ABSTRACT:Although the literature on multi-stakeholder initiatives for sustainability has grown in recent years, it is scattered across several academic fields, making it hard to ascertain how individual disciplines, such as business ethics, can further contribute to the debate. Based on an extensive review of the literature on certification and principle-based MSIs for sustainability, we show that the scholarly debate rests on three broad themes : theinputinto creating and governing MSIs; theinstitutionalizationof MSIs; and theimpactthat relevant initiatives create. While our (...) discussion reveals the theoretical underpinnings of the 3Is, it also shows that a number of research challenges related to business ethics remain unaddressed. We unpack these challenges and suggest how scholars can utilize theoretical insights in business ethics to push the boundaries of the field. Finally, we also discuss what business ethics research can gain from theory development in the MSI field. (shrink)

This essay evolved from my keynote address for the plenary session of the ASEAN Conference for Young Scientists 2019 organized by the ASEAN Secretariat, Vietnam Ministry of Science and Technology—whose main theme is sustainability science—organized at Hanoi-based Phenikaa University. It has also benefited from my advisory work for the International Union for Conservation of Nature (IUCN).

This paper investigates how deans and directors at the top 50 global MBA programs (as rated by the "Financial Times" in their 2006 Global MBA rankings) respond to questions about the inclusion and coverage of the topics of ethics, corporate social responsibility, and sustainability at their respective institutions. This work purposely investigates each of the three topics separately. Our findings reveal that: (1) a majority of the schools require that one or more of these topics be covered in their (...) MBA curriculum and one-third of the schools require coverage of all three topics as part of the MBA curriculum, (2) there is a trend toward the inclusion of sustainability-related courses, (3) there is a higher percentage of student interest in these topics (as measured by the presence of a Net Impact club) in the top 10 schools, and (4) several schools are teaching these topics using experiential learning and immersion techniques. We note a fivefold increase in the number of stand-alone ethics courses since a 1988 investigation on ethics, and we include other findings about institutional support of centers or special programs; as well as a discussion of integration, teaching techniques, and notable practices in relation to all three topics. (shrink)

Prior research on sustainability in business often assumes that decisions on social and environmental investments are made for instrumental reasons, which points to causal relationships between corporate financial performance and corporate social and environmental commitment. In other words, social or environmental commitment should predict higher financial performance. The theoretical premise of sustainability, however, is based on a systems perspective, which implies a tighter integration between corporate financial performance and corporate commitment to social and environmental issues. In this paper, (...) we describe the important theoretical differences between an instrumental and integrative logic in managing business sustainability. We test the presence of each logic using data from 738 firms over 13 years and find evidence of integrative logic applied in business. (shrink)

Career sustainability is a well-researched issue in academics and other sectors. Technology advancements and COVID-19 have jeopardized career sustainability. Numerous studies have explored the influence of individual characteristics on career sustainability, but few have focused on leadership. In addition, cultural factors must be considered because leadership is rooted in culture. In particular, inclusive leadership reflects traditional Chinese culture. Therefore, based on self-determination social exchange theories, we analyzed the effects of inclusive leadership on career sustainability as well (...) as the roles of thriving at work and supervisor developmental feedback in career sustainability. In total, 363 samples were collected from China. The results revealed that inclusive leadership improves career sustainability through SDF and thriving at work. Theoretically, our study fills the research gap and establishes a mechanism and theoretical framework for inclusive leadership and career sustainability. Practically, we offer guidance for enterprises to cultivate inclusive leadership and improve career sustainability. (shrink)

Previous research on reactivity—defined as changing organizational behaviour to better conform to the criteria of measurement in response to being measured—has found significant variation in company responses toward sustainability metrics. We propose that reactivity is driven by dialogue, motivation, and capacity in a configurational way. Empirically, we use fuzzy set qualitative comparative analysis to analyze company responses to the sustainability index FTSE4Good. We find evidence of complementary and substitute effects between motivation and capacity. Based on these effects, we (...) develop a typology of reactivity to sustainability metrics, which also theorizes the use of metrics as tools for performance feedback and the building of calculative capacity. We show that when reactivity is studied configurationally, we can identify previously underacknowledged types of responses. We discuss the theoretical and practical implications for studying and using sustainability metrics as governance tools for responsible behaviour. (shrink)

This book examines from a multidisciplinary viewpoint the question of what we mean - what we should mean - by setting sustainability as a goal for environmental management. The author, trained as a philosopher of science and language, explores ways to break down the disciplinary barriers to communication and deliberation about environment policy, and to integrate science and evaluations into a more comprehensive environmental policy. Choosing sustainability as the keystone concept of environmental policy, the author explores what we (...) can learn about sustainable living from the philosophy of pragmatism, from ecology, from economics, from planning, from conservation biology and from related disciplines. The idea of adaptive, or experimental, management provides the context, while insights from various disciplines are integrated into a comprehensive philosophy of environmental management. The book will appeal to students and professionals in the fields of environmental policy and ethics, conservation biology, and philosophy of science. (shrink)

Corporate sustainability reports are supposed to provide a complete and balanced picture of corporate sustainability performance. They are, however, usually voluntary and thus prone to interpretation and even greenwashing tendencies. To overcome this problem, the Global Reporting Initiative (GRI) provides standardized reporting guidelines challenging companies to report positive and negative aspects of an organization’s sustainability performance. However, the reporting of “negative aspects” in particular can endanger corporate legitimacy if perceived by the stakeholders as not being in line (...) with societal norms and values. Starting from the theoretical lenses of economics-based disclosure theories and socio-political theories of disclosure, the focus of this study therefore was to analyze the communicative legitimation strategies companies use to report “negative aspects,” i.e., negative ecological and social impact caused by corporate activity. Using qualitative content analysis of GRI-oriented sustainability reports from companies listed on the US Dow Jones Industrial Average Index and on the German DAX Index, we identified six legitimation strategies. We discuss these strategies regarding to symbolic and substantial management of legitimacy. We show that symbolic legitimation strategies aiming at modifying the perception of legitimizing stakeholders dominate in the reports at hand. Such persuasion, however, does not meet the requirement of impartiality as postulated by the GRI guidelines. Building upon this conclusion we propose a concise characterization of “negative aspects” and develop a GRI-compliant schema of reporting about them. In doing so, we offer a way to improve the overall “balance” of sustainability reporting contributing to a true and fair view in sustainability disclosure. (shrink)

. Undoubtedly, multinational corporations must play a significant role in the advancement of global ecological ethics. Our research offers a glimpse into the process of how goals of ecological sustainability in one multinational corporation can trickle down through the organization via the sustainability support behaviors of supervisors. We asked the question “How do supervisors in a multinational corporation internalize their corporation’s commitment to ecological sustainability and, in turn, behave in ways that convey this commitment to their subordinates?” (...) In response, we created a theoretical framework for supervisor sustainability support behavior based on Stern et al., Human Ecology Review 6(2), 81-97 (1999) value-belief-norm (VBN) theory. We then tested our framework by performing a survey-based field study of supervisors in a multinational pharmaceutical company that has publicly professed a goal of ecological sustainability. (shrink)

Value systems, goals, beliefs, and worldviews need to be changed to leverage the sustainability transformation within the human society, as they define how humans interact with nature, generate knowledge and technologies, and utilize natural and artificial resources. Therefore, the humanistic values of this era demand the inclusion of environmental sustainability, and building an eco-surplus culture is essential for the social transition away from eco-deficit dystopia. The Topical Collection welcomes viewpoints, reviews, and theoretical and empirical work.

The pragmatic conception of truth, anticipated by Henry David Thoreau and developed by C.S. Peirce and subsequent pragmatists, is proposed as a useful analogy for characterising 'sustainability.' Peirce's definitions of 'truth' provides an attractive approach to sustainability because (a) it re-focuses discussions of truth and objectivity from a search for 'correspondence' to an 'external world' (the 'conform' approach) to a more forward-looking ('transform') approach; and (b) it emphasises the crucial role of an evolving, questioning community in the conduct (...) of inquiry. Any successful definition of sustainability must share these characteristics with Peircean truth. While Peirce and John Dewey never reconciled their disagreements regarding the nature and task of 'inquiry', a pragmatist resolution of their differences is offered, arguing that we need both a logic of management sciences (logica utens) and a logic of pure science (logica docens), which (perhaps among other differences) respond very differently to uncertainty. It is shown that adaptive management – can be understood as a first approximation of a logica utens for social learning in pursuit of solutions to environmental problems, and it is suggested that a pragmatist, transform approach to inquiry such as Dewey's may provide a way around the 'fact-value' gulf. (shrink)

Corporate sustainability introduces multiple tensions or paradoxes into organisations which defy traditional approaches such as trading-off contrasting options. We examine an alternative approach: to manage corporate sustainability with a paradoxical lens where contradictory elements are managed concurrently. Drawing on paradox theory, we focus on two specific pathways: to the organisation-wide acceptance of paradox and to paradoxical resolution. Introducing the concept of strategic agility, we argue that strategically agile organisations are better placed to navigate these paradox pathways. Strategic agility (...) comprises three organisational meta-capabilities: strategic sensitivity, collective commitment, and resource fluidity. We propose that strategically agile organisations draw on strategic sensitivity and collective commitment to achieve organisation-wide acceptance of paradox, and collective commitment and resource fluidity to achieve paradoxical resolution. For each of these meta-capabilities, we identify three organisational practices and processes specifically related to corporate sustainability that organisations can leverage in pursuit of strategic agility. We offer a conceptual framework depicting the strategic agility meta-capabilities, and associated practices and processes, which organisations draw on to successfully manage corporate sustainability with a paradoxical lens. (shrink)

The meaning of sustainability is the subject of intense debate among environmental and resource economists. Perhaps no other issue separates more clearly the traditional economic view from the views of most natural scientists. The debate currently focuses on the substitutability between the economy and the environment or between “natural capital” and “manufactured capital”—a debate captured in terms of weak versus strong sustainability. In this article, we examine the various interpretations of these concepts. We conclude that natural science and (...) economic perspectives on sustainability are inconsistent. The market-based Hartwick-Solow “weak sustainability” approach is far removed from both the ecosystem-based “Holling sustainability” and the “strong sustainability” approach of Daly and others. Each of these sustainability criteria implies a specific valuation approach, and thus an ethical position, to support monetary indicators of sustainability such as a green or sustainable Gross Domestic Product (GDP). The conflict between “weak sustainability” and “strong sustainability” is more evident in the context of centralized than decentralized decision making. In particular, firms selling “services” instead of material goods and regarding the latter as “capital” leads to decisions more or less consistent with either type of sustainability. Finally, we discuss the implications of global sustainability for such open systems as regions and countries. Open systems have not been dealt with systematically for any of the sustainability criteria. (shrink)

Ubuntu originated in small-scale societies in precolonial Africa. It stresses metaphysical and moral interconnectedness of humans, and newer Africapitalist approaches absorb ubuntu ideology, with the aims of promoting community wellbeing and restoring a love of local place that global free trade has eroded. Ecological degradation violates these goals, which ought to translate into care for the nonhuman world, in addition to which some sub-Saharan thought systems promote environmental concern as a value in its own right. The foregoing story is reinforced (...) by field research on African hunting operations that appear—counterintuitively—to reconcile conservation with business imperatives and local community interests. Though acknowledging shortcomings, I maintain these hunting enterprises do, by and large, adopt Africapitalist and ubuntu attitudes to enhance community wellbeing, environmental sustainability, and long-term economic viability. I also examine how well-intentioned Western conservation agendas are neocolonial impositions that impede local control while exacerbating environmental destruction and socioeconomic hardship. Ubuntu offers a conciliatory epistemology, which Africapitalism incorporates, and I conclude by considering how standard moral theories and political divisions become less antagonistic within these sub-Saharan frameworks, so even opponents can find common cause. (shrink)

The “lone” clinical bioethicist working in a large, multisite hospital faces considerable challenges. While attempting to build ethics capacity and sustain a demanding range of responsibilities, he or she must also achieve an acceptable level of integration, sustainability, and accountability within a complex organisational structure. In an effort to address such inherent demands and to create a platform towards better evaluation and effectiveness, the Clinical Ethics Group at the Joint Centre for Bioethics at the University of Toronto is implementing (...) the Hub and Spokes Strategy at seven hospitals. The goal of the Hub and Spokes Strategy is to foster an ethical climate and strengthen ethics capacity broadly throughout healthcare settings as well as create models in clinical bioethics that are excellent and effective. (shrink)

Sustainability is typically viewed as consisting of three forces, economic, social, and ecological, in tension with one another. In this paper, we address the dangers posed to societal sustainability. The concern being addressed is the very survival of societies where the rights of individuals, personal and collective freedoms, an independent judiciary and media, and democracy, despite its messiness, are highly valued. We argue that, as a result of various technological innovations, a range of dysfunctional impacts are threatening social (...) and political stability. For instance, robotics and automation are replacing human labor and decision-making in a range of industries; search engines, monetized through advertising, have access to, and track, our interests and preferences; social media, in connecting us to one another often know more about us than we ourselves do, enabling them to profit in ways which may not coincide with our well-being; online retailers have not only acquired the ability to track and predict our buying choices, but also they can squeeze vendors based on their outsize bargaining power; and, in general, virtual technologies have changed both the way we think and our sense of self. With the rising deployment of the Internet of Things, and developments in machine learning and artificial intelligence, the threats to individual freedoms and rights, societal cohesion and harmony, employment and economic well-being, and trust in democracy are being ratcheted up. This paper lauds the benefits and addresses the harm wrought by the high tech giants in Information and Communication Technologies. The search for rapidly growing revenues drives firms to accelerate product innovation without fully investigating the entire gamut of their impacts. As greater wealth accrues to the leaders of tech firms, inequalities within firms and societies are widening, creating social tensions and political ferment. We explore the ethical nature of the challenge employing a simple utilitarian calculus, complemented by approaches rooted in rights, justice, and the common good. Various options to address the challenges posed by ICTs are considered and evaluated. We argue that regulation may do little more than slow down the damage to society, particularly since societal values and political preferences vary internationally. Firms need to establish ethical standards, imbuing the upholders of these standards with sufficient authority, while creating a culture of morality. User involvement and activism, and shareholders’ concerns for the sustainability of societies on whose continued prosperity they depend, are imperative to humanity’s ability to decide the future direction of technology. (shrink)

Business sustainability aims to combine market logic with social welfare logic. In literature, it is commonly assumed that sustainability and the social welfare logic associated with it are characterized by a long-term orientation. However, this assumption is problematic because this principle may not apply in certain contexts. This qualitative study challenges this assumption and focuses on the mechanisms by which time affects the adoption of sustainability practices in the context of socially responsible investing (SRI) practices in Swiss (...) banks and insurance companies. The article provides insights into the mechanisms associated with different time horizons and investigates their effects on the adoption of SRI in financial intermediaries. It also shows how the dimension of time shapes interactions between the two institutional logics underlying SRI in business organizations through specific mechanisms. (shrink)

Voluntary sustainability standards that establish global rules for firms’ environmental and/or social conduct and allow for verification of firm compliance via third-party certification hold the promise to govern firms’ sustainability conduct in a globalizing world economy. However, the recent proliferation of competing and overlapping global sustainability standards that have been developed by various stakeholders with different agendas, creates uncertainties for firms that likely reduce their propensity to adopt any standard. Without widespread adoption these standards cannot effectively govern (...) firm conduct and in contrast create barriers for firms’ access to export markets. We suggest that the uncertainties associated with competing standards and the effect of these uncertainties on standard certification decisions are especially large for firms in emerging economies because these firms lack access to information about current and future standards and the resources to obtain certifications to multiple standards. We theoretically propose and empirically identify three distinct sources of sustainability standard uncertainty: diversity of customer requirements, dynamism of customer requirements, and the unpredictability of the future evolution of standard and propose that each of these sources reduces firms’ propensity to obtain certification to any standard. Our empirical results based on certifications to food safety standards by a sample of 97 Mexican food exporting firms confirm that three distinct sources of sustainability standard uncertainty exist and that all of them negatively impact certification. We discuss ethical implications and offer recommendations for both suppliers as well as standard setting organizations. (shrink)

This paper argues that, to tackle the issue of sustainability, we should pay more attention to the temporality of socioecological processes. Only thus can we better understand current subjective and institutional constraints, as well as envision new potential pathways for transformative change. Two main arguments are developed: (1) there is a uniqueness in the temporality of Earth system processes associated with planetary boundaries that deeply transforms our time horizon and the pace of change, and (2) this situation creates a (...) disruption of the temporality embodied in dominant sociopolitical conventions such as the institutional definition and operationalisation of sustainable development. New research avenues and time policies are suggested towards responding meaningfully to the alarming current socioenvironmental trends. (shrink)

This paper analyzes the impacts of index inclusions and exclusions on corporate sustainable firms by studying a sample of US stocks that are added to or deleted from the Dow Jones Sustainability World Index over the period 2002-2008. The impacts are measured in terms of stock return, risk and liquidity. We cannot find any strong evidence that announcement per se has any significant impact on stock return and risk. However, on the day of change, index inclusion (exclusion) stocks experience (...) a significant but temporary increase (decrease) in stock return. Liquidity deteriorates after the announcement day and bounces back significantly near the day of change. Systematic risk shows little change after announcements. But, idiosyncratic risk is higher after announcements. The overall results support Harris and Eitan's (The Journal of Finance 41(4), 815-829, 1986) price pressure hypothesis, which posits that event announcement does not carry information and any shift in demand (and hence the corresponding price change and liquidity change) is temporary. (shrink)

The concept of sustainability was developed in response to stakeholder demands. One of the key mechanisms for engaging stakeholders is sustainability disclosure, often in the form of a report. Yet, how reporting is used to engage stakeholders is understudied. Using resource dependence and stakeholder theories, we investigate how companies within the same industry address different dependencies on stakeholders for economic, natural environment, and social resources and thus engage stakeholders accordingly. To achieve this objective, we conducted our research using (...) qualitative research methods. Our findings suggest that the resource dependencies on different stakeholders lead to development of different stakeholder relationships and thus appropriate resources within the company to execute engagement strategies that are informing, responding, or involving. Our research explains why diversity exists in sustainability disclosure by studying how it is used to engage stakeholders. We find that five sustainability reporting characteristics are associated with the company’s stakeholder engagement strategy: directness of communication, clarity of stakeholder identity, deliberateness of collecting feedback, broadness of stakeholder inclusiveness, and utilization of stakeholder engagement for learning. Our study develops the literature by providing insight into companies’ choices of stakeholder engagement strategy thus explaining diversity in sustainability reporting based on the characteristics and relationships with specific stakeholders. (shrink)

The concept of planetary boundaries has also emerged in the context of the debate on the shift of the planetary system from the Holocene to the Anthropocene, which programmatically seeks to formulate a systemic approach to global sustainability. It aims to define the biophysical and biochemical planetary boundaries within which humanity can safely function. The most recent version of this concept programmatically transcends the boundaries of the natural and social sciences by seeking to include the categories of environmental security (...) and justice in the quantification of identified key planetary boundaries. The paper focuses on the significance of this shift for political-philosophical reflection on the concept of the Anthropocene as a starting point for environmental political philosophy. (shrink)

The carbon emissions of global healthcare activities make up 4%–5% of total world emissions, with the majority coming from industrialised countries. The solution to healthcare carbon reduction in these countries, ostensibly, would be preventive healthcare, which is less resource intensive than corrective healthcare in itself and, as a double benefit, reduces carbon by preventing diseases which may require higher healthcare carbon to treat. This leads to a paradox: preventive healthcare is designed to give humans longer, healthier lives. But, by extending (...) life spans, the carbon emissions of a person increase both over a lifetime and in the medical industry overall. At the same time, the need for higher carbon end-of-life care does not disappear, particularly in resource intensive countries. This article will first identify sources of healthcare carbon, focusing on the industrialised world, and explain various efforts towards healthcare carbon reduction, which include preventive healthcare. Second, it will develop the ‘paradox of prevention’—that preventive healthcare may save healthcare carbon by proximally reducing the need for medical treatments, but also, paradoxically, result in more healthcare carbon both in an individual’s life and in the medical industry. The third section will offer ethical principles for approaching the paradox of prevention. The conclusion will emphasise the need for institutional approaches to healthcare carbon reduction in the industrialised world, which will relieve some of the tensions of healthcare industry decarbonisation and individual healthcare carbon use. (shrink)

In his new book, Sustainability: A Philosophy of Adaptive Ecosystem Management, Bryan G. Norton proposes an account of sustainability grounded in the deliberation of local communities as part of an adaptive management process. One can distinguish two different ways of justifying his account—resulting in “political” and “metaphysical” conceptions of sustainability—in much the same way that John Rawls famously distinguishes between political and metaphysical conceptions of justice. Whereas the metaphysical conception of sustainability depends on principles that are (...) specific to American pragmatist philosophical theory, the political conception draws on relatively uncontroversial elements of democratic political culture. Although Norton seems to lean toward a metaphysical conception of sustainability in his book, a political conception would actually be more compatible with the overarching aims of his project. Finally, the distinction between political and metaphysical conceptions could prove valuable as a model for thinking about how many of the current projects in environmental pragmatism relate to other strands of environmental philosophy. Thus, a potentially fruitful alteration to Norton’s recent work provides some conciliatory lessons for relating different projects in the field of environmental philosophy. (shrink)

Research on sustainability assurance is still in its beginnings. One of the key questions in this field that also is of the highest practical relevance is concerned with the quality of the assurance process. However, a common understanding of assurance quality and how it should be measured is still missing. We try to close this gap by building on the financial audit literature. We introduce a definition of assurance quality that comprises two key aspects: the depth of the assurance (...) process and the breadth of the assurance statement. Based on prior research, we hypothesize that a firm’s sustainability performance is related to the depth of the assurance process, while the type of the assurance provider, more precisely the affiliation to the accounting profession, is related to the breadth of the assurance statement. Results for a sample of 122 European firms reveal a negative relationship between sustainability performance and assurance process depth as well as between the affiliation to the accounting profession and assurance statement breadth. Thus, we find evidence that poor sustainability performers ask for in-depth assurance services, most likely as a means to enhance their internal sustainability-related processes and systems. Assurance providers that do not belong to the accounting profession in turn are associated with broader assurance statements. (shrink)

The lack of attention to sustainability, as a concept with multiple dimensions, has presented a developmental gap in green marketing literature, sustainability, and marketing literature for decades. Based on the established premise of customer–corporate (C–C) identification, in which consumers respond favorably to companies with corporate social responsibility initiatives that they identify with, we propose that consumers would respond similarly to companies with sustainability initiatives. We postulate that consumers care about protecting and preserving favorable economic environments (an economic (...) dimension of sustainability) as much as they care about natural environments. Thus, we investigate how two sustainability dimensions (i.e., environmental and economic) and price can influence consumer responses. Using an experimental method, we demonstrate that consumers favor sustainability in both dimensions by giving positive evaluations of the company and purchase intent. In addition, consumers respond more negatively to poor company sustainability than to high company sustainability. In comparison, consumers respond more negatively to the company’s poor commitment to caring for the environment than to the company’s poor commitment to economic sustainability. We also find that consumers do not respond favorably to low prices when they have information about the firm’s poor environmental sustainability. Finally, we find support for an interaction effect between consumer support for sustainability and corporate sustainability; that is, consumers evaluate a company more favorably if the company shares the consumers’ social causes. Overall, we conclude, from our empirical study, support for the idea that consumers do respond to multiple dimensions of sustainability. (shrink)

Over the past few years, individual competencies for sustainability have received a lot of attention in the educational, sustainability and business administration literature. In this article, we explore the meaning of two rather new and unfamiliar moral competencies in the field of corporate sustainability: normative competence and action competence. Because sustainability can be seen as a highly complex or ‘wicked’ problem, it is unclear what ‘normativity’ in the normative competence and ‘responsible action’ in the action competence (...) actually mean. In this article, we raise the question how both these moral competencies have to be understood and how they are related to each other. We argue for a virtue ethics perspective on both moral competencies, because this perspective is able to take the wickedness of sustainability into account. It turns out that virtue ethics enables us to conceptualize normative competence and action competence as two aspects of one virtuous competence for sustainability. (shrink)

Sustainability challenges typically occur across sectoral boundaries, calling the state, market, and civil society to action. Although consensus exists on the merits of cross-sector collaboration, our understanding of whether and how it can create value for various, collaborating stakeholders is still limited. This special issue focuses on how new combined knowledge on cross-sector collaboration and business models for sustainability can inform the academic and practitioner debates about sustainability challenges and solutions. We discuss how cross-sector collaboration can play (...) an important role for the transition to new and potentially sustainability-driven business models given that value creation, delivery, and capture of organizations are intimately related to the collaborative ties with their stakeholders. Sustainable alternatives to conventional business models tend to adopt a more holistic perspective of business by broadening the spectrum of solutions and stakeholders and, when aligned with cross-sector collaboration, can contribute new ways of addressing the wicked sustainability problems humanity faces. (shrink)

The study empirically investigates the relationship between corporate governance and the triple bottom line sustainability performance through the lens of agency theory and stakeholder theory. We claim, in fact, that no single theory fully accounts for all the hypothesised relationships. We measure sustainability performance through manual content analysis on sustainability reports of the US-based companies. The study extends the existing literature by investigating the impact of selected corporate governance mechanisms on each dimension of sustainability performance, as (...) defined by the GRI framework. Our approach allows to identify which governance mechanisms foster triple bottom line performance, also revealing that some mechanisms fit only specific dimension of sustainability. The fact-based findings provide support for a new beginning in the theorising process in which the theories must try not only to provide rationale for the impact of corporate governance on sustainability, but also to explain which dimension of sustainability might be more affected. The most important implication for practitioners is the support for sustainability practices, which may be gained through implementation of particular corporate governance mechanisms. The findings contribute also to the improvement of the ongoing standard setting process, in particular as it concerns the in-depth revision of the economic dimension of sustainability carried out under the new GRI framework. (shrink)

The practice of relational leadership is essential for dealing with the increasingly urgent and complex social, economic and environmental issues that characterize sustainability. Despite growing attention to both relational leadership and leadership for sustainability, an ethical understanding of both is limited. This is problematic as both sustainability and relational leadership are rife with moral implications. This paper conceptually explores how the moral theory of ‘ethics of care’ can help to illuminate the ethical dimensions of relational leadership for (...) sustainability. In doing so, the implications of ethics of care more broadly for the practice of relational leadership development are elaborated. From a caring perspective, a ‘relational stance’ or logic of effectiveness can be fostered through engaging in a reflective process of moral education through conversation. In starting this dialogue, we can begin to build capacity for relational leadership for sustainability and, thus, support the development of individual well-being and organizational and societal flourishing. (shrink)

Climate change policy decisions are inescapably intertwined with future generations. Even if all carbon dioxide emissions were to be stopped today, most aspects of climate change would persist for hundreds of years, thus inevitably raising questions of intergenerational justice and sustainability. -/- The chapter begins with a short overview of discount rate debate in climate economics, followed by the observation that discounting implicitly makes the assumption that natural capital is always substitutable with man-made capital. The chapter explains why non-substitutability (...) matters if we are to take intergenerational justice seriously and invest aptly in mitigation. Non-substitutability simply implies that there are some forms of capital that cannot be substituted by another, and so consumption of one cannot be compensated with additional stocks of the other. The non-substitutability of critical natural capital can be defended without empirical data about preferences or the need to view the environment as a superior good, and the argument is presented through the language of keeping options open. -/- Those alive today make decisions about what natural capital to use and what to save for future. These choices are often represented as different points in a continuum of sustainability: weak sustainability is associated with a high degree of substitutability and therefore a lot of flexibility over what capital to consume, whereas strong sustainability is more stringent on substitutability. While it may be that in economical understanding weak and strong sustainability collapse into one another, philosophically the emphasis is slightly different. The chapter discusses how normative sustainability can be supported without ignoring opportunity costs and trade-offs. (shrink)

Existing research posits that decision makers use specific cognitive frames to manage tensions in sustainability. However, we know less about how the cognitive frames of individuals at different levels in organization interact and what these interactions imply for managing sustainability tensions, such as in Bottom of the Pyramid projects. To address this omission, we ask do organizational and project leaders differ in their understanding of tensions in a BOP project, and if so, how? We answer this question by (...) drawing on a 5-year study of a BOP project of a global pharmaceutical company in India. In line with the existing research, we found three kinds of frames—paradoxical, business case, and business—held differently across organizational levels and over time. We also found that the shift in frames of both project and organizational leaders was mediated by the decision-making horizon. The initial divergence across organizational levels, seen in paradoxical and business frames, was mediated by long-term decision-making horizon. However, there was an eventual convergence toward business frames associated with the shift from long- to shorter-term decision-making horizons and one that led to the project’s closure. We contribute by proposing a dynamic model of cognitive frames in sustainability, where the research has either alluded to top-down or bottom-up understanding. (shrink)

While sustainability is largely associated with do-gooders, this article discusses whether and how fraud might also be an issue in sustainability departments. More specifically, transferring the concept of the fraud triangle to sustainability departments I discuss possible pressures/incentives, opportunities, and rationalizations/attitudes for sustainability managers to commit fraud. Based on interviews with sustainability and forensic practitioners, my findings suggest that sustainability managers face mounting pressure and have opportunities to manipulate due to an immature control environment. (...) Whether a presumably morality-driven attitude may prevent them from committing and easily rationalizing fraud remains controversial. Even though cases of fraud happening in sustainability departments are still widely unknown, the interview analysis reveals that sustainability fraud is likely to occur at least to some extent—and presumably remains undetected. The study brings to light the importance of a clear commitment from executives to sustainability to prevent sustainability fraud and demonstrates adverse developments driven by external stakeholders, specifically the bonus relevancy of sustainability index scores. In particular, the study shows a lack of awareness for potential fraud in sustainability departments. (shrink)

The main focus of this book is the normative or ethical aspects of sustainability, including matters of justice in governance that is important to sustainability. The idea of sustainability is widely perceived as having a normative dimension, often referred to as equity, but the character of this normative dimension is seldom explored. The book aims to fill this gap in the literature of sustainability. It proposes a conceptualization of sustainability that is geared to clarifying its (...) essential ethical structure. It frames sustainability in terms of the capacity of natural systems to provide opportunities to live well, as well as the conduciveness of human practices and systems to preserving such opportunity into the distant future. It develops the idea of sustainability as an art of preserving opportunity to live well – an ethically and scientifically grounded political art of living well together without diminishing opportunity to live well in the future. (shrink)

Little is known about when corporate social responsibility (CSR) leads to a sustainability case (i.e., to improvements in environmental and social performance). Building on various forms of decoupling, we develop a theoretical framework for examining pathways from institutional pressures through CSR management to sustainability performance. To empirically identify such pathways, we apply fuzzy-set qualitative comparative analysis (fsQCA) to an extensive dataset from 19 large companies. We discover that different pathways are associated with environmental and social performance (non)improvements, and (...) that pathways to success and failure are for the most part not symmetrical. We identify two pathways to improved environmental performance: an exogenous and an endogenous one. We find two pathways to improved social performance that both involve integrating social responsibility into the core business. Pathways to nonimprovements are multiple, suggesting that failure can occur in a number of ways, while there are only a few pathways to sustainability performance improvements. (shrink)

This paper contributes to the ongoing discussion of sustainability behaviors by introducing the construct of perceived organizational support toward the environment. We propose and empirically test an integrated model whereby we test the association of POS-E with employees’ organizational citizenship behaviors toward the environment as well as to job attitudes. Results indicated that POS-E was positively related to OCB-E, job satisfaction, organizational identification, and psychological empowerment, and negatively related to turnover intentions. We also found that psychological empowerment partially mediated (...) the relationship between POS-E and the dependent variables. We discuss the theoretical implications as well as practical implications for managers seeking to encourage sustainability in their organizations. (shrink)

The role of governments in business and society research has remained underexplored, and recent studies have called for further investigations of mechanisms of government intervention. In response to this call, this article studies how nation branding communication can govern businesses toward sustainability by providing qualifications for sustainable business, legitimizing these qualifications, and attaching national aspirations to business conduct that meets these qualifications. A comparative exploratory analysis of the nation branding materials of Denmark and Finland shows that while the two (...) nations qualify business sustainability in similar ways, differences exist in the legitimization of business sustainability and the national aspirations attached to sustainable business conduct. Both countries emphasize principles of efficiency and renewability in their sustainability qualifications. However, while Finland clearly seeks to attract firms to the local business environment to increase exports and improve the local economy, Denmark ascribes more heterogeneous value to sustainable business. (shrink)

In this paper, we identify and discuss how sustainability reporting has spread throughout the Australian business community over the past twenty years or so. We identified all Australian business organisations that have produced a sustainability report since 1995, and we undertook an interview survey with managers of reporting companies. By incorporating a wide range and large number of reporting companies, we offer insights beyond those obtained from traditional report content analysis and from close analyses of singular case-study organisations. (...) We reveal that sustainability reporting has deepened in a few high-impact industries, and it has spread to a small number of firms in a wide range of low-impact industries. We tested whether there were any relationships between the drivers of reporting and the experiences of different types of reporting firms. Many of the relationships we observed were not as clear or as consistent as expected. Sustainability reporting is, however, of strategic importance to reporting companies. Given the small number of reporters in Australia, we raise the possibility of strategic differentiation as a key driver of reporting behaviour and suggest further studies to explore institutional fields that may be shaping sustainability reporting practice. (shrink)

In order to enable firms to successfully deal with issues of corporate sustainability, the firms' stakeholders would need to participate in sustainability accounting and management. In practice, however, participative sustainability accounting and management are often unfeasible. The resulting consequence is the risk of misbalancing single aspects of sustainability. The purpose of this article is to show that reflexivity in sustainability accounting and management, that is, an ongoing reflection on the relationship between the goals of corporate (...) sustainability and the overarching objective of sustainable development can, at least, mitigate this problem. Reflexivity has the potential to initiate processes of collective learning and could eventually bring about the realization of business models that integrate economic, ecological, and social considerations. (shrink)

This study provides empirical evidence on how corporate sustainability performance (CSP), as proxied by membership of the Dow Jones sustainability index, is reflected in the market value of equity. Using a theoretical framework combining institutional perspectives, stake-holder theory, and resource-based perspectives, we develop a set of hypotheses that relate the market value of equity to CSP. For a sample of North American firms, our preliminary results show that CSP has significant explanatory power for stock prices over the traditional (...) summary accounting measures such as earnings and book value of equity. However, further analyses suggest that we should not focus on corporate sustainability itself. Our findings suggest that what investors really do is to penalize large profitable firms with low level of CSP. Firms with incentives to develop a high level of CSP not engaging on such strategy are, thus, penalized by the market. (shrink)

This paper offers observations on people’s lived experience of the food system in Michigan during the early Covid-19 pandemic as an initial critical foray into the everyday pandemic food world. The Covid-19 crisis illuminates a myriad of adaptive food behaviors, as people struggle to address their destabilized lives, including the casual acknowledgement of the pandemic, then anxiety of the unknown, the subsequent new dependency, and the possible emergence of a new normal. The pandemic makes the injustices inherent in the food (...) system apparent across communities, demonstrating that food injustice destabilizes all members of the food system, regardless of their social location. The challenges of eating in a pandemic also reinforce the importance of building a sustainable food system; the challenges of food sovereignty and food sustainability are inextricably linked, and the pandemic lays this bare. (shrink)

This study examines how the leading beverage company handles the strategic paradox between its core business and the social issue of obesity. A discursive analysis reveals how the organization does embrace a social goal related to obesity but not the paradoxical tension between this goal and its core business. The analysis further shows how the tension, along with the responsibility for the social goal, is projected outside the organization. This response is underpinned by the paradoxical constructions of consumers and the (...) concept of obesity in the organization’s communication. Based on these findings, I outline a new type of process for projection, one of the defensive mechanisms recognized in the literature. The findings increase our understanding of defensive responses to organizational paradoxes and help distinguish between different kinds of strategic paradoxes. They also highlight the need to further open up the complexity and multiplicity of strategic paradoxes related to corporate sustainability. (shrink)