Addressing ESG issues has become a point of interest for investors, shareholders, and governments as a risk management concern, while for firms it has become an emerging part of competitive strategy. In this study, a database from an independent ratings agency is used to examine, longitudinally, how Australian Securities Exchange (ASX) 300 firms are responding to ESG issues. Following institutional theory predictions, ASX300 firms are improving ESG performance over the 2002–2009 timeframe. Furthermore, over this timeframe, performance on the governance dimension (...) improved at a greater rate than environmental or social performance, as predicted. Lastly, high impact industries are predicted to demonstrate overall improved ESG performance relative to medium or low impact industries over the timeframe, but this hypothesis was not confirmed. Results are discussed along with implications and future research directions. (shrink)

This article investigates the moderating effects of organizational social consciousness on the natural environmental competency and innovativeness relationship. Organizational social consciousness reflects the organization’s awareness of its place and contribution to the larger system in which it exists and is developed through an organization’s social responsibility, ethics, culture, corporate values, and the view of its stakeholders. Through our study of key strategic decision makers from organizations located in the USA, we operationalize organizational social consciousness and demonstrate the efficacy of this (...) construct in relation to the organizational-level constructs of environmental management competency and innovativeness. Our results reveal that organizational social consciousness positively strengthens the natural environmental competency to organizational innovativeness relationship. (shrink)

The role of a corporation is often debated as a mutually exclusive choice between economic responsibility to shareholders and social responsibility to society. An evolving viewpoint embraces an integrated approach focused on long-term value creation for shareholders which benefits other stakeholders. Maximizing long-term shareholder value as a corporate objective can be compatible with stakeholder theory when an enlightened shareholder maximization strategy is embraced. Firms implementing an enlightened shareholder maximization strategy are expected to make decisions and use resources which achieve long-term (...) value-creating outcomes. However, critics of enlightened shareholder maximization as a corporate goal contend this strategy conflicts with maximizing shareholder value. This study explores whether firms which embrace a balanced enlightened shareholder maximization strategy indeed create long-term value which does not sacrifice shareholder wealth. (shrink)

The term ‘sustainability’ is vague and open to interpretation. In this paper we analyze how firms use the term in an effort to make the concept their own, and how it becomes a premise for further decisions, by applying a bottom-up approach focusing on the interpretation of ‘sustainability’ in the Norwegian salmon-farming industry. The study is based on a strategic selection of informants from the industry and the study design rests on: 1) identification of the main drivers of sustainability, and (...) 2) the application of five different discursive strategies to analyze how the firms maneuver to legitimize ‘sustainability’ in their conduct. We employ the Critical Discourse Analysis framework, which emphasizes how discourses provide different concepts of meaning. The sustainability concept is assessed based on how sustainability is brought into action by social actors in a legitimate way, and how this action results in sustainable practices. The empirical case of the study is the verbal justification of sustainability practices among representatives of the Norwegian salmon-farming industry. We aim to find out how these representatives translate the rather vague directives of the sustainability concept into legitimate choices that resonate with the firms’ contextual environment, hence, how the salmon farmers perceive, explore, interpret, explain, enact, and defend the diverse landscape of sustainability when implementing professional decisions. We found a trend of passive adaptation to external requirements, such as public regulations and regulative requirements from certification bodies. At the same time, there are progressive forces that attempt to improve the sustainability of the farming practices by involvement in research and innovation projects or cooperation with other firms, e.g. the contribution from offshore engineers in developing high seas farms. The strategies outlined and discussed cannot be seen as a typology to categorize the firms. More than one discursive strategy may be involved in one firm’s choice, and the strategies may work on different levels. (shrink)

This article describes the current state of knowledge on pro‐environmental behavior in the workplace by analyzing 17 empirical studies that (1) examined individuals' pro‐environmental behavior at work and (2) performed some type of quantitative analysis to explore antecedents of this behavior. Detailed descriptions of these studies are provided in terms of (1) types of pro‐environmental behavior examined, (2) measures of pro‐environmental behavior, (3) internal factors investigated, (4) external factors investigated, (5) samples examined, and (6) theoretical frameworks used. This article further (...) provides researchers interested in this research topic with directions for future research. Using the information presented in this article, future business ethics studies can offer more comprehensive insight into one's decision to engage in various types of pro‐environmental behavior in the workplace and provide important implications for environmental protection. (shrink)

It is becoming clear that many of today’s management theories are inadequate theoretically and practically to move understanding, scholarship, and practice to where it needs to be for scholars, business leaders, and policy makers to cope with an increasing fraught world. This Special Issue’s focus is on sustainability. Sustainability challenges need to incorporate multidisciplinary interventions and the trans- and interdisciplinary nature of solutions. To actively seek transformation toward sustainability, fundamental and innovative short-term as well as long-term efforts are required in (...) society, economy, technology, and education, including our understanding of human behavior and attitudes toward the management of the environment. This introductory piece presents natural science theories as a promising approach for achieving progress toward transformation for sustainability. (shrink)

This study sheds new light on why healthcare organisations are having difficulty responding to the growing pressure from stakeholders to proactively address their responsibility to deliver high-quality services without harming the environment. Basing our work on past research on stakeholder pressure and environmental barriers, we conceptualise and empirically test the effect of the interplay between stakeholder pressure and internal barriers on healthcare organisations’ adoption of proactive environmental strategies. To test the proposed hypotheses, a survey was carried out among medical directors (...) of Italian healthcare organisations in 2012. Our results show that the lack of commitment to environmental issues within the organisation represents the main barrier to healthcare organisations’ implementing PESs. Furthermore, the difficulties in evaluating the impacts of advanced environmental practices negatively moderate the influence of stakeholders on developing PESs. Our findings contribute to extending previous knowledge on PESs in two ways: focusing on the healthcare sector, our study investigates the phenomenon in a research context that has been largely overlooked in the sustainability literature; and cross-cutting previous research on stakeholder pressure and internal barriers, the study conceptualises and tests a more complete framework for understanding the adoption of PESs. (shrink)

Introducing and implementing corporate sustainability poses many challenges to business organizations. In this longitudinal, inductive study, we focus on how such challenges are handled in a Dutch bank that is developing its sustainability policies. We examine why there is such a high degree of tension and conflict within the organization and identify how the development of these policies is affected by the interplay between subcultures and institutional logics. We show how different subcultures affect the enactment of logics by infusing the (...) rational and mindful behavior coming from logics with (sub)cultural values, beliefs, and assumptions. In turn, conflicting logics amplify subcultural characteristics between groups by shaping different behavior and practices. Together, this leads to a magnification of subcultural differences while, at the same time, logics are increasingly being perceived as incompatible. (shrink)