IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i20p13463-d946516.html
   My bibliography  Save this article

Organizational Competencies in the Development of Environmental, Social, and Governance (ESG) Criteria in the Industrial Sector

Author

Listed:
  • Marcia Sierdovski

    (Department of Production Engineering, Federal University of Technology—Paraná (UTFPR), Campus Ponta Grossa, Ponta Grossa 84017-220, Brazil)

  • Luiz Alberto Pilatti

    (Department of Production Engineering, Federal University of Technology—Paraná (UTFPR), Campus Ponta Grossa, Ponta Grossa 84017-220, Brazil)

  • Priscila Rubbo

    (Department of Accounting Sciences, Federal University of Technology—Paraná (UTFPR), Campus Pato Branco, Pato Branco 85503-390, Brazil)

Abstract

Sustainability has been discussed as a constant market concern, and to make it effectively an organizational practice, specific skills are needed. In that sense, the objective of this study is to analyze the relation between organizational competencies and the development of environmental, social, and governance (ESG) criteria in the industrial sector. A scientometric methodology was used to analyze the production of scientific research on the topic. To define the portfolio, a search was performed using the Methodi Ordinatio technique in the Science Direct, Scopus, and Web of Science databases using the terms “organizational competencies” or “environment, social and governance*” or “ESG” and “industry”. The study period was from the beginning of the database indexing until May 2021. The results indicate that the topic is relevant to the area of study due to the continuous growth of publications and global concern with ESG issues. In this sense, the industrial organizational competencies highlighted in the development of ESG include corporate social responsibility (CSR), and technical, managerial, and commercial competencies. The analysis demonstrates the positive relationship between organizational competencies and sustainable development, and the discussion is directed at the competencies that fortify ESG criteria and practices in industry.

Suggested Citation

  • Marcia Sierdovski & Luiz Alberto Pilatti & Priscila Rubbo, 2022. "Organizational Competencies in the Development of Environmental, Social, and Governance (ESG) Criteria in the Industrial Sector," Sustainability, MDPI, vol. 14(20), pages 1-20, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13463-:d:946516
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/20/13463/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/20/13463/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nigel Roome & Han van Kleef, 2007. "Developing capabilities and competence for sustainable business management as innovation: a research agenda," ULB Institutional Repository 2013/14319, ULB -- Universite Libre de Bruxelles.
    2. de Vasconcellos, Silvio Luis & Garrido, Ivan Lapuente & Parente, Ronaldo Couto, 2019. "Organizational creativity as a crucial resource for building international business competence," International Business Review, Elsevier, vol. 28(3), pages 438-449.
    3. Erwin Danneels, 2008. "Organizational antecedents of second‐order competences," Strategic Management Journal, Wiley Blackwell, vol. 29(5), pages 519-543, May.
    4. Bradford Cornell, 2021. "ESG preferences, risk and return," European Financial Management, European Financial Management Association, vol. 27(1), pages 12-19, January.
    5. Jun Xie & Wataru Nozawa & Michiyuki Yagi & Hidemichi Fujii & Shunsuke Managi, 2019. "Do environmental, social, and governance activities improve corporate financial performance?," Business Strategy and the Environment, Wiley Blackwell, vol. 28(2), pages 286-300, February.
    6. Shaomin Li & Marc Fetscherin & Ilan Alon & Christoph Lattemann & Kuang Yeh, 2010. "Corporate Social Responsibility in Emerging Markets," Management International Review, Springer, vol. 50(5), pages 635-654, October.
    7. Sepideh Parsa & Narisa Dai & Ataur Belal & Teng Li & Guliang Tang, 2021. "Corporate social responsibility reporting in China: political, social and corporate influences," Accounting and Business Research, Taylor & Francis Journals, vol. 51(1), pages 36-64, January.
    8. Regina Negri Pagani & João Luiz Kovaleski & Luis Mauricio Resende, 2015. "Methodi Ordinatio: a proposed methodology to select and rank relevant scientific papers encompassing the impact factor, number of citation, and year of publication," Scientometrics, Springer;Akadémiai Kiadó, vol. 105(3), pages 2109-2135, December.
    9. Emma Avetisyan & Kai Hockerts, 2017. "The Consolidation of the ESG Rating Industry as an Enactment of Institutional Retrogression," Business Strategy and the Environment, Wiley Blackwell, vol. 26(3), pages 316-330, March.
    10. Hayes, Samantha & Desha, Cheryl & Baumeister, Dayna, 2020. "Learning from nature – Biomimicry innovation to support infrastructure sustainability and resilience," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    11. Marcel C. Minutolo & Werner D. Kristjanpoller & John Stakeley, 2019. "Exploring environmental, social, and governance disclosure effects on the S&P 500 financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1083-1095, September.
    12. Martin Loosemore & Joanne Osborne & Dave Higgon, 2021. "Affective, cognitive, behavioural and situational outcomes of social procurement: a case study of social value creation in a major facilities management firm," Construction Management and Economics, Taylor & Francis Journals, vol. 39(3), pages 227-244, March.
    13. Jiatong Yu & Taesoo Moon, 2021. "Impact of Digital Strategic Orientation on Organizational Performance through Digital Competence," Sustainability, MDPI, vol. 13(17), pages 1-15, August.
    14. Guerrero, Erick G. & Kim, Ahraemi, 2013. "Organizational structure, leadership and readiness for change and the implementation of organizational cultural competence in addiction health services," Evaluation and Program Planning, Elsevier, vol. 40(C), pages 74-81.
    15. Sayema Sultana & Norhayah Zulkifli & Dalilawati Zainal, 2018. "Environmental, Social and Governance (ESG) and Investment Decision in Bangladesh," Sustainability, MDPI, vol. 10(6), pages 1-19, June.
    16. Gunnar Friede & Timo Busch & Alexander Bassen, 2015. "ESG and financial performance: aggregated evidence from more than 2000 empirical studies," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 5(4), pages 210-233, October.
    17. Olaf Weber, 2014. "Environmental, Social and Governance Reporting in China," Business Strategy and the Environment, Wiley Blackwell, vol. 23(5), pages 303-317, July.
    18. da Silva Gonçalves Zangiski, Marlene Aparecida & Pinheiro de Lima, Edson & Gouvea da Costa, Sergio E., 2013. "Organizational competence building and development: Contributions to operations management," International Journal of Production Economics, Elsevier, vol. 144(1), pages 76-89.
    19. M. Isabel Sánchez-Hernández & Jose Luis Vázquez-Burguete & Maria P. García-Miguélez & Ana Lanero-Carrizo, 2021. "Internal Corporate Social Responsibility for Sustainability," Sustainability, MDPI, vol. 13(14), pages 1-14, July.
    20. Muttanachai Suttipun, 2021. "The influence of board composition on environmental, social and governance (ESG) disclosure of Thai listed companies," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 18(4), pages 391-402, December.
    21. Carla M. Forrest, 2008. "Patterns Of Organizational Success: Leadership Competence, Organizational Knowledge Sharing, And Customer/Market Focus," World Scientific Book Chapters, in: Suliman Hawamdeh & Kimberly Stauss & Franz Barachini (ed.), Knowledge Management Competencies and Professionalism, chapter 1, pages 1-12, World Scientific Publishing Co. Pte. Ltd..
    22. Vojko Potocan, 2021. "Technology and Corporate Social Responsibility," Sustainability, MDPI, vol. 13(15), pages 1-16, August.
    23. Mariana Cunha & Filipa Mota, 2020. "Coordinated Effects of Corporate Social Responsibility," Journal of Industry, Competition and Trade, Springer, vol. 20(4), pages 617-641, December.
    24. Chitra Sriyani De Silva Lokuwaduge & Kumudini Heenetigala, 2017. "Integrating Environmental, Social and Governance (ESG) Disclosure for a Sustainable Development: An Australian Study," Business Strategy and the Environment, Wiley Blackwell, vol. 26(4), pages 438-450, May.
    25. Changiz Valmohammadi, 2014. "Impact of corporate social responsibility practices on organizational performance: an ISO 26000 perspective," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 10(3), pages 455-479, July.
    26. Shaker A. Zahra & Anders P. Nielsen & William C. Bogner, 1999. "Corporate Entrepreneurship, Knowledge, and Competence Development," Entrepreneurship Theory and Practice, , vol. 23(3), pages 169-189, April.
    27. Shakil, Mohammad Hassan, 2021. "Environmental, social and governance performance and financial risk: Moderating role of ESG controversies and board gender diversity," Resources Policy, Elsevier, vol. 72(C).
    28. Fabrizio Crespi & Milena Migliavacca, 2020. "The Determinants of ESG Rating in the Financial Industry: The Same Old Story or a Different Tale?," Sustainability, MDPI, vol. 12(16), pages 1-20, August.
    29. Clay Dibrell & Justin Craig & Jaemin Kim & Aaron Johnson, 2015. "Establishing How Natural Environmental Competency, Organizational Social Consciousness, and Innovativeness Relate," Journal of Business Ethics, Springer, vol. 127(3), pages 591-605, March.
    30. Khan, Mushtaq H., 2019. "Knowledge, skills and organizational capabilities for structural transformation," Structural Change and Economic Dynamics, Elsevier, vol. 48(C), pages 42-52.
    31. Elena Escrig-Olmedo & María Ángeles Fernández-Izquierdo & Idoya Ferrero-Ferrero & Juana María Rivera-Lirio & María Jesús Muñoz-Torres, 2019. "Rating the Raters: Evaluating how ESG Rating Agencies Integrate Sustainability Principles," Sustainability, MDPI, vol. 11(3), pages 1-16, February.
    32. Rashidah Abdul Rahman & Maha Faisal Alsayegh, 2021. "Determinants of Corporate Environment, Social and Governance (ESG) Reporting among Asian Firms," JRFM, MDPI, vol. 14(4), pages 1-13, April.
    33. Michael J. Tippins & Ravipreet S. Sohi, 2003. "IT competency and firm performance: is organizational learning a missing link?," Strategic Management Journal, Wiley Blackwell, vol. 24(8), pages 745-761, August.
    34. Patel, Pankaj C. & Pearce, John A. & Oghazi, Pejvak, 2021. "Not so myopic: Investors lowering short-term growth expectations under high industry ESG-sales-related dynamism and predictability," Journal of Business Research, Elsevier, vol. 128(C), pages 551-563.
    35. Shaomin Li & Kiran Karande & Dongsheng Zhou, 2009. "The Effect of the Governance Environment on Marketing Channel Behaviors: The Diamond Industries in the U.S., China, and Hong Kong," Journal of Business Ethics, Springer, vol. 88(3), pages 453-471, October.
    36. Liu Yang & Han Qin & Quanxin Gan & Jiafu Su, 2020. "Internal Control Quality, Enterprise Environmental Protection Investment and Finance Performance: An Empirical Study of China’s A-Share Heavy Pollution Industry," IJERPH, MDPI, vol. 17(17), pages 1-15, August.
    37. Sonali Bhattacharya & Dipasha Sharma, 2019. "Do environment, social and governance performance impact credit ratings: a study from India," International Journal of Ethics and Systems, Emerald Group Publishing Limited, vol. 35(3), pages 466-484, June.
    38. Yousuf Kamal & Craig Deegan, 2013. "Corporate Social and Environment-related Governance Disclosure Practices in the Textile and Garment Industry: Evidence from a Developing Country," Australian Accounting Review, CPA Australia, vol. 23(2), pages 117-134, June.
    39. Naim, Mohammad F & Lenka, Usha, 2020. "Organizational learning and Gen Y employees’ affective commitment: The mediating role of competency development and moderating role of strategic leadership," Journal of Management & Organization, Cambridge University Press, vol. 26(5), pages 815-831, September.
    40. Shuolei Xu & Fangjun Wang & Charles P. Cullinan & Nanyan Dong, 2022. "Corporate Tax Avoidance and Corporate Social Responsibility Disclosure Readability: Evidence from China," Australian Accounting Review, CPA Australia, vol. 32(2), pages 267-289, June.
    41. Anindita Chakravarty & Rajdeep Grewal & V. Sambamurthy, 2013. "Information Technology Competencies, Organizational Agility, and Firm Performance: Enabling and Facilitating Roles," Information Systems Research, INFORMS, vol. 24(4), pages 976-997, December.
    42. Muhammad Ahsan Syed & Safdar Ali Butt, 2017. "Financial and non-financial determinants of corporate social responsibility: empirical evidence from Pakistan," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 13(4), pages 780-797, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bruna Maria Gerônimo & Giane Gonçalves Lenzi, 2023. "Maturity Models for Testing and Calibration Laboratories: A Systematic Literature Review," Sustainability, MDPI, vol. 15(4), pages 1-22, February.
    2. Fabrizio Battisti, 2023. "SDGs and ESG Criteria in Housing: Defining Local Evaluation Criteria and Indicators for Verifying Project Sustainability Using Florence Metropolitan Area as a Case Study," Sustainability, MDPI, vol. 15(12), pages 1-37, June.
    3. Gianni Onesti & Riccardo Palumbo, 2023. "Tone at the Top for Sustainable Corporate Governance to Prevent Fraud," Sustainability, MDPI, vol. 15(3), pages 1-16, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anrafel Souza Barbosa & Maria Cristina Basilio Crispim Silva & Luiz Bueno Silva & Sandra Naomi Morioka & Vinícius Fernandes Souza, 2023. "Integration of Environmental, Social, and Governance (ESG) criteria: their impacts on corporate sustainability performance," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-18, December.
    2. Rodrigo Zeidan, 2022. "Why don't asset managers accelerate ESG investing? A sentiment analysis based on 13,000 messages from finance professionals," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3028-3039, November.
    3. Hoang, Thi Hong Van & Pham, Linh & Nguyen, Thanh Thi Phuong, 2023. "Does country sustainability improve firm ESG reporting transparency? The moderating role of firm industry and CSR engagement," Economic Modelling, Elsevier, vol. 125(C).
    4. Chen, Zhongfei & Xie, Guanxia, 2022. "ESG disclosure and financial performance: Moderating role of ESG investors," International Review of Financial Analysis, Elsevier, vol. 83(C).
    5. Lishi Zeng & Xuemei Jiang, 2023. "ESG and Corporate Performance: Evidence from Agriculture and Forestry Listed Companies," Sustainability, MDPI, vol. 15(8), pages 1-18, April.
    6. Tan, Yafei & Zhu, Zhaohui, 2022. "The effect of ESG rating events on corporate green innovation in China: The mediating role of financial constraints and managers' environmental awareness," Technology in Society, Elsevier, vol. 68(C).
    7. Olaf Weber & Rezaul Karim Chowdury, 2020. "Corporate Sustainability in Bangladeshi Banks: Proactive or Reactive Ethical Behavior?," Sustainability, MDPI, vol. 12(19), pages 1-18, September.
    8. Petridis, Konstantinos & Tampakoudis, Ioannis & Drogalas, George & Kiosses, Nikolaos, 2022. "A Support Vector Machine model for classification of efficiency: An application to M&A," Research in International Business and Finance, Elsevier, vol. 61(C).
    9. Giovanni Cardillo & Ennio Bendinelli & Giuseppe Torluccio, 2023. "COVID‐19, ESG investing, and the resilience of more sustainable stocks: Evidence from European firms," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 602-623, January.
    10. Monica Billio & Michele Costola & Iva Hristova & Carmelo Latino & Loriana Pelizzon, 2021. "Inside the ESG ratings: (Dis)agreement and performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(5), pages 1426-1445, September.
    11. Liu, Min & Guo, Tongji & Ping, Weiying & Luo, Liangqing, 2023. "Sustainability and stability: Will ESG investment reduce the return and volatility spillover effects across the Chinese financial market?," Energy Economics, Elsevier, vol. 121(C).
    12. Wang, Kai & Li, Tingting & San, Ziyao & Gao, Hao, 2023. "How does corporate ESG performance affect stock liquidity? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 80(C).
    13. Paolo Capelli & Federica Ielasi & Angeloantonio Russo, 2021. "Forecasting volatility by integrating financial risk with environmental, social, and governance risk," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(5), pages 1483-1495, September.
    14. Khan, Muhammad Arif, 2022. "ESG disclosure and Firm performance: A bibliometric and meta analysis," Research in International Business and Finance, Elsevier, vol. 61(C).
    15. Billio, Monica & Costola, Michele & Hristova, Iva & Latino, Carmelo & Pelizzon, Loriana, 2022. "Sustainable finance: A journey toward ESG and climate risk," SAFE Working Paper Series 349, Leibniz Institute for Financial Research SAFE.
    16. Ioannis Tampakoudis & Evgenia Anagnostopoulou, 2020. "The effect of mergers and acquisitions on environmental, social and governance performance and market value: Evidence from EU acquirers," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 1865-1875, July.
    17. Yu-Jin Chang & Byung-Hee Lee, 2022. "The Impact of ESG Activities on Firm Value: Multi-Level Analysis of Industrial Characteristics," Sustainability, MDPI, vol. 14(21), pages 1-17, November.
    18. Gallucci, Carmen & Santulli, Rosalia & Lagasio, Valentina, 2022. "The conceptualization of environmental, social and governance risks in portfolio studies A systematic literature review," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).
    19. Samuel Drempetic & Christian Klein & Bernhard Zwergel, 2020. "The Influence of Firm Size on the ESG Score: Corporate Sustainability Ratings Under Review," Journal of Business Ethics, Springer, vol. 167(2), pages 333-360, November.
    20. Xin Xu & Zizhen Liu, 2023. "ESG, Cultural Distance and Corporate Profitability: Evidence from Chinese Multinationals," Sustainability, MDPI, vol. 15(8), pages 1-23, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13463-:d:946516. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.