Tokenistic short-term economic success is not good indicia of long-term success. Sustainable business success requires sustained existence in a corporation's political, economic, social, technological, legal and environmental contexts. Far beyond the traditional economic focus, consumers, governments and public interest groups alike increasingly expect the business sector to take on more social and environmental responsibilities. Corporate social responsibility (CSR) is the model in which economic, social and environmental responsibilities are fulfilled simultaneously. However, there is insufficient empirical evidence that demonstrates genuine widespread (...) adoption of CSR in practice, and its underlying reasons. Though research in CSR has been rapidly growing, its commercial reality and implications need to be further improved if it is to inspire corporations to voluntarily adopt CSR. In the literature, Carroll's four-dimensional (economic, legal, ethical and discretionary) CSR framework offers a theoretical basis for developing an empirically based model to explain why and how profit-motivated managers take up CSR voluntarily. Our study has developed a structural equation model to identify the key factors and their interactions that influence economically motivated managers to take on voluntary CSR, and validate Carroll's four-dimensional construct. The results support Carroll's four-dimensional CSR framework, with the exception of the link pertaining to the relationship between economic and discretionary/voluntary responsibility. This characterises the economic reality that financial market-driven economic responsibility does not automatically translate into social responsibility. Nevertheless, the empirical results demonstrate that corporations can be led to engage in more voluntary CSR activities to achieve social good when appropriate legal and ethical controls are in place. (shrink)

This article examines whether ethical business practice enhances financial performance with respect to interorganizational favour exchange. We argue that the link between the ethicality and economic utility of interorganizational favour exchange is governed by: (1) organizational–individual interest alignment/conflict and (2) the fairness or justifiability of favour exchanges from the perspective of third parties. We classify interorganizational (IO) favour exchange into four types (Business–Personal, Personal–Business, Personal–Personal and Business–Business favour exchange). Our analysis shows that the first three types of favour exchange are (...) unethical as they involve conflicts between organizational and individual interests in one or both participating organizations that negatively affect organizational value creation. The last type of favour exchange involves organizational–individual interest alignment in both participating organizations and positively affects the capacity of those involved in the exchange to create value. Favour exchanges of this fourth variety are ethically justifiable unless they unfairly damage the legitimate interests of third parties. In the latter case, these favour exchanges create the risk of negative third party reactions, which in turn affect the sustainability of the benefits of the favour exchanges to the focal group (the dyad). Our research results advance understanding of the ethical and economic implications of IO favour exchange, counter the prejudice against this behaviour in organizations, provide ethical guidance for management and business practice, and have implications for the relationship between doing well and doing good. (shrink)

In this paper I want to show that consumer concerns can be implemented in food chains by organizing ethical discussions of conflicting values that include them as participators. First, it is argued that there are several types of consumer concerns about food and agriculture that are multi-interpretable and often contradict each other or are at least difficult to reconcile without considerable loss. Second, these consumer concerns are inherently dynamic because they respond to difficult and complex societal and technological situations and (...) developments. For example, because of the rising concern with global warming, carbon dioxide absorption of crops is now attracting public attention, which means that new requirements are being proposed for the environmentally friendly production of crops. Third, there are different types of consumers, and their choices between conflicting values differ accordingly. Consumers use different weighing models and various types of information in making their food choices. Changing food chains more in accordance with consumer concerns should at least take into account the multi-interpretable, dynamic, and pluralist features of consumer concerns, for example, in traceability schemes. In discussing usual approaches such as codes, stakeholder analysis, and assurance schemes, I conclude that these traditional approaches can be helpful. However, in cases of dynamic, pluralistic, and uncertain developments, maintaining some pre-existing evaluating scheme or some clear cut normative hierarchy, such as codes or assurance schemes, can be disastrous in undermining new ethical desirable initiatives. Instead of considering ethical standards and targets as fixed, which is done with codes and schemes, it is more fruitful to emphasize the structure of the processes in which ethical weighing of relevant consumer concerns get shaped. The concept of “Ethical Room for Maneuver” (ERM) is constructed to specify the ethical desirable conditions under which identification and weighing of paramount values and their dilemmas can be processed. The main aims of the ERM are making room in all the links of the food chain for regulating and implementing the relevant consumer concerns by (1) balancing and negotiating, (2) supporting information systems that are relevant and communicative for various consumer groups and (3) organizing consumer involvement in the links of the food chain. The social and political context of agriculture and food production, particularly in Europe, gives ample opportunity for implementing several types of Ethical Rooms for Maneuver. Finally, I discuss several types of Ethical Rooms for Manoeuvre in the food chains that can be communicated by means of specific traceability schemes to less involved stakeholders with the potential consequence that the stakeholders will be motivated to be more involved. (shrink)

We study the sources of resistance to change among firms in the Canadian petroleum industry in response to a shift in societal level logics related to corporate environmental performance. Despite challenges to its legitimacy as a result of poor environmental performance, the Canadian petroleum industry was divided as to how to respond, with some members ignoring the concerns and resisting change (i.e., laggards) while others took action to ensure continued legitimacy (i.e., leaders). We examine why organizations within the same institutional (...) field responded differently, delaying the industry response. We found that one population of firms was aligned with increasing pressures from its stakeholders for improved environmental performance, and the other was influenced by local cultural, political, and economic ideals less demanding of environmental actions. Our results reveal that several factors both at the institutional field level and the organizational level affected how these two populations reacted to a changing societal logic. Implications for theory, practice, and future research are discussed. (shrink)

This study focuses on why some companies in developing countries go beyond environmental regulations when implementing their corporate environmental social responsibilities or citizenship behavior. Drawing mainly upon the new institutional theory, this study develops a conceptual framework to explain three institutional factors: companies’ market orientations, industrial characteristics, and corporate identities. Accordingly, we suggest that companies from developing countries that are oriented to markets in developed countries, operate in highly concentrated industries, and have missionary identities adopt corporate environmental citizenship behavior by (...) going beyond environmental regulations. The study also discusses the theoretical, policy, and managerial implications of the conceptual framework. (shrink)

Resource extraction companies worldwide are involved with Indigenous peoples. Historically these interactions have been antagonistic, yet there is a growing public expectation for improved ethical performance of resource industries to engage with Indigenous peoples. (Crawley and Sinclair, Journal of Business Ethics 45, 361–373 (2003)) proposed an ethical model for human resource practices with Indigenous peoples in Australian mining companies. This paper expands on this work by re-framing the discussion within the context of sustainable development, extending it to Canada, and generalizing (...) to other resource industries. We argue that it is unethical to sacrifice the viability of Indigenous cultures for industrial resource extraction; it is ethical to engage with indigenous peoples in a manner consistent with their wishes and needs as they perceive them. We apply these ideas to a case study in the coastal temperate rainforest of Clayoquot Sound, British Columbia, Canada. In this case a scientific panel comprised of Nuu-Chah-Nulth elders, forest scientists and management professionals, achieved full consensus on developing sustainable forest practice standards by drawing equally on Indigenous traditional ecological knowledge and Western science in the context of one of the most heated and protracted environmental conflicts in Canadian history. The resulting sustainable forest practice standards were later adopted by leading forestry firms operating on the coast. Our analysis of this scientific panels success provides the basis for advancing an ethical approach to sustainable development with Indigenous peoples. This ethical approach is applicable to companies working in natural resource industries where the territories of Indigenous peoples are involved. (shrink)

In this paper, a positive organizational ethics -based framework is informed by the microfinance and socially responsible investing movements to capture the process of sustainable financial innovations. Both of these movements are uniquely characterized by the formation of positive ethical networks to develop sustainability innovations in response to external crises. The crisis–PEN–innovation framework proposed makes four contributions to the POE literature: positions corporate sustainability through a POE lens; formalizes the PEN construction through POE theory; proposes PENs are mobilized to respond (...) to external crises; and demonstrates how PENs facilitate sustainability innovations. The theoretical framework is tested using theory-guided process tracing in the sustainable banking sector to understand how sustainability innovations were realized. The findings are consistent with the crisis–PEN–innovation framework proposed. (shrink)

There is both individual and collective widespread concern in society about the impact of human activity and the effects of our decisions on the physical and social environment. This concern is included within the idea of sustainability. The meaning of the concept is still ambiguous and its practical effectiveness disputed. Like many other authors, this article uses as a starting point the definition proposed by the World Commission on Environment and Development, considering it to be a proposal for changing the (...) assessment of the effects of decisions, from at least two perspectives: what effects we should consider and how we should assess them. Based on this double perspective, sustainability is explored as a method for decision-making which both expands the assessment of the consequences, and also provides an objective criterion for such assessment. It will be argued that the idea of sustainability, seen from this perspective, brings to decision-making two qualities which had been partially lost: realism and impartiality. In turn, the criteria for realism and impartiality in decision-making can be used to identify the limitations of some partial approaches to sustainability, which suffer from insufficient realism, insufficient impartiality or both phenomena at once. The article concludes by demonstrating how realism and impartiality provide the basis for a new form of sustainable decision-making, which is dependent on the development of two moral virtues, prudence and benevolence, and which brings practical effectiveness and ethical sense to the concept of sustainability. (shrink)

Sustainable development is often framed as a social issue to which corporations should pay attention because it offers both opportunities and challenges. Through the use of institutional theory and the resource-based view of the firm, we shed some light on why, more than 20 years after sustainable development was first introduced, we see neither the adoption of this business model as dominant nor its converse, that is the total abandonment of the model as unworkable and unprofitable. We focus on multinational (...) corporations (MNCs) because they were among the organizations first called to take action. In order to illustrate the institutional pressures MNCs face and their strategic response to these pressures, we analysed four major oil and gas multinationals subject to similar sustainable development pressures – climate change, biodiversity, renewable energy development and social investment. We argue that normative and coercive isomorphism does not occur at the global level because sustainable development is largely a stakeholder-driven rather than a broad social pressure. That is, host country interpretation of sustainable development pressures varies across an MNC’s subsidiary network. Based on the analysis of the four major MNCs’ annual reports from 2000 to 2005, we argue that mimetic isomorphism may occur, but since it implies the use of complex and intangible resources, mimetic processes are slow, rare and discretionary. (shrink)

As a result of the increasing public attention to environmental crises, corporate environmental actions and their effects are a current research hotspot. This study examines how two types of corporate environmental actions influence consumers’ perceptions of environmental legitimacy and subsequent purchase intentions. Using experimental method, this study finds that substantial environmental action induces significantly higher perceptions of environmental legitimacy than symbolic environmental action, this effect can be attenuated by corporate environmental reputation, and consumer-based environmental legitimacy has a significantly positive effect (...) on consumers’ purchase intentions. These findings have interesting implications for both researchers and practitioners involved in green marketing. (shrink)

In this paper, we develop an argument to show why we expect that multinational companies will ensure that they communicate credibly about their environmental responsibility, across all their subsidiaries. Credible environmental communication helps to increase the firm’s legitimacy and reduce its liability of foreignness on an issue that is globally relevant. We develop a measure to test if there is a standardized level of environmental communication credibility on the country-specific web sites of MNC subsidiaries around the world and find, in (...) fact, that there is considerable variation across countries, among subsidiaries of different firms and among subsidiaries of the same multinational. We discuss the reasons for this and the implications for firm legitimacy. (shrink)

The systemic complexity of sustainable development imposes a major cognitive challenge to students’ learning. Faculty can explore new approaches in the classroom to teach the topic successfully, including the use of technology. We conducted an experiment to compare the effectiveness of a simulation vis-à-vis a case-based method to teach sustainable development. We found that both pedagogical methods are effective for teaching this concept, although our results support the idea that simulations are slightly more effective than case studies, particularly to teach (...) its multidimensional and inter-temporal nature. Therefore, our findings suggest the use of both simulations and case studies as pedagogical tools to convey the main ideas associated with sustainable development. (shrink)

As the second part of a research agenda addressing the idea and meaning of Sustainable Development, this paper responds to the challenges set in the first paper. Using a Foucaudian perspective, we uncover and highlight the importance of discourse in the development of societal context which could lead to the radical change in our epistemological thought necessary for Sustainable Development to reach its potential. By developing an argument for an epistemological change, we suggest that business organizations have an ethical responsibility (...) towards revaluating Sustainable Development, leading to a discourse based on an integrated inclusive process of celebrating diversity in all its forms. The paper goes on to explore the argument for such a change. This exploration is based on three issues: the notion of over simplification in the promotion of development; the idea of an imbalance in the interaction of business and government operating in the larger context of society; and the notion of increasing responsibility with increasing influence in terms of the business organization within society. Having established the argument for an ethical choice by business organizations, we then reflect on how such a change could be incorporated into an organization. (shrink)