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Social Sustainability of a Firm: Orientation, Practices, and Performances

Author

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  • Xiaozhen Wang

    (School of Innovation and Entrepreneurship, Zhejiang University of Science & Technology, Hangzhou 310023, China)

  • Mark Yang

    (Department of Management, College of Business and Public Management, West Chester University, West Chester, PA 19383, USA)

  • Kihyun Park

    (Department of Management, Rockwell School of Business, Robert Morris University, Moon, PA 15108, USA)

  • Ki-Hyun Um

    (College of Business Administration, Pukyong National University, Busan 48513, Korea)

  • Mingu Kang

    (School of Management, Zhejiang University, Hangzhou 310058, China)

Abstract

This paper investigates how firms’ social sustainability practices can influence their social performance and, ultimately, financial performance. We include two corporate social sustainability practices: employee-oriented (employee well-being and equity) and socially driven (corporate social involvement) practices. Three leading social theories (social identity theory, social exchange theory, and resource-based view) are applied in explaining how firms’ social practices influence intermediate and bottom-line performance outcomes. Empirical results of 212 US manufacturing firms reveal that (1) the social orientation of the firm promotes firms’ social performances (employee-oriented and community-oriented outcomes) directly; (2) social orientation also indirectly promotes employee-oriented outcomes via employee well-being and equity practices, and so does community-oriented outcome via corporate social involvement practices; and (3) the firms’ social performances can enhance financial performance. The theoretical and managerial implications derived from these empirical results are discussed as well.

Suggested Citation

  • Xiaozhen Wang & Mark Yang & Kihyun Park & Ki-Hyun Um & Mingu Kang, 2022. "Social Sustainability of a Firm: Orientation, Practices, and Performances," IJERPH, MDPI, vol. 19(20), pages 1-12, October.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:20:p:13391-:d:944597
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    References listed on IDEAS

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