Abstract
Corporate social responsibility (CSR) is a burgeoning field of study, as
well as the accepted business practice for well over half a century. Mandated by
the United Nations’ Sustainable Development Goals (SDGs), the companies across
nations have aligned their strategies and operations, tapping into new markets,
investors, stakeholders, and partnering with other actors to amplify their impact
and scale in meeting these goals. However, accounting for non-financial perfor-
mance, let alone steering a company towards achieving these wider-ranging goals,
has provided unresolved challenges for practitioners and academics alike. The SDGs
are necessarily vague when it comes to metrics that might apply across the range of
business sectors and activities towards long-term value creation, leaving organisa-
tions and scholars to find and test out a variety of measures and approaches. Corporate
social responsibility (CSR) is a growing field of study and accepted business prac-
tice for more than 30 years. The SDGs are related to companies since they can help
countries achieve the goals by aligning their strategies and operations, tapping into
new markets, investors, stakeholders, and opportunities can bring several benefits,
and companies can collaborate with the SDGs. This chapter examines how long-term
value creation is measured in order to determine criteria for Environment, Social and
Governance (ESG) performance through a systematic literature review, with the aim
to identify the definitions and metrics of value creation adopted in prior research, and
to understand how various theories and methodologies have been used in relation to
this field of interest. It uses bibliometric analysis to form the basis for recommenda-
tions for further research that moves us towards a more holistic view of (long-term) value creation.
The findings document a variety of themes on CSR and value creation,
and shift in research focus with significant growth in research on CSR and shared
values. However, even though there is extensive research on CSR practices and ESG
parameters and value creation, and this field of research is growing, there are still
opposing results. It is possible to notice a lot of studies with positive, negative, or
neutral results. These inconsistent findings are mainly due to the different econo-
metric methods used, sample composition (e.g. lack of focus on industry sector), and
geographical area. Our findings offer a way forward for research on value creation
and some of the trickier drivers of performance such as organisational culture.
well as the accepted business practice for well over half a century. Mandated by
the United Nations’ Sustainable Development Goals (SDGs), the companies across
nations have aligned their strategies and operations, tapping into new markets,
investors, stakeholders, and partnering with other actors to amplify their impact
and scale in meeting these goals. However, accounting for non-financial perfor-
mance, let alone steering a company towards achieving these wider-ranging goals,
has provided unresolved challenges for practitioners and academics alike. The SDGs
are necessarily vague when it comes to metrics that might apply across the range of
business sectors and activities towards long-term value creation, leaving organisa-
tions and scholars to find and test out a variety of measures and approaches. Corporate
social responsibility (CSR) is a growing field of study and accepted business prac-
tice for more than 30 years. The SDGs are related to companies since they can help
countries achieve the goals by aligning their strategies and operations, tapping into
new markets, investors, stakeholders, and opportunities can bring several benefits,
and companies can collaborate with the SDGs. This chapter examines how long-term
value creation is measured in order to determine criteria for Environment, Social and
Governance (ESG) performance through a systematic literature review, with the aim
to identify the definitions and metrics of value creation adopted in prior research, and
to understand how various theories and methodologies have been used in relation to
this field of interest. It uses bibliometric analysis to form the basis for recommenda-
tions for further research that moves us towards a more holistic view of (long-term) value creation.
The findings document a variety of themes on CSR and value creation,
and shift in research focus with significant growth in research on CSR and shared
values. However, even though there is extensive research on CSR practices and ESG
parameters and value creation, and this field of research is growing, there are still
opposing results. It is possible to notice a lot of studies with positive, negative, or
neutral results. These inconsistent findings are mainly due to the different econo-
metric methods used, sample composition (e.g. lack of focus on industry sector), and
geographical area. Our findings offer a way forward for research on value creation
and some of the trickier drivers of performance such as organisational culture.
| Original language | English |
|---|---|
| Title of host publication | CSR, Governance and Value |
| Publisher | Springer |
| Chapter | 1 |
| Pages | 3-50 |
| Number of pages | 47 |
| ISBN (Electronic) | ISSN 2520-8780 |
| ISBN (Print) | ISSN 2520-8772 |
| Publication status | Published - 14 Aug 2024 |
Keywords
- Value creation
- Financial performance
- corporate social responsibility (CSR)
- Corporate social performance