Sustainable Value Creation - performance of European Manufacturing Companies
Sustainable Value Creation - performance of European Manufacturing Companies

Author(s): Karolina Daszyńska-Żygadło
Subject(s): Supranational / Global Economy, Business Economy / Management, Micro-Economics, Energy and Environmental Studies, Economic development
Published by: Masarykova univerzita nakladatelství
Keywords: sustainability; value creation; opportunity cost;
Summary/Abstract: The research problem of this paper is how to measure the impact of corporate sustainability performance on company’s value. Its aim is to show this impact in monetary terms, using opportunity costs based approach. Sustainable Value method presented and tested in this paper integrates environmental, social and economic factors. It measures the value created or destroyed by the company with the usage of particular set of resources, the value is referenced to the benchmark’s value creation that could potentially be realized with the same set of resources. Research was conducted on manufacturing companies from EU-15 countries. It analyzes the prospects and advancement in sustainable value creation as well as mitigation of negative environmental impact in reference to value created by companies examined in the research of Figge, Hahn and coauthors in ADVANCE project (2006). Results show that majority of companies which were creating sustainable value in the period of 2001-2003 continued to obtain positive values in the period of 2004-2012, the same applied to value destructing companies.

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