The influence of feedback and awareness of consequences on the development of corporate sustainability action over time

Abstract

The current level of corporate sustainability is insufficient for overcoming pressing environmental and social issues. Research is therefore needed about processes that lead to increased corporate action that fosters sustainable development. This study investigates the influence of feedback and corporate awareness of consequences on the development of corporate sustainability action over time. It uses action regulation theory to quantitatively analyse data of 59 large German companies measured at two points in time. The results reveal a positive temporal development of corporate sustainability action, and awareness of consequences positively mediates the relationship between corporate sustainability actions in two different time periods. Feedback acts as a moderator between the positive effect of corporate sustainability action in the first period on corporate awareness of consequences in the second period. Based on these findings, recommendations for organisations include the importance of seeking and processing feedback.

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