Impact of sustainability initiatives of companies and government on company performance

PurposeIntegrating environmental aspects in business and government operations can create trust, market competition, and a successful economy. It ensures that there are adequate environmental practices to maintain a healthy environment and mitigate any damages caused to the environment. The companies' compliance with environmental-related rules, regulations, and practices could lead to an increase in revenue, reputation, and performance. The government's positive action and disclosure of environmentally friendly measures and practices could build trust in a country's economy and its corporation; this in turn could increase the performance of the companies and their comparative market position. This research tried to study the relationship between company and government initiatives and company performance.Design/methodology/approachThis study is an attempt to understand various sustainability-related initiatives taken by the company and the government and the connection of these initiatives to company performance. To achieve the objective, the research applied the survey method.FindingsThe results of the survey were analyzed using structural equations modeling and found that there was a significant correlation between companies' performance and sustainable initiatives of companies and the government.Originality/valueThe finding is important because it shows that not only the company's sustainable initiatives but also the government initiatives are important for the company's performance.