How Sustainability Contributes to Shared Value Creation and Firms’ Value

16 Pages Posted: 29 Oct 2019

See all articles by Alia Almansoori

Alia Almansoori

Abu Dhabi University

Haitham Nobanee

University of Oxford; Abu Dhabi University; University of Liverpool

Date Written: October 19, 2019

Abstract

The corporate sustainable reporting practices are recognized as a method of disclosure of information about social, performance, environmental and economic of the governance by the corporate sector. This study finding is indicating that corporate sustainability reporting is accepted as the most appropriate subject in present financial and economic systems. This report's findings are also indicating that sustainability practices in the firm improve the financial growth and decision making in respect of the cost of capital, capital budgeting, investment returns and working capital management.

However, there are some risks associated with sustainability reporting that can be decreased through the implementation of risk mitigation and management practices. Both Western and Islamic financing systems are working towards sustainable projects in form of short term green loans, community micro-financing projects, renewable energy programs, and others. Also, the bankruptcy element can be decreased through proper implementation of low-risk sustainability financing models in the company which will cause more investor interest and financial returns.

Keywords: Sustainability, Shared Value Creation, Firms’ Value

Suggested Citation

Almansoori, Alia and Nobanee, Haitham and Nobanee, Haitham, How Sustainability Contributes to Shared Value Creation and Firms’ Value (October 19, 2019). Available at SSRN: https://ssrn.com/abstract=3472411 or http://dx.doi.org/10.2139/ssrn.3472411

Alia Almansoori

Abu Dhabi University ( email )

Abu Dhabi
United Arab Emirates

Haitham Nobanee (Contact Author)

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

Abu Dhabi University ( email )

Abu Dhabi
United Arab Emirates

University of Liverpool ( email )

Chatham Street
Brownlow Hill
Liverpool, L69 7ZA
United Kingdom

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