The DOI matches its Crossref record; 15 of the 15 references it cites were found in a registry or an index.
How Hot Is Your Bottom Line? Linking Carbon and Financial Performance
Abstract
This study adds two new perspectives to the long-running debate regarding the linkage between corporate social performance (CSP) and corporate financial performance (CFP): First, we add the aspect of issue materiality and suggest research to put more emphasis on the question of how individual CSP issues can be assumed to systematically influence the business environment from a theoretical point of view. Second, we highlight the measurement level of the underlying data screens as an important determinant of the actual effects of CSP on CFP. Focusing on climate change, we developed a set of questions that cover a firm’s carbon emissions and carbon management strategies. These questions were included in a questionnaire sent out annually to the 2,500 largest companies by market cap within the Dow Jones Global Index by an independent Swiss-based asset management firm. Our results show that when using carbon emissions as an outcome-based measurement, corporate environmental performance pays off. Conversely, when using carbon management as a process-based measurement, we find a negative relationship between corporate environmental performance and CFP.
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Citations
Cites
Firm Resources and Sustained Competitive Advantage
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Porter, M. E., & Linde, C. V. D. (1995) · Journal of Economic Perspectives · doi:10.1257/jep.9.4.97 · Cited by 13,365
The Social Responsibility of Business Is to Increase Its Profits
Friedman, M. (2007) · Corporate Ethics and Corporate Governance · doi:10.1007/978-3-540-70818-6_14 · Cited by 11,529
Corporate Social and Financial Performance: A Meta-Analysis
Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003) · Organization Studies · doi:10.1177/0170840603024003910 · Cited by 7,641
The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications
Donaldson, T., & Preston, L. E. (1995) · The Academy of Management Review · doi:10.2307/258887 · Cited by 5,846
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A contingent resource-based view of proactive corporate environmental strategy
Aragón-Correa, J. A., & Sharma, S. (2003) · Academy of Management Review · doi:10.5465/amr.2003.8925233 · Cited by 2,362 · cited 1×
“A proactive strategy toward the environment requires unique organizational capabilities which in turn have implications for competitive advantage (Aragon-Correa & Sharma, 2003; Hart, 1995; Sharma & Vredenburg, 1998).”
Background
Cited by
Green R&D for eco-innovation and its impact on carbon emissions and firm performance
Lee, K.-H., & Min, B. (2015) · Journal of Cleaner Production · doi:10.1016/j.jclepro.2015.05.114 · Cited by 1,028
Trumpp, C., & Guenther, T. (2017) · Business Strategy and the Environment · doi:10.1002/bse.1900 · Cited by 543
Business cases for sustainability: a stakeholder theory perspective
Schaltegger, S., Hörisch, J., & Freeman, R. E. (2019) · Organization & Environment · doi:10.1177/1086026617722882 · Cited by 477
Sustainable Development and Financial Markets: Old Paths and New Avenues
Busch, T., Bauer, R., & Orlitzky, M. (2016) · Business & Society · doi:10.1177/0007650315570701 · Cited by 462
Self-citationCorporate Environmental Responsibility and Firm Risk
Cai, L., Cui, J., & Jo, H. (2016) · Journal of Business Ethics · doi:10.1007/s10551-015-2630-4 · Cited by 406
Metadata
- Authors
- Busch, T., & Hoffmann, V. H.
- Venue
- Business & Society
- Publisher
- SAGE Publications
- Published
- 2011-03-17
- Volume
- 50
- Issue
- 2
- Pages
- 233-265
- ISSN
- 0007-6503 (ISSN-L)
- 1552-4205
- OpenAlex
- W2091030139
- Cited by
- 487
- References
- 15
- FWCI
- 42.42
- Type
- journal article
- Language
- en
- Open access
- closed
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Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
