Sustainable Business Practices A Comparative Study

Cont et al. (2022) underline how urgently two linked problems—climate change and resource protection—must be addressed. They emphasize that these issues are reflected in the social and environmental aspects of the SDGs. These problems result from a long history of giving economic development top priority above social and environmental issues (Solórzano Chamorro et al., 2022).

The approach clearly had negative effects, which raised greenhouse gas (GHG) emissions. 

Rising temperatures, melting glaciers, extreme weather events, ocean acidification and warming (Cont et al., 2022) have all been strongly influenced by this in turn. Based on studies by Cont et al. (2022), the present development paradigm has a major flaw: the loss of natural riches. Excessive use of our natural resources to satisfy the always rising demand for consumption and industry has drastically depleted them. Among other results, this depletion has major consequences for soil degradation, water shortage, desertification, and the loss of natural habitats. Sustainable development is about ensuring that future generations may satisfy their own needs while nevertheless addressing present ones. The foundation of sustainable development is the conviction that social, economic, and environmental factors are all linked and equally important in determining a sustainable future (Gómez Gil, 2018). More than only environmental protection characterizes sustainable development. It also hopes to lower poverty, advance gender equality, provide access to healthcare and education, and generate decent, long-term employment. Considering the long-term social and environmental consequences, economic growth must be both sustainable and fair given the foregoing. Encouragement of ethical and sustainable business methods is one approach to achieve this. Businesses so become crucial in reaching the SDGs and advancing universal sustainable development. Key job creators, they also greatly help communities grow and the economy flourish. Businesses can also employ moral and environmentally friendly methods that advance long-term growth. González Ordóñez (2022) advises implementing effective technologies and practices, so lowering environmental impact, enhancing waste management, advocating gender equality and human rights in supply chains, and so boosting social and economic inclusion. The link between financial performance of companies and sustainable practices Businesses are growingly worried about the effects on profitability and the financial repercussions of using Sustainable Practices (SP). Regarding sustainability and reaching the Sustainable Development Goals (SDGs), they give financial success first priority.

The results of these studies have been somewhat varied. Other studies have examined the relationship between SP and FP.

While some studies have shown a positive association (Khan et al., 2023; Yousefian et al., 2023; Ghardallou, 2022) others have shown a negative link (Kim et al., 2022; Ensign et al., 2021; Činčalová and Hedija, 2020). Moreover, some studies contend that, at least in the short run, SP and corporate FP have no significant correlation, thereby supporting the "moderator variable hypothesis" (Fernando et al., 2021; Solari and Méndez Sáenz, 2020; Yang and Jang, 2020). Studies show that businesses who give the Sustainable Development Goals (SDGs top priority and actively participate have improved long-term financial performance (Betti et al., 2018). These studies show that implementing sustainable practices and including the SDGs will produce positive outcomes including improved risk management, increased innovation, better operational efficiency, higher reputation, and cost savings. In the end, these components can help to increase financial performance (Vorontsova et al., 2022). On the other side, several studies have found a drawback in following sustainable practices. Investing in the Sustainable Development Goals (SDGs) seems expensive to them and could immediately affect earnings. Moreover, studies show that companies can adopt sustainable practices by only stating their support for the SDGs without doing any significant transformation. This means that handling this topic calls for great prudence. Generally speaking, the link between SP and FP in companies is obviously multifarious and complicated. Further research is required to better grasp the link considering contextual factors as business type, company size, and geographic location among others (Datta and Goyal, 2022; Muhmad and Muhamad, 2020). Consequently, a strongly contested issue is still how the SDGs affect business financial performance. Still, implementing sustainable practices and SDGs will help companies greatly in terms of operational efficiency, reputation, creativity, and risk management (Vorontsova et al., 2022; Betti et al., 2018). Examining the link between the SDGs and financial performance requires one to take into account both current costs and the possibility of dishonest companies.

Out of the thirty papers, four came from Science Direct and twenty-six from Scopus. 

With an eye toward the period between the acceptance of the Sustainable Development Goals (SDGs) in 2015 and 2023, this paper explores the relationship between sustainable practices and corporate economic performance. We will investigate present disclosure patterns, especially those pertaining to the SDG adoption. We will also review the financial measures taken as well as the sustainability indicators linked with the SDGs. Searching for pertinent terms in two databases Scopus and Science Direct helps one to compile the literature. Together with their Spanish equivalents, topics discussed include sustainable business practices, SDGs, sustainable development, corporate financial performance, and financial performance. This is an exploratory study, hence we just looked at openly accessible publications. We also took into account the official websites of reputable organizations with great awareness of the SDGs, such the Global Change Data Lab and the United Nations. Search Findings Our first round of data collecting turned up 1059 peer-reviewed papers from Science Direct and Scopus. Reviewing was done with an eye toward sustainable business practices, sustainability, sustainable financing, and corporate financial performance. After then, the first phase's samples were carefully examined in the second phase with an eye toward spotting papers directly related to financial performance and sustainable development. In the first round, we selected 120 papers deliberately. After closely reading the entire full-text, we found thirty papers fit our inclusion criteria.Scopus also listed three of the four Science Direct articles. Two of the 26 papers that were obtained from Scopus were also accessible on Science Direct. The pertinent details about the journals used in the development of this study are provided in Annex No. 2. I apologize; but, I'm not sure what you mean. Would you kindly describe your question or offer some background?