Organizing for Sustainability: an empirical analysis of Italian listed companies

Sustainability is one of the most pressing issues for business all over the world and integrating social, environmental and governance concerns into all areas of the organization is considered a strategic imperative. Corporation’s sustainable impact is constantly under great scrutiny by global financial, regulatory, and societal stakeholders. Thus, businesses have increasingly focused on how to effectively implement responsible initiatives to achieve sustainable objectives. Many organizations have created specialized executive positions or dedicated board committees to oversee sustainability activities. However, little is known on the effect of these management and governance mechanisms on sustainability performance and financial performance. The purpose of this dissertation is to investigate if organizing for sustainability affects sustainable performance and whether it moderates the relationship between corporate sustainable performance and corporate financial performance. The analysis is performed on companies listed on the Italian Stock Exchange that in 2021 published a sustainability report following the GRI Standards. The claim is that the alignment of sustainability structures with responsible practices is critical to realize the benefits associated with sustainable performance. Understanding the role of organizational structures may help managers and directors of corporations, allocate their limited resources in their strategic planning and decision making.