Conference Agenda

A significant body of literature on the relationship between Environmental Management Systems (EMS), related certifications (such as ISO14001 or EMAS) and Corporate Financial Performance (CFP) grew over more than twenty years of research, spanning disciplines such as operations management, financial management, business ethics and strategic management. In view of these diverse research angles, it is not surprising that methodological approaches are heterogeneous, and empirical results are mixed. The absence of conclusive evidence for a causal relationship between EMS and CFP is, however, unsatisfactory for academics and practitioners alike. This literature review aims at creating a comprehensive view of a) the various theoretical foundations; b) varying research contexts; c) assumed constructs and relationships; and d) methodological approaches, following a literature review framework by Mandler et al. (2021). The status of this research will be presented, with a critical comparison with past literature reviews performed on this topic.

To leverage the superior credibility and flexibility and lower cost of external assessments, many global buyers are transitioning from using their own employee (“second-party”) auditors to relying more heavily (or entirely) on third-party auditors to monitor and prevent environmental and social misconduct in supply chains. This shift is underpinned by ingrained assumptions about auditor incentives; specifically, that third-party auditors’ greater independence reduces bias and enhances audit quality. However, there are concerns that this transition may compromise audit quality. In this study, we break new ground by evaluating the performance of in-house second-party and third-party auditors using data from one of the world's largest fashion brands. We also delve into the allocation (scheduling) of different auditors to factories across geographies over time. Our findings have the potential to guide the design of more effective monitoring not only of suppliers, but also of other business partners that pose risks for brands, such as franchisees, distributors, vendors, and purchasing agents.

This study investigates the evolving landscape of corporate social responsibility (CSR) and its relationship with financial performance (FP). Recognizing stakeholders' expectations for CSR practices, companies now prioritize environmental and social impact alongside FP. The research emphasizes the reciprocal connection between FP and CSR reporting, proposing that companies with negative FP might leverage positive CSR aspects to enhance financial standing. It also explores the origins of environmental, social, and governance (ESG) activities in CSR, highlighting their impact on sustainable strategies and FP. Existing studies on the ESG-FP relationship yield varied results, with positive, negative, and no correlations. Amid the surge in ESG and CSR self reporting, the study aims to analyze the link between ESG reporting, management discretion in 10K disclosures, and negative FP's influence on self-disclosure. The study considers factors like reporting delay and the temporal difference between 10Ks and disclosure dates in shaping the relationship between ESG reporting and FP.

This article examines the time variation in bad cash flow and good discount rate betas of ESG stocks using a dynamic framework. We observe significant fluctuations in both beta components, with consistently higher levels of bad betas compared to good betas. Additionally, we explore the relationship between key macroeconomic factors and beta components, identifying good discount rate betas as the channel through which macroeconomic factors influence systematic risk. Specifically, good betas increase in response to decreases in inflation, industrial production, and total nonfarm payroll, while they increase following an increase in the unemployment rate. These findings suggest the importance of hedging discount rate risk in response to changes in these macroeconomic factors. The macroeconomic effect on bad cash flow betas is insignificant.