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 study examines how individual members of the public make moral sense of the potentially conflicting “economic problem” or “public health problem” representations of the COVID-19 crisis when judging responsible business behavior. The data are based on a qualitative survey involving a thought experiment with 119 participants in the United States conducted at the initial stage of the pandemic. This article proposes a typology matrix using the theories of cognitive polyphasia and cognitive dissonance to understand better individual moral sensemaking of (...) responsible business behavior in the context of a societal paradox in which there are contradictory and interdependent demands between important social objectives. The typology, referred to as the 4R Model of Moral Sensemaking of Competing Social Problems, provides insights for how companies may be perceived when responding to competing social problems, expanding the micro-CSR (corporate social responsibility) and paradox literatures. (shrink)

As implied by executive job demands theory, intensified job demands of a firm’s top executives limit their cognitive capacity and centralize the locus of decision-making, which may undermine corporate sustainability performance. The current study tests this effect, along with the impact of two contextual factors, to reveal that the negative influence of executive job demands is weaker if firms feature greater functional diversity and average tenure in their top management teams. In an extension of upper echelon theory, this study also (...) outlines the influence of task challenges that confront strategic leaders on corporate sustainability performance. (shrink)

This research explores the dynamic capabilities required for firms to implement environmental, social, and governance strategies, and investigates sustainable management performance that can be created based on them. By using dynamic capabilities theory, we integrate sustainable management and the ESG literature to suggest a research model and identify the factors that act as the catalysts achieving sustainability. The data used for the analysis were collected from 78 firms listed on the Korea Exchange with assets totaling more than 2 trillion Korean (...) won. In this study, the partial least squares structural equation model is applied. We found that absorptive capability and adaptive capability significantly affect sustainable management performance through implementation of the ESG strategy as a mediating variable. In particular, a firm’s implementation of an ESG strategy is a significant determinant that impacts sustainable management performance. We also believe our model contributes to the current knowledge by filling several research gaps, and our findings offer valuable and practical implications not only for achieving sustainable growth but also for creation of competitive advantage. (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)

In this conceptual paper, the traditional conceptualization of sustainable entrepreneurship is challenged because of a fundamental tension between processes involved in sustainable development and processes involved in entrepreneurship: the concept of sustainable business models contains a paradox, because sustainability involves the reduction of information asymmetries, whereas entrepreneurship involves enhanced and secured levels of information asymmetries. We therefore propose a new and integrated theory of sustainable entrepreneurship that overcomes this paradox. The basic argument is that environmental problems have to be conceptualized (...) as wicked problems or sustainability-related ecosystem failures. Because all actors involved in the entrepreneurial process are characterized by their epistemic insufficiency regarding the solving of these problems, the role of information in the sustainable entrepreneurial process changes. On the one hand, the reduction of information asymmetries primarily aims to enable actors to become critical of sustainable entrepreneurs’ actual business models. On the other hand, the epistemic insufficiency of sustainable entrepreneurs guarantees that information asymmetries remain as a source of new sustainable business opportunities. Three further characteristics of sustainable entrepreneurs are distinguished: sustainability and entrepreneurship-related risk-taking; sustainability and entrepreneurship-related self-efficacy; and the development of satisficing and open-ended solutions, together with multiple stakeholders. (shrink)

ABSTRACTThis paper is premised on the call to re-orientate marketing as a contributing social science. It gathers together criticisms of marketing research which identify inconsistencies that prevent our progress. It posits that we are driven to reproduce these inconsistencies because of a closed-system of practice and because of the generative absence of an effective, reflexive and integrative metatheoretical structure. In response to these problems, the paper aims to offer an integrative metatheoretical structure from which to ground our research and intervene (...) in the identified inconsistencies. The paper therefore offers a perspective on the constitution of the world, before addressing the terms and conditions on which the world is to be researched and explained. This conceptual contribution employs tools developed in the critical realist philosophy of social science to address: instances of absence within marketing research; and how these instances are generated and reproduced. It then suggests how these absences can be rectified. (shrink)

The present paper analyses how top managers construct the meaning of sustainable human resource management and its responsibility areas and how they identify and prioritize stakeholders in sustainable HRM. The empirical data were collected as part of the Finnish HR Barometer inquiry. A qualitative analysis reveals four dimensions of sustainable HRM: Justice and equality, transparent HR practices, profitability, and employee well-being. It also reveals four broader responsibility areas: Legal and ethical, managerial, social, and economic. Contrary to the prior green HRM (...) literature, ecological responsibility was largely ignored. The study also reveals a wide range of stakeholders, specifically, owners, managers, employees, customers, and employee representatives, as well as their special roles and requirements for sustainable HRM. These findings contribute to the literature of sustainable HRM by illustrating the dimensions and broader responsibilities of sustainable HRM as seen by top managers. Their conceptions of sustainable HRM are largely neglected in the prior literature despite their crucial role in legitimating HRM and thus sustainable HRM in companies. These results also contribute to the theory of stakeholder salience in the sustainable HRM context from the viewpoint of top managers. (shrink)

This paper studies the influence of an organization’s time perspective on triple bottom line deployment through sustainable innovativeness. Although academics increasingly consider sustainable innovation to be an essential element in deploying the triple bottom line, the degree of an organization’s sustainable innovativeness remains limited. Using ten inductive case studies based on the triangulation of data from multiple-respondent interviews and secondary data, this study shows that an organization’s time perspective plays a crucial role in explaining the organization’s degree of sustainable innovativeness (...) and improvement of triple bottom line outcomes. Specifically, organizations with a longer planning horizon, higher tolerance of uncertainty, and greater ability to learn from the past develop a higher and increasing degree of sustainable innovativeness, allowing trade-offs between triple bottom line dimensions to be mitigated. (shrink)

While it is well known that SME owner–managers’ sustainability values and attitudes impact their company’s sustainability activities, they often face profit-driven institutional orders. In a qualitative study, we investigate which identities are critical for their engagement in sustainability and how these identities interrelate with their institutional environment. We applied a qualitative design with narratives from 29 owner–managers of hospitality businesses who belong to a New Zealand-based sustainability network. Our study revealed no single overarching sustainability identity; instead, six identities could be (...) identified as sustainability-related and be linked to different institutional orders. By analyzing the interplay between the identities and the institutional environment, we also found mechanisms on how SME owner–managers impact on their business’ sustainability. We revealed that an adequate institutional environment can foster the development of sustainability-related identities, which in turn can lead to cultural evolution towards more sustainability. By integrating identity theory with organizational institutionalism, we contribute to theoretical development and to further sustainability research at individual and institutional level. (shrink)

The last decade has witnessed the emergence of a paradox perspective on corporate sustainability. By explicitly acknowledging tensions between different desirable, yet interdependent and conflicting sustainability objectives, a paradox perspective enables decision makers to achieve competing sustainability objectives simultaneously and creates leeway for superior business contributions to sustainable development. In stark contrast to the business case logic, a paradox perspective does not establish emphasize business considerations over concerns for environmental protection and social well-being at the societal level. In order to (...) contribute to the consolidation of this emergent field of research, we offer a definition of the paradox perspective on corporate sustainability and a framework to delineate its descriptive, instrumental, and normative aspects. This framework clarifies the paradox perspective’s contents and its implications for research and practice. We use the framework to map the contributions to this thematic symposium on paradoxes in sustainability and to propose questions for future research. (shrink)

Many challenges to economic and social well-being require close collaboration between business, government, and civil-society actors. In this context, the involvement of multiple companies rather than a single company may enhance such cross-sector social partnerships’ outcomes. However, extant literature cautions about the tensions arising from companies’ competitive interests and the detrimental effects on the CSSP’s social outcome. Similarly, studies analyzing simultaneous collaboration and competition suggest shielding off competitive elements from the collaboration. Based on insights into two multi-company CSSPs, we conversely (...) find that government and NGO partnership managers deliberately leveraged competition through the CSSP design. They used similar segmentation mechanisms to enhance CSSP contributions, but differed in the way they integrated collaborative and competitive elements, leading to sustained corporate commitment in one CSSP and unmet promises in the other. These insights expose the paradoxical nature of coopetition at the interface of social and economic goals, and advance current research by indicating competition’s positive effects and the respective partnership design implications. On this basis, our study helps reveal and better understand sustainability-related tensions and opportunities at the inter-organizational level. (shrink)

Drawing on managerial discretion and conflicting institutional logics literature, this study investigates the relation between the personal sustainability behaviors of owner–managers and the corporate sustainability practices of SMEs. The research proposes a contingency model that assesses the moderating effects of perceived economic advantages and environmental hostility on this relationship. Based on linear hierarchical multiple regression analyses of a cross-sectoral sample of French SMEs, the results suggest a positive influence of the manager's PSB on the SME's CS practices that appears to (...) be differently moderated depending on the type of practice considered. The influence on environmental practices is fostered through the perception of economic advantages. The influence on workplace practices is only effective when the business environment is deemed benign and the influence on community practices is dampened by the perception of environmental hostility. Highlighting the trade-off between the manager's personal values and the SME's economic constraints, these findings contribute to a better understanding of the critical antecedents of sustainability in small businesses. (shrink)

Scholars increasingly argue that entrepreneurs and their small- and medium-sized enterprises should play a central role in reducing the rate and magnitude of climate change. However, evidence suggests that while some entrepreneurs recognize their crucial role in addressing climate change, most do not. Why some entrepreneurs nevertheless concern themselves with climate change has largely been overlooked. Some initial work in this area tentatively suggests that these entrepreneurs may engage with climate change because of their personal values, which either focus on (...) financial or socio-ecological reasons, or a combination of both. Yet, it is unclear if all for-profit entrepreneurs engage with climate change for the same reasons, or if indeed their motivations vary across business types. Over a period of four years, we examined entrepreneurs’ motivations to engage with climate change through a variety of qualitative research methods. Our findings illustrate how entrepreneurs who address climate change have motivations specific to their business activity/industry and level of maturity. In each instance, we link these motivations to distinct conceptualizations of time and place. We contend that, through a more differentiated understanding of entrepreneurial motivations, policy-makers can draft climate change-related policies tailored to entrepreneurial needs. Policies could both increase the number of entrepreneurs who already engage in climate change mitigation and leverage the impact of those entrepreneurs already mitigating climate change. (shrink)

Narrow views of systemic sustainability risks can result in ecological concerns being neglected, as well as giving rise to unequal distribution and exploitation of natural resources, creating injustice. Given recent advancements in integrating justice with the safe space environmentally, as defined by the planetary boundaries, now is a critical moment for business ethics researchers to deepen the conversation on managing systemic sustainability risks to create a safe and just operating space. We argue that the social-ecological systems approach, that views humans (...) as embedded in and dependent on the natural environment, provides a foundation for business ethics scholars to deepen the conversation. We build on two key dimensions from the social-ecological systems approach, social-ecological connectivity and cross-scale dynamics to develop a framework that illustrates four ways for business ethics scholars to research systemic sustainability risks. We demonstrate the relevance of these dimensions for understanding systemic sustainability risks, discuss their ethical implications, and outline opportunities for future research. (shrink)

Through a qualitative approach, we explore the perspective of 72 CEOs of companies operating in Portugal about the definition of corporate sustainability and its facilitators, and obtain four main findings. First, most CEOs equate CS with the company’s continuity/viability. Second, the relevance ascribed to different stakeholders differs considerably: while more than 50 % of CEOs cited shareholders/profits, and more than 40 % mentioned the natural environment and employees, very few mentioned customers, society, suppliers, the State, or competitors. Third, the management (...) practices considered as most important to develop CS are the organization’s strategic alignment with a long-term orientation, and developing and energizing people within a positive organizational climate characterized by trust and ethics. Fourth, the leadership characteristics and behaviors considered as most important to foster CS are scrutinizing the future and leading people through a mobilizing vision; energizing and developing employees; and leading by example. While the whole picture is largely consistent with the “sustainable strategic management” approach suggested by Stead and Stead and with recent CS integrative approaches, the great majority of CEOs who participate in the study have not embraced such integrative and coevolutive perspectives. (shrink)

Trade-offs between the conflicting aspects of corporate sustainability have hindered the realization of win–win opportunities that advance both sustainable development and the bottom line. The question today is no longer whether these trade-offs are encountered in the pursuit of CS, but under which circumstances they occur, with which responses, and how best to navigate them. This study conducted a systematic review and content analysis of the trade-off literature published to-date at both conceptual and applied levels. Through this process, a hierarchical (...) framework is proposed for the analysis of trade-offs based on their different categories, their root tensions, their interconnections, and where they are encountered in the practice of CS, from policy to implementation. Based on this, a number of recommendations are provided on how managers may better navigate the hierarchy of trade-off decision-making, to ultimately transform trade-offs into synergies. Several suggestions for future trade-off research are also provided. (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)

This article investigates how firms address the stability-change paradox inherent in sustainability transitions through the maintenance and utilization of a portfolio of sustainability-oriented partnerships. Drawing on a retrospective case study of Dong/Ørsted, a Danish energy company, we demonstrate the varying manifestations of the stability-change paradox during different phases of the company’s transition, influenced by both exogenous and endogenous factors. Furthermore, our findings reveal how Dong/Ørsted employed their partnership portfolio to implement diverse responses to manage the paradox. Based on these findings, (...) we argue that partnership portfolios can serve as spatiotemporal pockets, enabling organizations to effectively address and leverage the temporal and spatial aspects inherent in sustainability paradoxes. In addition, we highlight how partnership portfolios facilitate sustainability transitions by creating and leveraging different forms of collaborative value. (shrink)

In response to stakeholder pressure, companies increasingly make ambitious forward-looking sustainability commitments. They then draw on corporate policies with varying degrees of alignment to disseminate and enforce corresponding behavioral rules among their suppliers and business partners. This goal-based turn in private sustainability governance has important implications for its likely environmental and social outcomes. Drawing on paradox theory, this article uses a case study of zero-deforestation commitments in the Indonesian palm oil sector to argue that goal-based private sustainability governance’s characteristics set (...) the stage for two types of paradoxes to emerge: performing paradoxes between environmental, social, and economic sustainability goals, and organizing paradoxes between cooperation and competition approaches. Companies’ responses to these paradoxes, in turn, can explain the lack of full goal attainment and differential rates of progress between actors. These results draw our attention to the complexities hidden behind governance through goal setting in the corporate space, and raise important questions about the viability of similar strategies such as science-based targets and net-zero goals. (shrink)

The United Nations (UN) 2030 Agenda for Sustainable Development has considerable potential for achieving a more sustainable future. However, the concrete realisation of Sustainable Development Goals (SDGs) is impeded by how they are implemented by a diverse set of competent agents. This conceptual paper draws on social impact theory to investigate how businesses can utilise the SDG framework to achieve positive social outcomes. We identify two pathways that can guide businesses to improve their SDGs interventions, which entail considering the _interconnections_ (...) between the goals that are directly or indirectly affected by the initiative at stake and the _inclusiveness_ of the actors affected by the SDGs. Building on the literature on hybrid organising (to frame interconnectedness) and the literature on multi-stakeholder partnerships and deliberative governance (to frame inclusiveness), we discuss a set of organisational mechanisms and transformations that can help businesses ensure that their SDGs interventions are more socially impactful. By doing so, this paper extends the literature on the role of companies for sustainable development and provides some practical implications. (shrink)

Effective implementation and committed practice of sustainable procurement remain a significant challenge for many organisations across the globe. This paper sought to understand the extent to which employees’ perceptions influence the practice of sustainable procurement in the context of a developing country where sustainability awareness is low. Drawing on the Diffusion of Innovation theory, procurement officers’ perceptions of sustainable procurement were examined relative to the attributes of complexity, compatibility and relative advantage. Empirical data from 322 Ghanaian organisations were analysed using (...) descriptive statistics and structural equation modelling to determine the nature of procurement officers’ perceptions of sustainable procurement and the effects of the perceptions on relevant organisational practices. The findings indicate that whereas perceptions of relative advantage did not significantly influence the practice of sustainable procurement, perceptions of compatibility had a significant positive effect, and perceptions of complexity had a significant negative effect on sustainable procurement. This study offers insights into the link between employees’ perceptions and organisational sustainable procurement practice, thereby providing a conceptual basis for effective management of the pertinent relationships with implications for enhanced ethical practices in procurement and supply chain management. (shrink)

This article embarks on ethical trade-offs at the sustainability/finance interface by contrasting shareholders’ interest in short-term financial returns with society’s interest in counteracting ecological and social grievances. Scrutinizing share repurchases, we investigate a firm’s communicated sustainability orientation (i.e., its environmental and social value orientation) as well as its environmental and social sustainability performance. Our results are based on a large-scale panel dataset of 491 U.S. firms observed from 2004 to 2016. The dataset combines share buyback data with sustainability orientation scores (...) from shareholder letters and sustainability performance ratings. The econometric models suggest no association between social value orientation and repurchase volumes, but a significantly negative relationship between environmental value orientation and buybacks in a cubic form. Executive stock options partially attenuate this relationship. Share repurchases in turn negatively affect future environmental and social performance. This study grasps the consequences of firms’ short-term shareholder satisfaction and discusses its ethical implications in the context of firms’ contribution to sustainable development, thereby providing important insights to the business ethics discourse. (shrink)

This article discusses how cross-sector partnerships (CSPs) for sustainability manage the paradoxical tension between stakeholder inclusiveness and administrative efficiency. Drawing on qualitative data from a case study of a CSP focused on urban sustainability, we show how the inclusiveness–efficiency paradox unfolded throughout the studied collaboration. We discuss how the paradox reemerged in a different guise within each phase of the partnership and how three practices of paradox management helped actors to cope with the tension: “customized inviting” (during the formation phase), (...) “sequential including” (during the preparation phase), and “tailored instructing” (during the implementation phase). On the basis of these findings, we argue that (a) the paradox reoccurred throughout the phases of the CSP because the three paradox management practices accentuated boundaries, thereby helping to resolve the paradox temporarily while at the same time creating grounds for the paradox to resurface, and (b) that the three paradox management practices can be theorized as a special type of boundary work that “plays up” relevant differences between actor groups and thereby ensures collaboration. (shrink)

While the Triple Helix and Quadruple Helix models are popular in innovation studies, the relations between them have not been addressed extensively in the literature. There are diverse interpretations of helix models in empirical studies that apply them, but these sometimes deviate from the original theses of the models. Such a situation can confuse newcomers to the field in terms of which helix model to apply in their empirical research. We discern that the cause of this research challenge is a (...) lack of systematic comparison of the two models. To bridge the research gap, this paper compares the models from the perspectives of how they were introduced and discussed in the literature and improved and how useful they are in addressing the innovation processes in contemporary society. Our major findings are as follows: First, reviewing the extant literature applying the two helix models for identifying research gaps, we discover that these studies were influenced by three views on the relations between the two models that were located on a continuum between two extreme ends—namely, isolation versus integration of the two models. Second, we provide a systematic comparison of both the advantages and weaknesses of the two models, and this may help researchers choose suitable helix models as conceptual/analytical tools in their empirical innovation studies. Third, our comparison of the two models shows that they are largely supplementary to each other when analysing innovation processes in contemporary society, providing a ground for potential synergy building between the two helix models. (shrink)

Inclusive businesses that combine profit making with social impact are claimed to hold the potential for poverty alleviation while also creating new entrepreneurial and innovation opportunities. Current research, however, offers little insight on the processes through which for-profit business organizations introduce social innovations that can profitably create social impact. To understand how social innovations emerge and become sustained in business organizations, we studied a telecom firm in Kenya that successfully extended financial services across the country through a number of mobile (...) banking innovations. Our qualitative analysis revealed the strong role of being embedded in local networks and structures for initiating and implementing social innovations. Strong embeddedness enhanced the pragmatic and ethical imperative for internalizing social issues, but also provided access to diverse resources for implementing and legitimizing social innovations. However, hybridization processes that emphasized social issues introduced organizational tensions by increasing goal diversity and requiring adapting organizational processes and structures. The case shows how developing a mission-driven identity enabled the sustenance of social innovations by providing a meta-narrative that bridged goal diversities and rationalized organizational change. (shrink)

This paper presents a case study of the South African operation of a logistics company, operating in a context of short-termism and under-performance. Frustration with managing in this context, and concern that this environment might erode the customer value proposition, prompted an exploration of the question: “How can the business prioritise its investment in intangibles to support sustainable growth in an environment of short-termism and sub-par business performance?” The study followed an inductive grounded theory approach and began with an exploration (...) of the system of short-termism as it was being experienced by the management team. This evolved in an iterative process to include an exploration of the customer value proposition, the organisation’s capabilities and the system of investment in intangibles. Data were collected over a period of 6 months, across a series of four stages as the management team grappled with the short-term financial objectives imposed on them. The data categories were used to develop 214 propositions across all stages. Through the four stages, four artefacts were developed from the propositions a causal loop diagram of the system of short-termism; a documented value proposition; an assessment of the health of the business’ capitals; and a multi-year intangibles investment programme. The findings indicate that a focus on investment in intangible assets can play a vital role in stimulating sustainable value creation in an environment of historically poor returns on investment and pressure for short-term financial results. It is suggested that investment in intangibles can be introduced as a multi-year capabilities investment plan. The study succeeded in getting investment in intangibles approved and the implication is that long-term decision-making can co-exist in an environment of short-termism and low growth. (shrink)

Corporate sustainability introduces multiple tensions or paradoxes into organisations which defy traditional approaches such as trading-off contrasting options. We examine an alternative approach: to manage corporate sustainability with a paradoxical lens where contradictory elements are managed concurrently. Drawing on paradox theory, we focus on two specific pathways: to the organisation-wide acceptance of paradox and to paradoxical resolution. Introducing the concept of strategic agility, we argue that strategically agile organisations are better placed to navigate these paradox pathways. Strategic agility comprises three (...) organisational meta-capabilities: strategic sensitivity, collective commitment, and resource fluidity. We propose that strategically agile organisations draw on strategic sensitivity and collective commitment to achieve organisation-wide acceptance of paradox, and collective commitment and resource fluidity to achieve paradoxical resolution. For each of these meta-capabilities, we identify three organisational practices and processes specifically related to corporate sustainability that organisations can leverage in pursuit of strategic agility. We offer a conceptual framework depicting the strategic agility meta-capabilities, and associated practices and processes, which organisations draw on to successfully manage corporate sustainability with a paradoxical lens. (shrink)

Over the last two decades, corporate sustainability has been established as a legitimate research topic among management and organization scholars. This introductory article explores potential avenues for advances in research on corporate sustainability by readdressing some of the fundamental aspects of the sustainability debate and approaching some novel perspectives and insights from outside the corporate sustainability field. This essay also sketches out how each of the six articles of this special issue contribute to the literature by going back to some (...) of the conceptual roots of sustainability and/or by offering novel perspectives for research on corporate sustainability. As these six articles and the outlook on future research opportunities show, broadening the inquiry of corporate sustainability in terms of topics, theories, and methodologies holds considerable potential to improve our understanding of how decision makers and organizations respond to sustainability. (shrink)

Recently, the increasing interest in responsible leadership (RL) has produced a research field rich in theoretical and conceptual potential, with diverse research foci, theoretical foundations, and methodological approaches. While these developments have demarcated the field from other leadership-oriented disciplines, they have equally courted fragmentation and ambiguity in terms of the field’s positioning within the greater body of leadership studies. To map the theoretical, methodological, and empirical state of the art of the RL field, we outline recent developments and delineate important (...) research gaps and directions for future theory development and empirical research. We emphasize the transition of RL research from micro-level perspectives with normative roots to research spanning multiple levels of analysis, vis-à-vis both antecedents and outcomes. We discuss the implications of our mapping, highlighting the necessity of not only conceptualizing RL across multiple levels of analysis, but also to actively focus on interactions among RL antecedents and outcomes across these levels. Through these, we aim to contribute to the field by strengthening its conceptual foundations and anchoring it more clearly within leadership studies overall. (shrink)

Due to their consolidated nature, corporate sustainability reports often mask the evolution of organizations’ sustainability initiatives. Thus, to more fully understand the environmental performance of an organization, it is essential to examine the experiences of specific projects and how they relate to corporate sustainability. Based on case studies of green projects in four different organizations, we find that it is difficult to determine the environmental impact of a project a priori, even in cases where environmental considerations are included as part (...) of the initial project scope. Instead, the decision to integrate environmentally favorable elements into projects is a dynamically occurring interaction between competing institutional logics and organizational identities, which create windows of opportunity for individual agency. During these windows, individuals may engage in reinforcing microprocesses that support traditional practices, or invoke enabling microprocesses to facilitate green decision-making, consistent with ecosystem logics. The process model developed in this paper provides a new perspective on the temporal and contextual dimensions of environmental championship behaviors, and sheds light on otherwise puzzling results such as why organizations with strong environmental orientations continue to struggle with delivering projects with strong positive environmental impacts. (shrink)

Although present research shows that ambitious corporate sustainability objectives improve employee engagement in business organizations, there is scarcity of research showing how employees engage in corporate sustainability objectives and become autonomous sustainability thinkers. We suggest that a strong, individual level of psychological ownership of corporate sustainability is a precondition for the development of sustainability thinking, and examine the factors that influence the emergence of such feelings of ownership. Our qualitative study, based on 29 interviews conducted in seven Finnish local business (...) units from three different technology-oriented multinational enterprises (MNEs), shows that several key factors can have contradictory effects, both strengthening and hindering the routes to psychological ownership of corporate sustainability. While these contradictory effects may potentially lead to confusion among employees, our findings may help managers to avoid pitfalls in developing a more sustainability-oriented organizational culture. Moreover, by applying the theory of psychological ownership, our study contributes to the business sustainability research by providing new theoretical opportunities to understand the process of how individuals may become engaged in enhancing business sustainability. (shrink)

We predict multistakeholder benefits as a measure of organizational performance from the perspective of important organizational stakeholders. Specifically, we identify the relative importance of theoretical antecedents that affect the different dimensions of stakeholder benefits. Offering the first empirical synthesis of multistakeholder benefits to date, we assess the statistical explanatory power of different theories in the literature, focusing on the extent to which their suggested antecedents of organizational performance may lead to improvements in multiple dimensions of stakeholder benefits. Based on 110 (...) empirical studies since 1990 to date concerning any two of four stakeholder groups (investors, customers, employees, and community /environment), we find no evidence for any single theory to have sufficient explanatory power in predicting benefits concerning all four stakeholder groups. Thus, we cannot reduce different mechanisms leading to multistakeholder benefits to a grand model or theory but need to resort to a multi-theoretical synthesis. Taking stock of the meta-analysis, we suggest future studies should fill three gaps: multiple dimensions within a stakeholder benefit, causal complexity, and inequality of stakeholder benefit creation. (shrink)

Corporate social responsibility (CSR) aspirations by companies have been identified as a motivating factor for active employee participation in CSR implementation. However, a failure to practise what one preaches can backfire and lead to attribution of hypocrisy. Drawing on a qualitative study of an award-winning sustainability pioneer in the cosmetics sector, we explore the role of moral judgement in how and when employees interpret word–deed misalignment in CSR implementation as hypocritical. First, our case reveals that high CSR aspirations by companies (...) raise employees’ moral expectations. Second, we develop a framework that explains variations in employees’ hypocrisy interpretations based on consequentialist and deontological forms of moral judgement. Our research advances a contextual view of hypocrisy, not as an objective characteristic of an organisation, but as an outcome of interpretative processes of perceived motives and results in CSR implementation. Our framework thereby explains why even highly committed organisations may face accusations of hypocrisy. (shrink)

A flourishing literature assesses how sustainable business models create and capture value in socio-ecological systems. Nevertheless, we still know relatively little about how the organization of sustainable business models—of which cross-sector partnerships represent a core and distinctive mechanism—can support socio-ecological resilience. We address this knowledge gap by taking a complex adaptive systems (CAS) perspective. We develop a framework that identifies the key strategic, institutional, and learning elements of partnerships that sustainable business models rely on to support socio-ecological resilience. With our (...) analytical framework, we underpin the importance of assessing sustainable business initiatives in terms of their impact on resilience at the level of socio-ecological systems, not just of organizations. Therefore, we reveal how cross-sector partnerships provide the organizational support for sustainable business models to support socio-ecological resilience. By combining the key features of CAS and the key elements of partnerships, we provide insight into the formidable task of designing cross-sector partnerships so that they support socio-ecological resilience and avoid unintended consequences. (shrink)

Integrating corporate social responsibility (CSR) into a for-profit organization’s business activities is fraught with tensions. This paper reports a case study of a construction company, exploring how different tensions emerged to challenge company-level aspirations for strategic CSR integration. The study identifies three types of persistent CSR tensions and four management practices, discussing how the management practices led the organization to navigate CSR tensions in both active and defensive ways. Furthermore, the study explicates why the case company succeeded in integrating CSR (...) into formal business strategy and shared attitudes but struggled with CSR integration in the domain of day-to-day operations. The paper contributes to the CSR literature by developing a tension-centric perspective on CSR development. It highlights the necessity of tension navigation at both the organizational and the action levels, the key role of active (as opposed to defensive) navigation of CSR tensions, and the importance of alignment between organizational and action levels in navigating tensions for sustaining strategic focus on CSR over time. (shrink)

Within this paper, we adopt a qualitative process approach to explore how ethical judgments are influenced by spatio-cultural meanings applied to social entrepreneurship in the context of Mozambique. We analyse how such ethical judgments emerged using data gathered over a 4 year period in Maputo. Our findings illustrate three modes used to inform ethical judgments: embracing, rejecting and integrating. These describe how ethical judgments transpire as participants evaluate social entrepreneurship drawing upon related global normative meanings and those embedded within the (...) local context. This analysis offers a critical contribution regarding how ethical judgments regarding social entrepreneurship evolve from negotiation and interaction within a context of multiple spatio-cultural meanings. (shrink)

We identify a normative paradox of responsible management education. Business educators aim to promote social values and develop ethical habits and socially responsible mindsets through education, but they attempt to do so with theories that have normative underpinnings and create actual normative effects that counteract their intentions. We identify a limited conceptualization of freedom in economic theorizing as a cause of the paradox. Economic theory emphasizes individual freedom and understands this as the freedom to choose from available options. However, conceptualizing (...) individuals as profit-maximizing actors neglects their freedom to reflect on the purposes and goals of their actions. We build on the work of pragmatist philosopher John Dewey, who distinguishes between habitualized and creative problem-solving behaviors, conceptualizes knowledge construction as a process of interdependent scientific social inquiry, and understands actors as having the freedom to determine what kind of people they wish to be. We apply pragmatist theory to business education and suggest equipping students with a plurality of theories, supplementing neoclassical economics with other economic perspectives and views from other disciplines on economic behavior. Moreover, we suggest putting students into learning situations that require practical problem solution through interdependent social inquiry, encouraging ethical reflection. In doing so, we contribute by linking the problematic conceptions of freedom identified in economic theorizing to the debate on responsible management education. We conceptualize a pragmatist approach to management education that explicitly re-integrates the freedom to discursively reflect on the individual and societal purpose of business activity and thereby makes existing tools and pedagogies useful for bringing potential freedom back into business. (shrink)

Despite enthusiastic claims around the benefits of corporate volunteering for the workplace and its widespread implementation, the impact of such programs for beneficiaries and non-profit organizations remains uncertain, particularly when employees’ participation is one-off. Previous research suggests that the benefits of CV for employees, businesses, and society are more likely to occur if employees internalize a volunteer identity—that is, if being a volunteer becomes a part of their self. This leads them to sustain their participation in CV over time, maximizing (...) CV’s positive effects on all stakeholders. This study explores the factors explaining why employees internalize a volunteer identity in a corporate context. We do so by empirically testing Grant’s :589-615, 2012) volunteer work design theoretical model with a sample of 619 employees involved in CV programs, and by comparing its relevance with an alternative, extended model relying on insights from self-determination theory. Whereas we find only partial and weak empirical support for the VWD model, our SDT-extended model is supported empirically. These results show that the quality of motivation that employees experience while volunteering plays a more important role than repeated participation, as it illuminates the process of how factors such as the quality of the projects, organizational support for CV, as well as the causes targeted affect the internalization of a volunteer identity. In particular, we show that employees are more likely to internalize a volunteer identity if they can choose what cause to engage for and if they feel that the projects they participate in are meaningful. Surprisingly, we also show that a prestigious cause as well as recognition and managerial support foster a controlled form of motivation for employees, which are then unlikely to internalize a volunteer identity. In doing so, we contribute to a better understanding of how CV can have lasting benefits for both business and society, and provide business leaders with actionable insights about how to design impactful CV programs. (shrink)

Meta-governance is Earth system governance for dealing with the global commons. This article develops a whole network approach to meta-governance to explore the potential for collective action for sustainable development by a loosely coupled network of networks. Networked corporate social responsibility governance has emerged around corporate sustainability and responsibility in the first years of the 21st century. Growing agreements and interactions among CSR initiatives suggest the development, structure, and governance of networked CSR governance as a network that can analytically be (...) viewed as a whole and as a platform for learning about systemic change. Using the evolution of CSR initiatives from about 1990 to 2014, the authors differentiate four developmental stages: independent and fragmented multistakeholder networks as CSR governance, collaborative CSR governance, networked CSR governance, and integrated networked CSR governance. The authors then present a framework to analyze networked CSR governance as a whole network experimenting with meta-governance. (shrink)

This paper aims at gaining a better understanding of the inherent paradoxes within sustainability discourses by investigating its basic assumptions. Drawing on a study of the metaphoric references operative in moral language, we reveal the predominance of the ‘well-being = wealth’ construct, which may explain the dominance of the ‘business case’ cognitive frame in sustainability discourses. We incorporate economic well-being variables within a philosophical model of becoming well :221–231, 2005), highlighting the way in which these variables consistently articulate a combination (...) of ‘objective’ and ‘subjective’ concerns. We then compare this broad understanding of well-being with the metaphors operative in the sustainable development discourse and argue that the sustainability discourse has fallen prey to an overemphasis on the ‘business case’. We proceed to draw on Georges Bataille to challenge the predominance of these value priorities and to explore which mindshifts are required to develop a more comprehensive understanding of what is needed to enable ‘sustainable development’. (shrink)

Sustainable entrepreneurship is a vital and growing area of entrepreneurship studies. Although charged with multiple potentially conflicting discourses, sustainable entrepreneurship is usually viewed from a binary logic of business versus sustainability. This article uses an aesthetic process approach to sustainable entrepreneurship to move beyond this binary logic and unearth the tensions between multiple discourses. The authors introduce the construct of embodied multi-discursivity that addresses this issue methodologically as well as conceptually. By combining discourse analysis with aesthetic inquiry, the article pushes (...) the boundaries of “traditional” qualitative methods. The aim is to encourage sustainable entrepreneurship scholars to expand their methodological horizon to capture the emotionally charged, value-laden processes they study. Embodied multi-discursivity shows how multi-discursive processes of entrepreneurship come into being, how they are disrupted, and how they can break into a duality that ignores the variety of discourses. The authors conclude by drawing some implications for sustainable entrepreneurship. (shrink)

Although the simultaneous presence of multiple ambitions is inherent in hybrid venturing, pursuing social and/or environmental missions while securing commercial viability can generate ambivalence among stakeholders. In this study, we draw on the notion of “holism” to show how venture founders both embrace tensioned ambitions and sustain hybridity during critical venture development phases. Based on 6 years of data on The People’s Supermarket in the United Kingdom, we identify three distinct practices— fantasizing, bartering, and conjuring—used by founders to harness tensions (...) productively, without compromising their venture’s multiple ambitions. These practices demonstrate the founders’ ability to maintain a venture’s hybrid nature throughout the ideation, organizational, and scale-up phases, thereby shedding light on the application of “holism” within the realm of hybrid venturing. (shrink)

This article seeks to reimagine the relationship between sustainability and financial performance in sustainable investing. Employing a utopian lens, I show how sustainability is constantly negotiated in a process of imagining and actualizing sustainable investing. For this purpose, I explore a fin-tech start-up’s endeavors to democratize sustainable investing through digitalization. Empirically, this article contributes a detailed account of the organizational process of––and the complexities involved in––establishing a sustainable investment organization, to this end focusing on the relationship between sustainability and financial (...) performance. The article further provides a novel theoretical perspective (utopianism) on sustainable investing, one offering a processual approach that uses both external and internal factors in its understanding of the practice. I conclude that a utopian mindset of possibility paves the way for an experimentational attitude and future-oriented thinking. Such a mindset could generate new approaches to the relationship between sustainability and financial performance, thus shining a light on the new and innovative solutions needed to establish financial markets oriented to the common good. (shrink)

Sustainable luxury is a strategic issue for managers and for society, yet it remains poorly understood. This research seeks to clarify how corporate social responsibility actions directly and indirectly affect consumers’ willingness to pay a premium price for luxury brand products, as well as how a long-term orientation might moderate these relationships. A scenario study presents fictional CSR actions of two brands, representing different luxury products, to 1,049 respondents from two countries. The results of a structural equation modeling approach show (...) that the luxury brands’ CSR actions negatively affect customer WTPP overall and for each brand. The luxury brands’ functional and symbolic value dimensions positively mediate the effects of CSR actions on WTPP, whereas social value does not. The effects of CSR actions and brand symbolic value on WTTP do not differ between countries. The effect of functional value on WTPP differs across countries, such that it is stronger for high-LTO than low-LTO cultures. Inversely, the effect of social on customer WTPP is stronger for low-LTO than high-LTO cultures. These findings have theoretical and practical implications for luxury brand managers. (shrink)

This study contributes to the growing literature on the intersection between human resource management and corporate sustainability and, in particular, on sustainable human resource management. In particular, this paper claims that the members of the HR professional community can increase their job satisfaction and decrease their intention to leave by implementing sustainable HRM. In addition, we test for the mediating role played by the meaning that HR professionals and managers attach to HR work. Indeed, when HR professionals and managers are (...) involved in sustainable HRM perceive their job to become more meaningful as it has a broader scope which goes beyond the solely focus on economic performance, and that leads then to higher job satisfaction and lower turnover intention. The study, which is based on 176 questionnaires collected through a cross-country survey, has been developed in partnership between the authors and a leading European association of HR managers and professionals. Our findings, which in general extend the knowledge on the employees’ perception of CS—employee attitudes relationships, represent a data-driven argument for a more active role of HRM in developing Sustainable HRM. (shrink)

This study explores how paradoxical tensions between economic growth and environmental protection are avoided through organizational mythmaking. By examining the European oil and gas supermajors’ “CEO-speak” about climate change, we show how mythmaking facilitates the disregarding, diverting, and/or displacing of sustainability tensions. In doing so, our findings further illustrate how certain defensive responses are employed: regression, or retreating to the comforts of past familiarities, fantasy, or escaping the harsh reality that fossil fuels and climate change are indeed irreconcilable, and projecting, (...) or shifting blame to external actors for failing to address climate change. By highlighting the discursive effects of enacting these responses, we illustrate how the European oil and gas supermajors self-determine their inability to substantively address the complexities of climate change. We thus argue that defensive responses are not merely a form of mismanagement as the paradox and corporate sustainability literature commonly suggests, but a strategic resource that poses serious ethical concerns given the imminent danger of issues such as climate change. (shrink)

We study the values on which managers of small and medium-sized enterprises (SMEs) draw when constructing their personal and organizational-level engagement with environmental issues, particularly climate change. Values play an important mediating role in business environmental engagement, but relatively little research has been conducted on individual values in smaller organizations. Using the Schwartz Value System (SVS) as a framework for a qualitative analysis, we identify four “ideal-types” of SME managers and provide rich descriptions of the ways in which values shape (...) their constructions of environmental engagement. In contrast to previous research, which is framed around a binary divide between self-enhancing and self-transcending values, our typology distinguishes between individuals drawing primarily on Power or on Achievement values and indicates how a combination of Achievement and Benevolence values is particularly significant in shaping environmental engagement. This demonstrates the theoretical usefulness of focusing on a complete range of values. Implications for policy and practice are discussed. (shrink)

This article builds theory at the intersection of ecological sustainability and strategic management literature—specifically, in relation to dynamic capabilities literature. By combining industrial organization economics–based, resource-based, and dynamic capability–based views, it is possible to develop a better understanding of the strategies that businesses may follow, depending on their managers’ assumptions about ecological sustainability. To develop innovative strategies for ecological sustainability, the dynamic capabilities framework needs to be extended. In particular, the sensing–seizing–maintaining competitiveness framework should operate not only within the boundaries (...) of a business ecosystem but in relation to global biophysical ecosystems; in addition, two more dynamic capabilities should be added, namely, remapping and reaping. This framework can explicate core managerial beliefs about ecological sustainability. Finally, this approach offers opportunities for managers and academics to identify, categorize, and exploit business strategies for ecological sustainability. (shrink)