The objective of this article is to create an understanding of how the UN sustainable development goals can be used to steer stakeholder engagement for transformative change, meeting global challenges, and navigate a new business-societal practice driven by a values-based business model. The article is a conceptual study with case studies of the role that the SDGs play in multi-stakeholder dialog via the kind of sustainable business-societal practice that takes corporate social responsibility to the next level, where it is embedded (...) in a values-based business model, creating a new meaning to effect real business-societal transformation. Multi-stakeholder dialog implies interactive and communicative engagement with the full range of stakeholders in order to create value for all, employing a societal perspective and using the value network as a basis for effective decision-making. We explain our methodological approach by presenting multi-stakeholder dialog in practice, in the form of multiple case studies. These empirical settings consisted of two values-driven privately owned companies with a strong reporting mechanism and a clear transformation agenda based on the SDG challenges: IKEA and Löfbergs. The empirical study provides the basis for our proposed model. This article makes an original contribution to the study of the use of SDGs in management and service research. It investigates steering and navigating processes in specific contexts in order to determine what should be subject to legal enforcement and what comprises moral and/or ethical value, particularly at the societal level. (shrink)

Multinational enterprises dominate the governance of global value chains, such that according to the concept of political corporate social responsibility, they are responsible to address governance gaps throughout the chains, even at the level of their independent suppliers. In practice, MNEs often struggle to cope with the complexity of these governance gaps, and PCSR does not provide a clear definition nor offer guidance for how to analyze and address them. By adopting the notion of governance mechanisms from GVC literature, this (...) study proposes a more nuanced view, in which governance gaps result from inactive, ineffective, or inequitable governance mechanisms adopted by relevant actors, rather than a complete absence of governance. MNEs, through their governance mechanisms, commonly create governance gaps. This study distinguishes different types of governance mechanisms to create a typology of governance gaps, such that it contributes to the literature on PCSR by offering a more refined understanding of governance gaps, along with a means to identify mechanisms to address them. Furthermore, it contributes to the literature on GVCs by defining governance-related terms and adding an ethical perspective on MNEs’ global business conduct. To illustrate the typology, this article presents the case of low wages for workers in the textile industry and efforts by H&M to deal with this governance gap. (shrink)

Multinational enterprises dominate the governance of global value chains, such that according to the concept of political corporate social responsibility, they are responsible to address governance gaps throughout the chains, even at the level of their independent suppliers. In practice, MNEs often struggle to cope with the complexity of these governance gaps, and PCSR does not provide a clear definition nor offer guidance for how to analyze and address them. By adopting the notion of governance mechanisms from GVC literature, this (...) study proposes a more nuanced view, in which governance gaps result from inactive, ineffective, or inequitable governance mechanisms adopted by relevant actors, rather than a complete absence of governance. MNEs, through their governance mechanisms, commonly create governance gaps. This study distinguishes different types of governance mechanisms to create a typology of governance gaps, such that it contributes to the literature on PCSR by offering a more refined understanding of governance gaps, along with a means to identify mechanisms to address them. Furthermore, it contributes to the literature on GVCs by defining governance-related terms and adding an ethical perspective on MNEs’ global business conduct. To illustrate the typology, this article presents the case of low wages for workers in the textile industry and efforts by H&M to deal with this governance gap. (shrink)

Previous research has underlined the significance of practical wisdom pertaining to corporate sustainability. Recent studies, however, have identified managing opposing but interlocked tensions related to environmental, social, and economic aspects as one of the most crucial future challenges in CS. Therefore, we apply the established link between wisdom and sustainability to the pressing topic of managing tensions in CS. We commence with a literature overview of tensions in sustainability management, which manifests our basic work assumption concerning the need for practical (...) wisdom in CS. We then discuss the threefold, mutual interconnectedness between practical wisdom and tension management in CS, which we illustrate in a conceptual model. Thereafter, we develop a set of propositions on how a practical wisdom approach influences CS in practice and how it differs from a business-case approach. In recognition of the conceptual character of our paper, we conclude by outlining potential practical applications and theoretical implications of the model and of the propositions. Limitations and avenues for further research are discussed. (shrink)

To make a business case for corporate sustainability, firms must be able to sell their sustainable products. The influence that firm engagement with non-governmental organizations may have on consumer adoption of sustainable products has been neglected in previous research. We address this by embedding corporate sustainability in a cosmopolitan framework that connects firms, consumers, and civil society organizations based on the understanding of responsibility for global humanity that underlies both the sustainability and cosmopolitanism concepts. We hypothesize that firms’ sustainability engagement (...) and their NGO engagement influence consumer adoption of sustainable products. Empirically, we investigate the adoption of sustainable Eco-circle products made from recycled fibers marketed by Li Ning, a China-based global sportswear brand. We apply a stepwise regression approach to test our hypotheses with paper-and-pencil survey data from 217 Chinese consumers. We find adoption to be positively associated with consumers’ sustainability attitude but not with firms’ sustainability engagement. For firm–NGO engagement, these relationships are reversed: Adoption is positively associated with firm–NGO engagement, but not with consumers’ related attitude. Our results present a picture of the Chinese context in which there is a business case for corporate sustainability if firms’ words about sustainable product strategies are supported by signals from civil society about firm deeds. The results imply that in a Chinese context, firms need to be particularly aware of the role of NGOs when hoping to be rewarded for sustainability. (shrink)

While the benefits of including local communities in multi-stakeholder initiatives have been acknowledged, their successful involvement remains a challenging process. Research has shown that large business interests are regularly over-represented and that local communities remain marginalized in the process. Additionally, little is known about how procedural fairness and inclusion can be managed and maintained during multi-stakeholder initiatives. The aim of this study was therefore to investigate how marginalized stakeholders, and local communities in particular, can be successfully involved during the course (...) of a multi-stakeholder initiative. An action research approach was adopted where the first author collaborated with a social housing association on an initiative to involve the local community in the design and implementation of circular economy approaches in a low-income neighbourhood. This study contributes to the multi-stakeholder initiative literature by showing that the successful involvement of marginalized stakeholders requires the initiators to continuously manage a balance between uncertainty–certainty, disagreement–agreement and consensus- and domination-based management strategies. Furthermore, our study highlights that factors which are regularly treated as challenges, including uncertainty and disagreement, can actually play a beneficial role in multi-stakeholder initiatives, emphasizing the need to take a temporally sensitive approach. This study also contributes to the circular economy literature by showing how communities can play a bigger role than merely being consumers, leading to the inclusion of a socially oriented perspective which has not been recognized in the previous literature. (shrink)

To make a business case for corporate sustainability, firms must be able to sell their sustainable products. The influence that firm engagement with non-governmental organizations (NGOs) may have on consumer adoption of sustainable products has been neglected in previous research. We address this by embedding corporate sustainability in a cosmopolitan framework that connects firms, consumers, and civil society organizations based on the understanding of responsibility for global humanity that underlies both the sustainability and cosmopolitanism concepts. We hypothesize that firms’ sustainability (...) engagement and their NGO engagement influence consumer adoption of sustainable products. Empirically, we investigate the adoption of sustainable Eco-circle products made from recycled fibers marketed by Li Ning, a China-based global sportswear brand. We apply a stepwise regression approach to test our hypotheses with paper-and-pencil survey data from 217 Chinese consumers. We find adoption to be positively associated with consumers’ sustainability attitude but not with firms’ sustainability engagement. For firm–NGO engagement, these relationships are reversed: Adoption is positively associated with firm–NGO engagement, but not with consumers’ related attitude. Our results present a picture of the Chinese context in which there is a business case for corporate sustainability if firms’ words about sustainable product strategies are supported by signals from civil society about firm deeds. The results imply that in a Chinese context, firms need to be particularly aware of the role of NGOs when hoping to be rewarded for sustainability. (shrink)

ABSTRACT:Many companies engage in dialogue with nongovernmental organizations about societal issues. The question is what a regulative ideal for such dialogues should be. In the literature on corporate social responsibility, the Habermasian notion of communicative action is often presented as a regulative ideal for stakeholder dialogue, implying that actors should aim at consensus and set strategic considerations aside. In this article, we argue that in many cases, communicative action is not a suitable regulative ideal for dialogue between companies and NGOs. (...) We contend that there is often an adversarial element in the relation between companies and NGOs, and that an orientation towards consensus can be in tension with this adversarial relation. We develop an alternative approach to stakeholder dialogue called ‘agonistic deliberation.’ In this approach, conflict and strategic considerations play a legitimate and, up to a certain point, desirable role. (shrink)

In our time, innovation is considered an important way to address societal problems. That we expect so much from innovation to solve the challenges of our time, makes the question what could count as ‘responsible innovation’ more pressing. And that is what this thesis is about. The aim of this thesis is to offer philosophical reflections on responsible innovation in the business context. Since that is still a quite broad topic, the main title suggests its further focus: deliberation and food. (...) The first focus originates from the idea in the academic literature on responsible innovation, that innovators should not just assess by themselves what ‘responsible’ is, but should invite others to think along with them about the social and ethical aspects of innovation. Chapter 2 to 4 zoom in on this aspect of responsible innovation. The second focus has to do with the specific context of application, namely food and the food industry. Chapter 4 and 5 relate the topic of responsible innovation to this context. The question I raise in chapter 2 is whether the ideal of inclusive deliberation is suitable for innovation processes in businesses. I argue that this is not so easy, and provide different reasons why companies might not be willing to involve societal stakeholders into their innovation processes. First, the requirement of deliberation can be tension with the ability of companies to exploit their innovations commercially within a competitive market. Second, deliberation requires a certain degree of transparency about the innovation strategy of a company. Companies might not be willing to provide this transparency, because they fear knowledge leakage to other companies. Third, companies are controlled most often by people with a financial stake. Therefore, we can expect that financial considerations are decisive in the investment decisions of companies. This could conflict with the ideal of responsible innovation to ‘democratize’ innovation processes. Hence, I suggest that scholars should modify the ideal of deliberation in order to make it suitable to the business context, or they should suggest changes in the governance and regulation of markets so as to make deliberation more workable. Chapter 3 discusses the place of conflict and self-interest in deliberation. It starts with a discussion of the literature on stakeholder dialogue. In this literature, the ideal dialogue is presumed to aim at consensus. This also implies that participants avoid conflict and set self-interested considerations aside. I argue that this ideal of dialogue is problematic, especially for a dialogue between companies and NGOs. I show that companies can never completely set aside their profit-orientation, and hence that this ‘self-interest’ always influences their input in a dialogue. Furthermore, conflict and criticism can be necessary to make clear that societal problems require more attention, whether from the general public or from companies. Since the market is an imperfect institution, we need critical citizens and stakeholders such as NGOs to assess the behavior of companies. A certain degree of conflict between companies and NGOs may therefore be more desirable than a focus on consensus. For these reasons, I develop an alternative approach to dialogue in which conflict and self-interest have a legitimate place, and can even play a productive role. In chapter 4, a case-study is conducted to better understand how participants in a dialogue deal with conflicts. In this case-study, I analyzed different dialogues organized by the foundation ‘Ik Kies Bewust’, which issued a front-of-pack health label. In my analysis, I investigate the conflict between, on the one hand, the value of public health and healthy food, and, on the other hand, the commercial interests of companies. In the responses of companies to this conflict, three patterns became visible. First, companies frame their critics as not constructive, because, in their view, they only criticize but do not help to improve the label. Second, they stressed that they are really and genuinely motivated to make food healthier or to make a healthy food choice easier. Thereby, they seemingly tried to counter the image that they are just motivated to make profit. Third, they called on the government to take more control over the label, because this would make the label more reliable and more broadly adopted. I qualify these responses as defensive, which means that the conflict between commercial considerations and public interests is suppressed or ignored. An active response would require to recognize and confront the conflicts and dilemmas that companies face. The case-study makes clear how difficult it can be to engage in dialogue with critical stakeholders. In chapter 5, I reflect on how food innovation can be responsible. In trying to answer this question, I take a certain detour, by starting a discussion about the place of food in a life well-lived. For this purpose, I use the philosophy of Albert Borgmann. On the basis of my analysis of his philosophy, I argue that there are good reasons for engaging with food in active way, for example by growing your own vegetables and home-cooking, instead of consuming food merely passively. I also draw some implications for food innovation. In my view, people responsible for food innovation should critically assess whether new products or services enhance engagement or disengagement. Is it desirable, for example, to develop even more and better pre-packaged meals, or should we stimulate consumers to cook by themselves? I argue that it would be problematic if our overall pattern of dealing with food is characterized by disengagement and convenience, and hence that food innovation should not only go in this direction. (shrink)