Informations and abstract
Keywords: Risk/reward profile, sustainable companies, signaling the- ory, cost stickiness, sustainable marketing.
A number of different studies have highlighted that sustainable performance is positively associated with corporate financial performance and economic value. Superior sustainable practices allow companies to improve not only their financial performance but also to achieve higher level of profitability. In order to obtain these benefits, sustainable companies commit themselves by investing in Csr policies and projects (bearing Csr-related cost stickiness) and generate Csr signals to earn goodwill of stakeholders and keep consensus. Drawing on a theory synthesis design, this conceptual study is based on deductive reasoning and aims to shed light on the risk/reward profile of sustainable organizations and on the potential role played by sus- tainable marketing. It is argued that the reward of these organizations is to be aligned with the high risks they take (in terms of Csr-related cost stickiness and reputational risk). Following an interdisciplinary approach, the paper proposes for the first time a framework which integrates different factors affecting the risk-reward ratio of companies involved in Csr. This novel model represents the main original contribution of the study. In practical terms, the paper provides insights on the positive impacts that sustainable marketing actions can have to advantageously regulate the risk/reward ratio of sustainable companies. Some managerial implications deriving from the use of the framework are identified and future research is sug- gested at the end of the study.