Business in the 21st Century

The finance function and the financial system require finding a balance between wealth maximization, social and ecological aspects, and managing the triple bottom line of business sustainability. The main aims of this chapter are to: (1) describe (with the help of the literature review) relevant strategies in firms, financial institutions, and governments followed within the finance function on the way to achieve the Sustainable Development Goals, including the times of the COVID-19 pandemic, and (2) propose practical guidelines for CFOs and managers to respond to the new challenges, learn positive lessons from the COVID-19 crisis, and thus keep improving to achieve more sustainability in the finance function. According to Lawson (2020), the current finance function priorities mentioned in a global study are (1) risk management, (2) cash management, and (3) cost management and control. In the hardest hit industries (e.g., hospitality sector) from COVID-19 lockdowns, the continued innovation of the business model is an important key to create new revenue streams and secure a better level of liquidity (Breier et al., 2021). During the first phases of the COVID-19 pandemic, social entrepreneurship funds reported more returns that are positive, suggesting that fund managers have changed from a high-risk style to low risk regarding size and investment strategy (Rizvi et al., 2020).

The outbreak of the COVID-19 pandemic caught the world by surprise. Suddenly, people, as well as organizations, needed to adapt to a new reality of work from home, work–life balance, e-leadership, extreme hygiene, and social distancing. Companies had to find new ways to operate, and areas such as Corporate Social Responsibility (CSR) had to react to face the stakeholders' needs. In addition, developing countries had been in a fragile position, as this crisis has deteriorated already weak economic, political, and social conditions. In Mexico, CSR has traditionally assisted on urgent matters such as poverty, hunger, education, work, and other issues that have also been considered in the UN Sustainable Development Goals (SDGs). The aim of this chapter is to describe and analyze CSR response to the COVID-19 crisis of large foreign multinational corporations (MNCs) in Mexico, especially in relation to the SDG agenda. First, we provide a general background of the initial condition, that is, Mexico's situation when the pandemic arose, as well as common attributes of prepandemic CSR in Mexico. Then, we examine the government's response to the crisis. Afterward, we observe and analyze large foreign MNCs' CSR disclosed activities to face the emergency. Main findings imply that companies switched their usual CSR attention from socioeconomical, institutional, and sustainability goals to primary needs. Lastly, we make recommendations on the future of CSR and the SDG in the so-called “new normal.”

A company's overall success and resilience in the market is increasingly linked to its Environmental, Social, and Governance (ESG) performance. Following a brief review of sustainable development and corporate sustainability, the concept and rationale behind ESG is discussed with an emphasis on the criteria and limitations of ESG scores. ESG matters are mostly limited to global hotel chains but critical to an entire industry that seeks to decarbonize its operations until 2050 while also tackling the Sustainable Development Goals (SDGs). There is a potential misalignment of the ESG criteria to achieve the ambitious SDGs based on the narrow, environmentally based view on sustainability in the hotel sector. A set of recommendations is designed to align the SDGs to ESG requirements and expectations supported by industry examples within the context of the COVID-19 pandemic and resiliency imperative.

The fundamental objective of this chapter, regarding the main Latin American economies, is to identify the business conditions with which companies faced the COVID-19 pandemic. The specific period under study is from 2010 to 2021. The key components of this research will be studied in relation to business environment, economic growth, and aspects of corruption/transparency in countries that belong to Mercosur and the Pacific Alliance (PA). Mercosur stands for Southern Common Market in Latin America – Argentina, Brazil, Paraguay, and Uruguay; the PA is formed by Chile, Colombia, Mexico, and Peru. Each of the indicators will be studied based on the time series in addition to its interaction with the other variables. In this way, it will be possible to identify conditions that could be relevant to the sustainability of companies in the Latin American region.

Sustainable Development Goals (SDGs) frame the urgent call for actions by all global stakeholders to provide economic, social, and ecological prosperity (United Nations, 2021). The goal is to create a better world for the greatest number of people. The stakeholders of SDGs are primarily UN member states, regardless of the size of their resources or population (United Nations, 2019). However, autonomous communities are included as well as companies. The Isle of Man (IoM) is located in the Irish Sea and is an autonomous crown dependency (cd) of the British monarchy with almost eight times fewer inhabitants than one of Europe's largest employer, Volkswagen, has employees (Brandtjen, 2019; Volkswagen AG, 2020). In 2016, the whole Isle was designated a UNESCO Biosphere Reserve (BR) and is the only entire nation to be a member of this worldwide network. The Biosphere programme focuses on sustainable development, conservation, and education within the framework of the UN's 17 SDGs (Isle of Man Government, 2021; UNESCO, 2019). But how does this programme help the IoM to develop? Did this programme help the IoM to get through the COVID-19 pandemic? Is the IoM a model for other nations to become UNESCO BRs and to create an environment for corporate SDGs to be fulfilled?

The COVID-19 pandemic has become threatening for economies, causing recession and increased unemployment rates. Many employees in the sectors affected by the crisis face the risks of losing their jobs, getting on unpaid leave, and decreasing their weekly working hours. Various governments including the Turkish government have started struggling with unemployment and embraced macro level measures including support for SMEs, wage subsidies, and new working models. At the micro level, implementation of flexible working methods has been encouraged and has increased with respect to scope and scale. Both governments and companies tried their best to ensure business continuity and prevent unemployment. Actually, business continuity has gained great importance for ensuring sustainability and minimizing the effects of the pandemic. However, previous studies have revealed that approximately 25% of companies all over the world have a continuity plan. This chapter aims to examine the effects of the pandemic and macro level and micro level measures taken by Turkish authorities to mitigate the effects of the pandemic on employment rates and business continuity, thus providing insight into crisis management through a real experience. This study also attempts to explain how Turkish authorities can contribute to the Sustainable Development Goals (SDGs) through pandemic measures and teleworking.

This chapter aims to analyze sustainability from the perspective of the employees' well-being. In this regard, the concepts of social sustainability and sustainable development objectives are reviewed in the frame of Sustainable Development Goals (SDGs), specifically those related to well-being, gender equality, and decent work. Furthermore, the relationship between employees' well-being and performance is discussed. In addition, the psychology of sustainability and its contribution to sustainable well-being at work are analyzed. This study highlights the relevance of social factors such as psychological well-being, equity, opportunities for participation, inclusion, and diversity for achieving the creation of value through social sustainability. All these social factors acquire even more relevance in times of crisis as the current COVID-19 pandemic. Finally, some conclusions and further directions are presented.

Achieving sustainable development in heart-wrenching milestone in the face of the current pandemic (COVID-19) situation is becoming a key factor for competitiveness of organizations. Human Resource Development professionals are deemed to be in an ideal position to facilitate the organizational sustainable development by bringing about contextual changes in the workplace and by changing the behavioral patterns of employees. The COVID-19 pandemic has engendered the disruption across societies, raising challenges for the organizations besides other institutions to play their imperative role for a sustainable development pathway. One such way of striving by organizations would be to embark among employees a spark of bringing a change among its employees from being self-centered to societal-oriented by instilling among them the kindle of DSIW (Desire to have Significant Impact through Work). It is the desire of making substantial impact toward society and others' lives, which is evoked under ethical leadership and perceived ethical Corporate Social Responsibility (CSR). Thus, we have identified the underpinning values of being an ethical leader in wake of contributing toward the Sustainable Development Goals (SDGs) toward bringing a societal perspective among employees by infusing the altruistic desire, that is, DSIW among employees. This chapter is broadly divided into two main sections. The first section highlights the contextual settings and the underlying mechanisms that lead to DSIW. The second section draws the attention toward the implication of DSIW for employees in bringing about social change with respect to sustainability, social well-being, as well for the sustainable development of organizations and for positive socioeconomic consequences.

Employees as citizens and companies as part of our society have to deal with the implications of grand challenges such as the global climate change or the COVID-19 pandemic in this turbulent twenty-first century. Internal versus external Corporate Social Responsibility (CSR) acquires an integrative element of sustainable business strategies. Human Resource Management (HRM) contributes by defining modern internal Workplace CSR concepts for supporting sustainable business strategies. The focus of the sustainable HRM strategy is the employees as the key asset of companies, applying especially to those who are particularly talented as future leadership successors and CSR ambassadors. On the basis of the current Green HRM and Workplace CSR review, theoretical and practical implications are concluded to foster Workplace CSR strategy as part of a modern working culture and an integrative HRM frame. The COVID-19 pandemic as an accelerator of Green and social transformation is also discussed in the context of this sustainable HRM framework.

The accelerating need for sustainable development across the globe has put firms under great pressure to play their role in social sustainability by working on several objectives. Among them, the demand for a highly resilient and engaged workforce to sustain their competitive edge is at the forefront. Despite noted literature revolving around work engagement, there is a lack of research investigating the effect of sustainable leadership on employee resilience and work engagement. The current epidemic (COVID-19) brings many challenges for organizations. In these times of uncertainty, sustainable leaders provide the basis for achieving the human dimension of sustainability by fostering and cultivating a vision across the employees that enables the organizations to work positively for their well-being, enhancing their ability to be resilient and engaged in their work. The present chapter has two broad aims, first to give a comprehensive review of our present understanding of work engagement, that is, the conceptualization, operationalization, and prediction of work engagement; and the second part outlines the interventions that may facilitate the sustainability of work engagement in times of uncertainty. The study suggests that sustainable leadership and the ability of resilience enables employees to overcome their experience of fluctuating levels of engagement. It is established that in the uncertainties of an epidemic, the construct of work engagement with its antecedents and consequences has its theoretical and practical implications for academicians as well as for industry.

Today's business leaders must navigate through challenging turmoil, such as pandemics or black swans. Preparing enterprises for survival and superior rivalry requires capabilities for securing profitability, adaptability, and corporate renewal on an ongoing basis. In this chapter, we introduce a model that enables event-driven navigation through turbulent times – in helping companies move beyond the traditional strategic management and elevate their enterprise onto a higher playing field.

Increasing digitalization and the advent of Industry 4.0 were scrutinized on how these may influence SDG attainment in different levels. The digitalization of the business and operational models emerged as the newer source of attaining competitive advantage in the pre-COVID-19 context. The COVID-19 pandemic has undoubtedly added more complexities to the already prevailing VUCA context of sustaining the business and development agenda irrespective of their geographic or institutional affiliations. Businesses in different industries, particularly in the developing countries, had lower or no preparedness in most cases in dealing with such uncertainties arising from the pandemic. Business firms and governments started to revise and digitalize their business models at the enterprise and institutional levels. To be very precise, MNCs in the fast-moving consumer goods industry in Bangladesh restructured their business model, at least the supply chain part, through direct and indirect digitalization of their business models, partly developing cooperation with existing e-commerce platforms. Volatile, uncertain, complex, and ambiguous focused corporate leadership and strategy helped in halting drastic slipping on the SDG millstones for Bangladesh. Despite the prevalent COVID-19 context, Bangladesh graduated to the club of the developing countries by retaining eligibility position on the gross national income index, human assets index, and economic vulnerability index. This chapter attempts to establish theoretical structuration of the links between digitalization and transformation of the business models and handling the SDG challenges.

In this chapter, we support that pricing carbon emissions policies in aviation might have a lower than expected impact on aviation activity, if such policies are accompanied by investments in environmental technology and an adequate communication strategy by the airlines, which eliminates information asymmetries. Furthermore, we suggest that firms' environmental strategies might be an important advantage in competition. Using orthogonal design techniques, we developed a binary choice experiment, in which carbon emissions are presented to 338 German respondents among other choice-related attributes. Estimating several binary logit models, we are in a position to compute the air travelers' willingness to pay (WTP) for carbon emissions reductions. Findings suggest that passengers consider carbon emissions in their individual airline (itinerary) choice decision, if they receive the corresponding information. We also show that the passengers' WTP for carbon emissions reductions is in line with recent estimates on marginal damage cost. Furthermore, we find that WTP increases for passengers with high environmental sensitivity, whereas it decreases for frequent flyers. Investments in environmental technology and airline commitment for environmental-related firm policy positively influence the passengers' choices. It appears that the average passenger is more sensitive to environmental issues and is willing to pay more for environmental protection than industry officials or policymakers presume.

Nowadays, fast and unpredictable changes are common in most countries. Organizations are trying to survive in an environment that shows obvious signs of wear and tear. At the same time, sustainability has been arousing an obvious interest for years, in both the business and academy fields. The global perspective of the sustainable phenomenon as well as the objectives and goals to be achieved have turned into the Agenda for Sustainable Development, with the horizon set in 2030. This chapter is part of SDG 9, which proposes innovation as a means to contribute to sustainability and create wealth in nations; thus, sustainable innovation constitutes a basic and growing paradigm, which makes it possible to achieve SDG 9. Furthermore, the impact that the COVID-19 pandemic has had on companies and their way of innovation managing is exposed. Finally, guidelines are proposed so that organizations can be more responsible and sustainable.

One goal of the United Nation's key sustainable development is to ensure sustainable consumption and production habits. In particular, the United Nation's target 12.5 aims at substantially reducing “waste generation through prevention, reduction, recycling, and reuse by 2030” (United Nations, 2022). This strategy goes hand in hand with the so-called “Zero Waste” concept where waste is reduced as much as possible. Zero Waste has gained increasing attention in production technology and waste management literature. Interestingly, the concept has also become more and more popular with consumers in recent years. Indeed, environmentally conscious consumers increasingly make efforts to reduce their waste production by changing their lifestyles accordingly (Săplăcan & Márton, 2019), such as bringing their own bags for grocery shopping or using their own coffee-to-go mugs when filling coffee in cafés. These Zero Waste practices become particularly popular with consumers in the food industry. By investigating the Zero Waste practices within the food industry, this research will demonstrate how companies develop business ideas to address this consumption trend. Specifically, it shows both challenges and opportunities companies face when targeting Zero Waste consumers. Moreover, the chapter analyzes the impact of the COVID-19 pandemic on Zero Waste consumption patterns in the food industry and proposes strategies how food companies can respond effectively to these changes. Finally, the research provides practical recommendations to companies on how to implement Zero Waste practices to appeal to environmental conscious Zero Waste consumers.

This chapter analyzes key concepts involved in the development of a well-being organizational culture, as well as theoretical proposals to promote this type of culture at work. It reflects on how companies can – drawing from this effort – articulate the Sustainable Development Goals (SDGs) in their management, strengthen their sustainability, and contribute to sustainability in their societies and exemplify how this topic has been dealt with during the pandemic in several organizations.

The global pandemic has increased stakeholders' expectations for companies to protect their health and the wealth of the planet, reason why to achieve long-term social and environmental sustainability, companies need to adopt sustainable business models (SBMs). To support and inspire companies in their journey to become sustainable, the different SBMs that companies can adopt are presented and classified according to their ecological or social focus. It was found that the ecological SBMs follow the circular economy paradigm, and that the social ones can be conceived by considering Base of the Pyramid (BoP) communities.

The objectives of this chapter are: first, to analyze the magnitude of the COVID-19 impact on homestay business in Bali and second, to identify the most significant determinant of COVID-19 to the homestay industry. It hopes that the results would contribute to policy recommendations and business strategies to increase the resilient capacity of the homestay business during the pandemic period. Due to the pandemic situation, 74 respondents of homestay owners were interviewed through an online survey (Google form). The data gathering was through three events of focus group discussion and several in-depth interviews. Partial Least Squares regression and descriptive statistics were applied. The result shows that, first, the COVID-19 pandemic has a considerable decreasing impact on the (1) homestay occupancy rate, (2) homestay characters (room rental price), (3) homestay competency capital, (4) provided facilities, and (5) guest composition. Second, during the global pandemic, the homestay business association, the number of media promotions, the number of room booking channels, and the homestay characters significantly impact the homestay occupancy rate. Third, to increase the demand for tourism, appropriate measures and policies should be taken, such as increasing the travel bubble consent, mobilizing central government officers working in Bali, increasing the number of domestic promotions, and only using an effective and efficient room booking channel.