Integrating sustainability into corporate frameworks: a multiple-perspective analysis of its effects

This doctoral dissertation explores the integration of sustainability into corporate frameworks, analysing its effects through a multiple-perspective approach. Addressing the growing academic and managerial interest in environmental, social, and governance (ESG) issues, the research offers a structured analysis divided into three interconnected parts: a literature review on the effects of integrated reporting (IR) quality, an empirical investigation into the impact of embedding ESG factors within corporate strategic priorities on firms’ non-financial performance, and a second empirical study examining the financial performance implications of an effective implementation of sustainability strategies and practices. The literature review employs the meta-analytic technique to synthesise findings from 44 empirical studies, highlighting how IR quality influences market valuation, financial, and ESG performance. The first empirical investigation focuses on the integration of ESG factors into corporate strategy and examines the moderating role of institutional ownership in enhancing ESG performance, based on a sample of 271 firms listed in the Standard and Poor’s (S&P) Europe 350 index. Using the same sample, the second empirical study adopts the resource-based view theory perspective to analyse how sustainability strategies, supported by the establishment of sustainability committees - regarded as an intangible and critical resource - drive firms’ financial performance. This dissertation contributes to the academic literature by bridging external disclosure practices with internal sustainability strategy implementation, providing a comprehensive framework for understanding the impact of sustainability on corporate performance. It also provides practical insights for managers and investors on how embedding sustainability issues into corporate strategies and external reporting foster long-term value creation.