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Do local government sustainability initiatives impact corporate social sustainability practices?

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  • Atsuhiro Ida
  • Kenichi Yoshida
  • Jun Xie
  • Yoshitaka Tanaka
  • Shunsuke Managi

Abstract

This study quantifies the initiatives of local governments' Sustainable Development Goals (SDGs) and examines their impacts on regional corporate social sustainability practices. Our analysis reveals statistically significant results for corporate action on the following government initiatives on SDGs: BOD/COD effluent standard (6. clean water and sanitation and 14. life below water); number of students per personal computer (PC) (4. quality education); percent of female prefectural assembly members (5. gender equality and 16. peace, justice, and strong institutions); and minimum wage (1. no poverty and 2. zero hunger). These results are robust after controlling for peer effects by other firms in the surrounding regions. The evidence also indicates that these trends are more pronounced in footloose industries than in heavy industries.

Suggested Citation

  • Atsuhiro Ida & Kenichi Yoshida & Jun Xie & Yoshitaka Tanaka & Shunsuke Managi, 2024. "Do local government sustainability initiatives impact corporate social sustainability practices?," Business Strategy and the Environment, Wiley Blackwell, vol. 33(6), pages 5839-5854, September.
    • Handle: RePEc:bla:bstrat:v:33:y:2024:i:6:p:5839-5854
    DOI: 10.1002/bse.3780
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