Profit meets purpose: a meta-analysis of impact of corporate sustainability on firm performance

Purpose - The study aims to investigate the relationship between corporate sustainability (CS) and firm performance (FP) through meta-analysis of empirical research findings while considering various moderating variables. Design/methodology/approach - Drawing on stakeholder and agency theories, it examines 102 independent studies with 556 effect sizes to assess the impact of CS, considering environmental, social, governance and combined environmental, social and governance (ESG) dimensions. Findings - The results reveal a strong positive relationship between CS and FP, emphasizing the importance of incorporating CS practices into firm strategies. Utilizing a meta-fuzzy effect size function further supports these findings, confirming positive relationship between CS and FP. Additionally, analysis of moderating variables provides detailed insights into CS-FP relationship. Research limitations/implications - This study highlights the benefits of adopting CS, offering valuable insights for organizations, managers and policymakers. It significantly contributes to existing literature by empirically examining ESG dimensions' impact on FP through a meta-analytical approach, facilitating informed decision-making and strategic planning in CS initiatives. Originality/value - To the best of authors' knowledge, this is the first study to explore this relationship in such an extent.