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

Alshehhi, A., Nobanee, H., Khare, N. (2018). The Impact of Sustainability Practices on Corporate Financial Performance: Literature Trends and Future Research Potential. Sustainability, 10 (2) pp 494-519.

25 Pages Posted: 2 Mar 2018

See all articles by Ali Alshehhi

Ali Alshehhi

Abu Dhabi University - College of Business Administration

Haitham Nobanee

University of Oxford; Abu Dhabi University; University of Liverpool

Nilesh Khare

Jagran Lakecity University - Business School

Date Written: February 21, 2018

Abstract

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.

Keywords: corporate sustainability; financial performance; sustainability practices; sustainability impact; csr; economical sustainability; environmental sustainability; social sustainability; corporate social performance; corporate environmental performance

Suggested Citation

Alshehhi, Ali and Nobanee, Haitham and Nobanee, Haitham and Khare, Nilesh, The Impact of Sustainability Practices on Corporate Financial Performance: Literature Trends and Future Research Potential (February 21, 2018). Alshehhi, A., Nobanee, H., Khare, N. (2018). The Impact of Sustainability Practices on Corporate Financial Performance: Literature Trends and Future Research Potential. Sustainability, 10 (2) pp 494-519. , Available at SSRN: https://ssrn.com/abstract=3127668

Ali Alshehhi

Abu Dhabi University - College of Business Administration ( email )

PO Box 59911
Abu Dhabi, Abu Dhabi 59911
United Arab Emirates

Haitham Nobanee (Contact Author)

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

Abu Dhabi University ( email )

Abu Dhabi
United Arab Emirates

University of Liverpool ( email )

Chatham Street
Brownlow Hill
Liverpool, L69 7ZA
United Kingdom

Nilesh Khare

Jagran Lakecity University - Business School ( email )

Mugaliyachap, Bhopal
Madhya Pradesh, 462044
India

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
403
Abstract Views
1,845
Rank
134,014
PlumX Metrics