Sustainable Consumption and Production: Reconciling Environmental Responsibility and Economic Performance in Japanese Companies

ABSTRACT From the perspective of stakeholder theory, this study investigates whether sustainable consumption and production (SCP) can help resolve the corporate dilemma between environmental responsibility and economic performance. Using data from Japanese‐listed companies, we conduct an empirical analysis in two parts. First, we identify powerful stakeholders influencing SCP proactiveness: final consumers and suppliers (economic stakeholders) and non‐governmental organisations (ethical stakeholders). This indicates that companies are motivated to engage in SCP by both economic incentives and corporate social responsibility. Second, we explore the relationship between SCP and performance outcomes, revealing that companies proactive in SCP achieve greater alignment between environmental and economic performance—particularly by reducing carbon emissions, energy consumption and water use. While motivations for SCP are not always financial, this proactive approach helps companies achieve sustainability without sacrificing competitiveness by promoting more diverse SCP patterns.