Business Strategy and Environmental, Social, and Governance (ESG) Performance: Do Firms’ Strategy Typology Matter?

Seminar summary

This study examines how business strategy affects corporate environmental, social, and governance (ESG) performance. We investigate whether business strategy matters in determining ESG performance, and if so, which strategy typology delivers optimal outcomes regarding ESG performance. Using data on 2,360 unique firms across 45 countries from 2010 to 2020, we find evidence that business strategy influences ESG performance. Detailed analyses of the distinct components of business strategy, as advanced by Miles and Snow (1978), and the separate pillars of ESG provide insights into the effects of different types of strategies on ESG performance. We find that prospector firms have better ESG performance than defender firms. Additionally, idiosyncratic factors affect ESG performance even in the presence of an appropriate business strategy. As we observe and contrary to a priori expectations, firms with high carbon emissions and employing a prospector strategy may facilitate improvement in the governance-related components of ESG rather than environmental initiatives. The study documents important insights for managers and firms’ stakeholders to understand the [un]intended consequences of business strategies on ESG performance.

How to attend this seminar

This seminar will take place on  Wednesday 6 December at 2pm and is free to attend with no need to register in advance.

We welcome you to join us on our Colchester campus in room CTC.3.01.

If you not make it in person, this seminar will also be available to watch live online

Speaker bio

Dr Yinka Moses

Olayinka (Yinka) Moses is the Academic Programme Leader for the Master of Business (Professional) at the Wellington School of Business and Government, Victoria University of Wellington, New Zealand. He teaches Accounting for Strategy, Performance, and Value. Yinka plays a prominent role in the African Accounting and Finance Association (AAFA), as evidenced by his involvement in various roles within the Association and its initiatives. He is the Vice President of the AAFA and helps to drive research and innovation in Africa and developing countries. His research intersects management accounting and financial reporting, focusing on how accountability and reporting impact managerial and broader sustainability practices. Yinka has a growing portfolio of publications in reputable accounting journals and actively participates in contemporary debates aimed at advancing accounting research. His work has been featured in Accounting, Auditing & Accountability Journal; Journal of Accounting Literature; Accounting and Finance; Journal of Contemporary Accounting & Economics; Pacific-Basin Finance Journal; Meditari Accountancy Research, among others. Additionally, he holds influential editorial roles in several accounting journals, contributing to the dissemination of knowledge and the advancement of the accounting profession. Beyond his academic endeavours, Yinka actively contributes to the development of accounting practice through his involvement with Chartered Accountants Australia and New Zealand (CA ANZ) and CPA Australia. Yinka is the Chair of the New Zealand division of the CPA Australia ESG Committee, where he helps members enhance their sustainability skills within the accounting profession.