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This research paper aims at examining the effect of three green capabilities, namely, green entrepreneurial orientation, green learning orientation, and green absorptive capacity, on triple bottom line firm performance under the natural resource‐based view (NRBV) lens. Data were collected through self‐administered surveys distributed among large firms in Egypt that have sustainability initiatives. A total of 211 responses were received, and data analysis was conducted using SMARTPLS 4.0. Results indicated an insignificant direct relationship between green entrepreneurial orientation and triple bottom line firm performance, yet results showed a positive indirect relationship between green entrepreneurial orientation and triple bottom line firm performance in the presence of green learning orientation as a mediator. Moreover, results indicated a positive indirect relationship between green entrepreneurial orientation and triple bottom line firm performance in the presence of green absorptive capacity as a mediator. Last but not the least, the relationship between green entrepreneurial orientation and triple bottom line firm performance was found to be positive when sequentially mediated by green learning orientation and green absorptive capacity. [ABSTRACT FROM AUTHOR]

Environmental sustainability has gained significant importance for organizations, highlighting the crucial role of business leaders in addressing environmental degradation. However, the connection between chief executive officer (CEO) characteristics and environmental sustainability remains understudied in academic literature. Understanding this relationship is crucial, considering the significance of environmental sustainability in organizational strategies. This paper presents the first systematic literature review (SLR) on this topic, aiming to identify gaps and opportunities for future research. The SLR analysed 139 studies on the CEO–environmental sustainability relationship. The findings indicate a recent increase in research activity, particularly peaking in 2022 and focusing on China and the United States. Most studies employed upper echelons theory and examined the influence of CEO demographic characteristics on environmental performance. However, less attention has been given to CEO psychological traits, such as personality and ethical leadership, and environmental disclosure. Furthermore, qualitative aspects of environmental disclosure, including reporting tone, readability and specificity, have received less attention. The findings offer valuable insights for academics, practitioners and policymakers. Recommendations for future research include exploring the impact of CEO psychological traits and environmental disclosure on a firm's environmental sustainability. Additionally, studying cross‐country and cross‐industry differences in this relationship is encouraged. This study makes a significant contribution to the field by shedding light on the crucial and relevant topic of environmental sustainability and its association with CEO characteristics, providing valuable insights to guide future research and inform decision‐makers. [ABSTRACT FROM AUTHOR]

Sustainability issues became ever more important for firms' business strategies. Not living up to public and stakeholders' expectations results in controversies damaging the firm's reputation. Firms integrate sustainability aspects – environmental, social, and governance (ESG) issues – in their business strategies to satisfy stakeholders ranging from customers to investors. Substantial resources are invested to increase their sustainability engagement to avoid sustainability‐related controversies. However, the degree to which sustainability engagement is effective is an open issue, as the occurrence of sustainability‐related controversies has structural components, which are under the firms' control, but also random components. Using data on firms' sustainability engagement, this paper investigates to what degree firms can actually avoid controversies by engaging in sustainability and to what degree such controversies are caused by factors beyond the firm's control, like random events or the societal environment. Our findings indicate strong sustainability engagement to be a significant factor for avoiding controversies, albeit the magnitude of the effect is very limited. While controversies are not purely random events, they are driven strongly by factors beyond the firm's strategic control, like firm size and country of origin. [ABSTRACT FROM AUTHOR]

This paper examines CEO tenure's impact on the environmental fraud committed by listed Chinese family firms from the year 2012 to 2019. Using a bivariate probit model, we provide robust evidence that CEO tenure is positively related to the environmental fraud commission, indicating that longer‐serving CEOs are more likely to violate environmental regulations and to commit fraud in the family firms. Besides, when there is a higher proportion of independent directors, CEO tenure is negatively related to the environmental fraud commission but positively related to fraud detection. Moreover, when there is a greater proportion of family members in senior positions, CEOs with longer tenure are more likely to commit environmental fraud. Our additional analysis finds that compared to non‐family professional CEOs, family CEOs are more likely to commit environmental fraud. Overall, our results call for the introduction of CEO tenure limits and the increased recruitment of independent directors in family firms. [ABSTRACT FROM AUTHOR]

Demand is increasing among investors to create portfolios that encourage positive outcomes for biological diversity. The evolution of investment strategies for transitions to zero carbon over the last two decades provides insights that will assist in shaping strategies for biodiversity‐positive investments. Many emerging approaches to capture company impact and dependence on biodiversity focus on nature‐related threats to an organisation by assessing ecosystem integrity. Other approaches focus on minimising an organisation's contribution to risks of species extinction by using data sets such as the IUCN's Red List of Threatened Species. However, while these approaches are useful for assessing threats to and from biodiversity for individual companies, to be effective for investment portfolio construction, metrics need to be comparable across companies in an investment universe. Many of the threat assessments that could link corporate activities to impacts are incomplete and omit critical information. If the investment community focuses on biodiversity without sufficient forethought, there is a risk of entrenching metrics with significant flaws. In this paper, we suggest that interim approaches are needed to support investors in understanding the approaches being taken by potential investee companies. To that end, we present and discuss a disclosure‐based Biodiversity Management Quality and a classification‐based Biodiversity Revenues metric for biodiversity‐related investing. [ABSTRACT FROM AUTHOR]

The environmental and economic benefits of adopting a circular economy (CE) approach could be significant for firms. The CE and packaging constitute a fundamental binomial for our economy, yet there are still few studies of the advantages for food value chains, especially in the wine sector. Therefore, in this paper, we address this research gap by measuring the environmental and economic performance of a circular business model (CBM) adopting the wine industry as a reference. We apply a combination of Life Cycle Assessment (LCA) and Life Cycle Costing (LCC) methods to a small Italian winemaking firm, which implements a circular strategy through the take‐back and refurbishment of wine packaging components. Results show that by implementing this sustainable and CBM, a firm can reduce greenhouse gas (GHG) emissions from 8 to 90% and save from 6 to 63% of its economic costs. [ABSTRACT FROM AUTHOR]

Implementing sustainable initiatives requires a competent leader who can sense the importance of entrepreneurial opportunities to outperform their competitors using interpersonal and sustainable skills. Considering this, current research seeks the underlying role of green entrepreneurial orientation (GEO) and green innovation (GI) between leaders' competencies and sustainable performance in small‐ and medium‐sized enterprises (SMEs) of an emerging economy. This paper also examines institutional support as a moderator between GI and sustainable performance. The data from 329 SMEs using multi‐respondent and time‐lagged strategies were collected and analyzed using "structural equation modeling." The results demonstrate that leaders' competencies significantly predicted GEO and GI, while GI strongly influences economic performance. Additionally, the association between GI and sustainable performance is strengthened by institutional support. Theoretically, this study empirically tested that leaders' sustainable competencies can lead to GI and sustainable performance. For practitioners, this study proposes that institutional support is an important factor that should be properly exploited for better social, environmental, and economic performance. [ABSTRACT FROM AUTHOR]

Building on the contingency theory, the paper aims to shed light on the contribution provided by technological innovation on sustainability reporting quality. A fuzzy expert system (FES) was developed to evaluate the cumulative effects related to the adoption of digital devices in sustainability reporting practices. The analysis underlined the enabling role covered by Sustainable Enterprise Resources Planning (S‐ERP) systems on sustainability reporting processes. In detail, we found that the disclosure of environmental information using technological platforms can lead analysts to a more accurate evaluation. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of Directive 2014/95 (hereafter, 'the Directive') issued by the European Union (EU) that mandates the disclosure of ESG information on ESG decoupling behaviour by EU‐listed firms and whether the strength of national enforcement systems of member states plays a moderating role in this relationship. Using a difference‐in‐differences design and employing a propensity score matched sample of 3020 firm‐year observations from the EU and the United States, we find that both the passage of the Directive in 2014 and the implementation of the Directive in 2017 have a mitigating effect on ESG decoupling. We also find that the strength of national enforcement systems has no impact on the relationship between the Directive and ESG decoupling. Furthermore, our additional analysis indicates that the effect of the Directive is less pronounced for firms that have their ESG information independently audited. Additionally, we find that the impact of the Directive is more pronounced for firms operating in non‐controversial industry sectors. While the Directive is under ongoing revision by the EU Parliament and Commission to be replaced by the new Corporate Sustainability Reporting Directive (CSRD), our study provides timely insights into the effectiveness of the Directive and its impact on ESG information. [ABSTRACT FROM AUTHOR]

As part of the burgeoning research on green innovation (GI) and its influence on competitive advantage (CA), this paper examines the moderating effect of research and development (R&D) on this nexus. Our framework identifies five critical capabilities that contribute to CA, namely, firm image, labor costs, product differentiation, product quality, and market share. Using a novel bias‐correction methodology, we examined the Spanish Technological Innovation Panel (PITEC in Spanish) database from 2003 to 2016 to determine whether GI practices foster CA. Treatment‐effects analyses, including propensity score matching and fuzzy difference‐in‐differences (DiD), demonstrated that R&D expenditures have a positive moderating effect on CA when controlling for the covariates GI practices, firm age, and firm size. This research advances our understanding of the interplay between GI practices, R&D investments, and CA and, as such, has implications for decision makers aiming to create sustainable CA through GI. Our findings are also highly relevant for firms seeking to remain competitive in today's evolving business climate. [ABSTRACT FROM AUTHOR]

Eco‐innovation strategies are essential elements for companies developing core competencies in the circular economy model. The academic world has begun to study the knowledge of these business decisions, and there is incipient literature on the subject. In this context, this paper aims to contribute to the current knowledge on the impact of eco‐innovation strategies on corporate performance by exposing and synthesizing the distinct positions found in the literature. For this purpose, a systematic and bibliometric review of 81 articles related to the economic impact of eco‐innovation on firm performance, as well as the barriers and drivers of these strategies, was carried out. After analyzing the several types of eco‐innovation, our results show that although previous empirical evidence suggests the existence of a positive effect, it is not generalizable due to the existence of several factors that may condition the impact of eco‐innovation on corporate performance and its implementation. This study delves into the current academic literature on eco‐innovation and firm performance, determining that both size and the environment in which a company is framed constitute a series of conditioning factors that may clarify why there is no consensus in the academic literature in this regard. In addition, this work encourages future lines of research with the aim of shedding light on this field of knowledge. [ABSTRACT FROM AUTHOR]

Industrial symbiosis (IS) is a strategy that focuses on the exchange of resources between colocated industries. Despite the benefits of IS, companies often face challenges in implementing it, primarily due to technical, economic, and information barriers. Therefore, this paper aims to investigate the feasibility of implementing IS among Brazilian companies. To achieve this, a survey was conducted with 201 colocated companies using a previously developed instrument to assess their levels of symbiotic readiness. The findings resulted in the creation of a typology of symbiotic readiness levels, accompanied by practical recommendations for each level. In general, the surveyed companies are making progress toward implementing IS, as evidenced by their attempts to exchange waste and by‐products with other colocated industries. However, overcoming barriers related to information sharing, trust‐building, access conditions, infrastructure, and partnership formation remains challenging. This study provides valuable evidence from an emerging country regarding the readiness levels of companies to implement IS, offering insights and recommendations for managers and public authorities to promote IS. It is important to note that as companies reach mature stages of IS implementation, they can collaborate to transform the conditions of the industrial parks, ultimately fostering future industrial ecosystems. [ABSTRACT FROM AUTHOR]

Innovation represents one of the most important drivers in the business context. Drawing upon the research on corporate social responsibility (CSR), shared value, and innovation, this paper aims to analyze the relationship between Environmental, Social, and Governance (ESG, a form of CSR) sustainability policies and corporate financial performance (CFP) by investigating the mediating role of Innovation (i.e., investment in research and development, R&D). Our sample comprises 148 European companies belonging to the Euro Stoxx index in the period 2009–2014. For high‐innovation companies (HICs), we find positive relationships between some Social (S) issues and CFP and weaker linkages between Environmental (E) indicators and CFP. In contrast, Governance (G) issues (i.e., issues related to board structure and board function) negatively influence CFP. In contrast, for medium‐innovation companies (MICs), these relationships are absent and low‐innovation companies (LICs) show negative relationships. Adopting reporting frameworks or guidelines affects CFP only in HIC. We introduce an original interpretative model, which identifies innovation (R&D) as the main driver in corporate sustainability, particularly in light of Social issues related to the production of a good or service. In terms of managerial implications, we identify three key factors for effectively embedding ESG in organizations' policies: investment in product innovation, compliance with environmental regulations, and corporate choices on brands and channels of external communication. [ABSTRACT FROM AUTHOR]

We examine the effect of climate change risks (CCR) on firms' decision of engaging in mergers and acquisitions (M&A) and M&A performance. In this study we use the responses by firms on 'climate change‐related risks and opportunities' of the Carbon Disclosure Project (CDP) survey and 1372 deals of US listed firms during 2010–2020. Consistent with risk vulnerability theory, our evidence indicates that firms with higher CCR have a lower probability of engaging in M&As. After controlling for possible endogeneity, our results also indicate that if acquirers with higher climate change risks choose to engage in M&A, it significantly reduces the announcement returns. These findings suggest that extant measures of climate change risks should be rethought when evaluating M&A efficiency. More broadly, our paper provides causal evidence that managers need to integrate CCR into their formal risk management systems to avoid unsuccessful M&As. [ABSTRACT FROM AUTHOR]

Many initiatives and targets have been developed to address the unsustainable consumption of resources that consider the interconnected impacts and trade‐offs that exist between different resources that are critical for the functioning of human societies and economies. Despite efforts to engage with the business sector to achieve these aims, there lacks sufficient integration of globally agreed targets (such as the United Nations Sustainable Development Goals) into business operations, and even less is understood on how these goals translate into management processes. Using a case study of water, and a consideration of the Water‐Energy‐Food‐Ecosystem (WEFE) nexus, this paper looks at the public communications made by FTSE 100 companies via their annual and CSR reports, identifying that where present, water management disclosures remain in silo and are not explicitly linked to global sustainable development goals. [ABSTRACT FROM AUTHOR]

Although innovation capabilities are essential to increase companies' success and innovative performance, they are still underexplored regarding sustainability. This paper aims to analyze how Technology Development, Operations, Management, and Transaction innovation capabilities are interrelated with sustainable companies' social, environmental, and economic sustainability. We performed a multi‐case study comprising sustainable small enterprises from four industries: sustainable fashion, sustainable hosting, shared furniture, and renewable energy. From the results, we propose that each innovation capability has three dimensions: social, environmental, and economic. Each dimension has a set of components that can differ across capabilities. We then develop a conceptual scheme, a new theoretical lens that intertwines the literature on innovation capabilities and sustainability. We propose the concepts of Sustainable Technology Development Capability, Sustainable Operations Capability, Sustainable Management Capability, and Sustainable Transaction Capability. Our findings can assist sustainable businesses to improve, and traditional companies to build, sustainable innovation capabilities. [ABSTRACT FROM AUTHOR]

The conventional view tends to consider the social dimension of the circular economy as conspicuous by its absence. This paper draws attention to business strategies and organisational practices that bring together the valorisation of wasted material resources and marginalised people. Theoretically, we build on the literature on hybrid forms of organisation and management typical of the social and solidarity economy (SSE)—for example, social cooperatives—to introduce a more realistic and dynamic model of social and solidarity circular economy (SSCE). Offering a definition of SSCE based on existing hybrid organisational practices rather than abstract ideals, we juxtapose the SSCE and the current corporate‐led CE approach across three key dimensions: strategic aims; organisational boundaries and governance mechanisms. To illustrate how this SSCE works, we focus on the case of CAUTO, an Italian network of circular social cooperatives based in Northern Italy. We identify three intertwined steps through which CAUTO developed an effective SSCE strategy: social circular innovation, networked actions and participatory scaling up. Taken together, our findings suggest a realistic pathway to business circularity that is inclusive, pragmatic and embedded in social practices. [ABSTRACT FROM AUTHOR]

As a consequence of increasingly sustainability‐oriented markets, greenwashing (GW) has become a global marketing problem throughout recent years. Previous studies do not differentiate between varying forms of GW when analyzing their effects on consumers' brand attitude but rather use GW as a one‐dimensional condition that either exists or does not exist. This paper explores how different greenwashing practices (GWPs) influence consumers' brand attitudes. We introduce a two‐dimensional typology of GWPs that differentiates between claim‐type (false, vague, or hidden information) and macro‐level of initiation (product and firm level), resulting in six distinct categories of GWPs. We then introduce 315 German participants to the six different GW scenarios in a survey and measure their respective brand attitudes. Our findings reveal that respondents react significantly differently to most GWPs, which implies that if we want to understand the problem of GW from the eyes of consumers, we need to differentiate between various forms of GW. [ABSTRACT FROM AUTHOR]

This paper empirically examines the relationship between business sustainability and firm competitiveness and the role of sustainability partnerships in the relationship between business sustainability and firm competitiveness. By classifying two dimensions (environmental sustainability and social sustainability) that are needed to realize business sustainability, this study suggests that a sustainability partnership serves as a moderator in the relation between business sustainability and firm competitiveness. Three developed hypotheses were tested using regression analysis to find the relationship between business sustainability, sustainability partnership, and firm competitiveness. Using a structured survey questionnaire, the data were collected from 135 firms that operate in construction industries in Finland. The findings suggest that investing in environmental sustainability will directly improve firm competitiveness, but investing in social sustainability will not. In addition, sustainability partnerships serve as a promoter in the relationship between social sustainability and firm competitiveness but inhibit the relationship between environmental sustainability and firm competitiveness. [ABSTRACT FROM AUTHOR]

The economic and financial risks of global warming have become a hot issue of academic interest. This article analyzes global warming, financial risk, and the economic statistics of 30 provinces in China from 2010 to 2020 as a sample to assess the influence of the severity of global warming on financial risk. Global warming is found to affect financial risk and to have a substantial favorable influence on the amount of financial risk. Global warming also has significant effects on households, enterprises, financial institutions, and governments. There is heterogeneity in the effects of climate variation on financial risk. Global warming will cause a greater accumulation of financial risk in economically developed regions. Additionally, it will lead to financial risks by causing a decline in the incomes of residents, a decline in the profits of enterprises, growth in the number of loans that financial institutions consider to be nonperforming, and a widening of the gap between government revenue and expenditures. All of these effects will have an adverse domino effect on the economy. To reduce the financial risks caused by global warming, countermeasures are being offered to ensure social cohesion, conduct risk stress testing, create risk mitigation instruments, and encourage environmentally responsible development. This paper discusses policies and provides policymakers with recommendations on how to cope with the systematic financial risks induced by climate variation. [ABSTRACT FROM AUTHOR]

This paper offers a systematic review of the literature on nonfinancial reporting in family firms, which has substantially grown in recent years. We identified and analyzed 74 articles published between 2002 and 2023. The work contributes to the domains of nonfinancial reporting and family business by providing an integrative and critical overview of the literature and by identifying future research avenues. We conclude by offering practical implications for managers, consultants, and policymakers. [ABSTRACT FROM AUTHOR]

Corruption is considered a widespread plague in most countries. Human rights, economic development, and national security are just a few of the aspects affected by corruption. The emerging literature also shows that corruption is one of the main causes of environmental degradation (particularly among developing countries) and that the phenomenon is stronger in the case of multinational companies (MNCs) due to the necessary interaction between MNCs and the host market's public officials. In this scenario, corporate anti‐corruption programs may represent a key element to enhance social, economic, and environmental wellbeing. However, evidence relative to the effectiveness of anti‐corruption models are mixed showing that compliance structures are often window‐dressing mechanisms implemented by corporate management to mitigate the corporate liabilities associated with their employees' illegal behaviors, rather than the likelihood of criminal actions per se. Thus, a practical approach is needed to understand what are the main attributes that distinguish an effective compliance program from a formal/legal one. Using a single case study approach (Eni Group), this paper aims to identify the key traits to increase the effectiveness of a compliance program in detecting and preventing illegal behaviors. [ABSTRACT FROM AUTHOR]

Corruption is a plague with serious economic and social consequences and has a greater impact than people perceive. The impacts on business are severe but often underestimated. The aim of this paper is to analyze the influence of public governance environment on the strategical opportunistic use of related party transactions in family firms. Considering corruption as a good indicator of conditions that boost unethical behavior, the study investigates whether high standard of public governance quality at a regional level, as well as low corruption, helps to reduce specific types of opportunistic transactions. Based on a regression analysis on European‐listed family firms in Italy, France, and Germany, we find that high public governance quality at the regional level reduces companies' opportunistic transactions. The study addresses a gap in the literature, first, because it empirically shows a link between the quality of the context and some unethical business strategies, confirming that a negative context leaves room for opportunistic behaviors and that high standards in the public governance quality discourage firms' opportunistic behaviors through specific transactions and, second, because it focuses on family firms suggesting that a strong family power that controls strategy and decision‐making process, if operate in a bad public quality context, may be involved in opportunistic behaviors. [ABSTRACT FROM AUTHOR]

The purpose of this research is to provide a valuable study about the development of literature on corruption prevention during the last decade suggesting the way for the future agenda. We collected documents with the aims to develop a structured literature review (SLR). We collected 113 documents adopting a not grey analysis. Our results shows two main research areas: (i) the corruption prevention understanding its features and using accounting and ethical activities in the business and government procurement and (ii) anticorruption measures, disclosure and behaviours as renewed tools to increase corporate governance sustainability and corporate social responsibility. This is the first time for proposing the SLR on corporate corruption preventions and renewed models directed to build an updated background and emerging issues. This paper is original because proposes for the first time the literature collection of corporate corruption prevention's models providing valuable insights, critique and definition for the future research. [ABSTRACT FROM AUTHOR]

The article titled "Exploring the sustainable consumption behavior in emerging countries: The role of pro-environmental self-identity, attitude, and environmental protection emotion" has been retracted due to discrepancies in the statistical analysis presented within the paper. The retraction was agreed upon following an investigation into concerns raised by a third party. The authors admit to the mistakes but were unable to provide the raw data for the study to substantiate a correction. Therefore, the article's conclusions are no longer considered valid. [Extracted from the article]