International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

Archives

TuEngr+Logo
:: International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

http://TuEngr.com


ISSN 2228-9860
eISSN 1906-9642
CODEN: ITJEA8


FEATURE PEER-REVIEWED ARTICLE

Vol.13(3)(2022)

  • The Dynamics between Corporate Fairness and Environmental Sustainability Initiatives in the Indian Automotive Industry

    KS Shyna, Senthilkumar Ranganathan (School of Management, Presidency University, Bangalore, INDIA).

    Disciplinary: Sustainable Business Management & Environmental Sustainability.

    ➤ FullText

    doi: 10.14456/ITJEMAST.2022.56

    Keywords: Good governance; Principle of fairness; Genuinely sustainable business model; Corporate fairness; Bias-free decision; Sustainable business model; Environmental sustainability; Strategy for environmental sustainability; Sustainable business strategy.

    Abstract
    Sustainability is a crucial governance issue and a strategic priority in the global automotive industry; location, technology, and business model diversities impact the industry's sustainability. This study defines the dynamics between corporate fairness and environmental sustainability initiatives in the automotive industry by adopting a quantitative design. The research measured corporate fairness and the effectiveness of environmental sustainability initiatives from the voice of 144 employees. The article examines the relationship between Fairness and Environmental sustainability among Indian corporates. The study tested two models, base model keeping only demographics as predictors and incremental model included fairness as predictors. Compared to the base model, the incremental model added value addition to the base model, R square is increased, error metrics dropped. The difference between the base and incremental models is statistically significant. The model output validated the prior literature findings and reemphasized the imperative of fairness to predict Environmental sustainability. The government and corporate policymakers can consider these insights to utilise the optimum potential of sustainable business models to improve the environmental sustainability performance of the global automotive industry.

    Paper ID: 13A3N

    Cite this article:

    Shyna, K.S., Ranganathan, S. (2022). The Dynamics between Corporate Fairness and Environmental Sustainability Initiatives in the Indian Automotive Industry. International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies, 13(3), 13A3N, 1-16. http://TUENGR.COM/V13/13A3N.pdf DOI: 10.14456/ITJEMAST.2022.56

References

  1. Abor, J., & Biekpe, N. (2007). Corporate governance, ownership structure and performance of SMEs in Ghana: Implications for financing opportunities. Corporate Governance, 7(3), 288-300. DOI: 10.1108/14720700710756562
  2. Aras, G., & Crowther, D. (2008). Governance and sustainability: An investigation into the relationship between corporate governance and corporate sustainability. Management Decision, 46(3), 433-448. DOI: 10.1108/00251740810863870
  3. Baumgartner, R. J., & Ebner, D. (2010). Corporate sustainability strategies: Sustainability profiles and maturity levels. Sustainable Development, 18(3), 76-89. DOI: 10.1002/sd.447
  4. Bhattacharya, A., Nand, A., & Castka, P. (2019). Lean-green integration and its impact on sustainability performance: A critical review. Journal of Cleaner Production, 236. DOI: 10.1016/j.jclepro.2019.117697
  5. Bocken, N. M. P., & Geradts, T. H. J. (2020). Barriers and drivers to sustainable business model innovation: Organization design and dynamic capabilities. Long Range Planning, 53(4). DOI: 10.1016/j.lrp.2019.101950
  6. Bocken, N., Short, S., Rana, P., & Evans, S. (2013). A value mapping tool for sustainable business modelling. Corporate Governance (Bingley), 13(5), 482-497. DOI: 10.1108/CG-06-2013-0078
  7. Cioca, L. I., Ivascu, L., Turi, A., Artene, A., & Gaman, G. A. (2019). Sustainable development model for the automotive industry. Sustainability (Switzerland), 11(22). DOI: 10.3390/su11226447
  8. Dordevic, B., & Milanovic, S. (2021). Job satisfaction and organizational citizenship behaviour of employees in companies in the Republic of Serbia. 26(3), 61-71. DOI: 10.5937/StraMan2103061D
  9. Ebner, D., & Baumgartner, R. J. (2006). The relationship between Sustainable Development and Corporate Social Responsibility. Corporate Responsibility Research Conference 2006, September, 17. http://www.crrconference.org/Previous_conferences/downloads/2006ebnerbaumgartner.pdf
  10. Ghadimi, P., Azadnia, A. H., Mohd Yusof, N., & Mat Saman, M. Z. (2012). A weighted fuzzy approach for product sustainability assessment: A case study in automotive industry. Journal of Cleaner Production, 33, 10-21. DOI: 10.1016/j.jclepro.2012.05.010
  11. Giampieri, A., Ling-Chin, J., Ma, Z., Smallbone, A., & Roskilly, A. P. (2020). A review of the current automotive manufacturing practice from an energy perspective. Applied Energy, 261. DOI: 10.1016/j.apenergy.2019.114074
  12. Grubor, A., & Berber, N. (2020). The influence of corporate social responsibility on organizational performance: a research in AP Vojvodina. 56(43), 3-13. DOI: 10.5937/AnEkSub2001003G
  13. Halili, Z. (2020). Technology in Society Identifying and ranking appropriate strategies for effective technology transfer in the automotive industry: Evidence from Iran. Technology in Society, 62(May), 101264. DOI: 10.1016/j.techsoc.2020.101264
  14. Harmon, R. R., & Moolenkamp, N. (2012). Sustainable it services: Developing a strategy framework. International Journal of Innovation and Technology Management, 9(3). DOI: 10.1142/S0219877012500149
  15. Harrison, J. S., & Freeman, R. E. (2015). Stakeholder Theory As an Ethical Approach to Effective Management: applying the theory to multiple contexts. November. DOI: 10.7819/rbgn.v17i55.2647
  16. Hussain, N., Rigoni, U., & Orij, R. P. (2018). Corporate Governance and Sustainability Performance: Analysis of Triple Bottom Line Performance. Journal of Business Ethics, 149(3), 411-432. DOI: 10.1007/s10551-016-3099-5
  17. Ivanovic, T. (2021). Application of modern Enterprise Resource Planning ( ERP ) systems in the era of digital transformation. 26(4), 28-36. DOI: 10.5937/StraMan2104028I
  18. Jaimes-Valdez, M. A., & Jacobo-Hernandez, C. A. (2016). Sustainability and Corporate Governance: Theoretical Development and Perspectives. Journal of Management and Sustainability, 6(3), 44. DOI: 10.5539/jms.v6n3p44
  19. Janggu, T., Darus, F., Zain, M. M., & Sawani, Y. (2014). Does Good Corporate Governance Lead to Better Sustainability Reporting? An Analysis Using Structural Equation Modeling. Procedia - Social and Behavioral Sciences, 145, 138-145. DOI: 10.1016/j.sbspro.2014.06.020
  20. Jasinski, D., Meredith, J., & Kirwan, K. (2016). A comprehensive framework for automotive sustainability assessment. Journal of Cleaner Production, 135, 1034-1044. DOI: 10.1016/j.jclepro.2016.07.027
  21. Jelavic, S. R., & Vulic, M. P. (2021). Sustainability Balanced Scorecard: Four performance perspectives or more. 26(4), 37-49. DOI: 10.5937/StraMan2104037R
  22. Kehbila, A. G., Ertel, J., & Brent, A. C. (2010). Corporate sustainability, ecological modernization and the policy process in the South African automotive industry. Business Strategy and the Environment, 19(7), 453-465. DOI: 10.1002/bse.669
  23. Khalid, N. (2014). Efficient Energy Management: Is Variable Frequency Drives the Solution. Procedia - Social and Behavioral Sciences, 145, 371-376. DOI: 10.1016/j.sbspro.2014.06.046
  24. Kisingo, A., Rollins, R., Murray, G., Dearden, P., & Clarke, M. (2016). Evaluating 'good governance': The development of a quantitative tool in the Greater Serengeti Ecosystem. Journal of Environmental Management, 181, 749-755. DOI: 10.1016/j.jenvman.2016.08.002
  25. Kocmanova, A., Docekalova, M. P., Skapa, S., & Smolikova, L. (2016). Measuring corporate sustainability and environmental, social, and corporate governance value added. Sustainability, 8(9). DOI: 10.3390/su8090945
  26. Koplin, J., Seuring, S., & Mesterharm, M. (2007). Incorporating sustainability into supply management in the automotive industry - the case of the Volkswagen AG. Journal of Cleaner Production, 15(11-12), 1053-1062. DOI: 10.1016/j.jclepro.2006.05.024
  27. Kumar, D., & Garg, C. P. (2017). Evaluating sustainable supply chain indicators using fuzzy AHP: Case of Indian automotive industry. Benchmarking, 24(6). DOI: 10.1108/BIJ-11-2015-0111
  28. Laskar, N., & Maji, S. G. (2016). Corporate sustainability reporting practices in India: Myth or reality? Social Responsibility Journal, 12(4), 625-641. DOI: 10.1108/SRJ-05-2015-0065
  29. Lloret, A. (2016). Modeling corporate sustainability strategy. Journal of Business Research, 69(3), 418-425. DOI: 10.1016/j.jbusres.2015.06.047
  30. Lockwood, M. (2010). Good governance for terrestrial protected areas: A framework , principles and performance outcomes. Journal of Environmental Management, 91(3), 754-766. DOI: 10.1016/j.jenvman.2009.10.005
  31. Mayyas, A., Qattawi, A., Omar, M., & Shan, D. (2012). Design for sustainability in automotive industry: A comprehensive review. Renewable and Sustainable Energy Reviews, 16(4), 1845-1862. DOI: 10.1016/j.rser.2012.01.012
  32. Michelon, G., & Parbonetti, A. (2012). The effect of corporate governance on sustainability disclosure. Journal of Management and Governance, 16(3), 477-509. DOI: 10.1007/s10997-010-9160-3
  33. Miglani, S. (2019). The Growth of the Indian Automobile Industry: Analysis of the Roles of Government Policy and Other Enabling Factors. (pp. 439-463). DOI: 10.1007/978-981-13-8102-7_19
  34. Mohammad Nazir, N., & Shavarebi, K. (2019). A review of global automotive industry's competitive strategies. World Journal of Science, Technology and Sustainable Development, ahead-of-print(ahead-of-print). DOI: 10.1108/wjstsd-10-2018-0060
  35. Naciti, V. (2019). Corporate governance and board of directors: The effect of board composition on firm sustainability performance. Journal of Cleaner Production, 237, 117727. DOI: 10.1016/j.jclepro.2019.117727
  36. Nicolaescu, E., Alpopi, C., & Zaharia, C. (2015). Measuring corporate sustainability performance. Sustainability (Switzerland), 7(1), 851-865. DOI: 10.3390/su7010851
  37. Orsato, R. J., & Wells, P. (2007). The Automobile Industry & Sustainability. In Journal of Cleaner Production, 15(11-12), 989-993. DOI: 10.1016/j.jclepro.2006.05.035
  38. Page, M., & Spira, L. F. (2016). Corporate governance as custodianship of the business model. Journal of Management and Governance, 20(3), 213-228. DOI: 10.1007/s10997-016-9343-7
  39. Parmar, B. L., Freeman, R. E., Harrison, J. S., Wicks, A. C., Purnell, L., & de Colle, S. (2010). Stakeholder theory: The state of the art. Academy of Management Annals, 4(1), 403-445. DOI: 10.1080/19416520.2010.495581
  40. Patala, S., Jalkala, A., Keranen, J., Vaisanen, S., Tuominen, V., & Soukka, R. (2016). Sustainable value propositions: Framework and implications for technology suppliers. Industrial Marketing Management, 59, 144-156. DOI: 10.1016/j.indmarman.2016.03.001
  41. Pop, L. D. (2020). Digitalization of the system of data analysis and collection in an automotive company. Procedia Manufacturing, 46, 238-243. DOI: 10.1016/j.promfg.2020.03.035
  42. R, V. L., & Kennedy, H. S. (2018). Sustainable Business Model: A Theoretical Framework for Manufacturing Firms. 7(5), 1-4.
  43. Rodic, M. (2021). Leadership style and employee readiness: basic factors of leadership efficiency. 26(1), 53-65. DOI: 10.5937/StraMan2101053R
  44. Roome, N., & Louche, C. (2016). Journeying Toward Business Models for Sustainability: A Conceptual Model Found Inside the Black Box of Organisational Transformation. Organization and Environment, 29(1), 11-35. DOI: 10.1177/1086026615595084
  45. Saberi, B. (2018). The role of the automobile industry in the economy of developed countries. International Robotics & Automation Journal, 4(3). DOI: 10.15406/iratj.2018.04.00119
  46. Salvado, M. F., Azevedo, S. G., Matias, J. C. O., & Ferreira, L. M. (2015). Proposal of a sustainability index for the automotive industry. Sustainability (Switzerland), 7(3), 2113-2144. DOI: 10.3390/su7022113
  47. Schaltegger, S., Hansen, E. G., & Ludeke-Freund, F. (2016). Business Models for Sustainability: Origins, Present Research, and Future Avenues. In Organization and Environment. 29(1), 3-10. DOI: 10.1177/1086026615599806
  48. Schoggl, J. P., Baumgartner, R. J., & Hofer, D. (2017). Improving sustainability performance in early phases of product design: A checklist for sustainable product development tested in the automotive industry. Journal of Cleaner Production, 140, 1602-1617. DOI: 10.1016/j.jclepro.2016.09.195
  49. Schrobback, P., & Meath, C. (2020). Corporate sustainability governance: Insight from the Australian and New Zealand port industry. Journal of Cleaner Production, 255, 120280. DOI: 10.1016/j.jclepro.2020.120280
  50. Sinay, J., & Kotianova, Z. (2019). Automotive Industry in the Context of Industry 4.0 Strategy. TRANSACTIONS of the VSB - Technical University of Ostrava, Safety Engineering Series, 13(3), 61-65. DOI: 10.2478/tvsbses-2018-0014
  51. Stewart, R., Bey, N., & Boks, C. (2016). Exploration of the barriers to implementing different types of sustainability approaches. Procedia CIRP, 48, 22-27. DOI: 10.1016/j.procir.2016.04.063
  52. Stoycheva, S., Marchese, D., Paul, C., Padoan, S., Juhmani, A. salam, & Linkov, I. (2018). Multi-criteria decision analysis framework for sustainable manufacturing in automotive industry. Journal of Cleaner Production, 187, 257-272. DOI: 10.1016/j.jclepro.2018.03.133
  53. Sukitsch, M., Engert, S., & Baumgartner, R. J. (2015). The implementation of corporate sustainability in the European automotive industry: An analysis of sustainability reports. Sustainability, 7(9). DOI: 10.3390/su70911504
  54. Torre, M. La, Trotta, A., Chiappini, H., & Rizzello, A. (2019). Business models for sustainable finance: The case study of social impact bonds. Sustainability, 11(7). DOI: 10.3390/su11071887
  55. Vaidya, S., Ambad, P., & Bhosle, S. (2018). Industry 4.0 - A Glimpse. Procedia Manufacturing, 20, 233-238. DOI: 10.1016/j.promfg.2018.02.034
  56. Vinodh, S., & Rathod, G. (2010). Integration of ECQFD and LCA for sustainable product design. Journal of Cleaner Production, 18(8), 833-842. DOI: 10.1016/j.jclepro.2009.12.024
  57. Vuorio, A. M., Puumalainen, K., & Fellnhofer, K. (2018). Drivers of entrepreneurial intentions in sustainable entrepreneurship. International Journal of Entrepreneurial Behaviour and Research, 24(3), 359-381. DOI: 10.1108/IJEBR-03-2016-0097
  58. Wells, P. (2010). Sustainability and diversity in the global automotive industry. In Int. J. Automotive Technology and Management, 10(3).
  59. Wells, P. (2013). Sustainable business models and the automotive industry: A commentary. IIMB Management Review, 25(4), 228-239. DOI: 10.1016/j.iimb.2013.07.001
  60. Wells, P. (2016). Economies of Scale Versus Small Is Beautiful: A Business Model Approach Based on Architecture, Principles and Components in the Beer Industry. Organization and Environment, 29(1), 36-52. DOI: 10.1177/1086026615590882
  61. Wurster, S., HeB, P., Nauruschat, M., & Jutting, M. (2020). Sustainable circular mobility: User-integrated innovation and specifics of electric vehicle owners. Sustainability, 12(19). DOI: 10.3390/SU12197900


Other issues:
Vol.13(3)(2022)
Vol.13(2)(2022)
Vol.13(1)(2022)
Archives




Call-for-Papers

Call-for-Scientific Papers
Call-for-Research Papers: ITJEMAST invites you to submit high quality papers for full peer-review and possible publication in areas pertaining engineering, science, management and technology, especially interdisciplinary/cross-disciplinary/multidisciplinary subjects.

To publish your work in the next available issue, your manuscripts together with copyright transfer document signed by all authors can be submitted via email to Editor @ TuEngr.com (no space between). (please see all detail from Instructions for Authors)


Publication and peer-reviewed process:
After the peer-review process (4-10 weeks), articles will be on-line published in the available next issue. However, the International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies cannot guarantee the exact publication time as the process may take longer time, subject to peer-review approval and adjustment of the submitted articles.

Disclaimer: All products names including trademarksTM or registered® trademarks as well as intellectual properties mentioned in ITJEMAST's articles are the property of their respective owners, using for identification and educational purposes only. Use of them does not imply any endorsement or affiliation. Information publisihed in ITJEMAST, reflected only personal view of the authors, is very fact specific with particular assumptions and thus may not apply to any specific situations. Specific advices should sought from professionals in the fields. Under no circumstances shall its Editors, Editorial Board members, and the authors be liable for any direct or indirect, incidental or consequential losses or damages that result from the uses of or the reliances upon the ITJEMAST published information.

©2022 All Rights Reserved.