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)

In this longitudinal study, we explore the co-evolution of the cognitive complexity of the CEO of Puma, Jochen Zeitz, and his view and initiatives on sustainability. Our purpose was to explore how the changes in a leader’s mindset relate to his/her views and actions on sustainability. In contrast to previous studies, we adopt an in-depth longitudinal case study approach to capture the role of leaders’ cognitive complexity in the context of corporate sustainability. By understanding the cognitive development of Zeitz as (...) leader of Puma, we provide an important step toward understanding the co-evolution of leaders’ cognitive complexity and proactive corporate sustainability initiatives over time. Our findings show that as he developed a more complex mindset that also included non-business lenses, Zeitz developed a more inclusive understanding of sustainability and adopted proactive initiatives that went beyond business-as-usual. Our study also demonstrates that a longitudinal perspective can offer valuable insights for a better understanding of how individuals and their interactions affect and are affected by an organization’s strategies and performance, in corporate sustainability and beyond. (shrink)

Globally active companies are involved in the discursive construction of moral legitimacy. Establishing normative conformance is problematic given the plurality of norms and values worldwide, and is particularly difficult for companies operating in morally controversial industries. In this paper, we investigate how organizations publicly legitimize the trade of human tissue for private profit when this practice runs counter to deep-seated and widespread moral beliefs. To do so, we use inductive, qualitative methods to analyze the website discourse of three types of (...) organizations that trade in human tissue and are associated with different degrees of moral controversy with respect to tissue procurement and use. Our analysis reveals an object-oriented approach to moral legitimizing centered on the human tissue as a morally disputed good. We find that the website discourse translates human tissue into technology, constructs normative meaning around a dominant instrumental value associated with human-tissue-as-technology, and reproduces and stabilizes this meaning by six discursive mechanisms that amplify and anchor it. Moreover, the use of amplifying and anchoring discourse was greater in organizations associated with greater controversy. The results are consistent with an object-oriented sociality. (shrink)

Increasing evidence suggests that corporate sustainability is paradoxical in nature, as corporates and managers have to achieve economic, social, and environmental goals, simultaneously. While a paradox perspective has been broadly incorporated into sustainability research for more than a decade, it has resulted in limited improvement in our understanding of corporate sustainability paradox management. In this study, the authors conduct a systematic review of the literature of corporate sustainability paradox management by adopting the Smith–Lewis three-stage model of dynamic equilibrium. The results (...) reveal the following: Both environmental and cognitive factors manifest tensions arising from the sustainability paradox. While both proactive and defensive strategies are adopted to manage the tensions embedded in the corporate sustainability, the proactive strategy is more extensively studied in the current literature. Management strategies of corporate sustainability paradox are characterized as multi-level, multi-stage, and dealing with multiple paradoxes. Proactive strategies enable organizations to enjoy short-term and long-term sustainability benefits. The authors call for further research explicitly addressing the following areas: the paradoxical nature of corporate sustainability management; corporate sustainability paradox management of for-profit organizations; the micro-foundations of corporate sustainability paradox management; defensive strategies and new proactive strategies; and a unified standard of sustainability outcomes. The practical implications of this review are then elaborated. In practice, the results imply that organizations would best manage the corporate sustainability paradox by understanding the paradox and its equilibrium stages. This review and proposed research agenda are expected to deepen interdisciplinary knowledge and set the stage for interested scholars to undertake in their future inquiries. (shrink)

Focusing on the corporate social responsibility (CSR) implementation process, we analyze how institutional complexity that arises from tensions between social and environmental elements and economic and technical concerns is managed by CSR managers. We further question how these micro-level processes interact with organizational-level processes over time. Our research is a 24-month qualitative process study in which we followed CSR managers. The study’s results allow us to distinguish between four strategies that CSR managers use to promote CSR implementation and to cope (...) with tensions. Our results further indicate that organizational characteristics influence the intensity with which these strategies are applied and that the intensity of strategy application affects organizational behavior in the course of time. Through the discussion of these findings, our study contributes to the research on micro-level processes that occur in response to complex institutional demands as well as to the development of a comprehensive, multilevel approach to CSR implementation. (shrink)

Fringe stakeholders with limited resources, such as grassroots organizations (GROs), are often ignored in business and society literature. We develop a conceptual framework and a set of propositions detailing how GROs strategically gain legitimacy and influence over time. We argue that GROs encounter specific paradoxes over the emergence, development, and resolution of an issue, and they address these paradoxes using cognitive, moral, and pragmatic legitimacy strategies. While cognitive and moral strategies tend to be used consistently, the flexible and paradoxical use (...) of pragmatic strategies has important consequences, both for GROs’ legitimacy and for their potential influence over powerful organizations associated with them. We enrich our framework with the help of two illustrative cases and discuss the implications of the framework for GROs’ legitimacy strategies in business and society literature. (shrink)

Various leadership styles have been widely studied to understand success. However, little research has empirically explored how entrepreneurial leadership influences entrepreneurial success. Moreover, the role of knowledge management processes and knowledge entrepreneurship have been overlooked. Thus, using a knowledge-based view theory, this study aims to determine the relationship between EL and ES, mediated through KMPs. In addition, for a better understanding, the study also used KE as a moderator. A quantitative survey method has been employed to collect data from 390 (...) entrepreneurial venture owners, co-founders, and managers in tech-oriented ventures operating in Pakistan. Smart partial least squares statistical software was used to analyze the impact mechanism of EL on ES through the structural equation model. The findings revealed that EL style positively influences ES. In addition, KMPs fully mediate the relationship between EL and ES. Furthermore, KE as a moderator, strengthens the relationships between EL and the knowledge management process. Theoretically, this study has complemented and enriched research on the influence mechanism between EL and ES. Practically, this study has important implications for leaders, managers, and founders to promote KMPs to achieve ES. (shrink)

Business Ethics: A European Review, EarlyView.