

confidence: 99%

The Impact of Sustainability Practices on Corporate Financial Performance: Literature Trends and Future Research Potential

2018

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This paper presents an analysis of the literature concerning the impact of corporate sustainability on corporate financial performance. The relationship between corporate sustainable practices and financial performance has received growing attention in research, yet a consensus remains elusive. This paper identifies developing trends and the issues that hinder conclusive consensus on that relationship. We used content analysis to examine the literature and establish the current state of research. A total of 132 papers from top-tier journals are shortlisted. We find that 78% of publications report a positive relationship between corporate sustainability and financial performance. Variations in research methodology and measurement of variables lead to the divergent views on the relationship. Furthermore, literature is slowly replacing total sustainability with narrower corporate social responsibility (CSR), which is dominated by the social dimension of sustainability, while encompassing little to nothing of environmental and economic dimensions. Studies from developing countries remain scarce. More research is needed to facilitate convergence in the understanding of the relationship between corporate sustainable practices and financial performance.

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Section: Measures Of Total Sustainabilitymentioning

confidence: 99%

The Impact of Sustainability Practices on Corporate Financial Performance: Literature Trends and Future Research Potential

2018

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“…On the other hand, Boesso et al [8] argue the possibility of attaining of financial aims in both the short and the medium term, as they define the strategic approach as a combination of the descriptive approach and the instrumental approach. Nonetheless, authors such as Porter and Kramer [46] and Wang and Bansal [47], among others, relate the strategic CSR approach with the long-term financial performance aims. This is because when CSR is conceived as specific actions isolated from the business strategy, inconveniences such as the monetary cost or agency problems between the owners and the managers may absorb its benefits or advantages.…”

Section: Literature Reviewmentioning

confidence: 99%

Financial Performance of Socially Responsible Firms: The Short- and Long-Term Impact

2017

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Abstract:The pressure of society for firms to adopt socially responsible behavior is evident. Yet, Corporate Social Responsibility (CSR) needs an economic justification. In response to this, there exists a comprehensive literature that analyzes the possible relation between social and business financial performance. During the last decade, the literature has been heading toward the carrying out of dynamic studies as researches find that the relationship between social and financial performance is not static. The purpose of this work is to analyze the relevance for the financial performance of Spanish listed firms of maintaining their responsible behavior. To do so, we carry out a comparison between two analyses-one cross-sectional, and the other longitudinal-to be able to conclude whether or not adopting responsible criteria makes a difference in business financial performance in the short and long-term. Some of the results obtained in the cross-sectional study are consolidated in the long-term study. In this sense, responsible firms exhibit a higher systematic risk and have greater size. As a conclusion, be responsible does not mean less stock profitability or a lower business result. It certainly contributes to firms continuing to voluntarily incorporate good corporate social responsibility practices into their business models. What is more, these results support the governmental policies and initiatives that bolster corporate social responsibility.

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“…It takes time and efforts for firms to realize the effects of long-term sustainability practices implementation, and the process of realization involves risks (Wang and Bansal, 2012). Ahi and Searcy (2013) believe that the long-term focus is a crucial characteristic of business sustainability.…”

Section: Short-term and Long-term Sustainability Practicesmentioning

confidence: 99%

“…Firms' long-term perspective toward sustainability is best manifested by their adoption of sociallyresponsible practices (Wang and Bansal, 2012). Despite the importance of the human issues, for decades, the social aspect has been largely overlooked (Vallance, Perkins and Dixon, 2011).…”

Section: Short-term and Long-term Sustainability Practicesmentioning

confidence: 99%

“…However, this is just a temporary loss and Friedman (1970) claims that the social responsibility of business is to increase its profits, which is more likely to be realized in the long run. As Wang and Bansal (2012) point out, firms especially newly-established firms are encouraged to take a long-term attitude towards social practices because a long-term orientation magnifies the value of the benefits firms get from implementing social practices. However, results of a recent study suggest that only a small minority of Chinese firms implement the long-term sustainability practice in a systematic way (Graafland and Zhang, 2014).…”

Section: Short-term and Long-term Sustainability Practicesmentioning

confidence: 99%

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Short-term versus long-term benefits: Balanced sustainability framework and research propositions

Wu¹,

Subramanian

Abdulrahman

et al. 2017

Sustainable Production and Consumption

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Sustainability research has been expanding rapidly during recent decades. Such research takes various forms with the identification of mixed results. Even though there are several review articles on sustainability with valuable insights, the time dimension aspect of sustainability is totally missing in addition to lack of well-developed framework. This paper systematically reviews previous sustainability studies published in the refereed scientific journals for the past two decades to understand the evolution of sustainability issues in the business context and solutions proposed until now. The study categorizes the popular sustainability practices into short-and long-term practices based on the time effect, and link them with different forms of organizational capabilities and sustainability performance. The paper further proposes a two-dimensional sustainability framework that incorporates practices, capabilities and performance, and the balancing issues between short-and long-term sustainability. At the end, it suggests potential research directions for future research as well. Graphical abstract Highlights We systematically reviews the past two decades sustainability studies published in the refereed scientific journals  We use time dimension to classify and understand sustainability benefits Review of sustainability theories, practices, capabilities, and performance Classification of sustainability practices, capabilities, and sustainability performance Model & propositions development We categorized sustainability practices and performances into short-and long-term perspectives for effective managerial decisions  We propose research propositions relating firm's capability and its implementation of shortand long-term sustainability practices and sustainability performance.  We draw attention to the future role of organizational capabilities and their interactions with sustainability practices to achieve better performance.

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Social responsibility in new ventures: profiting from a long‐term orientation

Cited by 430 publications

References 118 publications

The Impact of Sustainability Practices on Corporate Financial Performance: Literature Trends and Future Research Potential

The Impact of Sustainability Practices on Corporate Financial Performance: Literature Trends and Future Research Potential

Financial Performance of Socially Responsible Firms: The Short- and Long-Term Impact

Short-term versus long-term benefits: Balanced sustainability framework and research propositions

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