1 Introduction
2 Conceptual basis and hypothesis development
2.1 Economic motivation for sustainability management
2.2 Ethical motivation for sustainability management
2.3 Limitation of economic motivation in sustainability management
2.4 Stakeholder management
2.5 Hypotheses development
3 Data and method
3.1 Data
3.2 Regression models
3.3 Variables
• Business opportunities and social responsibility: We measure these using the scored response to the following question and a seven-point Likert scale ranging from (7) “strongly agree” to (1) “strongly disagree” (we have copied the questions from the questionnaire) |
□ Please rate the extent to which the following views describe your firm’s motivation to address the SDGs |
1. Business opportunities |
2. Social responsibility |
• Final consumers, competitors, buyers, suppliers, communities, NGOs, government agencies, media, rating agency, financial institutions, shareholders and investors, employees and auditors: The degree of pressure from each of these stakeholders is measured by the score in response to the following question using a seven-point Likert scale ranging from (7) “most influential” to (1) “not at all influential” |
□ Please rate the extent to which the following stakeholders are influential in your firm’s efforts to address the SDGs |
1. Final consumers |
2. Competitors |
⋮ |
13. Auditors |
• Biosphere, society, economy and partnership: To create these variables, we first measure the degree of recognition of the importance of each SDG using the score in response to the following question using a seven-point Likert scale ranging from (7) “most important” to (1) “not at all important” |
□ Please rate the extent to which the following SDGs are important for your firm |
1. Goal 1: No poverty |
2. Goal 2: Zero hunger |
⋮ |
17. Goal 17: Partnerships for the goals |
The SDG goals are (1) No poverty, (2) Zero hunger, (3) Good health and well-being, (4) Quality education, (5) Gender equality, (6) Clean water and sanitation, (7) Affordable and clean energy, (8) Decent work and economic growth, (9) Industry, innovation and infrastructure, (10) Reduced inequality, (11) Sustainable cities and communities, (12) Responsible consumption and production, (13) Climate action, (14) Life below water, (15) Life on land, (16) Peace, justice and strong institutions and (17) Partnerships. To simplify the characteristics of these goals, we categorize the 17 SDGs into biosphere, society, economy and partnership aspects, following the wedding cake model for the SDGs developed by the Stockholm Resilience Centre (https://www.stockholmresilience.org/research/research-news/2017-02-28-contributions-to-agenda-2030.html). According to a wedding cake model, Goals 6, 13, 14 and 15 concern the biosphere (environment), Goals 1, 2, 3, 4, 5, 7, 11 and 16 concern society, and Goals 8, 9, 10 and 12 concern the economy. Thus, we measure the group variable “biosphere” using the average score of the responses to Questions 6, 13, 14 and 15, “society” using the responses to Questions 1, 2, 3, 4, 5, 7, 11 and 16, and “economy” using the responses to Questions 8, 9, 10 and 12. Partnership is measured simply by the response to Question 17 |
• Setting KPIs for SDGs, measuring and monitoring SDG efforts, reporting SDG efforts, using SDG information on next year’s action plan and setting SDG performance indicators: We include this information in our model using a dummy variable that takes a value equal to one if the response to the following questions is (1) Yes, and 0 otherwise, (0) No |
□ Does your firm establish the following management structure to evaluate addressing the SDGs? |
1. Setting key performance indicators relating to the SDGs |
2. Measuring and monitoring the efforts to address the SDGs |
3. Reporting the efforts to address the SDGs to inside and outside of the firm |
4. Using SDG information of the efforts to address the SDGs on next year’s action plan |
5. Setting the SDG-related indicators in performance evaluation and reward systems |
• Discussing the SDGs at the board level, adequate understanding of the SDGs by inside directors and adequate understanding of the SDGs by outside directors: We measure the degree of support of corporate governance in addressing the SDGs using the scored response to the following question and a seven-point Likert scale ranging from (7) “strongly agree” to (1) “strongly disagree” |
□ Please rate the extent to which the following views describe the point of view on the SDGs by your firm’s corporate governance |
1. The SDGs are well understood as important matters to be discussed in the board meeting |
2. The thoughts of internal officers (directors, auditors and executive officers) about the SDGs are sufficiently clear |
3. The thoughts of outside officers (outside directors and outside auditors) about the SDGs are sufficiently clear |
• Employee satisfaction improvement, women’s empowerment, promotion of CSR activities in the supply chain, compliance with social norms, environmental performance improvement and GHG emissions reduction: We measure all of these using the scored response to the following questions and a seven-point Likert scale ranging from (7) “much better” to (1) “much worse” |
□ Please rate the extent to which the following performance of your firm compares with that of average firms in your industry |
1. Employee satisfaction improvement |
2. Women’s empowerment |
3. Promotion of CSR activities in supply chain |
4. Compliance with social norms |
5. Environmental performance improvement |
6. GHG emissions reduction |
• Firm size: We measure this by the logarithm of total assets (in Japanese yen) |
• ROA: We measure this by net profit divided by total assets |
• Manufacturing industry: We measure this by a dummy variable equal to one if a firm belongs to the manufacturing industry and zero otherwise (comprising agriculture, forestry & fishing, mining, oil & gas, construction & real estate, information & communication, manufacturing, transportation, utilities or services industries) |
• B-to-B: It is measured by a dummy variable equal to one if the response to the following question is “1. B-to-B” |
□ Please select the business type in your firm’s largest business unit |
1. B-to-B |
2. Business to consumers (B-to-C) |
3. Both B-to-B and B-to-C |
• EMS implementation: We measure this using the scored response to the following question along a seven-point Likert scale ranging from (7) “proactively implement” to (1) “do not implement at all” |
□ Please rate the extent to which your firm implements the following EMSs |
1. EMS equivalent to ISO 14001 |
• HOSE, HNX and UPCoM: We measure these with a dummy variable equal to one if the firm is listed on the Ho Chi Minh Stock Exchange (HOSE), Hanoi Stock Exchange (HNX) or as an Unlisted Public Company Market (UPCoM) on the HNX |
Japanese firms | Vietnamese firms | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Obs | Mean | SD | Min | Max | Obs | Mean | SD | Min | Max | |
Motivation to address the SDGs | ||||||||||
Business opportunities | 233 | 5.708 | 1.313 | 1 | 7 | 242 | 6.252 | 0.882 | 2 | 7 |
Social responsibility | 233 | 6.112 | 0.985 | 3 | 7 | 242 | 6.062 | 0.981 | 4 | 7 |
Stakeholders | ||||||||||
Final consumers | 234 | 5.440 | 1.429 | 1 | 7 | 242 | 5.785 | 1.270 | 1 | 7 |
Competitors | 234 | 4.919 | 1.416 | 1 | 7 | 242 | 5.562 | 1.144 | 3 | 7 |
Buyers | 234 | 5.697 | 1.276 | 1 | 7 | 242 | 5.967 | 1.126 | 3 | 7 |
Suppliers | 234 | 5.141 | 1.390 | 1 | 7 | 242 | 5.512 | 1.299 | 2 | 7 |
Communities | 234 | 5.265 | 1.367 | 1 | 7 | 242 | 5.599 | 1.086 | 2 | 7 |
NGOs | 234 | 4.543 | 1.564 | 1 | 7 | 242 | 5.293 | 1.082 | 2 | 7 |
Government agencies | 234 | 5.043 | 1.473 | 1 | 7 | 242 | 5.446 | 1.332 | 3 | 7 |
Media | 234 | 4.611 | 1.404 | 1 | 7 | 242 | 5.657 | 1.032 | 2 | 8 |
Rating agency | 234 | 5.261 | 1.464 | 1 | 7 | 242 | 5.339 | 1.345 | 2 | 7 |
Financial institutions | 234 | 5.004 | 1.410 | 1 | 7 | 242 | 5.413 | 1.456 | 2 | 7 |
Shareholders and investors | 234 | 5.769 | 1.160 | 1 | 7 | 242 | 5.921 | 1.096 | 2 | 7 |
Employees | 234 | 5.248 | 1.386 | 1 | 7 | 242 | 6.145 | 0.942 | 3 | 7 |
Auditors | 234 | 4.786 | 1.443 | 1 | 7 | 242 | 5.905 | 1.048 | 3 | 7 |
Recognition of importance of the SDGs | ||||||||||
Biosphere | 233 | 5.425 | 1.064 | 2.250 | 7 | 239 | 4.368 | 1.160 | 1 | 6.750 |
Society | 232 | 5.245 | 0.880 | 2.375 | 7 | 241 | 4.821 | 0.757 | 3.125 | 6.625 |
Economy | 234 | 5.696 | 0.863 | 3 | 7 | 242 | 5.412 | 1.005 | 2.750 | 7 |
Partnership | 234 | 5.397 | 1.327 | 1 | 7 | 242 | 5.508 | 1.178 | 2 | 7 |
Establishment of management structure to evaluate addressing the SDGs | ||||||||||
Setting KPIs for SDGs | 234 | 0.380 | 0.487 | 0 | 1 | 242 | 0.975 | 0.156 | 0 | 1 |
Measuring and monitoring SDG efforts | 234 | 0.410 | 0.493 | 0 | 1 | 242 | 0.736 | 0.442 | 0 | 1 |
Reporting SDG initiatives | 234 | 0.543 | 0.499 | 0 | 1 | 242 | 0.591 | 0.493 | 0 | 1 |
Using SDG information on next year's action plan | 234 | 0.530 | 0.500 | 0 | 1 | 242 | 0.529 | 0.500 | 0 | 1 |
Setting SDG performance indicators | 228 | 0.079 | 0.270 | 0 | 1 | 242 | 0.682 | 0.467 | 0 | 1 |
Support of corporate governance for addressing the SDGs | ||||||||||
Discussing the SDGs at the board level | 234 | 5.000 | 1.485 | 1 | 7 | 242 | 5.492 | 1.475 | 3 | 7 |
Adequate understanding the SDGs by inside directors | 234 | 4.863 | 1.488 | 1 | 7 | 242 | 5.653 | 1.337 | 2 | 7 |
Adequate understanding the SDGs by outside directors | 234 | 4.940 | 1.428 | 1 | 7 | 242 | 5.822 | 1.173 | 3 | 7 |
SDG performance | ||||||||||
Employee satisfaction improvement | 219 | 4.461 | 0.930 | 1 | 7 | 242 | 4.979 | 1.158 | 2 | 7 |
Women's empowerment | 221 | 4.335 | 1.245 | 1 | 7 | 242 | 5.360 | 1.191 | 2 | 7 |
Promotion of CSR activities in supply chain | 220 | 4.245 | 1.308 | 1 | 7 | 242 | 5.079 | 1.225 | 2 | 7 |
Compliance with social norms | 220 | 4.759 | 1.135 | 2 | 7 | 242 | 4.992 | 1.014 | 3 | 7 |
Firm reputation improvement | 221 | 4.647 | 1.028 | 2 | 7 | 242 | 5.236 | 1.042 | 3 | 7 |
Environmental performance improvement | 222 | 4.793 | 1.174 | 2 | 7 | 242 | 4.988 | 1.060 | 2 | 7 |
GHG emissions Reduction | 221 | 4.647 | 1.203 | 1 | 7 | 242 | 4.475 | 1.469 | 1 | 7 |
Control variables | ||||||||||
Firm size | 234 | 12.002 | 1.587 | 7.155 | 16.695 | 242 | 7.752 | 1.531 | 4.133 | 12.816 |
ROA | 234 | 0.050 | 0.052 | − 0.153 | 0.218 | 242 | 0.053 | 0.070 | − 0.341 | 0.379 |
Manufacturing industry | 234 | 0.568 | 0.496 | 0 | 1 | 242 | 0.479 | 0.501 | 0 | 1 |
B-to-B | 234 | 0.641 | 0.481 | 0 | 1 | 242 | 0.128 | 0.335 | 0 | 1 |
EMS | 234 | 5.953 | 1.847 | 1 | 7 | 242 | 5.298 | 1.630 | 1 | 7 |
HOSE | – | – | – | – | – | 242 | 0.186 | 0.390 | 0 | 1 |
HNX | – | – | – | – | – | 242 | 0.269 | 0.444 | 0 | 1 |
UPCOM | – | – | – | – | – | 242 | 0.545 | 0.499 | 0 | 1 |
IMR | 234 | 1.624 | 0.209 | 0.051 | 2.093 | 242 | 1.421 | 0.169 | 1.099 | 1.955 |
3.4 Correcting for sample selection bias
4 Estimation results
(1) | (2) | |||
---|---|---|---|---|
Business opportunities | Social responsibility | |||
Coefficient | Robust S.E | Coefficient | Robust S.E | |
Japanese firms | ||||
Final consumers | 0.118 | 0.071 | 0.066 | 0.080 |
Competitors | 0.039 | 0.069 | − 0.063 | 0.071 |
Buyers | 0.197 | 0.081* | 0.137 | 0.084 |
Suppliers | − 0.034 | 0.080 | − 0.033 | 0.073 |
Communities | − 0.063 | 0.078 | 0.179 | 0.075* |
NGOs | 0.151 | 0.090 | 0.132 | 0.066* |
Government agencies | − 0.019 | 0.073 | 0.091 | 0.089 |
Media | − 0.099 | 0.081 | − 0.126 | 0.098 |
Rating agency | 0.033 | 0.076 | 0.033 | 0.080 |
Financial institutions | 0.089 | 0.083 | 0.015 | 0.082 |
Shareholders and investors | 0.133 | 0.105 | 0.020 | 0.100 |
Employees | 0.110 | 0.094 | − 0.053 | 0.081 |
Auditors | − 0.046 | 0.075 | 0.052 | 0.071 |
Firm size | 0.125 | 0.084 | − 0.086 | 0.075 |
ROA | 0.891 | 1.370 | − 0.962 | 1.450 |
Manufacturing industry | − 0.229 | 0.223 | − 0.557 | 0.223* |
B-to-B | 0.440 | 0.176* | 0.179 | 0.189 |
EMS | − 0.012 | 0.052 | 0.070 | 0.052 |
IMR | − 0.348 | 0.651 | − 0.628 | 0.667 |
Observations | 233 | 233 | ||
Pseudo R2 | 0.130 | 0.081 | ||
Vietnamese firms | ||||
Final consumers | 0.185 | 0.093* | 0.165 | 0.086 |
Competitors | 0.310 | 0.133* | 0.221 | 0.109* |
Buyers | 0.154 | 0.101 | 0.201 | 0.094* |
Suppliers | − 0.073 | 0.087 | 0.032 | 0.091 |
Communities | 0.216 | 0.096* | 0.002 | 0.091 |
NGOs | − 0.024 | 0.083 | − 0.068 | 0.084 |
Government agencies | − 0.111 | 0.106 | − 0.063 | 0.091 |
Media | − 0.006 | 0.099 | 0.001 | 0.094 |
Rating agency | 0.190 | 0.089* | 0.065 | 0.082 |
Financial institutions | − 0.165 | 0.080* | − 0.187 | 0.076* |
Shareholders and investors | 0.250 | 0.112* | 0.383 | 0.112*** |
Employees | 0.147 | 0.120 | 0.025 | 0.109 |
Auditors | − 0.150 | 0.110 | 0.009 | 0.113 |
Firm size | − 0.052 | 0.065 | − 0.042 | 0.068 |
ROA | 0.475 | 1.585 | 2.159 | 1.571 |
Manufacturing industry | 0.412 | 0.436 | 0.783 | 0.409 |
B-to-B | 0.226 | 0.315 | 0.129 | 0.281 |
EMS | 0.177 | 0.055*** | 0.086 | 0.054 |
HNX | − 1.380 | 0.422*** | − 1.466 | 0.390*** |
UPCOM | − 0.940 | 0.289*** | − 0.892 | 0.272*** |
IMR | 1.348 | 1.352 | 2.252 | 1.258 |
Observations | 242 | 242 | ||
Pseudo R2 | 0.270 | 0.254 |
(1) | (2) | (3) | (4) | |||||
---|---|---|---|---|---|---|---|---|
Biosphere | Society | Economy | Partnership | |||||
Coefficient | Robust S.E | Coefficient | Robust S.E | Coefficient | Robust S.E | Coefficient | Robust S.E | |
Japanese firms | ||||||||
Business opportunities | 0.159 | 0.059** | 0.157 | 0.048*** | 0.109 | 0.050* | 0.133 | 0.071 |
Social responsibility | 0.111 | 0.061 | 0.118 | 0.056* | 0.105 | 0.055 | 0.160 | 0.087 |
Final consumers | − 0.035 | 0.064 | − 0.016 | 0.045 | − 0.022 | 0.054 | − 0.016 | 0.072 |
Competitors | − 0.098 | 0.059 | 0.002 | 0.043 | 0.026 | 0.051 | 0.018 | 0.070 |
Buyers | − 0.018 | 0.078 | 0.021 | 0.059 | 0.016 | 0.058 | − 0.073 | 0.107 |
Suppliers | − 0.021 | 0.071 | − 0.064 | 0.049 | − 0.084 | 0.059 | 0.012 | 0.079 |
Communities | 0.147 | 0.068* | 0.087 | 0.052 | 0.107 | 0.056 | − 0.056 | 0.075 |
NGOs | 0.052 | 0.061 | 0.156 | 0.046*** | 0.084 | 0.050 | 0.126 | 0.070 |
Government agencies | − 0.045 | 0.070 | − 0.089 | 0.060 | − 0.060 | 0.062 | − 0.018 | 0.077 |
Media | 0.027 | 0.068 | 0.015 | 0.057 | 0.011 | 0.061 | 0.110 | 0.088 |
Rating agency | 0.007 | 0.063 | − 0.045 | 0.049 | 0.010 | 0.055 | − 0.079 | 0.084 |
Financial institutions | 0.124 | 0.066 | 0.035 | 0.050 | 0.075 | 0.052 | 0.022 | 0.085 |
Shareholders and investors | 0.013 | 0.076 | 0.076 | 0.062 | 0.033 | 0.071 | 0.030 | 0.103 |
Employees | 0.183 | 0.075* | 0.081 | 0.056 | 0.151 | 0.058** | 0.275 | 0.089** |
Auditors | 0.066 | 0.064 | 0.039 | 0.049 | 0.011 | 0.053 | 0.025 | 0.085 |
Firm size | 0.014 | 0.048 | 0.029 | 0.048 | − 0.058 | 0.043 | 0.053 | 0.068 |
ROA | − 0.810 | 1.146 | 0.387 | 0.851 | 0.661 | 0.980 | 0.070 | 1.416 |
Manufacturing industry | 0.060 | 0.139 | − 0.169 | 0.115 | − 0.117 | 0.111 | − 0.176 | 0.200 |
B-to-B | 0.158 | 0.137 | 0.004 | 0.115 | 0.152 | 0.116 | 0.208 | 0.186 |
EMS | 0.034 | 0.035 | − 0.004 | 0.034 | − 0.011 | 0.035 | 0.010 | 0.045 |
IMR | − 0.071 | 0.293 | − 0.192 | 0.303 | − 0.549 | 0.259* | − 0.468 | 0.557 |
Constant | 1.468 | 1.036 | 2.194 | 0.958* | 4.198 | 0.933*** | – | – |
Observations | 231 | 230 | 232 | 232 | ||||
R2/Pseudo R2 | 0.448 | 0.437 | 0.373 | 0.122 | ||||
Vietnamese firms | ||||||||
Business opportunities | 0.049 | 0.093 | 0.040 | 0.064 | 0.130 | 0.057* | 0.006 | 0.107 |
Social responsibility | 0.000 | 0.090 | 0.196 | 0.060*** | 0.248 | 0.058*** | 0.286 | 0.106** |
Final consumers | − 0.039 | 0.068 | − 0.059 | 0.052 | − 0.066 | 0.054 | 0.016 | 0.090 |
Competitors | − 0.198 | 0.081* | − 0.017 | 0.046 | 0.082 | 0.053 | − 0.049 | 0.118 |
Buyers | − 0.054 | 0.076 | 0.117 | 0.058* | 0.075 | 0.045 | 0.181 | 0.097 |
Suppliers | 0.029 | 0.065 | 0.154 | 0.049** | 0.143 | 0.040*** | 0.126 | 0.088 |
Communities | − 0.028 | 0.073 | 0.074 | 0.046 | 0.073 | 0.046 | 0.061 | 0.091 |
NGOs | 0.159 | 0.057** | − 0.021 | 0.043 | 0.035 | 0.039 | − 0.009 | 0.079 |
Government agencies | − 0.077 | 0.067 | − 0.019 | 0.046 | 0.094 | 0.046* | 0.091 | 0.083 |
Media | 0.005 | 0.079 | − 0.087 | 0.047 | − 0.068 | 0.047 | 0.084 | 0.100 |
Rating agency | − 0.001 | 0.066 | 0.025 | 0.045 | 0.096 | 0.043* | 0.110 | 0.082 |
Financial institutions | 0.077 | 0.062 | 0.134 | 0.044** | 0.079 | 0.039* | 0.212 | 0.081** |
Shareholders and investors | 0.165 | 0.078* | 0.049 | 0.061 | 0.070 | 0.063 | 0.087 | 0.125 |
Employees | 0.038 | 0.085 | − 0.053 | 0.058 | − 0.020 | 0.067 | − 0.006 | 0.124 |
Auditors | − 0.152 | 0.087 | − 0.001 | 0.061 | − 0.047 | 0.051 | − 0.153 | 0.113 |
Firm size | − 0.011 | 0.051 | 0.018 | 0.030 | 0.025 | 0.030 | 0.024 | 0.056 |
ROA | − 0.106 | 1.071 | − 0.130 | 0.730 | − 1.822 | 0.563*** | − 0.479 | 1.363 |
Manufacturing industry | 0.150 | 0.369 | − 0.027 | 0.210 | − 0.389 | 0.155* | − 0.365 | 0.355 |
B-to-B | 0.160 | 0.183 | − 0.070 | 0.122 | 0.157 | 0.125 | 0.317 | 0.218 |
EMS | 0.418 | 0.049*** | 0.053 | 0.033 | 0.002 | 0.023 | − 0.104 | 0.049* |
HNX | − 0.012 | 0.306 | − 0.209 | 0.201 | − 0.295 | 0.180 | 0.119 | 0.344 |
UPCOM | 0.013 | 0.215 | − 0.072 | 0.124 | − 0.173 | 0.099 | 0.070 | 0.214 |
IMR | 0.570 | 1.141 | 0.126 | 0.688 | − 1.418 | 0.501** | − 0.799 | 1.090 |
Constant | 1.508 | 1.854 | 1.255 | 1.076 | 2.327 | 0.817** | – | – |
Observations | 239 | 241 | 242 | 242 | ||||
R2/Pseudo R2 | 0.461 | 0.488 | 0.742 | 0.192 |
(1) | (2) | (3) | (4) | (5) | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Setting KPIs for SDGs | Measuring and monitoring SDG efforts | Reporting SDG initiatives | Using SDG information on next year's action plan | Setting SDG performance indicators | ||||||
Coefficient | Robust S.E | Coefficient | Robust S.E | Coefficient | Robust S.E | Coefficient | Robust S.E | Coefficient | Robust S.E | |
Japanese firms | ||||||||||
Business opportunities | 0.154 | 0.095 | 0.125 | 0.099 | 0.096 | 0.083 | 0.073 | 0.084 | − 0.221 | 0.139 |
Social responsibility | − 0.069 | 0.114 | 0.037 | 0.112 | 0.295 | 0.101** | 0.054 | 0.096 | − 0.021 | 0.135 |
Final consumers | 0.083 | 0.097 | 0.082 | 0.097 | 0.056 | 0.096 | 0.063 | 0.090 | 0.315 | 0.156* |
Competitors | − 0.022 | 0.094 | 0.044 | 0.097 | − 0.052 | 0.092 | 0.106 | 0.090 | 0.235 | 0.141 |
Buyers | − 0.080 | 0.120 | 0.027 | 0.114 | 0.121 | 0.118 | − 0.057 | 0.116 | − 0.159 | 0.165 |
Suppliers | 0.037 | 0.109 | − 0.067 | 0.111 | − 0.157 | 0.106 | − 0.118 | 0.094 | 0.190 | 0.161 |
Communities | 0.194 | 0.105 | 0.163 | 0.107 | − 0.007 | 0.104 | 0.001 | 0.094 | − 0.201 | 0.167 |
NGOs | − 0.014 | 0.097 | 0.069 | 0.102 | 0.167 | 0.096 | 0.194 | 0.092* | 0.296 | 0.141* |
Government agencies | 0.202 | 0.117 | 0.093 | 0.112 | 0.037 | 0.109 | 0.022 | 0.099 | 0.019 | 0.143 |
Media | − 0.164 | 0.124 | − 0.032 | 0.122 | − 0.082 | 0.118 | − 0.095 | 0.111 | − 0.234 | 0.155 |
Rating agency | 0.225 | 0.110* | 0.216 | 0.112 | 0.247 | 0.101* | 0.249 | 0.097** | 0.019 | 0.141 |
Financial institutions | 0.050 | 0.114 | − 0.110 | 0.113 | − 0.088 | 0.106 | − 0.034 | 0.104 | − 0.106 | 0.147 |
Shareholders and investors | 0.059 | 0.130 | 0.198 | 0.132 | 0.119 | 0.122 | 0.125 | 0.117 | 0.623 | 0.178*** |
Employees | − 0.196 | 0.109 | − 0.240 | 0.107* | 0.008 | 0.106 | − 0.068 | 0.098 | − 0.253 | 0.181 |
Auditors | 0.088 | 0.104 | 0.183 | 0.101 | 0.028 | 0.098 | 0.068 | 0.095 | 0.029 | 0.129 |
Firm size | 0.256 | 0.095** | 0.128 | 0.094 | 0.099 | 0.089 | − 0.048 | 0.094 | 0.154 | 0.157 |
ROA | 3.767 | 1.941 | 3.450 | 1.933 | − 0.372 | 1.912 | 0.035 | 2.007 | 1.481 | 2.187 |
Manufacturing industry | 1.061 | 0.290*** | 1.009 | 0.282*** | 0.121 | 0.251 | 0.284 | 0.270 | 0.053 | 0.363 |
B-to-B | − 0.054 | 0.239 | 0.194 | 0.245 | − 0.156 | 0.235 | − 0.082 | 0.229 | 0.038 | 0.309 |
EMS | 0.125 | 0.059* | 0.093 | 0.060 | 0.045 | 0.055 | 0.068 | 0.057 | 0.137 | 0.111 |
IMR | 2.104 | 0.801** | 1.235 | 0.745 | 0.302 | 0.691 | − 0.583 | 0.750 | 0.857 | 1.105 |
Constant | − 11.402 | 2.382*** | − 9.607 | 2.294*** | − 6.319 | 2.004** | − 1.997 | 2.206 | − 8.971 | 3.677* |
Observations | 232 | 232 | 232 | 232 | 226 | |||||
Pseudo R2 | 0.286 | 0.290 | 0.234 | 0.196 | 0.247 | |||||
Vietnamese firms | ||||||||||
Business opportunities | 0.785 | 0.212*** | − 0.074 | 0.167 | 0.296 | 0.208 | 0.379 | 0.164* | 0.036 | 0.176 |
Social responsibility | − 0.728 | 0.269** | 0.441 | 0.163** | 0.297 | 0.138* | 0.115 | 0.142 | 0.644 | 0.176*** |
Final consumers | 0.432 | 0.216* | − 0.125 | 0.120 | 0.004 | 0.121 | 0.179 | 0.111 | − 0.001 | 0.125 |
Competitors | − 0.511 | 0.236* | 0.382 | 0.149* | 0.113 | 0.151 | 0.164 | 0.141 | 0.307 | 0.164 |
Buyers | 0.208 | 0.152 | 0.153 | 0.127 | 0.087 | 0.123 | − 0.230 | 0.119 | − 0.092 | 0.125 |
Suppliers | 0.132 | 0.121 | − 0.156 | 0.112 | 0.000 | 0.115 | − 0.227 | 0.108* | − 0.292 | 0.131* |
Communities | – | – | 0.190 | 0.125 | 0.238 | 0.142 | 0.004 | 0.125 | − 0.037 | 0.138 |
NGOs | − 0.649 | 0.182*** | − 0.049 | 0.121 | 0.009 | 0.103 | − 0.021 | 0.098 | 0.038 | 0.134 |
Government agencies | – | – | − 0.040 | 0.125 | − 0.329 | 0.134* | − 0.224 | 0.112* | 0.127 | 0.136 |
Media | – | – | − 0.064 | 0.131 | − 0.160 | 0.141 | 0.067 | 0.128 | 0.087 | 0.154 |
Rating agency | – | – | 0.045 | 0.124 | 0.053 | 0.110 | − 0.086 | 0.104 | 0.067 | 0.122 |
Financial institutions | – | – | 0.103 | 0.113 | − 0.038 | 0.112 | − 0.041 | 0.103 | − 0.010 | 0.118 |
Shareholders and investors | – | – | 0.187 | 0.156 | 0.563 | 0.154*** | 0.055 | 0.155 | 0.042 | 0.171 |
Employees | 0.483 | 0.220* | − 0.141 | 0.158 | 0.069 | 0.158 | 0.145 | 0.151 | 0.152 | 0.175 |
Auditors | 0.197 | 0.271 | 0.162 | 0.148 | − 0.153 | 0.152 | 0.251 | 0.150 | 0.206 | 0.173 |
Firm size | − 0.022 | 0.239 | 0.182 | 0.107 | 0.101 | 0.077 | 0.075 | 0.076 | 0.285 | 0.111** |
ROA | − 7.253 | 2.475** | − 1.122 | 2.276 | 1.186 | 1.821 | − 0.469 | 1.764 | − 2.572 | 2.423 |
Manufacturing industry | – | – | 0.086 | 0.667 | 0.446 | 0.519 | 1.267 | 0.510* | − 0.159 | 0.696 |
B-to-B | – | – | 0.056 | 0.374 | − 0.308 | 0.309 | − 0.069 | 0.307 | 0.554 | 0.468 |
EMS | 0.029 | 0.100 | − 0.094 | 0.089 | 0.162 | 0.068* | 0.262 | 0.069*** | − 0.192 | 0.096* |
HNX | – | – | − 0.545 | 0.529 | 0.193 | 0.469 | − 0.840 | 0.443 | − 5.283 | 0.515*** |
UPCOM | – | – | − 0.890 | 0.452* | − 0.196 | 0.279 | − 0.482 | 0.261 | − 5.046 | 0.600*** |
IMR | 0.746 | 1.636 | − 0.328 | 2.081 | 0.516 | 1.617 | 3.097 | 1.723 | − 0.911 | 2.290 |
Constant | − 0.286 | 2.909 | − 4.597 | 3.752 | − 8.652 | 2.780** | − 9.894 | 3.038*** | − 1.404 | 4.199 |
Observations | 242 | 242 | 242 | 242 | 242 | |||||
Pseudo R2 | 0.504 | 0.375 | 0.342 | 0.271 | 0.505 |
(1) | (2) | (3) | ||||
---|---|---|---|---|---|---|
Discussing the SDGs at the board level | Adequate understanding SDGs by inside directors | Adequate understanding SDGs by outside directors | ||||
Coefficient | Robust S.E | Coefficient | Robust S.E | Coefficient | Robust S.E | |
Japanese firms | ||||||
Business opportunities | 0.093 | 0.081 | 0.080 | 0.063 | 0.227 | 0.073** |
Social responsibility | 0.292 | 0.091*** | 0.202 | 0.082* | 0.155 | 0.088 |
Final consumers | 0.026 | 0.072 | 0.033 | 0.071 | 0.086 | 0.067 |
Competitors | − 0.016 | 0.073 | − 0.044 | 0.071 | − 0.026 | 0.077 |
Buyers | − 0.058 | 0.084 | − 0.072 | 0.083 | 0.012 | 0.089 |
Suppliers | − 0.104 | 0.078 | − 0.044 | 0.074 | − 0.092 | 0.080 |
Communities | − 0.003 | 0.080 | 0.155 | 0.076* | 0.005 | 0.089 |
NGOs | 0.171 | 0.083* | 0.091 | 0.068 | 0.093 | 0.075 |
Government agencies | − 0.149 | 0.091 | − 0.149 | 0.086 | − 0.139 | 0.093 |
Media | − 0.098 | 0.092 | − 0.062 | 0.092 | − 0.009 | 0.090 |
Rating agency | 0.018 | 0.071 | 0.082 | 0.076 | 0.009 | 0.086 |
Financial institutions | 0.048 | 0.077 | 0.056 | 0.084 | 0.176 | 0.093 |
Shareholders and investors | 0.257 | 0.099** | 0.136 | 0.095 | 0.063 | 0.108 |
Employees | − 0.135 | 0.081 | − 0.030 | 0.074 | − 0.126 | 0.076 |
Auditors | 0.566 | 0.087*** | 0.475 | 0.086*** | 0.449 | 0.090*** |
Firm size | 0.068 | 0.078 | 0.074 | 0.068 | 0.031 | 0.075 |
ROA | 1.759 | 1.684 | 1.027 | 1.516 | 1.531 | 1.448 |
Manufacturing industry | 0.137 | 0.206 | − 0.043 | 0.200 | − 0.064 | 0.214 |
B-to-B | 0.310 | 0.183 | 0.273 | 0.175 | 0.077 | 0.176 |
EMS | 0.009 | 0.049 | 0.014 | 0.050 | 0.084 | 0.053 |
IMR | 0.349 | 0.532 | − 0.530 | 0.470 | − 0.148 | 0.655 |
Observations | 232 | 232 | 232 | |||
Pseudo R2 | 0.186 | 0.190 | 0.182 | |||
Vietnamese firms | ||||||
Business opportunities | 0.163 | 0.124 | 0.177 | 0.118 | 0.336 | 0.131** |
Social responsibility | 0.526 | 0.122*** | 0.566 | 0.135*** | 0.452 | 0.119*** |
Final consumers | − 0.099 | 0.094 | − 0.065 | 0.101 | 0.053 | 0.091 |
Competitors | 0.591 | 0.127*** | 0.351 | 0.123** | 0.525 | 0.115*** |
Buyers | 0.101 | 0.097 | 0.061 | 0.108 | 0.056 | 0.098 |
Suppliers | − 0.073 | 0.092 | − 0.010 | 0.086 | − 0.087 | 0.088 |
Communities | 0.098 | 0.093 | 0.076 | 0.097 | 0.048 | 0.090 |
NGOs | 0.170 | 0.087* | 0.084 | 0.092 | 0.154 | 0.083 |
Government agencies | − 0.006 | 0.093 | 0.025 | 0.091 | − 0.034 | 0.093 |
Media | − 0.028 | 0.089 | 0.086 | 0.094 | − 0.063 | 0.091 |
Rating agency | 0.119 | 0.087 | 0.129 | 0.083 | 0.122 | 0.082 |
Financial institutions | 0.122 | 0.090 | 0.131 | 0.091 | 0.228 | 0.084** |
Shareholders and investors | 0.040 | 0.127 | 0.014 | 0.123 | 0.198 | 0.136 |
Employees | − 0.194 | 0.106 | − 0.125 | 0.117 | − 0.237 | 0.141 |
Auditors | − 0.166 | 0.125 | − 0.180 | 0.108 | − 0.341 | 0.114** |
Firm size | 0.052 | 0.063 | 0.026 | 0.061 | − 0.044 | 0.067 |
ROA | 1.529 | 1.408 | 0.426 | 1.444 | 2.677 | 1.638 |
Manufacturing industry | 0.794 | 0.450 | 0.364 | 0.463 | 1.195 | 0.445** |
B-to-B | − 0.126 | 0.253 | 0.113 | 0.264 | − 0.281 | 0.280 |
EMS | − 0.080 | 0.058 | − 0.078 | 0.060 | 0.002 | 0.061 |
HNX | − 1.156 | 0.388** | − 0.984 | 0.379** | − 0.808 | 0.395* |
UPCOM | − 0.455 | 0.226* | − 0.216 | 0.221 | − 0.348 | 0.244 |
IMR | 2.200 | 1.392 | 0.970 | 1.494 | 3.965 | 1.413** |
Observations | 242 | 242 | 242 | |||
Pseudo R2 | 0.306 | 0.287 | 0.305 |
(1) | (2) | (3) | (4) | (5) | (6) | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Employee satisfaction improvement | Women's empowerment | Promotion of CSR activities in supply chain | Compliance with social norms | Environmental performance improvement | GHG emissions Reduction | |||||||
Coefficient | Robust S.E | Coefficient | Robust S.E | Coefficient | Robust S.E | Coefficient | Robust S.E | Coefficient | Robust S.E | Coefficient | Robust S.E | |
Japanese firms | ||||||||||||
Business opportunities | − 0.054 | 0.084 | 0.028 | 0.070 | 0.021 | 0.073 | 0.123 | 0.079 | − 0.009 | 0.063 | − 0.012 | 0.074 |
Social responsibility | 0.178 | 0.080* | 0.077 | 0.075 | 0.055 | 0.077 | 0.170 | 0.070* | 0.183 | 0.081* | 0.159 | 0.078* |
Final consumers | 0.171 | 0.082* | 0.259 | 0.078*** | 0.076 | 0.063 | 0.042 | 0.084 | 0.079 | 0.072 | 0.029 | 0.069 |
Competitors | − 0.183 | 0.088* | − 0.035 | 0.077 | − 0.016 | 0.084 | − 0.094 | 0.073 | 0.012 | 0.081 | 0.103 | 0.085 |
Buyers | − 0.034 | 0.073 | − 0.182 | 0.086* | − 0.070 | 0.089 | − 0.054 | 0.093 | − 0.046 | 0.087 | − 0.079 | 0.087 |
Suppliers | 0.171 | 0.071* | 0.005 | 0.073 | 0.026 | 0.085 | − 0.052 | 0.081 | 0.011 | 0.079 | 0.017 | 0.079 |
Communities | − 0.074 | 0.082 | − 0.108 | 0.069 | − 0.136 | 0.082 | − 0.234 | 0.079** | − 0.141 | 0.088 | − 0.006 | 0.076 |
NGOs | 0.267 | 0.071*** | 0.124 | 0.068 | 0.311 | 0.070*** | 0.026 | 0.066 | 0.066 | 0.083 | 0.011 | 0.082 |
Government agencies | − 0.086 | 0.088 | 0.065 | 0.075 | − 0.107 | 0.081 | − 0.006 | 0.066 | 0.016 | 0.086 | 0.127 | 0.078 |
Media | − 0.222 | 0.085** | − 0.022 | 0.084 | 0.082 | 0.090 | 0.199 | 0.093* | − 0.090 | 0.085 | − 0.111 | 0.088 |
Rating agency | 0.021 | 0.078 | 0.077 | 0.071 | 0.143 | 0.071* | − 0.022 | 0.065 | 0.085 | 0.084 | 0.020 | 0.091 |
Financial institutions | − 0.065 | 0.081 | − 0.119 | 0.072 | − 0.182 | 0.082* | 0.009 | 0.090 | − 0.099 | 0.083 | − 0.157 | 0.093 |
Shareholders and investors | 0.107 | 0.105 | 0.088 | 0.102 | 0.167 | 0.089 | 0.110 | 0.107 | 0.151 | 0.089 | 0.116 | 0.094 |
Employees | − 0.040 | 0.082 | − 0.025 | 0.081 | 0.091 | 0.068 | 0.075 | 0.081 | 0.038 | 0.086 | − 0.080 | 0.083 |
Auditors | 0.144 | 0.073* | 0.112 | 0.074 | 0.029 | 0.071 | 0.239 | 0.086** | 0.098 | 0.081 | 0.176 | 0.077* |
Firm size | 0.012 | 0.085 | 0.003 | 0.076 | 0.053 | 0.065 | − 0.049 | 0.073 | 0.200 | 0.064** | 0.189 | 0.073** |
ROA | 5.100 | 1.537*** | 1.741 | 1.339 | 0.076 | 1.219 | 2.539 | 1.369 | 0.661 | 1.225 | 0.471 | 1.382 |
Manufacturing industry | 0.039 | 0.238 | − 0.020 | 0.189 | 0.354 | 0.197 | 0.047 | 0.205 | 0.084 | 0.205 | 0.160 | 0.208 |
B-to-B | − 0.395 | 0.171* | − 0.118 | 0.177 | − 0.230 | 0.168 | − 0.523 | 0.177** | − 0.397 | 0.177* | − 0.383 | 0.178* |
EMS | 0.061 | 0.057 | 0.027 | 0.048 | 0.021 | 0.053 | 0.015 | 0.049 | 0.187 | 0.045*** | 0.157 | 0.050** |
IMR | 0.096 | 0.705 | 0.254 | 0.494 | 0.364 | 0.532 | − 0.366 | 0.539 | 0.305 | 0.483 | 0.243 | 0.546 |
Observations | 217 | 219 | 218 | 218 | 220 | 219 | ||||||
Pseudo R2 | 0.123 | 0.073 | 0.121 | 0.109 | 0.131 | 0.111 | ||||||
Vietnamese firms | ||||||||||||
Business opportunities | 0.094 | 0.115 | 0.169 | 0.107 | 0.140 | 0.129 | 0.110 | 0.143 | 0.236 | 0.132 | 0.058 | 0.111 |
Social responsibility | 0.078 | 0.110 | 0.115 | 0.111 | − 0.065 | 0.103 | 0.265 | 0.115* | 0.014 | 0.100 | − 0.096 | 0.113 |
Final consumers | 0.055 | 0.086 | 0.014 | 0.088 | 0.073 | 0.099 | 0.149 | 0.094 | 0.101 | 0.085 | 0.079 | 0.068 |
Competitors | 0.129 | 0.104 | 0.004 | 0.092 | − 0.090 | 0.109 | − 0.208 | 0.110 | − 0.090 | 0.110 | − 0.371 | 0.099*** |
Buyers | 0.011 | 0.088 | 0.130 | 0.096 | 0.097 | 0.100 | − 0.064 | 0.104 | 0.112 | 0.086 | 0.130 | 0.082 |
Suppliers | − 0.086 | 0.094 | 0.152 | 0.093 | 0.048 | 0.084 | − 0.113 | 0.097 | 0.041 | 0.079 | 0.096 | 0.088 |
Communities | 0.152 | 0.095 | 0.074 | 0.099 | − 0.021 | 0.093 | − 0.132 | 0.099 | − 0.034 | 0.084 | 0.016 | 0.082 |
NGOs | − 0.066 | 0.082 | − 0.096 | 0.091 | − 0.021 | 0.076 | 0.056 | 0.070 | − 0.062 | 0.074 | 0.239 | 0.074*** |
Government agencies | 0.062 | 0.086 | 0.004 | 0.078 | − 0.217 | 0.093* | 0.055 | 0.091 | − 0.052 | 0.088 | − 0.285 | 0.083*** |
Media | − 0.077 | 0.088 | 0.095 | 0.095 | 0.031 | 0.096 | 0.031 | 0.093 | − 0.042 | 0.100 | 0.095 | 0.093 |
Rating agency | 0.175 | 0.091 | − 0.103 | 0.084 | 0.086 | 0.093 | − 0.157 | 0.087 | − 0.146 | 0.078 | − 0.213 | 0.078** |
Financial institutions | 0.170 | 0.083* | 0.108 | 0.093 | 0.045 | 0.078 | 0.127 | 0.082 | 0.174 | 0.079* | 0.109 | 0.074 |
Shareholders and investors | 0.139 | 0.104 | 0.163 | 0.112 | 0.172 | 0.101 | 0.064 | 0.115 | 0.074 | 0.103 | 0.212 | 0.091* |
Employees | 0.260 | 0.120* | − 0.011 | 0.107 | 0.205 | 0.098* | − 0.082 | 0.119 | − 0.171 | 0.114 | 0.067 | 0.094 |
Auditors | 0.026 | 0.121 | 0.180 | 0.137 | − 0.095 | 0.112 | 0.410 | 0.105*** | 0.309 | 0.100** | − 0.093 | 0.107 |
Firm size | − 0.019 | 0.058 | − 0.021 | 0.053 | 0.035 | 0.057 | 0.112 | 0.061 | 0.068 | 0.049 | − 0.047 | 0.061 |
ROA | 1.466 | 1.281 | 1.367 | 1.351 | − 0.753 | 1.347 | − 1.279 | 1.066 | − 0.742 | 1.213 | − 1.050 | 1.405 |
Manufacturing industry | 0.671 | 0.384 | 0.240 | 0.385 | − 0.453 | 0.365 | − 0.949 | 0.320** | − 0.253 | 0.370 | 0.558 | 0.360 |
B-to-B | 0.406 | 0.253 | − 0.134 | 0.262 | − 0.156 | 0.250 | 0.032 | 0.211 | − 0.630 | 0.241** | − 0.267 | 0.207 |
EMS | − 0.010 | 0.044 | − 0.102 | 0.052 | 0.339 | 0.054*** | 0.012 | 0.051 | 0.092 | 0.062 | 0.281 | 0.057*** |
HNX | − 0.994 | 0.345** | − 0.506 | 0.358 | 0.031 | 0.373 | 0.720 | 0.355* | 0.444 | 0.361 | –0.135 | 0.323 |
UPCOM | − 0.443 | 0.204* | − 0.066 | 0.186 | − 0.129 | 0.216 | 0.393 | 0.217 | 0.511 | 0.216* | 0.194 | 0.235 |
IMR | 2.460 | 1.194* | 1.396 | 1.139 | − 0.736 | 1.204 | − 2.357 | 1.051* | − 0.420 | 1.155 | 0.999 | 1.165 |
Observations | 242 | 242 | 242 | 242 | 242 | 242 | ||||||
Pseudo R2 | 0.234 | 0.187 | 0.107 | 0.091 | 0.082 | 0.102 |