The Influence of Sustainability Initiatives on Corporate Performance outcomes: A Study of Causal relationships

DOI: 10.46988/ IJIHRM.05.01.2024.004

Abstract

This research study investigates the relationships between sustainability efforts and company financial results, thoroughly examining how environmental and social governance practices impact business success. Using a meta-analytic methodology, the research collects and analyzes data from various empirical investigations to assess the consistency and degree of these effects. Methods: The approach is mainly based on secondary data analysis, with sophisticated statistical tools such as regression analysis and structural equation modeling to deconstruct the relationships between sustainable practices and financial KPIs. The research compiles material from various credible sources that have reported on the subject, guaranteeing a thorough review of the existing literature.
Findings: A favorable association exists between implementing sustainability efforts and increased financial performance. This link is mediated by higher operational efficiency, better business reputation, and stakeholder trust. The study also found that organizations incorporating comprehensive sustainability plans into their core operations outperform their less proactive counterparts over time. Conclusion: The article finds that sustainability programs benefit the environment and society and improve business financial performance. It stresses sustainability as a strategic asset that may provide a competitive advantage and suggests more empirical studies to investigate these processes across diverse industrial settings and over extended periods. The report emphasizes the significance of incorporating sustainability profoundly into strategic management and operational operations.