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The Broken Promise of Triple Bottom Line Approach in Circular Economy
Vinayak Sharma
University of Exeter, United Kingdom
The transition toward a Circular Economy (CE) represents a fundamental shift in how businesses operate, moving from traditional linear "take-make-dispose" models to regenerative circular systems that minimize waste and maximize resource value. As part of my PhD thesis at the University of Exeter, I am conducting an in-depth qualitative study examining how organizations in the automotive sector are navigating/ leading through this transition.
The transition to circular economy business models represents a crucial pathway for achieving sustainable development goals. While technical and economic aspects of circular economy implementation have been extensively studied, the social and organizational dimensions often remain understudied, particularly in the context of large multinational corporations. This research aims to address this gap by developing a comprehensive framework that supports organizations in integrating social considerations during the initial business model redesign stage of circular economy initiatives.
The primary objectives of this research are:
Examine the process and challenges of reconfiguring business models for circularity
Identify key drivers, barriers, and enablers in CE transition
Analyse how organizations harmonize economic, environmental, and social value creation in circular business models
Unveiling Corporate DEI Disclosure: An Analysis of Reporting Practices in Italy
Chiara Arrighini1, Maria Cristina Zaccone2
1Università Cattolica del Sacro Cuore, Italy; 2Università Cattolica del Sacro Cuore, Italy
Diversity, equity, and Inclusion (DEI) within organizations are increasingly seen as crucial measures of a company's commitment to social sustainability. DEI reporting in non-financial statements is particularly important, both for ethical and financial reasons, as it enhances transparency and accountability, fosters trust with key stakeholders - such as investors, employees, and customers - and provides valuable insights into non-financial risks, including a company’s capacity to manage human capital effectively. Furthermore, robust DEI reporting strengthens corporate culture and enhances competitiveness in an increasingly socially conscious market. In the European context, the legislative framework surrounding non-financial reporting provides a useful basis for deeper analysis. Specifically, the adoption of Directive 2014/95/EU marked a significant milestone by requiring large listed companies to disclose DEI-related information, thereby formalizing expectations around transparency and accountability in this area. This directive laid the groundwork for defining DEI at the legislative level and introduced mandatory reporting obligations for companies, creating a consistent standard for evaluating corporate efforts on DEI. Our paper aims to examine how companies communicate their DEI initiatives within this regulatory framework, highlighting the various approaches and strategies they employ in disclosing their commitments and actions. By analyzing these disclosures, we aim to provide a clearer understanding of how organizations navigate the intersection of regulatory compliance and their broader efforts to promote diversity, equity, and inclusion. Italian companies have traditionally placed a strong emphasis on employees’ inclusion, and more recently, this focus has been increasingly highlighted in their sustainability reports.
Trying Not to Stand Out? How Rating Feedback Influences Changes in Corporate Political Transparency
Debdeep Chatterjee
Concordia University, Canada
Despite the increasing importance of corporate political transparency, there is limited understanding of how firms dynamically manage their political transparency. Drawing on the performance feedback literature, this study proposes that firms strategically change their political transparency in response to their relative rating compared to industry peers. Further, the likelihood of these changes depends on a firm’s political activities and the level of market competition it faces. Analyzing the political transparency ratings of 366 large American firms between 2011 and 2020, the empirical findings suggest that firms are less likely to improve their political transparency ratings when they outperform their industry peers and more likely to improve when they lag behind. However, contrary to the study’s predictions, the results indicate that politically active firms and those facing weaker market competition are less inclined to increase political transparency when they lag industry peers.
The Relevance of ESG Criteria in Mergers and Acquisitions (M&A)
Eva Maria Katharina Koscher
Goethe University Frankfurt, Germany
This paper explores the relevance of ESG (Environmental, Social, and Governance) criteria in mergers and acquisitions (M&A). It highlights the growing importance of ESG performance in M&A transactions due to social expectations and regulatory pressures. The study focuses on how differences in ESG performance between acquiring and target companies impact M&A success, using event studies and ESG scores to analyze the relationship. Preliminary findings suggest that large ESG performance gaps may negatively affect M&A outcomes, though the results are not statistically significant. The study contributes to the limited research on ESG’s role in M&A by investigating disaggregated ESG pillars and recent M&A data.
SMART HEARTS – RESPONSIBLE CARTS: UNLOCKING RESPONSIBLE CONSUMER BEHAVIOR FOR A MEANINGFUL LIFE
Anastasiya Saraeva
Henley Business School, University of Reading
Global organizations face intensifying pressures to enhance their social and environmental impacts. These responsibilities are not limited to business practice alone: there is a need for a systemic shift of priorities involving a diverse range of stakeholders. One known strategy is to promote responsible consumer behavior. Traditionally, research has focused on the societal and environmental facets of responsible consumer behavior. However, this study challenges the conventional wisdom and highlights the complexity of motivations involved in responsible behavior by emphasizing both other-oriented (i.e., societal) and self-oriented (i.e., personal) responsible behavior. While contemporary literature favors the focus on the unique roles of individual emotions, this study take the step back and considers specific emotional appraisal and regulation processes such as emotional intelligence as a mechanism which may help unpack how individuals may navigate decision-making related to responsible consumption. By integrating responsible behaviors into the conceptual framework, this study seeks to provide a nuanced understanding of how individual differences in emotional and motivational factors contribute to life satisfaction through responsible consumer actions.