Chowdhury, Emon (2025): Linking Sustainability Practices to Financial Success: Insights from Bangladesh.
![]() |
PDF
MPRA_paper_125326.pdf Download (451kB) |
Abstract
The rapid industrialization and economic growth of Bangladesh, particularly in the ready-made garment sector, have raised significant concerns about sustainability. This study investigates how businesses and consumers in Bangladesh are incorporating sustainability into their practices and decision-making. By exploring factors influencing the adoption of these practices, their impact on financial performance, and consumer attitudes toward sustainability, the research contributes to understanding the sustainability scenario of Bangladesh. Data from 225 businesses and 639 consumers were analyzed. Findings reveal a growing emphasis on these factors among businesses, linked to improved financial outcomes. However, challenges such as consumer price sensitivity and limited knowledge about sustainability persist. While consumer awareness of sustainability is increasing, a significant segment remains willing to pay a premium for sustainable products. The study highlights the importance of businesses embracing these practices and the need for supportive policies to foster a sustainable future.
Item Type: | MPRA Paper |
---|---|
Original Title: | Linking Sustainability Practices to Financial Success: Insights from Bangladesh |
English Title: | Linking Sustainability Practices to Financial Success: Insights from Bangladesh |
Language: | English |
Keywords: | ESG; sustainability; Bangladesh; consumer behavior; SDG |
Subjects: | F - International Economics > F0 - General M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M2 - Business Economics P - Economic Systems > P4 - Other Economic Systems |
Item ID: | 125326 |
Depositing User: | Dr. Emon Kalyan Chowdhury |
Date Deposited: | 28 Jul 2025 13:39 |
Last Modified: | 28 Jul 2025 13:39 |
References: | 1) Ajzen, I. (1991). The theory of planned behavior. Organizational behavior and human decision processes, 50(2), 179-211. https://doi.org/10.1016/0749-5978(91)90020-T 2) Akhter, W., & Hassan, A. (2024). Does corporate social responsibility mediate the relationship between corporate governance and firm performance? Empirical evidence from BRICS countries. Corporate Social Responsibility and Environmental Management, 31(1), 566-578. https://doi.org/10.1002/csr.2586 3) Annesi, N., Battaglia, M., Ceglia, I., & Mercuri, F. (2024). Navigating paradoxes: building a sustainable strategy for an integrated ESG corporate governance. Management Decision. https://doi.org/10.1108/MD-10-2023-2006 4) Azizuddin, M., Shamsuzzoha, A., & Piya, S. (2021). Influence of circular economy phenomenon to fulfil global sustainable development goal: Perspective from Bangladesh. Sustainability, 13(20), 11455. https://doi.org/10.3390/su132011455 5) Breuer, W., Hass, M., Knetsch, A., & Seefried, E. (2024). Sustainability, the Green Transition, and Greenwashing: An Overview for Research and Practice. Transformation Towards Sustainability: A Novel Interdisciplinary Framework from RWTH Aachen University, 75-91. https://doi.org/10.1007/978-3-031-54700-3_3 6) Chowdhury, E. K., Chowdhury, R., & Dhar, B. K. (2024). Understanding Investor Sentiment: Analyzing Its Influence on Stock and Cryptocurrency Markets During the Russia–Ukraine War. Thunderbird International Business Review. https://doi.org/10.1002/tie.22395 7) Chowdhury, E.K. (2012). Impact of inflation on bank lending rates in Bangladesh. Journal of Politics and Governance, 1(1), 5-14. https://tinyurl.com/26y2pw6y 8) Chowdhury, E.K. (2012). The Impact of Merger on Shareholders' Wealth. International Journal of Applied Research in Business Administration and Economics, 1(2), 27-32. https://tinyurl.com/ycxt59vz 9) Chowdhury, E.K. (2016). Investment Behavior: A Study on Working Women in Chittagong. Premier Critical Perspective, 2 (1). 95-109. http://digitalarchives.puc.ac.bd:8080/xmlui/handle/123456789/67 10) Chowdhury, E.K. (2017). Functioning of Fama-French Three- Factor Model in Emerging Stock Markets: An Empirical Study on Chittagong Stock Exchange, Bangladesh. Journal of Financial Risk Management, 6(4), 352-363. https://doi.org/10.4236/jfrm.2017.64025 11) Chowdhury, E.K. (2017). Measuring the Effect of Macroeconomic Variables on the Stock Market Return: Evidence from Chittagong Stock Exchange. AU-International e-Journal of Interdisciplinary Research, 2(2), 1-10. http://www.assumptionjournal.au.edu/index.php/eJIR/article/view/4227 12) Chowdhury, E.K. (2018). An Assessment of Return Spillover Among Selected Stock Markets in SAARC Countries. South Asian Journal of Management, 25 (1), 51-63. Association of Management Development Institutions in South Asia. https://tinyurl.com/y2bd39tk 13) Chowdhury, E.K. (2019). Transformation of Business Model through Blockchain Technology. The Cost and Management, 47(5), 4-9. The Institute of Cost and Management Accountants of Bangladesh. https://tinyurl.com/bdz4ns7t 14) Chowdhury, E.K. (2020). Catastrophic Impact of Covid-19 on Tourism Sector in Bangladesh: An Event Study Approach. The Cost and Management, 48(4), 43-52. The Institute of Cost and Management Accountants of Bangladesh. https://tinyurl.com/ccu6mkbx 15) Chowdhury, E.K. (2020). Is Capital Market Integration among the SAARC Countries Feasible? An Empirical Study. Eurasian Journal of Business and Economics, 13(25), 21-36. https://doi.org/10.17015/ejbe.2020.025.02 16) Chowdhury, E.K. (2020). Non-Performing Loans in Bangladesh: Bank Specific and Macroeconomic Effects. Journal of Business Administration, 41(2), 108-125. University of Dhaka. https://tinyurl.com/54f5pexw 17) Chowdhury, E.K. (2021). Does Internal Control Influence Financial Performance of Commercial Banks? Evidence from Bangladesh. South Asian Journal of Management, 28(1), 59-77. https://tinyurl.com/59nr5axm 18) Chowdhury, E.K. (2021). Financial accounting in the era of blockchain-a paradigm shift from double entry to triple entry system. Available at SSRN 3827591. http://dx.doi.org/10.2139/ssrn.3827591 19) Chowdhury, E.K. (2021). Prospects and challenges of using artificial intelligence in the audit process. In Abedin, M.Z., Hassan, M.K., Hajek, P. (eds.) The Essentials of Machine Learning in Finance and Accounting (pp. 139-155). Routledge. https://tinyurl.com/4stz7ycj 20) Chowdhury, E.K. (2022). Disastrous consequence of coronavirus pandemic on the earning capacity of individuals: an emerging economy perspective. SN Bus Econ. 2(153). https://doi.org/10.1007/s43546- 022-00333-z 21) Chowdhury, E.K. (2024). Cultural Norms and Their Effect on Entrepreneurial Endeavors: Perspectives from Bangladesh. Journal of Developmental Entrepreneurship, Vol. 29 No.1. https://doi.org/10.1142/S1084946724500079 22) Chowdhury, E.K. (2024). Do weather patterns effect investment decisions in the stock market? A South Asian perspective. Journal of Asset Management, 25(2), 162-171. https://doi.org/10.1057/s41260-023-00334-z 23) Chowdhury, E.K. (2024). Examining the benefits and drawbacks of social media usage on academic performance: a study among university students in Bangladesh. Journal of Research in Innovative Teaching & Learning, 1-17, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JRIT-07-2023-0097 24) Chowdhury, E.K., & Abdullah, M. N. (2023). Gauging Demand for Cryptocurrency over the Economic Policy Uncertainty and Stock Market Volatility. Computational Economics, 64, 37-55. https://doi.org/10.1007/s10614-023-10423-1 25) Chowdhury, E.K., & Abedin, M. Z. (2020). COVID-19 effects on the US stock index returns: an event study approach. Available at SSRN 3611683. http://dx.doi.org/10.2139/ssrn.3611683 26) Chowdhury, E.K., & Begum. R. (2012). Reward Management as Motivational Tool in Various Industries in Bangladesh: An empirical study. International Journal of Contemporary Business Studies, 3(11), 22-34. https://tinyurl.com/3vzu9cu8 27) Chowdhury, E.K., & Chowdhury, G. M. (2014). Applicability of Prediction Techniques in the Stock Market-A Chittagong Stock Exchange Perspective. International Journal of Advanced Information Science and Technology, 32(32), 126-136, DOI:10.15693/ijaist/2014.v3i12.124-134 28) Chowdhury, E.K., & Chowdhury, R. (2017). Online Shopping in Bangladesh: A Study on the Motivational Factors for Ecommerce that Influence Shopper’s Affirmative Tendency towards Online Shopping. South Asian Journal of Marketing & Management Research, 7(4). 20-35. DOI:10.5958/2249-877X.2017.00019.4 29) Chowdhury, E.K., & Chowdhury, R. (2022). Empirical research on the relationship between renewable energy consumption, foreign direct investment and economic growth in South Asia. Journal of Energy Markets, 15(2). 1-21, https://DOI:10.21314/JEM.2022.012 30) Chowdhury, E.K., & Chowdhury, R. (2023). Role of financial inclusion in human development: Evidence from Bangladesh, India and Pakistan. Journal of the Knowledge Economy, 1-26. https://doi.org/10.1007/s13132-023-01366-x 31) Chowdhury, E.K., & Humaira, U. (2023). The Russia–Ukraine conflict and investor psychology in financial markets. Economic Affairs, 43(3), 388-405. https://doi.org/10.1111/ecaf.12596 32) Chowdhury, E.K., & Humaira, U. (2023). Transformation of investor attitude towards financial markets: A perspective on the Russia–Ukraine conflict. International Social Science Journal. 74(252), 561-583. https://doi.org/10.1111/issj.12470 33) Chowdhury, E.K., & Islam, A. (2017). Role of Foreign Direct Investment in the Stock Market Development of Bangladesh- A Cointegration and VAR Approach. The Bangladesh Accountant, April-June, 2017, 63-74. The Institute of Chartered Accountants of Bangladesh. https://tinyurl.com/y8hs2paf 34) Chowdhury, E.K., & Nahar, S. (2017). Perceptions of Accountants toward Sustainability Development Practices in Bangladesh. Journal of Management and Sustainability,7(3), 112-119. doi:10.5539/jms.v7n3p112 35) Chowdhury, E.K., (2023). Is the Application of Blockchain Technology in Accounting Feasible? A Developing Nation Perspective. In Abedin, M.K., Hajek, P. (eds.) Cyber Security and Business Intelligence Innovations and Machine Learning for Cyber Risk Management (pp. 46-64). Routledge. https://doi.org/10.4324/9781003285854 36) Chowdhury, E.K., Dhar, B. K., & Stasi, A. (2022). Volatility of the US stock market and business strategy during COVID-19. Business Strategy & Development, 1–11. https://doi.org/10.1002/bsd2.203 37) Chowdhury, E.K., Dhar, B. K., Gazi, M., & Issa, A. (2022). Impact of Remittance on Economic Progress: Evidence from Low-Income Asian Frontier Countries. Journal of the Knowledge Economy, 1-26. https://doi.org/10.1007/s13132-022-00898-y 38) Chowdhury, E.K., Dhar, B. K., Thanakijsombat, T., & Stasi, A. (2022). Strategies to determine the determinants of financial performance of conventional and Islamic commercial banks: Evidence from Bangladesh. Business Strategy & Development, 1–19. https://doi.org/10.1002/bsd2.207 39) Chowdhury, E.K., Stasi. A. & Pellegrino. A. (2023). Blockchain Technology in Financial Accounting: Emerging Regulatory Issues. Review of Economics and Finance. 21 (1), 862-868. https://refpress.org/ref-vol21-a94/ 40) Christensen, A. P., & Golino, H. (2021). On the equivalency of factor and network loadings. Behavior research methods, 53(4), 1563-1580. https://doi.org/10.3758/s13428-020-01500-6 41) Debnath, B., Taha, M. R., Siraj, M. T., Jahin, M. F., Ovi, S. I., Bari, A. M., ... & Raihan, A. (2024). A grey approach to assess the challenges to adopting sustainable production practices in the apparel manufacturing industry: Implications for sustainability. Results in Engineering, 22, 102006. https://doi.org/10.1016/j.rineng.2024.102006 42) Edmans, A. (2023). The end of ESG. Financial Management, 52(1), 3-17. https://doi.org/10.1111/fima.12413 43) Farooq, Q., Fu, P., Liu, X., & Hao, Y. (2021). Basics of macro to microlevel corporate social responsibility and advancement in triple bottom line theory. Corporate Social Responsibility and Environmental Management, 28(3), 969-979. https://doi.org/10.1002/csr.2069 44) Francis, A., & Sarangi, G. K. (2022). Sustainable consumer behaviour of Indian millennials: Some evidence. Current Research in Environmental Sustainability, 4, 100109. https://doi.org/10.1016/j.crsust.2021.100109 45) Freeman, R. E., & Phillips, R. A. (2002). Stakeholder theory: A libertarian defense. Business ethics quarterly, 12(3), 331-349. https://doi.org/10.2307/3858020 46) Garg, C. P. (2021). Modeling the e-waste mitigation strategies using Grey-theory and DEMATEL framework. Journal of Cleaner Production, 281, 124035. https://doi.org/10.1016/j.jclepro.2020.124035 47) Hasan, M. A., Mahjabin, T., Hossain, M. A., Kibria, M. G., Haseeb, M., & Hossain, M. E. (2023). Towards green economy and sustainable development in Bangladesh: assessing the role of social and environmental indicators. Environmental Science and Pollution Research, 30(51), 110324-110339. https://doi.org/10.1007/s11356-023-30060-3 48) Hossain, M. K., & As-Saber, S. N. (2024). Business strategies and climate change adaptation: insights from a comparative study between a developed and a developing country. Management of Environmental Quality: An International Journal. https://doi.org/10.1108/MEQ-09-2023-0324 49) Islam, T., & Halim, M. A. (2022). Impact of ready-made garments (RMG) industries and sustainability: Perspective of the pandemic period in developing country. Cleaner Engineering and Technology, 11, 100567. https://doi.org/10.1016/j.clet.2022.100567 50) Kabir, A. F., Alam, M. J., Begum, I. A., & McKenzie, A. M. (2023). Consumers’ preference for purchasing vegetables in Bangladesh: What matters?. Social Sciences & Humanities Open, 8(1), 100685. https://doi.org/10.1016/j.ssaho.2023.100685 51) Kanter, D. R., Bartolini, F., Kugelberg, S., Leip, A., Oenema, O., & Uwizeye, A. (2020). Nitrogen pollution policy beyond the farm. Nature Food, 1(1), 27-32. https://doi.org/10.1038/s43016-019-0001-5 52) Kavadis, N., Hermes, N., Oehmichen, J., Zattoni, A., & Fainshmidt, S. (2024). Sustainable value creation in multinational enterprises: The role of corporate governance actors. Journal of World Business, 59(1), 101503. https://doi.org/10.1016/j.jwb.2023.101503 53) Khamisu, M. S., Paluri, R. A., & Sonwaney, V. (2024). Stakeholders’ perspectives on critical success factors for environmental social and governance (ESG) implementation. Journal of Environmental Management, 365, 121583. https://doi.org/10.1016/j.jenvman.2024.121583 54) Khan, A. M., & van Dijk, M. P. (2024). The role of multi‐stakeholder initiatives in advancing circularity and social sustainability in the textiles sector of Bangladesh. Journal of International Development, 36(3), 1765-1788. https://doi.org/10.1002/jid.3879 55) Khan, S. A. R., Tabish, M., & Zhang, Y. (2023). Embracement of industry 4.0 and sustainable supply chain practices under the shadow of practice-based view theory: Ensuring environmental sustainability in corporate sector. Journal of Cleaner Production, 398, 136609. https://doi.org/10.1016/j.jclepro.2023.136609 56) Lashitew, A. A. (2021). Corporate uptake of the Sustainable Development Goals: Mere greenwashing or an advent of institutional change?. Journal of International Business Policy, 4(1), 184-200. https://doi.org/10.1057/s42214-020-00092-4 57) Maduku, D. K. (2024). How environmental concerns influence consumers’ anticipated emotions towards sustainable consumption: The moderating role of regulatory focus. Journal of Retailing and Consumer Services, 76, 103593. https://doi.org/10.1016/j.jretconser.2023.103593 58) O'Dwyer, B., Humphrey, C., & Rowbottom, N. (2024). From institutional integration to institutional demise: The disintegration of the International Integrated Reporting Council (IIRC). Critical Perspectives on Accounting, 99, 102699. https://doi.org/10.1016/j.cpa.2023.102699 59) Okafor, A., Adeleye, B. N., & Adusei, M. (2021). Corporate social responsibility and financial performance: Evidence from US tech firms. Journal of cleaner production, 292, 126078. https://doi.org/10.1016/j.jclepro.2021.126078 60) Peng, E. Y., & Smith III, W. (2024). Politics, integration of ESG in CEO compensation, and firm credit ratings: evidence from the USA. Studies in Economics and Finance, 41(3), 456-477. https://doi.org/10.1108/SEF-06-2023-0350 61) Popescu, I. S., Hitaj, C., & Benetto, E. (2021). Measuring the sustainability of investment funds: A critical review of methods and frameworks in sustainable finance. Journal of Cleaner Production, 314, 128016. https://doi.org/10.1016/j.jclepro.2021.128016 62) Rahman, M. H., Tanchangya, T., Rahman, J., Aktar, M. A., & Majumder, S. C. (2024). Corporate social responsibility and green financing behavior in Bangladesh: Towards sustainable tourism. Innovation and Green Development, 3(3), 100133. https://doi.org/10.1016/j.igd.2024.100133 63) Rau, P. R., & Yu, T. (2024). A survey on ESG: investors, institutions and firms. China Finance Review International, 14(1), 3-33. https://doi.org/10.1108/CFRI-12-2022-0260 64) Raza, Z., & Woxenius, J. (2023). Customer‐driven sustainable business practices and their relationships with environmental and business performance—Insights from the European shipping industry. Business Strategy and the Environment, 32(8), 6138-6153. https://doi.org/10.1002/bse.3477 65) Reddy, K. P., Chandu, V., Srilakshmi, S., Thagaram, E., Sahyaja, C., & Osei, B. (2023). Consumers perception on green marketing towards eco-friendly fast moving consumer goods. International Journal of Engineering Business Management, 15, 18479790231170962. https://doi.org/10.1177/18479790231170962 66) Rhodes, E., Scott, W. A., & Jaccard, M. (2021). Designing flexible regulations to mitigate climate change: A cross-country comparative policy analysis. Energy Policy, 156, 112419. https://doi.org/10.1016/j.enpol.2021.112419 67) Salvetti, N., & Nijhof, A. (2020). CSR Evolution in the Garment Sector of Bangladesh: The Challenges of Sustainability. Corporate Social Responsibility in Rising Economies: Fundamentals, Approaches and Case Studies, 91-110. https://doi.org/10.1007/978-3-030-53775-3_6 68) Sarkar, A., Qian, L., & Peau, A. K. (2020). Overview of green business practices within the Bangladeshi RMG industry: competitiveness and sustainable development perspective. Environmental Science and Pollution Research, 27, 22888-22901. https://doi.org/10.1007/s11356-020-08816-y 69) Sarkar, J. G., Sarkar, A., & Sreejesh, S. (2023). Developing responsible consumption behaviours through social media platforms: Sustainable brand practices as message cues. Information Technology & People, 36(2), 532-563. https://doi.org/10.1108/ITP-01-2021-0044 70) Sharifi, S., Reuel, N., Kallmyer, N., Sun, E., Landry, M. P., & Mahmoudi, M. (2022). The Issue of Reliability and Repeatability of Analytical Measurement in Industrial and Academic Nanomedicine. ACS nano, 17(1), 4-11. https://doi.org/10.1021/acsnano.2c09249 71) Sheehan, N. T., Vaidyanathan, G., Fox, K. A., & Klassen, M. (2023). Making the invisible, visible: Overcoming barriers to ESG performance with an ESG mindset. Business Horizons, 66(2), 265-276. https://doi.org/10.1016/j.bushor.2022.07.003 72) Sypniewska, B., Baran, M., & Kłos, M. (2023). Work engagement and employee satisfaction in the practice of sustainable human resource management–based on the study of Polish employees. International Entrepreneurship and Management Journal, 19(3), 1069-1100. https://doi.org/10.1007/s11365-023-00834-9 73) Tosun, P., & Köylüoğlu, A. S. (2023). The impact of brand origin and CSR actions on consumer perceptions in retail banking during a crisis. International Journal of Bank Marketing, 41(3), 485-507. https://doi.org/10.1108/IJBM-03-2022-0137 74) Uddin, M. H., Razzak, M. R., & Rahman, A. A. (2023). Sustainable supply chain management practices, dynamic capabilities and competitive advantage: Evidence from Bangladesh ready‐made garments industry. Business Strategy & Development, 6(2), 176-188. https://doi.org/10.1002/bsd2.232 75) Wang, A., Liu, A., Zhang, R., Kleiman, A., Kim, L., Zhao, D., ... & Russakovsky, O. (2022). REVISE: A tool for measuring and mitigating bias in visual datasets. International Journal of Computer Vision, 130(7), 1790-1810. https://doi.org/10.1007/s11263-022-01625-5 76) Whittingham, K. L., Earle, A. G., Leyva-de la Hiz, D. I., & Argiolas, A. (2023). The impact of the United Nations Sustainable Development Goals on corporate sustainability reporting. BRQ Business Research Quarterly, 26(1), 45-61. https://doi.org/10.1177/23409444221085585 77) Wu, Y., Farrukh, M., Raza, A., Meng, F., & Alam, I. (2021). Framing the evolution of the corporate social responsibility and environmental management journal. Corporate Social Responsibility and Environmental Management, 28(4), 1397-1411. https://doi.org/10.1002/csr.2127 78) Young-Ferris, A., & Roberts, J. (2023). ‘Looking for something that isn’t there’: a case study of an early attempt at ESG integration in investment decision making. European Accounting Review, 32(3), 717-744. https://doi.org/10.1080/09638180.2021.2000458. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/125326 |