Testing sustainable value added as an integrative measure of business sustainability

Abstract

New analytical approaches used for a holistic/integral evaluation of the company created value advocate implementation of business models based on Corporate Social Responsibility (CSR) sand the Triple Bottom Line (TBL). Owing to the fact that CSR and TBL are strategically oriented on business objectives of sustainable development, especially in managing eco-efficiency, this type of value is being named -Sustainable Value Added (SVA). However, since previous research and constructive criticism of SVA models have not been adequately tested by applying the appropriate econometric models so far, in this paper author introduces applicable empirical testing of the SVA sensitivity on the Triple Bottom Line aspects: 1) financial, 2) environmental and 3) social business results. The aim of this paper is to conduct research on SVA as an integrative measure for quantitative assessment of company contributions to the long-term sustainable development. The author also advocates an important thesis regarding the extraction of the TBL data, implicating that this process validates only when a relevant number of companies, across different benchmarks, regularly publishes annual CSR reports. Such publishing ensures transparent and unified TBL data essential for SVA analysis. Research methodology rests on the comparison of SVA with a traditional economic measure of Value Added (VA) in terms of their contributions to business sustainability. Empirical testing indicates significant differences between the SVA and VA regarding their financial, environmental and social sustainability effects. Testing empirically confirms SVA as an integrative measure for sustainable business contributions. This ensures the presentation of complete and standardized data of triple results required for SVA analysis. Additional objective in this context was to investigate eco-efficiency of a specific benchmark as a sustainability precondition, measured by using the SVA.

Entrepreneurial Curiosity, Innovativeness of the Entrepreneur, and Company Growth

“…For example, variables of the family business transfer to the next generation can be added because they can be related to long-term success [ 89 , 90 , 91 ]. The model developed in this study and constructs in the model can be extended by adding sustainability elements [ 92 , 93 , 94 ]. (2) The cross-nationally comparable measurement instruments used in this research could be further validated and refined.…”

Improving Competitiveness of Small and Medium-Sized Enterprises with the Application of Quality Management System

“…The benefits of introducing a quality management system manifest in all aspects of business, from finances to management efficiency, product development, service delivery, sustainability and operational activities. The research car-ried out by Miljenović [17] states that nowadays sustainability is a crucial issue in general, regarding products and services meeting environmental, social and stakeholder demands. These are all issues of the quality addressed through the company Triple Bottom Line i.e.…”

“…These are all issues of the quality addressed through the company Triple Bottom Line i.e. financial, environmental and social sustainability [17]. Sustainability issues may be addressed through quality assessment and management in these three given areas.…”

Corporate social responsibility practices: An empirical study of voluntary and mandatory disclosure by NIFTY 100 companies

“…Companies are concerned with CSRD to mitigate negative perceptions (Jacoby, 1973), construct a platform for meaningful dialog with stakeholders to promote mutual trust (Dean, 2003), improve financial performance (Orlitzky et al, 2003), build a reputation (Dawkins, 2004), and to reduce sustainability risks and costs (Adams et al, 2012). Moreover, the integration of CSR into business operations also benefits a company through 'Enlightened self-interest' (Breitbarth & Harris, 2008;Miljenovi c, 2018). CSRD is gaining prominence in both developed and developing nations, but sustenance challenges are more pronounced for developing nations.…”

“…Therefore, the corporate sector is under enormous pressure to realize its implicit commitment and reciprocation to society. Corporate social responsibility (CSR) is a “set of business policies, strategies and operational guidelines used by companies to manage effects of their operations in a sustainable manner” (Miljenović, 2018, p.156). Notably, the CSR approach considers environmental and social aspects of doing business in addition to the financial effects.…”