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)

The first United Nations Millennium Development Goal calls for a distinct reduction of worldwide poverty. It is now widely accepted that the private sector is a crucial partner in achieving this ambitious target. Building on this insight, the ‹Bottom of the Pyramid’ concept provides a framework that highlights the untapped opportunities with the ‹poorest of the poor’, while at the same time acknowledging the abilities and resources of private enterprises for poverty alleviation. This article connects the idea of business with (...) the poor to sustainable development and especially to the notions of inter- and intragenerational justice. These principles of justice can be linked with the ‹Bottom of the Pyramid’ approach directly through the Rawlsian principles to foster holistic thinking. On this basis, the article offers a normative-ethical reasoning of corporations’ possible responsibilities for the poorest of the poor. Today’s state of worldwide inequalities is likely to generate future tensions between the privileged western world and the uncounted mass of poor (let alone the ethical dubiousness of this status). However, it is at the same time problematic if not even impossible to improve the situation of the poor by simply copying the resource intensive western way of living to the ‹Bottom of the Pyramid’ due to the limited carrying capacity of the earth. After highlighting possible moral dilemmas which may occur through such a potential trade off, this article concludes with an outlook on how the concepts ‹Bottom of the Pyramid’ and sustainable development could be combined. (shrink)

Globalization arguably generated a governance gap that is being filled by transnational rule-making involving private actors among others. The democratic legitimacy of such new forms of governance beyond nation states is sometimes questioned. Apart from nation-centered democracies, such governance cannot build, for example, on representation and voting procedures to convey legitimacy to the generated rules. Instead, alternative elements of democracy such as deliberation and inclusion require discussion to assess new instruments of governance. The recently published standard ISO 26000 is an (...) interesting example of transnational governance. ISO 26000 was developed in a lengthy multiorganizational process for the purpose of giving guidance on the social responsibility of organizations. By assessing the specific case of ISO 26000, this study sheds light on the question of how legitimacy beyond nation-state democracy is ensured or constricted. Centering on the idea of deliberate democracy and democratic legitimacy, the study offers in-depth insights on the normative legitimacy of the development process of ISO 26000. Positioned on the interface of business studies and public policy, this article contributes to the academic literature on transnational governance and on the role of multistakeholder processes in shaping the role of business in society. (shrink)

Factorial surveys integrate elements of survey research and classical experiments. Using a large number of respondents in a controlled setting, FSs approximate complex and realistic judgment situations through so-called vignettes—that is, carefully designed descriptions of hypothetical people, social situations, or scenarios. Despite being rooted, and predominantly applied, in sociology, FSs are particularly promising for business and society scholars. Given the multiplicity, inherent complexity, and sometimes fuzziness of B&S research objects, conventional research methods inevitably reach their limits. This article, therefore, systematically (...) presents methodological and thematic opportunities for FS studies in B&S research. It is argued that FSs are well suited to dealing with the complex interplay of societal-, organizational-, and individual-level factors in B&S research and to studying the principles underlying human perceptions, attitudes, values, social norms, and behavior. The application of the FS method is illustrated based on a showcase example in the realm of socially responsible investments. As the literature on the conceptualization of FSs is limited, methodological challenges are addressed to guide B&S researchers past the common methodological pitfalls. (shrink)

Companies disclosing negative aspects in sustainability reports often employ legitimation strategies to present mishaps in a favorable light. In incentivized experiments, we find that nonprofessional investors divest from companies with a negative sustainability-related incident, and that symbolic legitimation (which only evasively explains a negative incident) is not a strong enough signal to counter this divestment behavior. Even substantial legitimation (which reports on measures and behavioral change) mitigates the divestment decisions only if the company reports on concrete remediation actions in morally (...) charged situations, such as social or environmental incidents. We elaborate these results in light of signaling and screening theory, and suggest the conceptual extension of “costly signals” to what we call “valuable signals.” We argue that valuable signals need be not only costly for the sender from an economic perspective but also perceived as appropriate by the receiver from a noneconomic perspective. (shrink)

In recent years, a considerable amount of research on adapted business for developing countries focused on the impact such endeavours have on the respective companies as well as on the affected people. However, the main emphasis within management sciences was on the economic outcomes or (even more distinct and often) on the question of how to integrate the poor into business models and value chains. Until now, further aspects of a dignified human existence were merely covered as a side note. (...) The article focuses on the influence of inclusive business approaches on various aspects of human dignity and provides explorative insights as a basis for future theory building. The aim is to uncover how human dignity is affected by different business approaches for the poor including and beyond economic outcomes. After giving an insight into the essence and meaning of human dignity in connection to various human rights, the articles refers to a number of illustrative cases of inclusive business. The analysis culminates in the insight that dignity can be (and sometimes already is) assured and promoted by deliberately including the poor into relevant value-added business processes. If this is the case, an enhanced dignity is not merely the result of increased incomes but stems from a variety of effects. However, such positive effects are not an inevitable outcome of any inclusive business initiative. (shrink)

In recent years, a considerable amount of research on adapted business for developing countries focused on the impact such endeavours have on the respective companies as well as on the affected people. However, the main emphasis within management sciences was on the economic outcomes or (even more distinct and often) on the question of how to integrate the poor into business models and value chains. Until now, further aspects of a dignified human existence were merely covered as a side note. (...) The article focuses on the influence of inclusive business approaches on various aspects of human dignity and provides explorative insights as a basis for future theory building. The aim is to uncover how human dignity is affected by different business approaches for the poor including and beyond economic outcomes. After giving an insight into the essence and meaning of human dignity in connection to various human rights, the articles refers to a number of illustrative cases of inclusive business. The analysis culminates in the insight that dignity can be (and sometimes already is) assured and promoted by deliberately including the poor into relevant value‐added business processes. If this is the case, an enhanced dignity is not merely the result of increased incomes but stems from a variety of effects. However, such positive effects are not an inevitable outcome of any inclusive business initiative. (shrink)

Collaborative consumption is proposed as a potential step beyond unsustainable linear consumption patterns toward more sustainable consumption practices. Despite mounting interest in the topic, little is known about the determinants of this consumer behavior. We use an extended theory of planned behavior to examine the relative influence of consumers’ personal norms and the theory’s basic sociopsychological variables attitudes, subjective norms, and perceived behavioral control on collaborative consumption. Moreover, we use this framework to examine consumers’ underlying value and belief structure regarding (...) collaborative consumption. We measure these aspects for 224 consumers in a survey and then assess their self-reported collaborative consumption behavior in a second survey. Our structural model fits the data well. Collaborative consumption is more strongly—through intentions—influenced by personal norms and attitudes than by subjective norms. Personal norms to consume collaboratively are determined by consumers’ altruistic, biospheric, and egoistic value orientations. Cost savings, efficient use of resources, and community with others are found to be consumers’ attitudinal beliefs underlying collaborative consumption. We conclude that collaborative consumption can be pin-pointed neither as a mere form of economic exchange nor as a primarily normative form of sharing resources. Instead, collaborative consumption is determined by economic/egoistic (e.g., cost savings) and normative (e.g., altruistic and biospheric value orientations) motives. Implications for collaborative consumption research, the theory of planned behavior, and practitioners are discussed. (shrink)

Social intrapreneurs can help corporations to address grand challenges and create hybrid value—that is simultaneous commercial and social value—by identifying and exploring entrepreneurial opportunities that address social or environmental issues. However, we still know little about how individuals assume social intrapreneurial roles in corporations. Based on a qualitative study of social intrapreneurs and their supporters, we identify variations in social intrapreneurial profiles along two dimensions: the role of the social intrapreneur in the entrepreneurial process (idea initiator versus idea explorer), and (...) their position (within core business departments versus within sustainability departments). We contribute to the literature by identifying four different types of social intrapreneurs as corporate change agents—the Visionary Business Insurgent, the Visionary Sustainability Transformer, the Enabled Business Expert, and the Enabled Sustainability Expert—and by shedding light on four pathways to social intrapreneurship that vary in initial levels of agency and ethical expression. (shrink)

Extant research underlines the critical challenge for firms to rigorously and consistently evaluate their growing number of cross-sector partnerships for sustainability and suggests formalizing evaluation processes by introducing formal practices. However, empirical research is scant and inconclusive. This study aims to develop an empirically grounded understanding of how firms formalize the evaluation processes of such partnerships and of what drives this formalization, to complement the so far mostly conceptual literature. We inductively analyzed 31 semi-structured interviews with 33 experts from firms (...) and their partnering nonprofits and further secondary data on organizations’ partnerships. We contribute to the cross-sector partnership research by analyzing firms’ practices related to the formalization of the internal as well as the joint partnership evaluation process with nonprofits. We propose a conceptual framework to explain why firms implement different formal practices to reduce the dependency on individuals’ skills, experiences, or judgments in evaluating partnerships. (shrink)