Does Culture Affect Sustainability Outcomes? : A comparative case study of Sweden & Japan

This thesis investigates how national cultural differences influence corporate sustainability outcomes by comparing large firms in Sweden and Japan. Drawing on Hofstede’s cultural dimensions and Hall’s context theory, the study combines analysis of quantitative indicators of environmental, social, and economic sustainability from corporate reports with qualitative insights from semi-structured interviews. The results show that cultural traits such as hierarchy, risk tolerance, and communication context shape not only how firms pursue sustainability, but also how outcomes are reported and interpreted. Sweden’s low power distance and individualism foster transparency and participation, while Japan’s high uncertainty avoidance and long-term orientation promote disciplined, incremental efficiency improvements embedded in organizational routines. Together, these findings position culture as an explanatory mechanism behind some degree of observed differences in sustainability outcomes and reporting asymmetries. The study contributes to cross-cultural management and sustainability literature by bridging cultural theory with measurable company-level outcomes, and offers practical insights for investors and policymakers seeking to interpret sustainability performance across diverse cultural contexts.