IDEAS home Printed from https://ideas.repec.org/a/wly/corsem/v28y2021i5p1540-1548.html
   My bibliography  Save this article

Sustainability game

Author

Listed:
  • Miriam Pedol
  • Elena Biffi
  • Simone Melzi

Abstract

This paper describes a dynamic multistage game in which sustainability is a value that is shared between companies and stakeholders in a competitive market. The game solution could move from a Nash equilibrium to a higher equilibrium, the MES equilibrium, because of the presence of stakeholders who influence the choice and the set of sustainable strategies. Stakeholders provide feedback to companies (by way of awards, ratings, rankings, rebukes, etc.) at every stage of the game. Positive feedback gives a company the chance to expand its business opportunities, leveraging on good reputation, customer loyalty, operational risk mitigation, resilience, employees' cohesion, etc. The interaction between companies and stakeholders also allows companies to seize market opportunities (e.g., supplying sustainable products for responsible customers, sustainable investments for investors, etc.). The sustainability game demonstrates how sustainability can engage the economic system in a market shift.

Suggested Citation

  • Miriam Pedol & Elena Biffi & Simone Melzi, 2021. "Sustainability game," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(5), pages 1540-1548, September.
    • Handle: RePEc:wly:corsem:v:28:y:2021:i:5:p:1540-1548
    DOI: 10.1002/csr.2182
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/csr.2182
    Download Restriction: no
    File URL: https://libkey.io/10.1002/csr.2182?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Valentina Lagasio & Nicola Cucari, 2019. "Corporate governance and environmental social governance disclosure: A meta‐analytical review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(4), pages 701-711, July.
    2. Marina Brogi & Valentina Lagasio, 2019. "Environmental, social, and governance and company profitability: Are financial intermediaries different?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(3), pages 576-587, May.
    3. Rupert J. Baumgartner & Daniela Ebner, 2010. "Corporate sustainability strategies: sustainability profiles and maturity levels," Sustainable Development, John Wiley & Sons, Ltd., vol. 18(2), pages 76-89.
    4. Nicola Cucari & Salvatore Esposito De Falco & Beatrice Orlando, 2018. "Diversity of Board of Directors and Environmental Social Governance: Evidence from Italian Listed Companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(3), pages 250-266, May.
    5. Brogi, Marina & Lagasio, Valentina, 2022. "Better safe than sorry. Bank corporate governance, risk-taking, and performance," Finance Research Letters, Elsevier, vol. 44(C).
    6. Cesar Saenz, 2019. "Creating shared value using materiality analysis: Strategies from the mining industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1351-1360, November.
    7. Ronald J. Salazar & Jifu Wang & Rupak Rauniar & Xiuli Wang, 2018. "A game analysis of MNC CSR in China," Cogent Business & Management, Taylor & Francis Journals, vol. 5(1), pages 1409685-140, January.
    8. Thomas Dyllick & Kai Hockerts, 2002. "Beyond the business case for corporate sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 11(2), pages 130-141, March.
    9. Kar Yee Lo & Calvin Lee Kwan, 2017. "The Effect of Environmental, Social, Governance and Sustainability Initiatives on Stock Value – Examining Market Response to Initiatives Undertaken by Listed Companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(6), pages 606-619, November.
    10. Fabricio Stocker & Michelle P. de Arruda & Keysa M. C. de Mascena & João M. G. Boaventura, 2020. "Stakeholder engagement in sustainability reporting: A classification model," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2071-2080, September.
    11. Philip R. P. Coelho & James E. McClure & John A. Spry, 2003. "The Social Responsibility of Corporate Management: A Classical Critique," American Journal of Business, Emerald Group Publishing Limited, vol. 18(1), pages 15-24, April.
    12. Robert F Engle & Stefano Giglio & Bryan Kelly & Heebum Lee & Johannes Stroebel, 2020. "Hedging Climate Change News," The Review of Financial Studies, Society for Financial Studies, vol. 33(3), pages 1184-1216.
    13. Stewart Thornhill & Roderick E. White, 2007. "Strategic purity: A multi‐industry evaluation of pure vs. hybrid business strategies," Strategic Management Journal, Wiley Blackwell, vol. 28(5), pages 553-561, May.
    14. Langtry, Bruce, 1994. "Stakeholders and the Moral Responsibilities of Business," Business Ethics Quarterly, Cambridge University Press, vol. 4(4), pages 431-443, October.
    15. Maura Campra & Paolo Esposito & Rosa Lombardi, 2020. "The engagement of stakeholders in nonfinancial reporting: New information‐pressure, stimuli, inertia, under short‐termism in the banking industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(3), pages 1436-1444, May.
    16. Filippo Vitolla & Nicola Raimo & Michele Rubino & Antonello Garzoni, 2019. "How pressure from stakeholders affects integrated reporting quality," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1591-1606, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert Engle & Marina Brogi & Nicola Cucari & Valentina Lagasio, 2021. "Environmental, Social, Governance: Implications for businesses and effects for stakeholders," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(5), pages 1423-1425, September.
    2. Monica Billio & Michele Costola & Iva Hristova & Carmelo Latino & Loriana Pelizzon, 2021. "Inside the ESG ratings: (Dis)agreement and performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(5), pages 1426-1445, September.
    3. Paolo Capelli & Federica Ielasi & Angeloantonio Russo, 2021. "Forecasting volatility by integrating financial risk with environmental, social, and governance risk," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(5), pages 1483-1495, September.
    4. Khan, Muhammad Arif, 2022. "ESG disclosure and Firm performance: A bibliometric and meta analysis," Research in International Business and Finance, Elsevier, vol. 61(C).
    5. Marina Brogi & Antonella Cappiello & Valentina Lagasio & Fabrizio Santoboni, 2022. "Determinants of insurance companies' environmental, social, and governance awareness," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1357-1369, September.
    6. Francesco Gangi & Eugenio D'Angelo & Lucia Michela Daniele & Nicola Varrone, 2021. "Assessing the impact of socially responsible human resources management on company environmental performance and cost of debt," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(5), pages 1511-1527, September.
    7. Paolo Agnese & Francesca Romana Arduino & Massimiliano Cerciello & Simone Taddeo, 2024. "Does board knowledge matter for ESG performance in the European banking industry?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4454-4468, September.
    8. Nejla Ould Daoud Ellili, 2022. "Impact of environmental, social and governance disclosure on dividend policy: What is the role of corporate governance? Evidence from an emerging market," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1396-1413, September.
    9. Ali Uyar & Cemil Kuzey & Merve Kilic & Abdullah S. Karaman, 2021. "Board structure, financial performance, corporate social responsibility performance, CSR committee, and CEO duality: Disentangling the connection in healthcare," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1730-1748, November.
    10. Yongliang Yang & Jin Wen & Yi Li, 2020. "The Impact of Environmental Information Disclosure on the Firm Value of Listed Manufacturing Firms: Evidence from China," IJERPH, MDPI, vol. 17(3), pages 1-20, February.
    11. Nurisyal Muhamad & Sofiah Md Auzair & Amizawati Mohd Amir & Md Daud Ismail, 2016. "Measuring Sustainability Performance Measurement System," EuroEconomica, Danubius University of Galati, issue 3(12), pages 182-199, JUNE.
    12. María Luisa Pajuelo Moreno & Teresa Duarte-Atoche, 2019. "Relationship between Sustainable Disclosure and Performance—An Extension of Ullmann’s Model," Sustainability, MDPI, vol. 11(16), pages 1-33, August.
    13. Shakil, Mohammad Hassan, 2021. "Environmental, social and governance performance and financial risk: Moderating role of ESG controversies and board gender diversity," Resources Policy, Elsevier, vol. 72(C).
    14. Shyam Singh & Nathalie Holvoet & Vivek Pandey, 2018. "Bridging Sustainability and Corporate Social Responsibility: Culture of Monitoring and Evaluation of CSR Initiatives in India," Sustainability, MDPI, vol. 10(7), pages 1-19, July.
    15. Morgan X. Yang & Ji Li & Irina Y. Yu & Kevin J. Zeng & Jian‐Min (James) Sun, 2019. "Environmentally sustainable or economically sustainable? The effect of Chinese manufacturing firms' corporate sustainable strategy on their green performances," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 989-997, September.
    16. Samuel Howard Quartey & Olamide Oguntoye, 2020. "Promoting corporate sustainability in small and medium‐sized enterprises: Key determinants of intermediary performance in Africa," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1160-1172, March.
    17. Billio, Monica & Costola, Michele & Hristova, Iva & Latino, Carmelo & Pelizzon, Loriana, 2022. "Sustainable finance: A journey toward ESG and climate risk," SAFE Working Paper Series 349, Leibniz Institute for Financial Research SAFE.
    18. Yusuf Babatunde Adeneye & Setareh Fasihi & Ines Kammoun & Khaldoon Albitar, 2024. "Does earnings management constrain ESG performance? The role of corporate governance," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 21(1), pages 69-92, March.
    19. Antonis Skouloudis & Konstantinos Evangelinos & Chrisovaladis Malesios, 2015. "Priorities and Perceptions for Corporate Social Responsibility: An NGO Perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(2), pages 95-112, March.
    20. C. José García Martín & Begoña Herrero, 2020. "Do board characteristics affect environmental performance? A study of EU firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 74-94, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:corsem:v:28:y:2021:i:5:p:1540-1548. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1535-3966 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.