The European Corporate Sustainability Framework (ECSF) is a new generation management framework, aimed to meet increased corporate complexity and support corporate transformation towards more sustainable ways of doing business. It is a multi-layer, integral business framework with an analytical, contextual, situational and dynamic dimension.Analytically, the framework is structured according to four focus points – the constitutional, conceptual, behavioural and evaluative perspective – providing integrative designs of complex and dynamic phenomena. The (...) framework includes coherent sets of business philosophies, approaches, concepts and tools that structures corporate realities and generates sequences of steps in order to obtain adequate institutional structures, a road to corporate transformation and higher performance levels. (shrink)

According to Dr. Clare Graves, mankind has developed eight core value systems,1 as responses to prevailing circumstances. Given different contexts and value systems, a one-solution-fits-all concept of corporate sustainability is not reasonable. Therefore, this paper presents various definitions and forms of sustainability, each linked to specific (societal) circumstances and related value systems. A sustainability matrix– an essential element of the overall European Corporate Sustainability Framework – is described showing six types of organizations (...) at different developmental stages, with different forms of corporate sustainability, each supported by specific institutional arrangements. (shrink)

This paper describes a set of ideal type organizations in a developmental sequence. As these descriptions are based on Spiral Dynamics (or Emerging Cyclical Levels of Existence Theory – ECLET), the types are labeled as Order, Success, Community and Synergy. Per type the author elaborated on the underlying value system and relating institutional structures, such as leadership role, governance and measurement format. As a summary, a Transition Matrix is presented which indicate the paradigm shifts per discipline/department, as manifested in the (...) subsequent ideal type organizations. As Order and Success generally describe the majority of corporations in Western Economies, the latter two types introduce new approaches to more innovative – and more sustainable/responsible – ways to doing business. Based on Community Values, the author introduces a new measurement format which is the foundation for a systemic and coherent set of management tools to be used in a stakeholder approach. These tools relate to the strategic, tactical and operational tasks of management and have been developed by researchers of the European Corporate Sustainability Framework (ECSF) consortium. The set includes two tools which are generic: the Strategic Sustainability Scan (Strategy) and the Sustainability Matrix, which is a self-assessment tool (tactics). Three operational tools are context and industry specific: These are the Community related Responsive Business Scorecard (RBS) and Benchmark Format for measuring and monitoring sustainability performance and a methodology – a Management Information System – to generate information on people, planet and profit in order to provide data for the set of key performance indicators. (shrink)

The European Corporate Sustainability Framework (ECSF) is, among other concepts, based on a phase-wise development approach as described by Clare Graves' Levels of Existence Theory. As much as corporate sustainability has a sequence of adequate interpretations, aligned with each development level, also the notion of business excellence can be defined at multiple levels, as this paper demonstrates. Furthermore, the authors analyze the current EFQM Excellence Model for particular biases towards various development levels and (...) suggest a new and innovative two-step approach to assessing organizational performance with respect to organizational excellence (OE) and corporate sustainability. According to the organization's ambition, the assessment is either limited to a shareholder approach, mainly focusing at optimal usage of resources, or it also includes an additional assessment format based on the stakeholder approach, with specific reference to the organization's performance on the financial, social and ecological bottom line. This paper demonstrates the need and feasibility of an EFQM-Based assessment tool with a combined focus on corporate sustainability and OE. (shrink)

The European Corporate Sustainability Framework (ECSF) is, among other concepts, based on a phase-wise development approach as described by Clare Graves' Levels of Existence Theory. As much as corporate sustainability has a sequence of adequate interpretations, aligned with each development level, also the notion of business excellence can be defined at multiple levels, as this paper demonstrates. Furthermore, the authors analyze the current EFQM Excellence Model for particular biases towards various development levels and (...) suggest a new and innovative two-step approach to assessing organizational performance with respect to organizational excellence (OE) and corporate sustainability. According to the organization's ambition, the assessment is either limited to a shareholder approach, mainly focusing at optimal usage of resources, or it also includes an additional assessment format based on the stakeholder approach, with specific reference to the organization's performance on the financial, social and ecological bottom line. This paper demonstrates the need and feasibility of an EFQM-Based assessment tool with a combined focus on corporate sustainability and OE. (shrink)

This paper investigates the state of the art with respect to sustainability reporting, its linkages with the corporations, internal measurement and monitoring systems and their combined impact on the quality of contemporary sustainability benchmarks, developed by SRI analysts and so-called rating and screening agencies. This research originated from the EU-funded research initiative to create a new generation management framework for corporate sustainability and responsibility (CS-R). The aim of it is to develop a coherent set of (...) assessment –, measurement – and monitoring tools. The sustainability benchmark tool should align the interests of corporations implementing CS-R and various organizations supporting SRI, such as fund managers, analysts and screening agencies. This paper show the essentials features of an actual sustainability benchmark which is currently under construction. This approach will have significance impact on the further development of SRI and CS-R practices, as well as support the development of sustainability reporting standards. (shrink)

This article gives a practice-based and theoretical overview of the transformation from a traditional hierarchical organization in the care and cure sector towards a so-called Community-driven organization providing human happiness to 6000 elderly people. The actual case study is intertwined with conceptual information for better understanding of the innovative transition which took place at Humanitas. The case description includes its initial situation, its new core values, mission and objectives and shows the sequence of emerging policies and interventions that resulted in (...) a stakeholder oriented business model for the care sector. The selected concepts are Graves'' Emerging Cyclical Level of Existence Theory (or Spiral Dynamics), Ken Wilber''s Four Quadrant Model, Roberts Simons'' Four Levers of Control and various elements from the European Corporate Sustainability Framework sponsored by the European Commission. The conclusion marks the match between theory and practice in transforming Humanitas Rotterdam into providing cure, care, housing and well-being to elderly people. (shrink)

According to Dr. Clare Graves, mankind has developed eight core value systems, as responses to prevailing circumstances. Given different contexts and value systems, a one-solution-fits-all concept of corporate sustainability is not reasonable. Therefore, this paper presents various definitions and forms of sustainability, each linked to specific (societal) circumstances and related value systems. A sustainability matrix - and essential element of the overall European Corporate Sustainability Framework - is described showing six types of (...) organizations at different developmental stages, with different forms of corporate sustainability, each supported by specific institutional arrangements. (shrink)

This paper represents the attempt to define a methodology that can evaluate the degree to which companies'' information systems correspond to needs determined by the objectives of sustainability the firm imposes on itself. The result is the creation of a general model which define the correct approach to evaluating information systems – a model which should be adapted to the specificity of each single company which intends to adopt it. In the chart indicated, we obviously have not considered activities (...) connected to the implementation of the survey system, which are particular to each company''s situation. The first part of the paper consists of an overall introduction to the approach that has been used to assess the (MIS) of Granarolo, one of the Italian companies involved. The case study contains a profile of the company, the analysis of its MIS referred to the three dimensions of sustainability, and an evaluation of the strong points and issues to be developed. This approach to evaluate the gap between desired requirements of an information system for sustainability and current data available in a firm, has proved its consistency and usefulness. It helps to understand where data are, which dimensions, spheres, stakeholders account for and what is the level of integration between different information systems existing in the firm. (shrink)

Several authors have pointed at opportunities to develop the well-established Business Balanced Scorecard into a Scorecard that enables companies to integrate sustainability into their strategy. Recent case studies and research experiences show that social and environmental targets are more widely recognized as strategic drivers for management. However, experiments also show that the traditional Scorecard has its limits when it comes to e.g. stakeholder management and product chain management. The European Corporate Sustainability Framework(ECSF) program distinguishes (...) several ambition levels for Corporate Sustainability/corporate Responsibility. The traditional Balanced Scorecard is suitable for companies that aim for Compliance-driven CS/cror for Profit-driven CS/cr, where the financial bottom line is the ultimate indicator for success. More ambitious companies want to balance economic, social and ecological targets in a Community-driven CS/sror Synergy-driven CS/cr.For ambitious companies, we propose a format of a Responsive Business Scorecard (RBS). The Responsive Scorecard enables companies to score at Profit, People and Planet, at the same time to integrate stakeholder demands into internal programs to improve performance. The RBS includes five Perspectives: Customers&Suppliers, Financiers&Owners, Society&Planet, Internal Process and Employees&Learning.We assessed the practical feasibility of a Responsive Scorecardin food and tourist industries. In the food industry, we analyzed whether existing business priorities of Italian companies can adequately fill a Responsive scorecard.Our conclusion is that traditional topics like finance, customers and employees are readily filled, but that sustainability topics like chain management (suppliers) and environmental performance (planet) need further elaboration. The tourist sector is dominated by Small and Medium Sized Enterprises. We investigated whether existing eco-labels for camping-sites and marinas can be developed into Responsive Scorecards. Our conclusion is that such a sector specific development of a Responsive Scorecard is possible. Further research has to show what is the value added of the new scorecard for companies in the tourist sector. (shrink)

This book explores the current state of Corporate Social Responsibility (CSR) in 24 European nations, examining the state of the development and practice of CSR and sustainability for organizations in these countries. The common denominator for all of the book's 25 chapters is a management perspective rather than an ethical discourse. The book therefore represents a comprehensive survey of initiatives and activities in the field of CSR and provides a wealth of complete cases and examples for different (...) approaches to sustainable and responsible management practice. The book also reviews the relevant political and governmental guidelines and frameworks for organizations, both on a national and a European level. Europe has taken a leading role in the promotion and implementation of CSR. This book showcases how, through CSR, enterprises can significantly contribute to achieving the European Union's treaty objectives of sustainable development and a highly competitive social market economy. (shrink)

We seek to add to the Corporate Social Responsibility (CSR) and Sustainable Development (SD) literature through the empirical study of Latin American firm membership in the United Nations Global Compact (GC) and Global Report Initiative (GRI). Within an institutional-based framework, we explore through three filters – commercial, state-signaling, and distinguished peers – the impact of normative and mimetic pressures associated with GC/gri membership. Our sample includes 207 public firms from six Latin American countries (Argentina, Brazil, Chile, Colombia, Mexico, (...) and Peru). Our results suggest Latin American firms from countries with a greater European influence (normative pressure) are twice as likely to be enrolled in the GC/gri. Additionally, we find that Latin American firms listed on the NYSE (mimetic pressure) are also twice as likely to sign up under the GC/gri. Hence, the normative and mimetic pillars of institutional theory are found to be significant factors for Latin American firms adopting sustainability initiatives. (shrink)

This paper proposes a systematic framework for the analysis of tensions in corporate sustainability. The framework is based on the emerging integrative view on corporate sustainability, which stresses the need for a simultaneous integration of economic, environmental and social dimensions without, a priori, emphasising one over any other. The integrative view presupposes that firms need to accept tensions in corporate sustainability and pursue different sustainability aspects simultaneously even if they seem to (...) contradict each other. The framework proposed in this paper goes beyond the traditional triad of economic, environmental and social dimensions and argues that tensions in corporate sustainability occur between different levels, in change processes and within a temporal and spatial context. The framework provides vital groundwork for managing tensions in corporate sustainability based on paradox strategies. The paper then applies the framework to identify and characterise four selected tensions and illustrates how key approaches from the literature on strategic contradictions, tensions and paradoxes—i.e., acceptance and resolution strategies—can be used to manage these tensions. Thereby, it refines the emerging literature on the integrative view for the management of tensions in corporate sustainability. The framework also provides managers with a better understanding of tensions in corporate sustainability and enables them to embrace these tensions in their decision making. (shrink)

Business and Society Review, Volume 127, Issue 1, Page 23-48, Spring 2022.

This paper moves beyond corporate environmental disclosure (CED), and examines the concept of corporate sustainability disclosure (CSD) and CSD standards. While sustainability disclosure has been adopted by some larger firms, the majority of transnational firms do not yet participate in this process. This paper develops a framework and propositions for effective CSD standards. Consistent with general literature on standards, this study suggests that CSD standards that are broadly-focused and developed by private standard setters (e.g., GRI) (...) hold the greatest promise for widespread acceptance. Furthermore, the paper suggests that financial analysts--who provide the metrics for firm valuation—should participate in developing a universal set of CSD standards, in order to promote acceptance. (shrink)

The assurance of corporate sustainability reporting has long been a controversial field. Corporate management and assurance providers are routinely accused of 'capturing' what should be an exercise in public accountability. This article responds to recent calls for an analysis of the process by which Capture' takes place. Integrating elements of neo-institutional theory and the arena concept, the article sets out a fresh conceptual framework for investigating the dynamics of the interactions between the various bodies active in (...) the assurance field in the UK. (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)

Research on corporate sustainability has started to acknowledge the role of temporality in creating more sustainable organizations. Yet, these advances tend to treat firms as monolithic and we have little understanding of how different temporal patterns throughout an organization shape perceptions of and actions toward sustainability. Building on studies highlighting how the temporal structures of work shape employee engagement with different organizational processes and issues, we seek to answer: How does the temporality of work practices structure perceptions (...) of corporate sustainability throughout the firm? Using data from an ethnography of a small European sustainable bank, we provide an account of the variety of ways in which employees in different departments perceive the bank and how they engage with sustainability. We then go on to show how the temporal structures of work practices within different departments help explain some divergence in perceptions of sustainability. Our study highlights the variegation of temporal structures in organizational processes of meaning-making and its role for a better understanding of the efforts to make corporations more sustainable. (shrink)

Over the last decade, Corporate Social Responsibility (CSR) has been defined first as a concept whereby companies decide voluntarily to contribute to a better society and cleaner environment and, second, as a process by which companies manage their relationship␣with stakeholders (European Commission, 2001. Nowadays, CSR has become a priority issue on governments’ agendas. This has changed governments’ capacity to act and impact on social and environmental issues in their relationship with companies, but has also affected the framework (...) in which CSR public policies are designed: governments are incorporating multi-stakeholder strategies. This article analyzes the CSR public policies in European advanced democracies, and more specifically the EU-15 countries, and provides explanatory keys on how governments have understood, designed and implemented their CSR public policies. The analysis has entailed the classification of CSR public policies taking into consideration the actor to which the governments’ policies were addressed. This approach to the analysis of CSR public policies in the EU-15 countries leads us to observe coinciding lines of action among the different countries analyzed, which has enabled us to propose a ‹four ideal’ typology model for governmental action on CSR in Europe: Partnership, Business in the Community, Sustainability, and Citizenship, and Agora. The main contribution of this article is to propose an analytical framework to analyze CSR public policies, which provide a perspective on the relationships between governments, businesses, and civil society stakeholders, and enable us to incorporate the analysis of CSR public policies into a broader approach focused on social governance. (shrink)

Even though management scholars have offered several views on the process of corporate sustainability, these efforts have focused mainly on the technical aspects of sustainability while omitting the fundamental role played by individual moral competences. Therefore, previous work offers an incomplete and somewhat reductionist view of corporate sustainability. In this article, we develop a holistic framework of corporate sustainability in which both the moral and technical aspects of sustainability are considered. We (...) do so by integrating the ethical, normative perspective of the Catholic social teaching with the competitive view of the natural resource-based view. This framework highlights the importance of CST principles and ideas in developing executive moral competences such as moral sensitivity and awareness, and moral cognition and motivation. Moral competences, in turn, influence the organizational selection of environmental strategies, giving leaders the intrinsic motivation to promote both a longer-term stance on corporate sustainability efforts and a relentless search for greener business models. Such strategies move the firm closer towards achieving environmental sustainability. Hence, by bridging the individual, normative-ethical with the organizational, implementational levels of corporate sustainability, our framework provides a more realistic, coherent, and complete perspective on the complex process of achieving corporate sustainability. (shrink)

Even though management scholars have offered several views on the process of corporate sustainability, these efforts have focused mainly on the technical aspects of sustainability while omitting the fundamental role played by individual moral competences. Therefore, previous work offers an incomplete and somewhat reductionist view of corporate sustainability. In this article, we develop a holistic framework of corporate sustainability in which both the moral and technical aspects of sustainability are considered. We (...) do so by integrating the ethical, normative perspective of the Catholic social teaching with the competitive view of the natural resource-based view. This framework highlights the importance of CST principles and ideas in developing executive moral competences such as moral sensitivity and awareness, and moral cognition and motivation. Moral competences, in turn, influence the organizational selection of environmental strategies, giving leaders the intrinsic motivation to promote both a longer-term stance on corporate sustainability efforts and a relentless search for greener business models. Such strategies move the firm closer towards achieving environmental sustainability. Hence, by bridging the individual, normative-ethical with the organizational, implementational levels of corporate sustainability, our framework provides a more realistic, coherent, and complete perspective on the complex process of achieving corporate sustainability. (shrink)

Strategic leadership and corporate sustainability have recently come together in conspicuously explicit fashion through the emergence of top management team positions with dedicated corporate sustainability responsibilities. These TMT positions, commonly referred to as “Chief Sustainability Officers,” have found their way into the upper echelons of many of the world’s largest corporations alongside more traditional TMT positions including the CEO and CFO. We explore this phenomenon and consider the following two questions: Why are corporate (...) class='Hi'>sustainability positions being installed to the TMT?What effects do corporate sustainability TMT positions have at their organizations? We consider these questions through strategic leadership and neoinstitutional theoretical frameworks. Through the latter, we also engage with Weberian considerations of bureaucracy. We find that the reasons why corporate sustainability TMT positions are installed can be in response to a crisis at the corporation for which its legitimacy is challenged. We also find the corporate sustainability TMT position can be installed proactively in an effort to realize external opportunities that may have otherwise gone unrealized without concerted attention and coordination afforded by a strategic level position. Regarding effects, we determine the position can relate to the establishment of bureaucratic structures dedicated to corporate sustainability within the corporation through which formalized processes and key performance indicators to drive corporate sustainability performances are established. In the face of our finding that many corporate sustainability TMT positions are being removed despite having only relatively recently been introduced to their respective TMTs, we find that the successful implementation of bureaucratic machinery can help considerations to sustainability extend beyond the tenure of a corporate sustainability position within the TMT. (shrink)

According to the predominant corporate sustainable development (CSD) framework, this exploratory paper verifies that CSD construct can be modeled by integrating the dimensions of social, economic, and environmental development. We first developed and validated measurement scales for these three dimensions based on a survey of 314 managers in mainland China. Then, using structural equation modelling, we confirmed that the proposed model is valid. Therefore, our findings may allow researchers to explore CSD further, and practitioners to develop their understanding (...) of CSD initiatives in organizations. (shrink)

This paper examines how progress on gender equality in the field of corporate social responsibility (CSR) might contribute to broader EU gender and sustainability objectives. It focuses on corporations and citizenship, and on company stakeholder relations (SR) in particular. While the literature on SR has previously engaged with scholarship on feminist ethics, and in particular the ‘ethics of care’, this paper draws upon the feminist citizenship and feminist ethics literature, and upon gender mainstreaming strategy to suggest a more (...) comprehensive approach to gender equality within SR. The aim is to extend our understanding of CSR as a potential policy instrument to advance gender equality. (shrink)

The last decade has witnessed the emergence of a paradox perspective on corporate sustainability. By explicitly acknowledging tensions between different desirable, yet interdependent and conflicting sustainability objectives, a paradox perspective enables decision makers to achieve competing sustainability objectives simultaneously and creates leeway for superior business contributions to sustainable development. In stark contrast to the business case logic, a paradox perspective does not establish emphasize business considerations over concerns for environmental protection and social well-being at the societal (...) level. In order to contribute to the consolidation of this emergent field of research, we offer a definition of the paradox perspective on corporate sustainability and a framework to delineate its descriptive, instrumental, and normative aspects. This framework clarifies the paradox perspective’s contents and its implications for research and practice. We use the framework to map the contributions to this thematic symposium on paradoxes in sustainability and to propose questions for future research. (shrink)

This paper investigates whether relative corporate sustainability as measured by the SAM sustainability ranking and sustainability reporting in terms of Global Reporting Initiative application levels are associated with a higher market valuation. We conduct a value relevance study for the 600 largest European companies with the Feltham and Ohlson valuation model as a reference point. Our results indicate that for the observation period 2001 to 2011, the association between corporate sustainability and market value (...) is positive. The empirical evidence of a positive relationship between GRI reporting and market value is statistically significant in some but not all of the model specifications. We find no evidence of interaction between the value relevance of corporate sustainability and sustainability reporting, nor do we find any positive effect of external assurance on the capital market perception of GRI application levels. Our results support the notion that conducting business in accordance with ethical norms is also a shareholder value-increasing business strategy. However, it is not possible to verify the information given in sustainability reports through external assurance. (shrink)

This book examines the challenges faced by seven multinational companies - Intel, Lenovo, Samsung Electronics, ZTE, BMW Hyundai Motor Company, Mahindra and Mahindra - in their endeavour to contribute to the economic, environmental and social development of Asia. The lessons learned from the examination of these business practices may directly contribute to an increase in the practice of sustainable management and may as such contribute to positive economic, environmental and social impact of companies in this region. The cases are highly (...) relevant for management theoreticians seeking to deepen our understanding of corporate sustainability in an area where scholars, practitioners and policy-makers can expect new questions, problems and challenges in the years ahead. The book is also of high interest to policy review agencies, policy makers and welfare economists seeking to support the development of a comprehensive sustainability framework for managing social and environmental issues in the context of Asia. (shrink)

This chapter examines the rapidly developing global institutional frameworks for corporate sustainability occurring in response to imminent climate change. Corporations need to engage fully and responsibly in the urgent tasks of adaptation and amelioration required to remedy the damage caused by their earlier externalization of the costs of emissions and other pollution and reach for the objective of eliminating future carbon emissions. Guiding and facilitating this immense paradigm shift in corporate sustainability is a vast framework (...) of international and civil institutions focusing on different elements of the transformation process. The resulting widening scope of corporate directors’ duties in this more dangerous context is considered. Finally, the remarkable burgeoning of international institutions and agencies advising and monitoring corporations on climate change, carbon disclosure, responsible investment, and integrated reporting are examined. Collectively, this huge and multifaceted effort by both business and civil society, by all the agencies and initiatives discussed, represents a great advance in the campaign for corporate environmental, social, and governance responsibility. The ideals manifested are often exemplary, and whatever weaknesses and limitations revealed in the complex challenges these initiatives face, in aggregate, the initiatives do represent a significant institutional development in the cause of corporate responsibility. (shrink)

The financial services sector has the potential to be an important driver for improved corporate social and environmental responsibility through its control over corporate financing. But, so far, only ad hoc policy initiatives have arisen in the European Union and other countries. Because the financial services sector is where wholesale decisions regarding future development, and thus pressures on the environment, arise, the reform of investment and banking services to promote long term investment and better consideration of environmental (...) impacts may be an effective way to promote sustainable development. Reforms such as corporate environmental reporting requirements and lender liability for borrowers’ environmental harm, are some of the ways by which an institutional framework for mobilising financial organizations as instruments of environmental regulation could be constructed. (shrink)

This book continues the discussion from the first four volumes on the challenges that organizations face in order to implement sustainability, ethics, and effective corporate governance, all of which are important elements of “standing out” from other companies. Examining the background of the New European Consensus on development with the new guiding motto ‘Our World, Our Dignity, Our Future,’ the authors explore how this new legislation on sustainability issues around the world is forcing companies to deal (...) directly with sustainability issues. The 2030 Agenda for Sustainable Development (2030 Agenda), adopted by the United Nations in September 2015, is the international community’s response to global challenges and trends in connection with sustainable development. With the Sustainable Development Goals (SDGs) at its core, the 2030 Agenda is a transformative political framework designed to eradicate poverty and achieve sustainable development globally. It balances the economic, social, and environmental dimensions of sustainable development, including the key issues of governance and peaceful and inclusive societies, and recognizes the essential interlinkages between its goals and targets, i.e., that they must be implemented as a whole and not selectively. The respective chapters in this volume raise a number of questions regarding corporate social responsibility, ethics, and corporate governance in the face of new technology and new approaches to climate change and sustainability reporting. (shrink)

We argue the need for academics to resist and challenge the hegemonic discourse of sustainable development within the corporate context. Laclau and Mouffe’s discourse theory provides a useful framework for recognizing the complex nature of sustainable development and a way of conceptualizing counter-hegemonies. Published empirical research that analyzes sustainable development discourse within corporate reports is examined to consider how the hegemonic discourse is constructed. Embedded assumptions within the hegemonic construction are identified including sustainable development as primarily about (...) economic development, progress, growth, profitability, and “responsibly” managed levels of resource depletion. We call for multiple voices in the discursive field to debate and to resist closure and highlight the possibilities for academic researchers to actively resist the hegemonic construction. Specifically, we advocate vigilance and awareness, critical and reflective analyses, challenge and resistance based on other frames of reference, and strategies for communicating both within and outside the academy. (shrink)

This article examines multinational banks’ approaches to corporate social responsibility in developing countries’ subsidiaries, particularly in Latin America. Building on in-depth case studies of two MNBs that are based in Europe and market leaders in Latin America, we analyze their CSR motivations and outcomes in host countries. We examine institutional environments by applying the national business system framework, and we suggest missing categories in its financial and educational dimensions. We theorize how institutional necessity determines MNBs' CSR in developing (...) countries. Finally, we examine the CSR outcomes in Latin America, where banks’ responsible conduct has led to major improvements in educational levels and financial inclusion. These improvements alleviate poverty and enhance both country's social wellbeing and MNBs’ legitimacy, leading to mutual prosperity. (shrink)

Should CSR be approached only on a voluntary basis or should it be complemented with a compulsory regulatory framework? What type of government intervention is more effective in fostering CSR among companies? This paper is an attempt to answer these questions, reviewing the debate between proponents of the voluntary case and the obligatory case for CSR, and critically analysing current international government-led initiatives to foster CSR among companies, and national government-led initiatives in the EU area. Finally, the paper focuses (...) on the Spanish case, as an example of the failure of an exclusively voluntary approach. Despite the rapid uprise of CSR, Spain is still far behind late in CSR promotion strategies. Most action has been undertaken by companies themselves with no common guidelines, governmental support, or independent verification. The lack of a regulatory framework for CSR or ethical investment issues and the virtual absence of other indirect incentives, explains the misbalance between private, public and Third Sector initiatives. Based on the Spanish context which is quite similar to other non-OECD countries, the authors call for a more proactive government position in CSR related issues. The conclusions of the paper detail the features of this regulatory framework and other policies to promote CSR in Spain as well as in other OECD countries. (shrink)

Little has been published about the drivers, factors and challenges involved in the business practice of creating corporate sustainability performance within a company. This working paper describes research that employed an in-depth, grounded-theory case study approach to explore the issue within two EU-based utility companies. From the analysis of interviews, project meeting observations and a survey with in-house delivery experts, a key preliminary output of this research has been the creation of a Force-Factor Corporate Sustainability Performance (...) Framework that categorises the main driver and inhibitor elements a dynamic, explanatory model. This can serve as a useful platform for further academic and practitioner-based research, as well as describing key levers and obstacles to establishing a progressive performance in corporate sustainability. (shrink)

The complexity of current social and environmental grand challenges generates many conflicts and tensions at the individual, organization and/or systems levels. Paradox theory has emerged as a promising way to approach such a complexity of corporate sustainability going beyond the instrumental business-case perspective and achieving superior sustainability performance. However, the fuzziness in the empirical use of the concept of “paradox” and the absence of a systems perspective limits its potential. In this paper, we perform a systematic review (...) and content analysis of the empirical literature related to paradox and sustainability, offering a useful guide for researchers who intend to adopt the concept of “paradox” empirically. Our analysis provides a comprehensive account of the uses of the construct - which allows the categorization of the literature into three distinct research streams: 1) paradoxical tensions, 2) paradoxical frame/thinking, and 3) paradoxical actions/strategies - and a comprehensive overview of the findings that emerge in each of the three. Further, by adopting a system perspective, we propose a theoretical framework that considers possible interconnections across the identified paradoxical meanings and different levels of analysis (individual, organizational, systems) and discuss key research gaps emerging. Finally, we reflect on the role a clear notion of paradox can have in supporting business ethics scholars in developing a more “immanent” evaluation of corporate sustainability, overcoming the current instrumental view. (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 presents a comparative analysis of three American and three European corporate failures. The first part of the analysis is based on a theoretical framework including six areas of ethical climate; tone at the top; bubble economy and market pressure; fraudulent financial reporting; accountability, control, auditing, and governance; and management compensation. The second and third parts consider the analysis of these cases from fraud perspective and in terms of firm-specific characteristics and environmental context. The research analyses (...) shed light on the fact that, despite major differences between Europe and U.S. in terms of political institutions, laws and regulations as well as managerial practices, there are significant similarities between six groups. The analysis also demonstrates that, the ethical dilemma has been coupled with ineffective boards, inefficient corporate governance and control mechanisms, distorted incentive schemes, accounting irregularities, failure of auditors, dominant CEOs, dysfunctional management behavior and the lack of a sound ethical tone at the top. Significant similarities were also observed in the analysis from the fraud triangle perspective. However, there are several major differences between the six corporate failure cases particularly with regard to ownership structure, coverage in media, and legal, regulatory and governance frameworks. This research study may have several academic and practical contributions, particularly because of multidisciplinary, international features, and comparative analyses used in the paper. (shrink)

This paper aims to investigate the current state of play on Environmental Social and Governance (ESG) integration and check the validity of the current metrics system by assessing if it will survive the COVID-19 crisis. By adopting a qualitative research approach through semi-structured anonymous interviews with 14 senior managers of six European listed companies we use a framework by assessing the mechanisms of reactivity on the effectiveness of ESG measures in times of COVID-19. By interpreting the practitioners’ points (...) of view through the lens of the sociological framework by Espeland and Sauder (Am J Sociol 113:1–40, 2007) our findings show different mechanisms of reactivity by companies on the effectiveness of ESG measures in times of COVID-19, i.e., active and passive conformity and active resistance. We also identified the main Corporate Social Responsibility (CSR) institutional factors that affect managers’ reactivity. An extensive re-formulation of the ESG metrics is required in the light of times of crisis, given that accountability and transparency are strongly linked to quantitative measures which can play a critical role in the financial system and investors’ engagement. Particularly, the strict distinction between “E”, “S” and “G” issues should be abandoned claiming a different holistic re-design of sustainability measures by considering the increasing relevance of the Social dimension in time of COVID-19. This study provides a valuable contribution to the existing literature on the measurement of sustainability within the link of accountability and crisis by highlighting new corporate needs to re-design the ESG metrics system. (shrink)

Trade-offs between the conflicting aspects of corporate sustainability have hindered the realization of win–win opportunities that advance both sustainable development and the bottom line. The question today is no longer whether these trade-offs are encountered in the pursuit of CS, but under which circumstances they occur, with which responses, and how best to navigate them. This study conducted a systematic review and content analysis of the trade-off literature published to-date at both conceptual and applied levels. Through this process, (...) a hierarchical framework is proposed for the analysis of trade-offs based on their different categories, their root tensions, their interconnections, and where they are encountered in the practice of CS, from policy to implementation. Based on this, a number of recommendations are provided on how managers may better navigate the hierarchy of trade-off decision-making, to ultimately transform trade-offs into synergies. Several suggestions for future trade-off research are also provided. (shrink)

The Earth is facing pressing societal grand challenges that require urgent managerial action. Responsible management learning has emerged as a discipline to prepare managers to act as responsible leaders that can effectively address such pressing challenges. This article aims to extend current knowledge on RML in the domain of corporate sustainability through the application of threshold concepts, novel ideas which provide a doorway to new knowledge and transform a learner’s mindset. Specifically, after conducting a systematic review of the (...) management literature, we identify 33 CS threshold concepts that are useful for mainstream managers and practitioners in their RML process. We group them into six CS threshold concept themes that can help managers understand the complexities and interconnectedness that characterize CS. Finally, we map CS threshold concepts with key competences for effective RML. Therefore, our contribution relies on translating existing CS theoretical frameworks into transformative, specific, understandable and applicable pieces of knowledge that might help mainstream managers to embed CS principles in their daily management practices. (shrink)

The Earth is facing pressing societal grand challenges that require urgent managerial action. Responsible management learning has emerged as a discipline to prepare managers to act as responsible leaders that can effectively address such pressing challenges. This article aims to extend current knowledge on RML in the domain of corporate sustainability through the application of threshold concepts, novel ideas which provide a doorway to new knowledge and transform a learner’s mindset. Specifically, after conducting a systematic review of the (...) management literature, we identify 33 CS threshold concepts that are useful for mainstream managers and practitioners in their RML process. We group them into six CS threshold concept themes that can help managers understand the complexities and interconnectedness that characterize CS. Finally, we map CS threshold concepts with key competences for effective RML. Therefore, our contribution relies on translating existing CS theoretical frameworks into transformative, specific, understandable and applicable pieces of knowledge that might help mainstream managers to embed CS principles in their daily management practices. (shrink)

Responsible research and innovation (RRI) is a governance framework promoted by influential policy makers such as the European Commission and academics from the fields of science and technology studies and management. This book is the first text to serve industry. Inspired by existing Corporate Responsibility standards and principles, it offers a selection of tools that can assist practitioners in implementing RRI in business and industry. -/- Responsible Research and Innovation (RRI) is integrative. It is a convergence of (...) Technology Assessment (TA) and Ethics, including corporate responsibility. The task of linking RRI to existing frameworks has only just begun. This book is a welcome example, showing how Corporate Responsibility tools can drive the implementation of RRI. Prof. Armin Grunwald, Head of the Office of Technology Assessment at the German Bundestag and Head of the Institute for Technology Assessment and Systems Analysis, Karlsruhe Institute of Technology, Germany. -/- This is a simple, short, yet encyclopaedic work designed to help business implement RRI using the many tools of Corporate Responsibility (CR) already in place, everything from ISO9001 to the Ceres Roadmap for Sustainability. It makes clear the ways in which RRI is an extension of ideas already well-developed in CR. I learned a lot reading it. Prof. Michael Davis, Senior Fellow, Center for the Study of Ethics in the Professions, Illinois Institute of Technology, USA. (shrink)

This paper examines the relationship between turnover among chief executive officers and corporate sustainability performance by identifying the influence of two major types of succession to the top job and the reasons for change. Our model also integrates the firm’s past prioritization of CSP and the impact of a company’s participation in the Global Reporting Initiative. Upper echelons theory and agency theory frameworks are adopted to understand CSP. Using an analysis of panel data for 88 public companies across (...) 13 years in France, we find that a change of chief executive has a positive and significant effect on CSP 5 years after the change. This positive effect is stronger when the new CEO is recruited from outside the firm. The impact on CSP is invariably positive and significant, except for voluntary departures. The arrival of a new CEO affects CSP less when the firm has already achieved a high standard of CSP and participates in the GRI. These results are obtained after controlling CSP determinants already validated in the literature. The findings show that expectations of CEOs are not solely economic and financial but also concern CSP. In terms of governance, they should prompt shareholders looking to strengthen CSP to choose new CEOs from outside the firm and to encourage the firm to participate in the GRI. (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)

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)

Corporate sustainability can be defined as organizations’ commitment to profitability, environment, and social well-being. This study uses a transactional culture analysis of CS reporting practices to explain why some Indian organizations conform to voluntary CS reporting guidelines and others do not. The literature contains two different perspectives on culture, defined broadly as a set of values that guide people’s behavior at a given time. Most past studies typically use national culture to explain differences in CS practices across nations. (...) This concept embeds corporate cultures within the larger national culture, neglecting intranation diversity. Conversely, according to the transactional culture approach used in this study, cultures are plural and independent of geoethnic boundaries, and emerge through social transactions. TCA encourages multilevel explorations of complex social phenomena. Since CS reporting preferences are the outcome of ongoing transactions among organizational stakeholders across different levels, TCA is more appropriate for this study. Since this application requires an understanding of social accountability, the authors use Mary Douglas’s Cultural Framework, a transactional framework of social accountability. A qualitative exploration of six Indian organizations using DCF reveals different dominant forms of social accountability in these organizations: either alone or as paired hybrids. Consequently, each organization prioritizes different stakeholders and reacts differently to voluntary CS reporting guidelines. Identifying the dominant form or forms of social accountability in their organizations and understanding their underlying reasons for resisting voluntary CS guidelines enables managers to secure better collaboration for their CS initiatives. (shrink)

This article gives a practice-based and theoretical overview of the transformation from a traditional hierarchical organization in the care and cure sector towards a so-called Community-driven organization providing human happiness to 6000 elderly people. The actual case study is intertwined with conceptual information for better understanding of the innovative transition which took place at Humanitas. The case description includes its initial situation, its new core values, mission and objectives and shows the sequence of emerging policies and interventions that resulted in (...) a stakeholder oriented business model for the care sector. The selected concepts are Graves' Emerging Cyclical Level of Existence Theory (or Spiral Dynamics), Ken Wilber's Four Quadrant Model, Roberts Simons' Four Levers of Control and various elements from the European Corporate Sustainability Framework sponsored by the European Commission. The conclusion marks the match between theory and practice in transforming Humanitas Rotterdam into providing cure, care, housing and well-being to elderly people. (shrink)

India’s present sustainability framework for corporates largely consists of scattered obligations across various legislative frameworks. The purpose of this study is to understand corporate response to different sustainability obligations in India. Through this, the study aims to understand if the CSR regime alone is enough to meet India’s sustainability requirements or if further changes are required. CSR disclosures of the top 25 fortune India 500 companies over 2 years are contrasted against their ESG risk rating (...) per Indian and foreign ESG risk rating agencies. Findings indicate that all eligible companies are large proponents of CSR but are hardly in tune with the other sustainability obligations under Indian laws. Unfortunately, the impactful CSR regime does not appear to result in good ESG performances. In response to this finding, the paper concludes with recommendations to rectify the same. (shrink)

The increasing challenges faced by organizations have led to numerous studies examining human resource management (HRM) practices, organizational ethical climates and sustainability. Despite this, little has been done to explore the possible relationships between these three topics. This study, based on a probabilistic sample of 6,000 employees from six European countries, analyses how HRM practices with the aim of developing organizational ethics influence the benevolent, principled and egoistic ethical climates that exist within organizations, while also investigating the possible (...) moderating role played by their employees’ perception of corporate sustainability. Findings demonstrate that ability-enhancing practices (i.e. recruiting, selection and training) and opportunity-enhancing practices (i.e. job design, industrial relationships and employee involvement) improve benevolent and principled organizational ethical climates, while motivation-enhancing practices (i.e. performance management, compensation and incentives) rather than being related to these organizational ethical climates, are linked to the egoistic climate. In addition, the perceptions of the company’s employees in terms of corporate sustainability moderate these relationships, by reinforcing the positive relationships of ability-enhancing and motivation-enhancing HRM practices in terms of benevolent and principled ethical climates and by reducing the positive relationships between motivation-enhancing practices and egoistic climate. Specific implications for HRM research, teaching and practice are then advanced and discussed. (shrink)

Sustainable development (SD) – that is, “Development that meets the needs of current generations without compromising the ability of future generations to meet their needs and aspirations” – can be pursued in many different ways. Stakeholder relations management (SRM) is one such way, through which corporations are confronted with economic, social, and environmental stakeholder claims. This paper lays the groundwork for an empirical analysis of the question of how far SD can be achieved through SRM. It describes the so-called SD–SRM (...) perspective as a distinctive research approach and shows how it relates to the wider body of stakeholder theory. Next, the concept of SD is operationalized for the microeconomic level with reference to important documents. Based on the ensuing SD framework, it is shown how SD and SRM relate to each other, and how the two concepts relate to other popular concepts such as Corporate Sustainability and Corporate Social Responsibility. The paper concludes that the significance of societal guiding models such as SD and of management approaches like CSR is strongly dependent on their footing in society. (shrink)