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Sustainability core values and sustainability risk management: Moderating effects of top management commitment and stakeholder pressure

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  • Chaminda Wijethilake
  • Tek Lama

Abstract

This study examines the moderating effects of top management commitment and stakeholder pressure on the relationship between sustainability core values and sustainability risk management (SRM). We collected survey data from senior management in both local and multinational organisations in Sri Lanka. Data were analysed via partial least squares structural equation modelling. We find that the extent to which organisations integrate sustainability into core values has a significant positive impact on SRM. As predicted, top management commitment to sustainability positively moderates the relationship. However, contrary to our expectation, stakeholder pressure for sustainability shows a negative effect on the relationship. We add novel insights into the strategic conformity of internal and external sustainability drivers on SRM.

Suggested Citation

  • Chaminda Wijethilake & Tek Lama, 2019. "Sustainability core values and sustainability risk management: Moderating effects of top management commitment and stakeholder pressure," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 143-154, January.
    • Handle: RePEc:bla:bstrat:v:28:y:2019:i:1:p:143-154
    DOI: 10.1002/bse.2245
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