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)

There are two different, and somewhat competing, strategic explanations for why firms certify for ISO 14001. On the one hand, firms may seek to reinforce their present strategies thereby further enhancing their competitive advantage. On the other hand, firms may use ISO 14001 as a mechanism to reorient their strategies, so that a clear signal is sent about the firm's change in strategic positioning. This paper aims to identify the most likely explanation for early adopters of ISO 14001. Using a (...) matched pair design, we test these alternative explanations on a sample of US firms that certified for ISO 14001 in the first two years after its introduction. In particular, we tested whether ISO 14001 was used to reinforce or reorient firm strategies in respect to the natural environment, corporate social responsibility, quality, and internationalization. We found that firms that certified early for ISO 14001 had considerable environmental legitimacy and a strong international presence. We also found that the firm's commitment to corporate social responsibility and quality were not significantly different between certified and non-certified firms. These findings suggest that early adopters of ISO 14001 leaned towards reinforcing rather than reorienting their firm strategy, which calls into question the ultimate reach of ISO 14001. (shrink)

This paper examines stakeholder responses to impression management tactics used by firms that express environmental commitment. We inductively analyzed data from 98 open-ended questionnaires and identified two impression management tactics that led respondents to believe that a firm was credible in its commitment to the natural environment. Approximately, half of the respondents responded to illustrative impression management tactics that provide images of, and/or broad-brush comments about, the firm's commitment to the natural environment. The other half responded to demonstrative impression management (...) tactics, which provide specific facts and details about the firm's operations. The research results provide important insights into the effects of organizational transparency. In this paper, we explore these findings and provide directions for future research. (shrink)

In 1843, Søren Kierkegaard said, “ It is perfectly true, as philosophers say, that life must be understood backwards. But they forget the other proposition, that it must be lived forwards.” Management researchers are often attracted to the business and society domain because of a desire to impact management practice to create a better world. However, they often do not have the impact that they hope, because researchers tend to rely on historical data, but managers seek insights that inform future (...) actions. In this commentary, we describe our impact journey in three distinct moments in time. In the last one, both researchers and managers live forward. (shrink)

In this paper, we develop an argument to show why we expect that multinational companies will ensure that they communicate credibly about their environmental responsibility, across all their subsidiaries. Credible environmental communication helps to increase the firm’s legitimacy and reduce its liability of foreignness on an issue that is globally relevant. We develop a measure to test if there is a standardized level of environmental communication credibility on the country-specific web sites of MNC subsidiaries around the world and find, in (...) fact, that there is considerable variation across countries, among subsidiaries of different firms and among subsidiaries of the same multinational. We discuss the reasons for this and the implications for firm legitimacy. (shrink)

Prior research in strategic decision making has relied primarily on the application of economic and financial models within strategic decisions. Environmentaland social issues have, as a result, been force-fit into existing models, rather than developing a deep understanding of how these ‘soft’ issues are actually incorporated into strategic decisions. This study aims to fill this gap by investigating how social and environmental concerns are addressed in strategic decisions. It does so inductively, by interviewing 29 professionals addressing corporate social responsibility and (...) 110 strategic decision makers in 19 companies in Canada. This paper reports some of the interim findings. (shrink)

This paper examines stakeholder responses to impression management tactics used by firms that express environmental commitment. We inductively analyzed data from 98 open-ended questionnaires and identified two impression management tactics that led respondents to believe that a firm was credible in its commitment to the natural environment. Approximately, half of the respondents responded to illustrative impression management tactics that provide images of, and/or broad-brush comments about, the firm’s commitment to the natural environment. The other half responded to demonstrative impression management (...) tactics, which provide specific facts and details about the firm’s operations. The research results provide important insights into the effects of organizational transparency. In this paper, we explore these findings and provide directions for future research. (shrink)