Date of Award

Fall 10-1-2014

Document Type

Dissertation

Degree Name

Doctor of Philosophy in Technology Management

Department

College of Technology

Abstract

Sustainability is increasingly becoming an integral part of how organizations communicate their business operation to stakeholders. As it is common knowledge that organizations are more inclined to invest in programs that contribute to their bottom-line, this study presents an analysis of the relationship between corporate sustainability behaviors and their impact on financial performance. The sample size was 40 United States (U.S.) aerospace companies, selected from the “Top 100 Aerospace Companies” world-wide in a report produced by Candesic consulting firm in 2012. Of the 40 U.S. companies, 21 were found to provide some form of sustainability report. Quantitative and qualitative instruments were constructed to identify and measure the following sustainability behaviors: 1) Report versus Non-Reporting Status, 2) sustainability initiative integration (SII), 3) sustainability strategic integration (SSI), 4) trends in sustainability reporting, and 5) Global Reporting Initiative (GRI) versus Non-GRI status. Archival data such as sustainability reports and financial reports were used to compare the relationship between the five independent variables and the 5-year profit-margin ratio mean of the companies in the study. All financial information was obtained from Reuters, a financial and business news source. After retrieving and analyzing all the reports, it was found that there is no significant relationship between the sustainability behaviors identified and financial performance. Although, the sustainability reporting trends indicate a slight relationship between reporting start date and the 5-year average profit margin mean, this researcher understands that there may be other factors involved. Further, there appears to be some relationship among the independent variables Sustainability Initiative Integration (SII), Sustainability Strategic iv Integration (SSI) and GRI status. For instance, organizations that use the GRI metrics tend to provide a strong message indicating that sustainability is aligned with the business goals, which influence how they market and innovate products and services. The strength of this study is the qualitative components that will contribute to further understanding and development of corporate sustainability within a multidisciplinary context. The study created instruments primarily for the purpose of determining the impact corporate sustainability behavior has on financial performance while simultaneously providing new insight on new and changing organizational values and leadership communication. A corporate sustainability report is a comprehensive document that gives external and internal stakeholders’ information on how organizations are responding to social, economic, and environmental issues. This study illustrates how a sustainability report reflects an organization’s level of involvement in environmental, social, and economic issues which are relevant to any academic environment that seek to gain more understanding of how businesses pay attention to societal demands while striving to have competitive advantage in the global market.

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