The first goal of this paper is to develop a theoretical and practical framework which can help to measure the emotional value generated by organizations in quantitative terms. Its second goal is to use data obtained from the UCAN in Spain as a case study to illustrate the quantification of the emotional value generated, with a view to factoring that value into a social accounting system. Ever greater recognition of the social role of organizations in recent years has led to (...) a need for a consistent definition of the concept of socio-emotional value, and for instruments that can be used to measure that value in terms of generic social accounting. Taking the current lack of standardization in such models and instruments, especially those that deal with emotional value as its starting point, the paper proposes a new instrument for measuring that value quantitatively in such a way as to overcome some of the limitations of earlier proposals. The underlying perspective is that the monetary values identified in market and non-market transactions do not accurately account for all the value generated for different stakeholders, and that adjustments are required through a correction factor applied to the value variables identified. The quantification of the socio-emotional value generated by an organization is seen as a more comprehensive indicator of its performance, given that it provides more information and takes into account the value generated for stakeholders as a whole in all dimensions. (shrink)

Purpose: The cost of capital is a critical factor influencing investment decisions and company financing. Sustainability reporting also enhances the strategic and organizational legitimacy of companies. Therefore, it is expected that sustainability reporting can influence company legitimacy with enhancing trust of companies, their capital costs is reduced. Based on this premise, the objective of this research is to investigate the impact of sustainability reporting on the cost of capital of companies listed on the Iraq Stock Exchange. Method: for testing of (...) hypothesis Data from 33 listed companies on the Iraq Stock Exchange during the company's period of 2012-2022 was collected and analyzed using a multiple linear regression approach with a combination of panel data analysis. Result: Our findings indicate that Iraqi firms experience higher costs of capital due to their weak implementation of sustainability reporting. Conclusion: reporting on corporate sustainability activities can enhance reputation of companies and, by gaining legitimacy for the companies, their cost of capital is reduced. Implication: These findings can inform policymakers about the need to strengthen requirements for sustainability reporting. Also help investor to form an optimal portfolio based on the policy of companies in compliance with the sustainability reporting. (shrink)

AbstractIn this extended case study, we examine how business leaders translate a responsible leadership mindset into practice. By studying the leadership team and stakeholders of a large US college dining provider, we found that organization executives leverage the lenient market category of local food to successfully connect with and satisfy the interests of different stakeholder groups. We show that lenient categories, those with ambiguity and unclear boundaries, could be used by organizations as strategic devices to integrate the diverse needs of (...) their stakeholders and foster positive stakeholder relationships. Based on our findings, we develop a theoretical model to illustrate how responsible leaders take advantage of meaning structures of the market category they have adopted to achieve both financial and social benefits for a broad range of stakeholders. (shrink)

Bottom of the Pyramid organizations are the ones that develop a set of capabilities that contribute to create short- and long-term sustainability values inside and outside the boundaries of BoP ecosystems. Capabilities have an important role in BoP organizations’ strategies that aim to solve BoP issues. Notwithstanding its developments, BoP research still lacks theoretical contributions for the analysis of organizations. We suggest special attention to the need of advancing knowledge on capabilities of BoP organizations because this field is scattered and (...) fragmented, misinterpreted, and still underdeveloped in the literature. We oriented our research formulating and seeking answers to our main question on what are the capabilities needed to enable organizations to create sustainability values in BoP ecosystems? We conducted an integrative review of BoP research for the period from 1998 to 2019, and we found 22 key capabilities of BoP organizations. We organized the capabilities into four major categories including BoP Responsible Consumption, BoP Responsible Business Model, BoP Responsible Management, and BoP Responsible Innovation. We advanced propositions and discussions regarding the capabilities and major categories’ popularity, interdependence and combination, short- and long-term temporal functions, sustainability roles, and effectiveness to address BoP issues. Our article organizes the field of capabilities of BoP organizations; advances contributions and implications for management, organizations, and policymaking; and opens fruitful avenues for future research. (shrink)

Sustainability challenges typically occur across sectoral boundaries, calling the state, market, and civil society to action. Although consensus exists on the merits of cross-sector collaboration, our understanding of whether and how it can create value for various, collaborating stakeholders is still limited. This special issue focuses on how new combined knowledge on cross-sector collaboration and business models for sustainability can inform the academic and practitioner debates about sustainability challenges and solutions. We discuss how cross-sector collaboration can play an important role (...) for the transition to new and potentially sustainability-driven business models given that value creation, delivery, and capture of organizations are intimately related to the collaborative ties with their stakeholders. Sustainable alternatives to conventional business models tend to adopt a more holistic perspective of business by broadening the spectrum of solutions and stakeholders and, when aligned with cross-sector collaboration, can contribute new ways of addressing the wicked sustainability problems humanity faces. (shrink)

In the 1960s, influential thinkers defined design as a rational problem-solving approach to deal with the challenges of sustainable human development. In 2009, a design consultant and a business academic selected some of these ideas and successfully branded them with the term “design thinking.” As a result, design thinking has developed into a stream of innovation management research discussing how to innovate faster and better in competitive markets. This article aims to foster a reconsideration of the purposes of design thinking (...) moving forward, in view of the sustainable development challenges intertwined with accelerating innovation in a perpetual economic growth paradigm. To this end, we use a problematization method to challenge innovation management research on design thinking. As part of this method, we first systematically collect and critically analyze the articles in this research stream. We uncover a prominent focus on economic impact, while social and environmental impacts remain largely neglected. To overcome this critical limitation, we integrate design thinking with responsible innovation theorizing. We develop a framework for responsible design thinking, explaining how to apply this approach beyond a private interest and competitive advantage logic, to address sustainable development challenges, such as climate change, resource depletion, poverty, and injustice. The framework contributes to strengthening the practical relevance of design thinking and its theoretical foundations. To catalyze this effort, we propose an agenda for future research. (shrink)

This article advances sustainability towards a new logic that favors the flourishing of Sustainable Development Goals (SDGs) and well-being from North to South. It presents a Global Dual-Perspective (GDP) and a Dynamic Equilibrium Framework (DEF) that inform sustainability, management, and international business with a paradoxical view of the SDGs and a strengthened analysis that outlines the role of multinational enterprises (MNEs) in addressing the SDGs within and across the North–South. This article reveals that organizations will effectively unleash virtuous cycles of (...) SDGs and well-being when confronting and juxtaposing environmental, health, social, economic, and law-oriented goals. Furthermore, virtuous cycles will be more successful when splitting and integrating short- and long-term conflicting goals within and across the North–South to fuel systemic resilience and sustainable development. (shrink)

Although the concept of value is central to sustainable business models (SBMs), the field has struggled to clarify what value is. SBM research accounts for multiple forms of value directed at multiple stakeholders. We argue that this diversity challenge should be addressed not by seeking a field-unifying definition of value but by developing methodological guidelines for a field-specific approach to defining value in SBM contexts. Based on Aristotelian logic and philosophical phenomenology of value, we develop an analytical framework that can (...) be used for generating good definitions of value. We use this framework to explore approaches to value in extant SBM literature, highlight problematic patterns in applications of this concept, and suggest ways to avoid these patterns. The result is a guide to assist SBM researchers in exploring and defining value, and in applying their definitions consistently in theory building efforts. (shrink)

This article aims to uncover the processes of developing sustainable business models in innovation ecosystems. Innovation ecosystems with sustainability goals often consist of cross-sector partners and need to manage three tensions: the tension of value creation versus value capture, the tension of mutual value versus individual value, and the tension of gaining value versus losing value. The fact that these tensions affect all actors differently makes the process of developing a sustainable business model challenging. Based on a study of four (...) sustainably innovative cross-sector collaborations, we propose that innovation ecosystems that develop a sustainable business model engage in a process of valuing value in which they search for a result that satisfies all actors. We find two different patterns of valuing value: collective orchestration and continuous search. We describe these patterns and the conditions that give rise to them. The identification of the two patterns opens up a research agenda that can shed further light on the conditions that need to be in place in order for an innovation ecosystem to develop effective sustainable business models. For practice, our findings show how cross-sector actors in innovation ecosystems may collaborate when developing a business model around emerging sustainability-oriented innovations. (shrink)