Accounting and Finance · 2009 · 688 citations · 25 references
ManagementStrategic ManagementSustainability ManagementCorporate FinanceCorporate Social ResponsibilityCorporate StrategyCorporate Environmental StrategyCorporate SustainabilityCorporate Sustainability StrategySustainability Performance ManagementSustainability Performance MeasurementSustainability StrategyBusiness SustainabilityCorporate Social Responsibility PerformanceStakeholder-based Performance MeasurementStakeholder-oriented Performance MeasurementSustainability Performance DriversSustainability Performance IncentivesSustainability Performance MetricsSustainability Principles
Abstract This paper investigates the factors that drive high levels of corporate sustainability performance ( CSP ), as proxied by membership of the Dow Jones Sustainability World Index. Using a stakeholder framework, we examine the incentives for US firms to invest in sustainability principles and develop a number of hypotheses that relate CSP to firm‐specific characteristics. Our results indicate that leading CSP firms are significantly larger, have higher levels of growth and a higher return on equity than conventional firms. Contrary to our predictions, leading CSP firms do not have greater free cash flows or lower leverage than other firms.
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