The Effect Of Environmental Performance, Carbon Emissions On Corporate Financial Performance With Code Of Conduct as a Moderating Variable
Keywords:
environmental performance, carbon emissions, code of conduct, company performance
Abstract
This study examines the relationship between the issue of environmental performance and carbon emissions on company performance with a code of conduct as a moderating variable. Weather variability in many regions, including Indonesia, has an adverse impact on health in the long term. The strong commitment of the Government of Indonesia has been conveyed in the Paris Agreement and realized with Nationally Determined Contributions (NDC) 29% with its efforts and international support is expected to reduce carbon emissions by 41% in 2030. This commitment is realized by updating Indonesia's NDC by adding the marine and fisheries sector. The effect of environmental performance and Carbon Emissions on the Company's Financial Performance with a moderated Code of Conduct is 49.5%, and 50.5% is influenced by other factors not observed in this study. The Code of Conduct does not have a significant effect directly on the Company's Financial Performance.
Develop an operating model of environmental performance in management, and companies can keep the company alive without sacrificing the survival of humanity by reducing these carbon emissions on Earth. This study discusses the difficulties associated with environmental performance, carbon emissions, and codes of conduct in the context of intentional research in management. It offers novel insights into the transformations that firms and management principles and practices should undergo to mitigate irreversible environmental harm.
References
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Guedes, M. J., Patel, P. C., Kowalkowski, C., & Oghazi, P. (2022). Family business, servitization, and performance: Evidence from Portugal. Technological Forecasting and Social Change, 185. https://doi.org/10.1016/j.techfore.2022.122053
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Hennart, J. F., Majocchi, A., & Forlani, E. (2019). The myth of the stay-at-home family firm: How family-managed SMEs can overcome their internationalization limitations. In Journal of International Business Studies (Vol. 50, Issue 5, pp. 758–782). Palgrave Macmillan Ltd. https://doi.org/10.1057/s41267-017-0091-y
Hernandez-Perlines, F. (2018). Moderating effect of absorptive capacity on the entrepreneurial orientation of international performance of family businesses. Journal of Family Business Management, 8(1), 58–74. https://doi.org/10.1108/JFBM-10-2017-0035
Kallmuenzer, A., & Peters, M. (2018). Entrepreneurial behaviour, firm size and financial performance: the case of rural tourism family firms. Tourism Recreation Research, 43(1), 2–14. https://doi.org/10.1080/02508281.2017.1357782
Katsaros, K. K., Tsirikas, A. N., & Kosta, G. C. (2020). The impact of leadership on firm financial performance: the mediating role of employees’ readiness to change. Leadership and Organization Development Journal, 41(3), 333–347. https://doi.org/10.1108/LODJ-02-2019-0088
Kotlar, J., Signori, A., de Massis, A., & Vismara, S. (2017). Financial Wealth, Socioemotional Wealth And Ipo Underpricing In Family Firms: A Two-Stage Gamble Model. Academy Of Management, 1–59.
Kubíček, A., & Machek, O. (2019). Gender-related factors in family business succession: a systematic literature review. In Review of Managerial Science (Vol. 13, Issue 5, pp. 963–1002). Springer Verlag. https://doi.org/10.1007/s11846-018-0278-z
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Lee, T. (2019). Management ties and firm performance: Influence of family governance. Journal of Family Business Strategy, 10(2), 105–118. https://doi.org/10.1016/j.jfbs.2018.12.003
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Rau, S. B., Astrachan, J. H., & Smyrnios, K. X. (2018). The F-PEC Revisited: From the Family Business Definition Dilemma to Foundation of Theory. Family Business Review, 31(2), 200–213. https://doi.org/10.1177/0894486518778172
Risky, A. (2021). Leadership Style & Management System in Family Business for Z Generation Workers. Preoceedings of the International Conference on Psychological Studies, 1–5.
Rodrigues, A. C., Carvalho, H., Caetano, A., & Santos, S. C. (2022). Micro-firms way to succeed: How owners manage people. Journal of Business Research, 150, 237–248. https://doi.org/10.1016/j.jbusres.2022.05.062
Sanchez-Famoso, V., Mejia-Morelos, J. H., & Cisneros, L. (2020). New Insights into non-listed family SMEs in Spain: Board social capital, board effectiveness, and sustainable performance. Sustainability (Switzerland), 12(3). https://doi.org/10.3390/su12030814
Schaedler, L., Graf-Vlachy, L., & König, A. (2022). Strategic leadership in organizational crises: A review and research agenda. Long Range Planning, 55(2). https://doi.org/10.1016/j.lrp.2021.102156
Soleimanof, S., Rutherford, M. W., & Webb, J. W. (2018). The Intersection of Family Firms and Institutional Contexts: A Review and Agenda for Future Research. Family Business Review, 31(1), 32–53. https://doi.org/10.1177/0894486517736446
Stewart, A. (2020). Family control, ambivalence, and preferential benefits. Journal of Family Business Strategy, 11(4). https://doi.org/10.1016/j.jfbs.2020.100352
Watkins-Fassler, K., & del Carmen Briano-Turrent, G. (2019). Succession and performance of family firms listed on the mexican stock exchange. Contaduria y Administracion, 64(4). https://doi.org/10.22201/FCA.24488410E.2020.2235
Yin, R. K. (2009). Case Study Research: Design and Methods (4th ed.). Thousand Oaks, CA: SAGE.
Alessandri, T. M., Cerrato, D., & Eddleston, K. A. (2018). The mixed gamble of internationalization in family and nonfamily firms: The moderating role of organizational slack. Global Strategy Journal, 8(1), 46–72. https://doi.org/10.1002/gsj.1201
Arzubiaga, U., Iturralde, T., Maseda, A., & Kotlar, J. (2018). Entrepreneurial orientation and firm performance in family SMEs: the moderating effects of family, women, and strategic involvement in the board of directors. International Entrepreneurship and Management Journal, 14(1), 217–244. https://doi.org/10.1007/s11365-017-0473-4
Arzubiaga, U., Maseda, A., & Iturralde, T. (2019). Exploratory and exploitative innovation in family businesses: the moderating role of the family firm image and family involvement in top management. Review of Managerial Science, 13(1), 1–31. https://doi.org/10.1007/s11846-017-0239-y
Astrachan, C. B., Botero, I., Astrachan, J. H., & Prügl, R. (2018). Branding the family firm: A review, integrative framework proposal, and research agenda. Journal of Family Business Strategy, 9(1), 3–15. https://doi.org/10.1016/j.jfbs.2018.01.002
Berrone, P., Duran, P., Gómez-Mejía, L., Heugens, P. P. M. A. R., Kostova, T., & van Essen, M. (2022). Impact of informal institutions on the prevalence, strategy, and performance of family firms: A meta-analysis. Journal of International Business Studies, 53(6), 1153–1177. https://doi.org/10.1057/s41267-020-00362-6
Caputo, A., Marzi, G., Pellegrini, M. M., & Rialti, R. (2018). Conflict management in family businesses: A bibliometric analysis and systematic literature review. International Journal of Conflict Management, 29(4), 519–542. https://doi.org/10.1108/IJCMA-02-2018-0027
Chadwick, I. C., & Dawson, A. (2018). Women leaders and firm performance in family businesses: An examination of financial and nonfinancial outcomes. Journal of Family Business Strategy, 9(4), 238–249. https://doi.org/10.1016/j.jfbs.2018.10.002
Chen, X., Zhu, Z., & Liu, J. (2021). Does A Trusted Leader Always Behave Better? The Relationship Between Leader Feeling Trusted by Employees and Benevolent and Laissez-Faire Leadership Behaviors. Journal of Business Ethics, 170(3), 615–634. https://doi.org/10.1007/s10551-019-04390-7
Cunningham, J., Seaman, C., & McGuire, D. (2016). Knowledge sharing in small family firms: A leadership perspective. Journal of Family Business Strategy, 7(1), 34–46. https://doi.org/10.1016/j.jfbs.2015.10.002
de Massis, A., Frattini, F., Majocchi, A., & Piscitello, L. (2018). Family firms in the global economy: Toward a deeper understanding of internationalization determinants, processes, and outcomes. Global Strategy Journal, 8(1), 3–21. https://doi.org/10.1002/gsj.1199
Debellis, F., & Pinelli, M. (2020). Board Interlocks In SMES And The Formation Of International Joint Ventures. Small Business, 99–118. https://doi.org/10.14596/pisb.356
Debicki, B. J., Ramírez-Solís, E. R., Baños-Monroy, V. I., & Gutiérrez-Patrón, L. M. (2020). The impact of strategic focus on relational capital: A comparative study of family and non-family firms. Journal of Business Research, 119, 585–598. https://doi.org/10.1016/j.jbusres.2020.07.016
Diwei, D., Chen, W., Zhu, H., & Lan, H. (2019). How does inconsistent negative performance feedback affect the R&D investments of firms? A study of publicly listed firms. Journal of Business Research, 102, 151–162. https://doi.org/10.1016/j.jbusres.2019.04.045
Eva, N., Robin, M., Sendjaya, S., van Dierendonck, D., & Liden, R. C. (2019). Servant Leadership: A systematic review and call for future research. Leadership Quarterly, 30(1), 111–132. https://doi.org/10.1016/j.leaqua.2018.07.004
Federo, R., Ponomareva, Y., Aguilera, R. v., Saz-Carranza, A., & Losada, C. (2020). Bringing owners back on board: A review of the role of ownership type in board governance. Corporate Governance: An International Review, 28(6), 348–371. https://doi.org/10.1111/corg.12346
Ferramosca, S., & Allegrini, M. (2018). The complex role of family involvement in earnings management. Journal of Family Business Strategy, 9(2), 128–141. https://doi.org/10.1016/j.jfbs.2018.01.001
Fries, A., Kammerlander, N., & Leitterstorf, M. (2021). Leadership Styles and Leadership Behaviors in Family Firms: A Systematic Literature Review. Journal of Family Business Strategy, 12(1). https://doi.org/10.1016/j.jfbs.2020.100374
Gomez-Mejia, L. R., Patel, P. C., & Zellweger, T. M. (2018). In the Horns of the Dilemma: Socioemotional Wealth, Financial Wealth, and Acquisitions in Family Firms. Journal of Management, 44(4), 1369–1397. https://doi.org/10.1177/0149206315614375
Guedes, M. J., Patel, P. C., Kowalkowski, C., & Oghazi, P. (2022). Family business, servitization, and performance: Evidence from Portugal. Technological Forecasting and Social Change, 185. https://doi.org/10.1016/j.techfore.2022.122053
Haddaway, N. R., Page, M. J., Pritchard, C. C., & McGuinness, L. A. (2022). PRISMA2020: An R package and Shiny app for producing PRISMA 2020-compliant flow diagrams, with interactivity for optimised digital transparency and Open Synthesis Campbell Systematic Reviews, 18, e1230. https://doi.org/10.1002/cl2.1230
Hennart, J. F., Majocchi, A., & Forlani, E. (2019). The myth of the stay-at-home family firm: How family-managed SMEs can overcome their internationalization limitations. In Journal of International Business Studies (Vol. 50, Issue 5, pp. 758–782). Palgrave Macmillan Ltd. https://doi.org/10.1057/s41267-017-0091-y
Hernandez-Perlines, F. (2018). Moderating effect of absorptive capacity on the entrepreneurial orientation of international performance of family businesses. Journal of Family Business Management, 8(1), 58–74. https://doi.org/10.1108/JFBM-10-2017-0035
Kallmuenzer, A., & Peters, M. (2018). Entrepreneurial behaviour, firm size and financial performance: the case of rural tourism family firms. Tourism Recreation Research, 43(1), 2–14. https://doi.org/10.1080/02508281.2017.1357782
Katsaros, K. K., Tsirikas, A. N., & Kosta, G. C. (2020). The impact of leadership on firm financial performance: the mediating role of employees’ readiness to change. Leadership and Organization Development Journal, 41(3), 333–347. https://doi.org/10.1108/LODJ-02-2019-0088
Kotlar, J., Signori, A., de Massis, A., & Vismara, S. (2017). Financial Wealth, Socioemotional Wealth And Ipo Underpricing In Family Firms: A Two-Stage Gamble Model. Academy Of Management, 1–59.
Kubíček, A., & Machek, O. (2019). Gender-related factors in family business succession: a systematic literature review. In Review of Managerial Science (Vol. 13, Issue 5, pp. 963–1002). Springer Verlag. https://doi.org/10.1007/s11846-018-0278-z
Labaki, R., & D’Allura, G. M. (2021). A Governance Approach of Emotion in Family Business: Towards a Multi-level Integrated Framework and Research Agenda. In Entrepreneurship Research Journal (Vol. 11, Issue 3, pp. 119–158). De Gruyter Open Ltd. https://doi.org/10.1515/erj-2021-2089
Lee, T. (2019). Management ties and firm performance: Influence of family governance. Journal of Family Business Strategy, 10(2), 105–118. https://doi.org/10.1016/j.jfbs.2018.12.003
Luan, C. J., Chen, Y. Y., Huang, H. Y., & Wang, K. S. (2018). CEO succession decision in family businesses – A corporate governance perspective. Asia Pacific Management Review, 23(2), 130–136. https://doi.org/10.1016/j.apmrv.2017.03.003
Neckebrouck, J., Meuleman, M., & Manigart, S. (2018). Governance implications of attracting external equity investors in private family firms Journal: Academy of Management Perspectives Academy of Management Perspectives. Academy of Management Perspectives, 1–56.
Nekhili, M., Chakroun, H., & Chtioui, T. (2018). Women’s Leadership and Firm Performance: Family Versus Nonfamily Firms. Journal of Business Ethics, 153(2), 291–316. https://doi.org/10.1007/s10551-016-3340-2
Ngoze, M. L. (2018). Corporate Entrepreneurship And Financial Performance Of Entrepreneurship And Financial Performance Of Firms: A Conceptual Framework From Theoretical And Literature Review. International Conference on African Entrepreneurship & Small Business, 1–19. https://www.researchgate.net/publication/340647507
Pittino, D., Barroso Martínez, A., Chirico, F., & Sanguino Galván, R. (2018). Psychological ownership, knowledge sharing and entrepreneurial orientation in family firms: The moderating role of governance heterogeneity. Journal of Business Research, 84, 312–326. https://doi.org/10.1016/j.jbusres.2017.08.014
Rau, S. B., Astrachan, J. H., & Smyrnios, K. X. (2018). The F-PEC Revisited: From the Family Business Definition Dilemma to Foundation of Theory. Family Business Review, 31(2), 200–213. https://doi.org/10.1177/0894486518778172
Risky, A. (2021). Leadership Style & Management System in Family Business for Z Generation Workers. Preoceedings of the International Conference on Psychological Studies, 1–5.
Rodrigues, A. C., Carvalho, H., Caetano, A., & Santos, S. C. (2022). Micro-firms way to succeed: How owners manage people. Journal of Business Research, 150, 237–248. https://doi.org/10.1016/j.jbusres.2022.05.062
Sanchez-Famoso, V., Mejia-Morelos, J. H., & Cisneros, L. (2020). New Insights into non-listed family SMEs in Spain: Board social capital, board effectiveness, and sustainable performance. Sustainability (Switzerland), 12(3). https://doi.org/10.3390/su12030814
Schaedler, L., Graf-Vlachy, L., & König, A. (2022). Strategic leadership in organizational crises: A review and research agenda. Long Range Planning, 55(2). https://doi.org/10.1016/j.lrp.2021.102156
Soleimanof, S., Rutherford, M. W., & Webb, J. W. (2018). The Intersection of Family Firms and Institutional Contexts: A Review and Agenda for Future Research. Family Business Review, 31(1), 32–53. https://doi.org/10.1177/0894486517736446
Stewart, A. (2020). Family control, ambivalence, and preferential benefits. Journal of Family Business Strategy, 11(4). https://doi.org/10.1016/j.jfbs.2020.100352
Watkins-Fassler, K., & del Carmen Briano-Turrent, G. (2019). Succession and performance of family firms listed on the mexican stock exchange. Contaduria y Administracion, 64(4). https://doi.org/10.22201/FCA.24488410E.2020.2235
Yin, R. K. (2009). Case Study Research: Design and Methods (4th ed.). Thousand Oaks, CA: SAGE.
Published
2023-10-23
How to Cite
Hendriyana, H., & Yvonne Agustine. (2023). The Effect Of Environmental Performance, Carbon Emissions On Corporate Financial Performance With Code Of Conduct as a Moderating Variable. Asian Journal of Management, Entrepreneurship and Social Science, 3(04), 846-870. Retrieved from http://ajmesc.com/index.php/ajmesc/article/view/394
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