The contentious relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) has been extensively and yet inconclusively debated in the sustainability literature. We further investigate the link between CSR and CFP by examining the mediating role of green innovation performance (GIP). We perform pooled ordinary least squares (OLS) analysis on a panel data of UK firms from 2006 to 2017 provided by the ASSET4 database. We find that CSR is positively and significantly associated with CFP and that GIP plays a significant and positive mediating role in this relationship. Our findings contribute to the extant sustainability literature by using a comprehensive measure of CFP and addressing the mediating effects of GIP on the link between CSR and CFP. The results provide policy, practice, and research implications as investors demand more robust CSR information, regulators establish environmental and climate change rules, and companies focus on the efficiency and effectiveness of their green innovation practices and performance.

This study aims to contribute to the ongoing and inconclusive debates regarding the relative significance of environmental, social, and governance (ESG) sustainability key performance indicators and their correlation with overall sustainability performance. We present a unique two‐step analytical framework to leverage Thomson Reuters' ESG Score (ASSET4) database to determine the most impactful ESG pillars and their subcomponents at both the firm and industry levels. This framework integrates the Method based on the Removal Effects of Criteria (MEREC) with K‐means cluster analysis. Through the MEREC‐K‐means framework, we determine the two most noteworthy ESG pillars within various industries, subsequently clustering them to form peer groups for comprehensive comparative analysis. We find that while the social and economic pillars are the two fundamental pillars of ESG performance in all industries in general, this prioritization sometimes differs from industry to industry. This research makes theoretical and practical contributions by introducing a novel dimensionality reduction technique in ESG pillars, offering valuable insights for strategic resource allocation in corporate social responsibility (CSR) and sustainability initiatives. The implications of our findings extend broadly to investors, policymakers, and practitioners, empowering them to make more informed decisions.

Purpose: This study investigates the relationship between employee support and labor investment efficiency, examining the mediating role of internal control weaknesses. The research integrates human capital theory and agency theory to provide a more comprehensive understanding of how employee Support policies affect workforce management efficiency. Design/methodology/approach: Using a sample of 1,790 firm-year observations spanning from 2014 to 2023, the study employs regression analysis with panel data. Findings: The results reveal that employee support significantly improves labor investment efficiency both directly and indirectly. Companies with stronger employee support demonstrate fewer internal control weaknesses, which in turn leads to more efficient labor investment decisions. The study finds that internal control weaknesses partially mediate the relationship between employee support and labor investment efficiency. Originality/value: This study makes a novel contribution by examining the mediating role of internal controls in the relationship between employee support and labor investment efficiency, an aspect previously unexplored in the literature. By integrating multiple theoretical perspectives and investigating both direct and indirect effects, the research provides new insights into how organizations can optimize their human capital management through the complementary interaction of supportive policies and control mechanisms.