Macroeconomic conditions are only an illusion, not the solution, to firm sustainability: unveiling the new dimension of stakeholder well-being
International Journal of Ethics and Systems
ISSN: 2514-9369
Article publication date: 7 December 2021
Issue publication date: 17 March 2022
Abstract
Purpose
The purpose of the study is to explore the misconception that in developed countries, macroeconomic performance lead to sustainable firms or improves stakeholder well-being. The results may be the opposite or even worse.
Design/methodology/approach
This study examined this misconception using balanced panel data from 1,122 firms from different sectors of the US economy and data on macroeconomic performance from the World Bank.
Findings
The results of the one-step generalised method of moments indicate that most macroeconomic performance indicators had significant and negative impacts on firm sustainability and stakeholder well-being.
Practical implications
From a societal perspective, the results illustrate that the fruits of macroeconomic performance of the US economy do not reach stakeholders through firms’ sustainability. Thus, linking the economy’s macroeconomic performance with firm sustainability is vital for sustainably uplifting society and for stakeholder well-being.
Originality/value
From a policy perspective, this study reveals that the greater focus on macroeconomic performance in the USA over the past decades has resulted in lower firm sustainability because of the malfunctioning of social, economic, environmental and governance factors. This has negatively influenced stakeholder well-being in the country.
Keywords
Acknowledgements
Declaration of Interest: This work is an original work and there are no financial or non-financial interests to report.
Citation
Younas, Z.I., Khan, M. and Al-Faryan, M.A.S. (2022), "Macroeconomic conditions are only an illusion, not the solution, to firm sustainability: unveiling the new dimension of stakeholder well-being", International Journal of Ethics and Systems, Vol. 38 No. 2, pp. 254-265. https://doi.org/10.1108/IJOES-02-2021-0038
Publisher
:Emerald Publishing Limited
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