Pillar 3
Corporate Sustainability Strategy
SGFIN’s third pillar focuses on guiding firms toward sustainability strategies that are both economically viable and socially responsible. It develops decision frameworks, assesses supply chain impacts, and builds tools to enhance transparency in corporate and SME sustainability performance, while also analysing consumer behaviour and financial market responses to help firms align with evolving standards and drive meaningful change.
SGFIN research on corporate sustainability strategy delves into how firms embed sustainability considerations into strategy, governance and financial decision-making. It spans environmental and climate-related investments, organisational and managerial incentives, and the strategic implications of sustainability commitments, providing evidence on how corporate actions shape performance, risk management and long-term value creation in a changing economic and regulatory landscape.
CSR & Firm Value
Lam, S. S., Zhang, W., & Chien, C. Y. K. (2018). Can corporate social responsibility fill institutional voids. In P.S Hoffmann (Ed.), Firm Value-Theory and Empirical Evidence (2nd ed.). IntechOpen. http://doi.org/10.5772/intechopen.72333
Our study responds to the need for a deeper comprehension of CSR (Corporate Social Responsibility)’s underlying mechanisms, especially at the institutional level. Using 134,823 observations of 2542 firms across 44 countries from 2009 to 2014, we observed that CSR has a more significant positive impact on firm value in markets where there are significant institutional gaps (e.g., absence of financial reportage or monitoring systems). In strong institutional frameworks, however, the results were mixed; for these results, we recommend firms pursue CSR initiatives that are likely to enhance value and align well with their existing core competencies.
Nudging through Children to Save Electricity
Agarwal, S., Rengarajan, S., Sing, T. F., & Yang, Y. (2017). Nudges from school children and electricity conservation: Evidence from the “Project Carbon Zero” campaign in Singapore. Energy Economics, 61, 29-41. https://doi.org/10.1016/j.eneco.2016.10.014
In our study, we explore the effectiveness of children in influencing their parents’ energy consumption behavior. Utilizing the “Project Carbon Zero” campaign in Singapore as a quasi-experiment, we investigate the impact of schoolchildren’s nudges on conveying electricity conservation messages to homes. Our results, based on a 2km home–school distance identification, show that families within 2km of participating schools (treatment group) used 1.8% less electricity during the contest compared to those outside this zone (control group). Additionally, the electricity savings persisted, with an estimated marginal reduction of 1.6% in the post-campaign months. These findings suggest that, as an alternative to monetary interventions, we, as policymakers and energy conservation advocates, can effectively employ schoolchildren’s nudges in public campaigns to drive behavioral changes in electricity conservation among families.
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The research on water and electricity consumption focuses on Singapore policies and households, and examines how environmental risks and relevant public policy, specifically price announcements and subsidies on water and electricity consumption, impact conservation efforts by households. Emphasizing the importance of calibrated information provision, particularly for vulnerable socio-economic groups, the research guides the public and policymakers toward more effective behaviours and strategies for balancing environmental conservation with societal and economic well-being.
Our commitment to a holistic understanding of sustainable consumption extends to the real estate market. The research examining the consequences of environmental punishments on housing prices sheds light on the delicate balance between regulatory measures, public awareness, and property values. These insights contribute to shaping sustainable urban development strategies that consider the nuanced relationships between regulatory interventions and societal responses in the climate change era.
In our latest endeavour, SGFIN is developing the Consumer Carbon Scorecard, with the aim of empowering individual consumers to consume more sustainably with insights into the carbon emissions linked to their consumption of goods and services. By estimating each individual consumer’s carbon footprint and establishing a benchmarking system for their carbon usage relative to their peers, the research aims to enhance carbon literacy among end consumers, raise public awareness on climate actions, and promote sustainable lifestyle choices, thereby advancing long-term sustainability.
Greenpac Singapore: Doing Good in a Sustainable Way
25 October 2021, IVEY Case No. 9B21N008
Greenpac (Singapore) Private Limited (Greenpac) was a green packaging solution provider, aimed to become a world-class knowledge-based company that offered innovative and environmentally friendly packaging solutions. Greenpac was also a champion of corporate social responsibility (CSR), advocating for environmental sustainability and social issues. The case will allow students to: 1) analyze the environmental and social impact of a leading small and medium enterprise (SME) in Singapore; 2) apply three published sustainability frameworks to evaluate the impact of CSR in an SME; 3) using survey results, analyze the challenges SMEs face when conducting CSR initiatives; and 4) provide a sustainable strategy for an SME for effective CSR initiatives with better employee engagement.
SingTel: Philanthropic or Strategic Corporate Social Responsibility?
18 June 2019, IVEY Case Publishing No. 9B19M053
In 2014, the vice-president of Group Corporate Social Responsibility at Singtel, a Singapore-based provider of telecommunications products and services, was scrutinizing his proposal for the company’s corporate social responsibility (CSR) transformation. He wanted to reposition Singtel’s CSR approach to create greater social impact while demonstrating greater benefit to the company beyond promoting its branding and reputation. Students will be able to acquire skills in formulating a comprehensive and strategic CSR framework that aligns well with both the external market trends and the fundamental values of the organization. These change management skills will prepare students for the diverse challenges of a dynamic work environment that is more demanding in value creation of CSR activities.