Abstract
This study examines the relationship between corporate social responsibility (CSR) precedence and the United Nations sustainable development goals (SDGs). Applying corporate culture theory toward corporate sustainability, we argue that firms’ CSR precedence, specifically historical commitment to social and corporate governance performance, affects their ability to achieve SDG targets on responsible consumption and production (reduced energy use, water use, waste, and emissions). According to the natural-resource-based view (NRBV), we also argue that responsible consumption and production create a sustained competitive advantage that leads to higher future financial performance. Using a sample of 1,072 publicly-traded U.S. firms from 2007 to 2017, we find that positive (negative) CSR precedence is related to reduced (increased) emissions, energy use, water use, and waste, and is related to higher (lower) renewable energy use, recycled water use, and recycled waste. Furthermore, we find that reductions in natural resources use and emissions are positively associated with future financial performance. Our results indicate that U.S. firms with positive CSR precedence have a greater likelihood of mending the gap to meet UN SDG targets for responsible consumption and production, and that doing so leads to greater future financial performance (and vice versa).