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The Impact of a Corporate Culture of Sustainability on Corporate Behavior and Performance

This year the theme for the annual conference of the National Bureau of Economic Research (NBER) is "The Consequences of Culture." Professors Robert Eccles and George Serafeim of the Harvard Business, and I will be presenting the linked paper  "The Impact of a Corporate Culture of Sustainability on Corporate Behavior and Performance."<http://www.hbs.edu/research/pdf/12-035.pdf>

One of the most important questions regarding sustainability is its impact on financial performance. In an empirical study of two matched sets of firms covering an 18-year period, we find strong evidence that the High Sustainability firms significantly outperform the Low Sustainability firms, measured in both accounting and stock market terms.

Using a database obtained from SAM enables us to show significant differences in corporate governance and stakeholder engagement between the two sets of firms.  We also show that High Sustainability firms have a longer-term time horizon, have more long-term investors, and place a greater emphasis on measuring and reporting nonfinancial information.

We will be revising this paper based on feedback we get at the conference and from others, so comments are welcome.

Biography

Professor Ioannou is a leading expert in sustainability leadership and corporate responsibility whose award-winning academic research provides valuable insights into the challenges and opportunities organizations face when developing sustainable business models. An Associate Professor at London Business School, his work focuses on strategic ESG integration and its implications for businesses and investors. He actively engages with leading companies, boards, and executives as a sought-after speaker, advisor, and author. Deeply involved with practice, he serves on advisory boards including the Sustainability Advisory Panel of Merck KGaA and the ESG Advisory Board of DWS Group. He is also a member of the World Economic Forum's Expert Network. Building on his experience advising organizations, he is interested in contributing further as a Non-Executive Director. His research is published in top journals, he is among the most cited scholars in his field, and he teaches popular courses on sustainability leadership and responsible business.

Upcoming Events

February 20, 2024

Prof. Ioannou will deliver a talk at the Family Office Conference at LBS

March 13, 2024

Prof. Ioannou will be delivering a keynote at CBS Center for Leadership Thinktank in Copenhagen.

March 14, 2024

Prof Ioannou will be keynoting ENGAGE.EU Think Tank 2024 in Bergen, Norway.

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2024 (c) Prof. Ioannis Ioannou