**2. Literature review**

### **2.1 Sustainability and social responsibility—the same?**

The concept of sustainability has undergone some changes in terms of approach, theories, and terminology. Its emergence was primarily due to a greater focus on existing environmental problems, but this concept has changed over time and gained a new perspective, including two further strands, the social and the economic [17]. In the past 15 years, scientific debate regarding sustainability has grown, focusing on the intertwining between the economic, environmental, and social goals [18]. Companies have begun to refer to this concept using different terminologies such as "sustainable development," "sustainability," "corporate social responsibility," or "corporate responsibility."

According to [19], the concept of sustainability that embraces the three trends listed above is called triple bottom line or three Ps: planet (environmental), people (social), and profit (economic). Each strand interconnects with the others in order to establish a balance of responsibility where all interests are balanced, thus generating value for the company. In the same way, over time, the concept of CSR has won the attention of companies and their shareholders, along with a new meaning, since companies have realized that their business purposes have broadened beyond the economic purpose of generating profit for its shareholders,

#### *Social Responsibility and Financial Performance: The Case of STOXX Europe Index DOI: http://dx.doi.org/10.5772/intechopen.93573*

now encompassing the interests of all stakeholders [20]. Indeed, according to [18], companies must consider the stakeholders' expectations and decisions. These authors highlighted the stakeholders' involvement and their role in the strategic management of organizations as a relevant topic for academic scholars. Also, Del Giudice et al. [21] underlined the crucial role played by owner-managers when engaging in sustainability activities jointly with employees and other stakeholders.

Currently, the pressure on business is high, and shareholders are increasingly asking companies for information not only on the economic and financial performance but also on their environmental and social concerns [22–25]. Thus, a greater transparency about the CSR activities is expected by shareholders [26]. In fact, with the emergence of greater environmental and social concerns, a greater emphasis on business transparency and accountability began to emerge. Following these new expectations, stakeholders are demonstrating a growing interest on sustainability performance and thus there is an increasing pressure on businesses to report on sustainability [18]. The nonfinancial reporting, together with the financial reporting, aims to provide shareholders "with the picture of corporate positions and activities on the economic, environmental and social fronts. In short, such reports attempt to describe company's contribution toward to sustainable development" [27], page 9)*.*

Moreover, Cucari et al. [26] highlighted the importance of companies having a CSR committee. Indeed, through a CSR committee, companies can better plan and implement sustainable projects, enhancing the awareness and involvement of the stakeholders and ensuring the quality of the reporting process.

As can be seen, although sustainability has emerged from environmental problems and CSR from the emergence of social problems, both have a common intention, since their ultimate goal is to balance on both sides.
