Synergies between corporate social responsibility precedence and sustainable development goals: A pathway to corporate‐led change

Ran Zhang and Qian (Jan) Li

Journal of Industrial Ecology, 2025, vol. 29, issue 3, 698-718

Abstract: This study examines the intersection of corporate social responsibility (CSR) precedence, circular economy (CE) practices, and the United Nations Sustainable Development Goals (SDGs) through the theoretical frameworks of the organizational culture and dynamic capabilities theory. We explore how historical CSR commitments influence firms’ resource utilization, emissions, waste management, and integration of sustainable practices such as renewable energy consumption and water recycling, using panel regressions with fixed effects and Heckman two‐stage regressions, analyzing data from 1072 public traded US firms from 2007 to 2017. Our findings suggest that firms with a robust history of CSR activities are better positioned to reduce their environmental footprint and enhance their alignment with specific SDG targets, particularly those related to responsible consumption and production (SDG 12) and climate action (SDG 13). Through a comprehensive analysis grounded in organizational culture theory, we demonstrate that firms with a strong CSR precedence foster a green organizational culture, which supports sustainable operational strategies and increases the capability to achieve sustainable outcomes. Drawing on dynamic capability theory, this study underscores the role of CSR precedence in strengthening a firm's capability to adapt and reconfigure resources in response to changing environmental demands, promoting a transition toward a CE, and thereby contributing to the broader objectives of environmental sustainability.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bla:inecol:v:29:y:2025:i:3:p:698-718

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