Corporate sustainability and financial performance: A hybrid literature review

Abstract The discussion of “whether it pays to be green” is ongoing. This review does not intend solve the debate, rather soothes by contributing concept “when green.” By focusing on shortcomings existing literature reviews topic corporate sustainability and financial performance (CSFP) in this hybrid review, issues were identified that had been overlooked earlier. In general, CSFP holds a positive relationship but time lag. Nonconclusive results about within are due self‐selection bias, endogeneity issues, use multiple datasets industry categories. Surprisingly, we also discovered impact elusive capitalist countries considered economically rational. Institutional legitimacy requirements good starting point for shaping behaviors short term; however, they might equally appropriate long term cases when corporations shift operations pollution havens. A multifaceted, synergistic interaction between governmental institutions, corporations, other stakeholders required—without imposing authority—to ensure durable sustainable development.