| Title |
Financial performance improvement through sustainable development |
| ID_Doc |
70995 |
| Authors |
Paunica, M; Opris, VN; Opris, ME; Tanase, GL |
| Title |
Financial performance improvement through sustainable development |
| Year |
2017 |
| Published |
|
| DOI |
|
| Abstract |
Sustainable development has become a global necessity. However, economic entities face difficulties in adopting sustainable principles, given the fact that they lead to conflicts between the needs of shareholders and stakeholders, between the costs incurred and the enterprise objective: the maximization of the business value. On the assumption that an economic entity will accede to the principles of sustainable development only if it will generate future economic benefits, this paper analyses the advantages generated by the integration of sustainability in the strategies of an organization, and also the impact of sustainable development on financial performance. In order to test the link between sustainable development and financial performance we selected the top 79 companies listed on the London Stock Exchange, from the Oil and Gas industry, which report information on sustainable development. The analysis was based on an econometric model. The variable financial performance was measured by the result before taxes, and sustainable development was quantified based on predetermined criteria according to a rating scale proposed by the authors. The results reveal the existence of a positive influence of sustainable reporting on financial result, although the impact is statistically insignificant. The paper contributes to the international literature by highlighting the existence of a positive relationship between sustainability and performance and to the sustainable development implementation in economic entities by accentuating its advantages. |
| Author Keywords |
sustainable development; social responsibility; environment; society; performance |
| Index Keywords |
Index Keywords |
| Document Type |
Other |
| Open Access |
Open Access |
| Source |
Conference Proceedings Citation Index - Social Science & Humanities (CPCI-SSH) |
| EID |
WOS:000427885900001 |
| WoS Category |
Business; Business, Finance; Management |
| Research Area |
Business & Economics |
| PDF |
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