In this article, we posit that a cross-scale perspective is valuable for studies of organizational resilience. Existing research in our field primarily focuses on the resilience of organizations, that is, the factors that enhance or detract from an organization’s viability in the face of threat. While this organization level focus makes important contributions to theory, organizational resilience is also intrinsically dependent upon the resilience of broader social-ecological systems in which the firm is embedded. Moreover, long-term organizational resilience cannot be well (...) managed without an understanding of the feedback effects across nested systems. For instance, a narrow focus on optimizing organizational resilience from one firm’s perspective may come at the expense of social-ecological functioning and ultimately undermine managers’ efforts at long-term organizational survival. We suggest that insights from natural science may help organizational scholars to examine cross-scale resilience and conceptualize organizational actions within and across temporal and spatial dynamics. We develop propositions taking a complex adaptive systems perspective to identify issues related to focal scale, slow variables and feedback, and diversity and redundancy. We illustrate our theoretical argument using an example of Unilever and palm oil production in Borneo. (shrink)

The terminology employed to explore consumption ethics, the counterpart to business ethics, is increasingly varied not least because consumption has become a central discourse and area of investigation across disciplines. Rather than assuming interchangeability, we argue that these differences signify divergent understandings and contextual nuances and should, therefore, inform future writing and understanding in this area. Accordingly, this article advances consumer ethics scholarship through a systematic review of the current literature that identifies key areas of convergence and contradiction. We then (...) present the articles in this Journal of Business Ethics Symposium and analyse how these articles fit within the interdisciplinary themes. Subsequently, we develop a transdisciplinary theoretical framework that encapsulates the complexity and contextual nature of consumption ethics. We conclude by outlining how genuinely transdisciplinary research into the intersection of ethics with consumption may develop. (shrink)

Technological development plays a critical role in society’s ability to address environmental issues. Building on Teece’s profiting from innovation framework, we articulate how a double-externality problem weakens the appropriability regime surrounding pollution reduction technology (PRT). We then develop a theoretical framework articulating how weak appropriability induces firms to modify their innovation strategies for PRT development by increasing the extent to which they engage in organizational exploration (rather than exploitation) and emphasizing incremental (rather than radical) technologies. Noting that the effects of (...) weak appropriability are unlikely to be static, we detail how the accumulation of organizational capabilities for reducing pollution diminishes the extent to which firms modify their innovation strategies for PRT. That is, firms become less exploratory and less focused on incremental technology as they gain experience with pollution reduction. Results of broad-sample empirical analyses of 206,277 patents held by 203 U.S. manufacturing firms over a 20-year period provide support for our framework. (shrink)

Despite the growing interest in examining the role of religious beliefs as a guide towards environmental conscious actions, there is still a lack of research informed by an analysis of divine messages. This deficiency includes the extent to which ethics for environmental responsibility are promoted within textual divine messages; types of environmental themes promoted within the text of divine messages; and implications of such religious environmental ethics for business practice. The present study attempts to fill this gap by conducting a (...) thorough content analysis of environmental themes within the divine message of Muslims focusing on their related ethical aspects and business implications. The analysis has revealed 675 verses in 84 chapters throughout all 30 parts of the Qur’an, with environmental content relating to the core components of the natural world, i.e. human beings, water, air, land, plants, animals, and other natural resources. This environmental content and its related ethics are grounded on the belief that humans are vicegerents of God on the earth and their behaviours and actions are motivated by earthly and heavenly rewards. Implications of these findings for different sectors/businesses are also highlighted. (shrink)

Organizational citizenship behaviors have been the topic of much research attempting to understand the motivations, manifestations, and impacts of these behaviors on organizational development. However, studies have been based essentially on an anthropocentric and intra-organizational perspective that tends to ignore broader environmental issues. Due to the complexity of environmental issues and their human, informal, and preventive aspects, consideration of these issues requires voluntary and decentralized initiatives that draw on organizational citizenship behaviors. The role of these behaviors has been neglected, or (...) even ignored, in studies of environmental management, which have focused mainly on the explicit, formal, and prescriptive aspects of organizations. The aim of this article is to shed light on the pertinence of organizational citizenship behaviors in improving the efficacy and efficiency of environmental management. The article discusses how the principal dimensions of these behaviors can be applied to the environmental practices of organizations and underlines their importance in responding to essential challenges of environmental management, including the complexity of environmental issues, limitations of formal management systems, the need to consider tacit knowledge, the importance of helping relationships, and the promotion of␣social legitimacy among organizations. Measures to encourage eco-efficiency and establish a favorable context for the emergence of citizenship behaviors are also proposed. (shrink)

The corporate responsibility (CR) discussion has so far been rather fragmented as academics tackle it from their own areas of expertise, which guarantees in-depth analyses, but leaves room for broader syntheses. This research is a synthetic, interdisciplinary exercise: it integrates philosophical, psychological and managerial perspectives of corporate responsibility into a more holistic CR-model for the benefit of academics, companies and their interest groups. CR usually comprises three areas: environmental, social and economic responsibilities. In all these areas there should be a (...) match between corporate values, discourses and actions. The aim of this multidisciplinary research is to build a CR-model by integrating (1) utilitarian/egoistic, duty/rights/justice and virtue ethical corporate values with (2) increased consciousness of psychological defences in corporate discourses, in order to achieve (3) responsible environmental, social and economic corporate actions. The resulting CR-model can be tested in companies and executed through corporate strategic and operational management. (shrink)

The business case for social responsibility is one of the most widely studied topics in the business and society literature that focuses on large firms. This attention is understandable because large firms have an obligation to shareholders who, as commonly assumed, seek to maximize returns on their investments, in turn, pressing corporate managers to show that firms’ expenditures in social engagement would pay off. Small firms, on the other hand, rarely face such pressures, yet the BCSR logic is increasingly applied (...) to small firms as well. Our primary objective in this paper is to examine whether and how much do small firm owners’ perceptions of BCSR affect the firm’s social engagement. In finding a fine-grained answer to those questions, we consider BCSR as a two-dimensional construct consisting of tangible and intangible benefits, and also integrate the BCSR perspective with the slack resource perspective to offer a motivation-capacity lens to examine firm’s social engagement. Drawing on a multi-industry sample of 478 small firms in the US, we find that while small firm owners’ perceptions about potential tangible benefits of social engagement are not related to the firm’s social engagement, perceptions about potential intangible are positively related. Firm's financial performance is also positively related to its social engagement, but there is no interaction between potential benefits and financial performance. This study contributes to an improved understanding about small firms’ social engagement, which still remains an understudied area. Our results are in line with studies which argue that firms’ social engagement is a response to institutional factors. (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)

The increasing strategic importance of environmental, social and ethical issues as well as related performance measures has spurred interest in corporate sustainability performance measurement and management systems. This paper focuses on the balanced scorecard, a performance measurement and management system aiming at balancing financial and non-financial as well as short and long-term measures. Modifications to the original BSC which explicitly consider environmental, social or ethical issues are often referred to as sustainability balanced scorecards. There is much scholarly discussion about SBSC (...) architecture and how it can be designed to relate performance dimensions, strategic objectives and the logical links among these elements. To synthesise the widely scattered research findings and publications on the SBSC, we conducted a thematic analysis based on a systematic literature review containing 69 relevant articles spanning a period of two decades. We found that sustainability-oriented modifications of the BSC architecture are motivated by instrumental, social/political or normative theoretical perspectives. Moreover, these modifications can be mapped with a typology of generic SBSC architectures. The first dimension of the typology describes the hierarchy between performance perspectives and strategic objectives and how it is related to the organisational value system. The second dimension describes how sustainability-related strategic objectives are integrated into SBSC performance perspectives and how this is related to corporate sustainability strategy. This study contributes to the development of the emerging SBSC literature and practice and, more generally, to research on corporate sustainability performance measurement and management. We conclude with a research agenda and implications for management. (shrink)

In this paper, we develop a conceptual framework of the intra-firm transfer of best practices in moral reasoning by integrating three streams of literature: internal knowledge transfer in strategic management, moral reasoning and epistemology in philosophy and business ethics, and leader–member exchange in human resource management. We propose that characteristics of moral reasoning (nature of moral knowledge, tacitness of moral reasoning and causal ambiguity), source characteristics (moral development of leaders), target characteristics (integrity capacity and moral development of subordinates), leader–member exchange (...) and internal ethical climate influence the transfer of best practices in moral reasoning. (shrink)

Review of extant research on the corporate environmental performance (CEP) and corporate financial performance (CFP) link generally demonstrates a positive relationship. However, some arguments and empirical results have demonstrated otherwise. As a result, researchers have called for a contingency approach to this research stream, which moves beyond the basic question “does it pay to be green?” and instead asks “when does it pay to be green?” In answering this call, we provide a meta-analytic review of CEP–CFP literature in which we (...) identify potential moderators to the CEP–CFP relationship including environmental performance type (e.g., reactive vs. proactive performance), firm characteristics (e.g., large vs. small firms), and methodological issues (e.g., self-report measures). By analyzing these contingencies, this study attempts to provide a basis on which to draw conclusions regarding some inconsistencies and debates in the CEP–CFP research. Some of the results of the moderator analysis suggest that small firms benefit from environmental performance as much or more than large firms, US firms seem to benefit more than international counterparts, and environmental performance seems to have the strongest influence on market-measures of financial performance. (shrink)

This paper examines the influence of internal barriers on the relationship between the organizational capability of stakeholder integration and proactive environmental strategies. We adopt a moderate hierarchical regression model to test the hypotheses using data from a sample of 73 managers in the business education industry. The paper contributes to stakeholder theory by showing that stakeholder integration positively influences the development of proactive environmental strategies when managers perceive internal barriers to the development of such strategies. This article also explores an (...) ethical dilemma—managers may use the stakeholder integration capability to support their own interests rather than to benefit stakeholders. (shrink)

This study complements previous empirical research on the business case for corporate social responsibility (CSR) by employing hitherto unused data on corporate social performance (CSP) and proposing statistical analyses to account for bi-directional causality between social and financial performance. By allowing for differences in the importance of single components of CSP between industries, the data in this study overcome certain limitations of the databases used in earlier studies. The econometrics employed offer a rigorous way of addressing the problem of endogeneity (...) due to simultaneous causality. Although the study’s results provide no evidence that there is a generic or universal business case for CSR, they indicate that there is a strong link between single stakeholder-related issues of CSR and financial performance. However, the analysis does not establish causality within these relationships. (shrink)

The complexity of current social and environmental grand challenges generates many conflicts and tensions at the individual, organization and/or systems levels. Paradox theory has emerged as a promising way to approach such a complexity of corporate sustainability going beyond the instrumental business-case perspective and achieving superior sustainability performance. However, the fuzziness in the empirical use of the concept of “paradox” and the absence of a systems perspective limits its potential. In this paper, we perform a systematic review and content analysis (...) of the empirical literature related to paradox and sustainability, offering a useful guide for researchers who intend to adopt the concept of “paradox” empirically. Our analysis provides a comprehensive account of the uses of the construct - which allows the categorization of the literature into three distinct research streams: 1) paradoxical tensions, 2) paradoxical frame/thinking, and 3) paradoxical actions/strategies - and a comprehensive overview of the findings that emerge in each of the three. Further, by adopting a system perspective, we propose a theoretical framework that considers possible interconnections across the identified paradoxical meanings and different levels of analysis (individual, organizational, systems) and discuss key research gaps emerging. Finally, we reflect on the role a clear notion of paradox can have in supporting business ethics scholars in developing a more “immanent” evaluation of corporate sustainability, overcoming the current instrumental view. (shrink)

Investors with a pro-social or sustainability agenda increasingly attempt to influence firm managers to adopt socially responsible behavior, either through positive/reward tactics or negative/punishment tactics. This paper considers how investors can use each approach to differentially influence managers to make more CSR investments. The paper uses game theory with an all-pay contest structure to model how a large institutional investor could reward firms for CSR activities by creating a socially responsible investment fund (reward contest) or punish firms via shareholder activism (...) (punishment contest). We identify conditions under which the punishment contest induces a higher level of CSR activity among firms compared to the reward contest. Managers bearing substantial private costs stemming from the activism is one such condition. Spillover effects are seen as the other managers in the economy engage in CSR to avoid being punished by the investor’s activism. This level of engagement is not the case when rewards are used—only those managers with an expectation of being rewarded increase their CSR activity in that scenario. This suggests, for example, that incorporating thresholds or tiers (e.g. gold, silver, and bronze-level winners) can increase the effectiveness of reward contests. Implications for designing both positive and negative CSR inducements are explored. We also identify the ethical dilemmas that relate to such influence attempts. (shrink)

Even though management scholars have offered several views on the process of corporate sustainability, these efforts have focused mainly on the technical aspects of sustainability while omitting the fundamental role played by individual moral competences. Therefore, previous work offers an incomplete and somewhat reductionist view of corporate sustainability. In this article, we develop a holistic framework of corporate sustainability in which both the moral and technical aspects of sustainability are considered. We do so by integrating the ethical, normative perspective of (...) the Catholic social teaching with the competitive view of the natural resource-based view. This framework highlights the importance of CST principles and ideas in developing executive moral competences such as moral sensitivity and awareness, and moral cognition and motivation. Moral competences, in turn, influence the organizational selection of environmental strategies, giving leaders the intrinsic motivation to promote both a longer-term stance on corporate sustainability efforts and a relentless search for greener business models. Such strategies move the firm closer towards achieving environmental sustainability. Hence, by bridging the individual, normative-ethical with the organizational, implementational levels of corporate sustainability, our framework provides a more realistic, coherent, and complete perspective on the complex process of achieving corporate sustainability. (shrink)

This paper explores how sustainability has been integrated into and communicated in Canadian Master’s of Business Administration programs. We content analyzed university, business school, and MBA program mission and values statements; communicated strategic priorities; and relevant academic calendar content, as well as sustainability rankings and select media depictions of sustainable MBA programs and practices. We explore the potential for greenwashing practices in relation to the integration of sustainability in business education. We found some evidence of a decoupling between university and/or (...) business school mission and claims, and MBA policies and practices. We conclude with a discussion of our findings, study limitations and some relevant implications for academia. (shrink)

This article examines how the action logics associated with the stages of consciousness development of organizational leaders can influence the meaning, which these leaders give to corporate greening and their capacity to consider the specific complexities, values, and demands of environmental issues. The article explores how the seven principal action logics identified by Rooke and Torbert (2005, Harvard Business Review 83 (4), 66–76; Opportunist, Diplomat, Expert, Achiever, Individualist, Strategist and Alchemist) can affect environmental leadership. An examination of the strengths and (...) limitations of these action logics reveals the relevance of the so-called post-conventional stages of consciousness to the recognition and effective management of complex environmental issues. Suggestions are also made for promoting organizational contexts conducive to the development of a post-conventional environmental leadership. (shrink)

Recent conceptualizations of sustainable global development have reflected societal concerns not only with environmental stewardship, but also with social amelioration. However, the tripartite goals of corporate profitability, environmental protection, and social responsiveness are unlikely to be achieved through conventional models of globalization. The emergent approach known as sustainable global enterprise provides a promising strategic alternate, but requires the development of “native capability” [Hart, S. L.: 2005, Capitalism at the Crossroads: The Unlimited Business Opportunities In Solving the World’s Most Difficult Problems. (...) (Pearson Education, Inc., Publishing as Wharton School Publishing, Upper Saddle River, NJ)] that comprises specific relational competencies not typically required by traditional transnational models. This article demonstrates the usefulness of an ethic of care for enhancing understanding of the competencies comprising native capability, and, provides practical insights from a care approach on the development of those skills. (shrink)

Earth’s life-support system is facing megaproblems of sustainability. One important way of how these problems can be addressed is through innovation. This paper argues that responsible innovation that contributes to sustainable development consists of three dimensions: innovations avoid harming people and the planet, innovations ‘do good’ by offering new products, services, or technologies that foster SD, and global governance schemes are in place that facilitate innovations that avoid harm and ‘do good.’ The paper discusses global governance schemes based on deliberation (...) as a means to foster such responsible innovation. These schemes can provide voluntary soft-law regulations that complement and extend national and international hard-law regulations and facilitate collective innovation that contributes to SD goals. The article addresses the facilitative role of governments and international organizations in overcoming problems of deliberation and offers illustrative examples of such governance schemes. (shrink)

As it has become more and more urgent to solve the problems of environmental protection, we consider it necessary to conduct multilevel studies to examine the impact of business strategy on both employees’ and firms’ performances in environmental protection. Synthesizing the perspectives of strategic orientation, corporate strategy, and firm performance, we propose a comprehensive theoretical model linking market orientation and environmental performance. Based on a survey of 134 matched chief executive officers, senior marketing managers and frontline workers from Chinese firms, (...) we found that market orientation positively affects environmental strategy which, in turn, influences both environmental product quality and employees’ environmental involvement. These latter two variables consequently have a positive influence on environmental performance. At the same time, environmental commitment moderates the link between market orientation and environmental strategy. (shrink)

This paper proposes a systematic framework for the analysis of tensions in corporate sustainability. The framework is based on the emerging integrative view on corporate sustainability, which stresses the need for a simultaneous integration of economic, environmental and social dimensions without, a priori, emphasising one over any other. The integrative view presupposes that firms need to accept tensions in corporate sustainability and pursue different sustainability aspects simultaneously even if they seem to contradict each other. The framework proposed in this paper (...) goes beyond the traditional triad of economic, environmental and social dimensions and argues that tensions in corporate sustainability occur between different levels, in change processes and within a temporal and spatial context. The framework provides vital groundwork for managing tensions in corporate sustainability based on paradox strategies. The paper then applies the framework to identify and characterise four selected tensions and illustrates how key approaches from the literature on strategic contradictions, tensions and paradoxes—i.e., acceptance and resolution strategies—can be used to manage these tensions. Thereby, it refines the emerging literature on the integrative view for the management of tensions in corporate sustainability. The framework also provides managers with a better understanding of tensions in corporate sustainability and enables them to embrace these tensions in their decision making. (shrink)

Sustainable and ethical leadership in the financial industry expand in importance since the financial crisis of 2007–2009. This research examined the level of sustainable and ethical leadership of leaders in mortgage loan originator (MLO) organizations, as perceived by loan originators. The Perceived Leadership Survey (PLIS) developed by Craig and Gustafson (Leadersh Q 9(2):127–145, 1998) and the Sustainable Leadership Questionnaire (SLQ) developed by McCann and Holt (Int J Sustain Strat Manage 2(2):204–210, 2011) were utilized for this research. The survey results yielded (...) high levels of both ethical and sustainable leadership. Employees also felt their leadership was encouraging ethical and sustainable behavior. However, correlations between the PLIS and SLQ did not prove to be dependent or closely correlated. (shrink)

According to the predominant corporate sustainable development (CSD) framework, this exploratory paper verifies that CSD construct can be modeled by integrating the dimensions of social, economic, and environmental development. We first developed and validated measurement scales for these three dimensions based on a survey of 314 managers in mainland China. Then, using structural equation modelling, we confirmed that the proposed model is valid. Therefore, our findings may allow researchers to explore CSD further, and practitioners to develop their understanding of CSD (...) initiatives in organizations. (shrink)

Management of organizational tensions can facilitate the simultaneous advancement of economic, social, and environmental priorities. The approach is based on managers identifying and managing tensions between the three priorities, by employing one of the three strategic responses. Although recent work has provided a theoretical basis for such tension acknowledgment and management, there is a dearth of empirical studies. We interviewed 32 corporate sustainability managers across 25 forestry and wood-products organizations in Australia. Study participants were divided into two groups: those considered (...) effective at corporate sustainability and a status-quo group. Contrary to current theory, our findings showed that acknowledgment of organizational tensions was widespread in the Australian forestry and wood-products industry and not limited to those managers who are effective at managing corporate sustainability. What differed was the degree to which managers did something about the perceived tensions—with the effective group more consistently acting to manage and resolve paradoxical scenarios. Our findings suggest that existing theoretical constructs of tension management may not adequately capture the individual-level complexity involved with managing tensions in practice. (shrink)

Although existing research evaluates the growth and motivations behind global corporate social responsibility activity, there is little understanding whether these growing commitments generate strategic benefits to their adherents. In this article, we analyze the organizational attributes that underlie the firm’s ability to generate competitive advantage from the adoption of a global CSR framework. We develop hypotheses on economic and reputational benefits and test whether firm performance, organizational resources, and access to business and CSR networks determine these benefits in CSR frameworks. (...) Results from a survey of 213 Spanish global compact business participants strongly support our arguments. (shrink)

The purpose of this study is to understand the drivers of social responsibility in purchasing (PSR). This study replicated and extended the range of empirical application of the model developed by Carter and Jennings (Journal of Business Logistics 25(1), 145–186, 2004). Consequently, the present study contributes to the nomological validity of concept of PSR or Purchasing Social Responsibility. The method used is derived from the previous study by Carter and Jennings (Journal of Business Logistics 25(1), 145–186, 2004), and the present (...) study extends the application of that method to an Asian environment. The data were obtained from 197 respondents in Thailand. This sample was largely composed of purchasing and supply chain managers. Respondents were asked to indicate how different dimensions of corporate social responsibility (CSR) affect PSR. The findings of the present study suggest that all the six hypothesized paths have been substantiated. Individual values and people-oriented organizational culture are the most powerful predictors of PSR. This article contributes towards filling the gap in understanding the determinants of PSR in managing supply chains, particularly in an Asian context. (shrink)

The literature on the natural-resource-based view of firms has mostly focused on the positive relationship between financial performance and environmental innovation. The present study extends this research by addressing recent calls to identify the specific managerial approaches that affect a firm’s ability to financially benefit from an innovative environmental strategy. In particular, the focus is on how the selected international scope of patented environmental innovations affects a firms’ financial performance. The sample used included a 5-year data panel of 3,087 environmental (...) patent applications by the 79 Information and Communication Technology firms in the Financial Times Global 500 firms list. The findings indicate that the geographical scope of the exploitation of environmental patents increases the positive relationship between patented environmental innovation and financial performance whereas the geographical scope of knowledge sourcing of environmental patents does reduce this performance. (shrink)

Designed to facilitate economic development, the corporate form now threatens human survival. This article presents an argument that organisations are yet to be ‘fit for purpose’ and that the corporate form needs to be re-designed to reach sustainability. It suggests that organisations need to recognise their agent status amongst a much wider and highly complex array of interconnected, dynamic economic, environmental and social systems. Human Factors theory is drawn on to propose that business systems could be made sustainable through re-design. (...) They could fit their environment more appropriately by improving: Efficiency, Adaptability and Social Cohesion. Leaders of organisations would also need to take a holistic approach to alter the organisation proactively to adapt to the systems within which it is embedded. (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)

Opportunistic behaviors are considered ethically and strategically troublesome since they disrupt otherwise mutually beneficial relationships. Previous literature has shown that firms attempt to protect their investments from opportunism by generating a large amount of patented marginal innovations in domains central to their industry. However, this approach may generate some ethical dilemmas by preventing firms and societies from more radical, collaborative, and much-needed environmental progress. We extend the environmental innovation literature using strategic and ethical lenses to analyze the potential of an (...) alternative, divergent way to provide financial opportunities for a focal firm without aiming to prevent innovative opportunities for competitors. Our longitudinal analysis of 6768 environmental patents from 59 large companies worldwide in the electrical components and equipment industry shows that high levels of innovation intensity, environmental scope, bargaining power, and environmental expertise increase the incidence of patented environmental innovations related to domains in which industry competitors are less focused (i.e., technological divergence). We also show a positive relationship between this divergence and market-based firm performance. Our results suggest that pursuing innovative divergence to avoid opportunism may make ethical and market sense and we also identify the organizational factors that can support these efforts. (shrink)

We draw from upper echelons theory to investigate whether the presence of a chief sustainability officer (CSO) is associated with better corporate environmental performance in highly polluting industries. Such firms are under strong pressure to remediate environmental damage, to comply with regulations, and to even exceed environmental standards. CSOs in these firms are likely to be hired as legitimate agents to lead and successfully implement environmental strategy aimed at reducing pollution levels. Interestingly and contrary to our expectations, we found that (...) the presence of a CSO is associated with higher levels of pollution emissions. Nonetheless, we found that the CSO has a positive influence on a firm’s environmental performance if faced with strict environmental regulations. We argue that the enforcement of environmental regulations enhances monitoring and accountability of pollution emissions. The sample for this study comprised all the S&P 500 firms required by the Environmental Protection Agency to annually report their toxic emissions to the Toxic Release Inventory. Data were collected for a 6-year period from 2006 to 2011. We used a panel data regression and employed propensity score matching to correct for potential endogeneity problems. (shrink)

Corporate social responsibility has grown on the corporate agenda and is at the heart of today’s corporate culture. While much research has examined CSR strategies and effects, the effects of post-crisis CSR communication have received relatively little academic attention. Therefore, this paper uses two experimental studies to examine several key contingency factors that influence consumers’ responses to post-crisis CSR initiatives. Results suggest that consumers demonstrate more favorable responses when a company launches a CSR initiative congruent with the crisis issue, or (...) when the crisis is the result of an accident rather than a transgression. Further, the congruence between the crisis issue and the pre-crisis CSR initiative moderates the consistency effects between pre- and post-crisis initiatives. Such findings should be understood by considering the mediating role of corporate CSR motives’ consumer attributions, which was evidenced in this study. This study theoretically contributes to an improved understanding of the underlying mechanism of the post-crisis CSR information process and managerially contributes to the strategic development of effective post-crisis CSR initiatives given a particular situation. (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)

Growing detrimental effects on the bio-physical environment have been responsible for a large number of small firms to adopt a more strategic stance toward exploiting green-related opportunities. This article aims to shed light on how internal company factors help to formulate a green business strategy among small manufacturing firms, and how this, in turn, influences their competitive advantage and performance. Based on data received from 153 small Cypriot manufacturers, we propose and test a conceptual model anchored on the Resource-based View (...) of the firm. The findings underscore the critical role of both organizational resources and capabilities in pursuing a green business strategy. The adoption of this strategy was more evident in the case of firms operating in more harmful, as opposed to less harmful, industries. The implementation of a green business strategy was found to generate a positional competitive advantage, with this association becoming stronger under conditions of high regulatory intensity, high market dynamism, high public concern, and high competitive intensity. It was also revealed that this competitive advantage is conducive to gaining heightened market and financial performance. Our study makes a fivefold contribution: it injects a theoretical perspective into a relatively atheoretic field, underlines the role of organizational resources/capabilities as drivers of eco-friendly initiatives, highlights the often neglected strategic aspects of small firms’ ecological business activities, stresses the contingent role of external forces in moderating the positive impact of small firm green business strategy on competitive advantage, and focuses on the performance implications of the small firm’s engagement in environmental operations. (shrink)

A large body of the literature on sustainability indicators, assessments and reporting is currently available. However, sustainability performance measurement systems have an insubstantial presence in the literature. Invariably, a sustainability performance measurement system presents the potential for certain trade-offs or opportunity costs for organizations. Extant sustainability platforms and standards are largely silent about how to deal with trade-offs. Utilizing evidence from the literature, as well as contingency factors, this paper seeks to present a heuristic model for establishing trade-offs in corporate (...) sustainability performance measurement systems. Trade-offs in this area revolve around performance measurement, stakeholder management, competitive advantage, as well as the vertical and horizontal integration of the performance platform. This is particularly important for organizations seeking to establish, integrate or expand their environmental management systems into the area of sustainability. As yet, formalistic attempts to deal with trade-offs in sustainability performance measurement systems are infrequent and vague. (shrink)

Environmental management (EM) is at a turning point in its evolution as a discipline. Daunting social, ecological and spiritual problems of global magnitude implore EM to be inspiring and efficacious in theory and practice. Ironically, the present EM movement, in its ontologically dualistic configuration—measuring and manipulating the environment as an abstract, objectified economic resource for human gain—is unknowingly contributing to the very ecological degradation it wishes to ameliorate. In order for EM to become a truly ‘transformative epistemology’,1 its praxis must (...) ontologically transcend the narrow foundations of staunch empiricism, logical positivism and rationalism that now firmly gird it. As a possible alternative to EM’s ‘monological flatland’,2 we introduce a holistic praxiological system grounded in the ancient Indian vedanta wisdom tradition. Natural law-based environmental management (NLBEM) portends a radical metamorphosis of EM into a discipline that makes a meaningful impact on today’s precarious global condition. (shrink)

Prior research on sustainability in business often assumes that decisions on social and environmental investments are made for instrumental reasons, which points to causal relationships between corporate financial performance and corporate social and environmental commitment. In other words, social or environmental commitment should predict higher financial performance. The theoretical premise of sustainability, however, is based on a systems perspective, which implies a tighter integration between corporate financial performance and corporate commitment to social and environmental issues. In this paper, we describe (...) the important theoretical differences between an instrumental and integrative logic in managing business sustainability. We test the presence of each logic using data from 738 firms over 13 years and find evidence of integrative logic applied in business. (shrink)

While the importance of employee initiatives for improving the environmental practices and performance of organizations has been clearly established in the literature, the precise nature of these initiatives has rarely been examined (particularly the issue of their discretionary or mandatory nature). The role of organizational citizenship behaviour in environmental management remains largely unexplored. The main objectives of this paper were to propose and validate an instrument for measuring organizational citizenship behaviour for the environment (OCBE). Exploratory (Study 1, N = 228) (...) and confirmatory (Study 2, N = 651) analyses were conducted to examine the factor structure of OCBEs. The factor structure that emerged from Study 1 indicated that the three main types of OCBEs were eco-initiatives, eco-civic engagement and eco-helping. The factor structure found in Study 1 was confirmed by Study 2. Analysis of the three types of OCBEs highlighted the complexity of discretionary initiatives for the environment in the workplace and points to a number of avenues for further research. (shrink)

There is a longstanding debate in the stakeholder literature as to who and what really counts as the stakeholders of the firm. Likewise, there have been discussions on whether nature should be considered a stakeholder of the firm. However, one seldom encounters any definitions of the key concepts, that is of nature or the natural environment . We seek to contribute to the debate by taking a closer look at what this thing called nature actually is. In addition, we discuss (...) the implications of this conceptual refinement for the stakeholder model. In order to reinforce the status of the natural environment in the stakeholder model, we propose that any visualisation of a stakeholder network should be embedded in the natural environment. (shrink)

Although scholars agree that local context is critical in a firm’s commitment to sustainable development, questions remain about how this context plays a role in achieving simultaneous goals of sustainable community development and firm strategic success. By sampling two groups of firms differentiated according to their adoption of a weak or strong orientation to sustainable development, this author searched for relevant explanations from the local context that help to answer this very question. Results point to indigenous resource and institutional capital, (...) the combination of which assists the firm in its ability to embed sustainable development. Whereas more tangible forms of capital assist in the strategy implementation process, less tangible forms of capital influence the strategy formulation process. What is more, firms tended to progress sequentially in the appropriation of these forms of capital as a result of the strengthening of the relationship with contextual stakeholders. (shrink)

As organizations place greater emphasis on environmental objectives, business educators must produce the next set of leaders who can champion corporate environmental sustainability initiatives. However, environmental sustainability represents a polarizing topic with some students dismissing its importance and legitimacy. Limited research exists to understand student behavioral influences on sustainability education, especially as it translates to environmental sustainability behavior in the workplace. This gap challenges our ability as educators to understand how to best teach environmental sustainability in order to reach diverse (...) student mindsets. We apply the theory of planned behavior (TPB) to address this gap, investigating the influence of student attitudes, subjective norm, and perceived behavioral control on environmental sustainability intention and behavior. A structural model tested with student survey data finds that student attitude represents the strongest influence on environmental sustainability intention. The model also validates that subjective norm affects sustainability intention with students considering professors along with business leaders and politicians as valid references for sustainability knowledge. To tie the results to effective educational interventions, we use the TPB to organize an extensive review of the sustainability pedagogy literature and identify specific teaching recommendations for increasing the effectiveness of environmental sustainability education. (shrink)

This article presents some synergies that appear to exist in the conceptualization of environmental and spiritual leadership. After some discussion of the contexts in which environmental and spiritual leadership have arisen, the author identifies some commonalities in the underpinning values and associated discourse adopted in the literature to describe these two concepts. Common values include notions of the common and social good, stewardship, sustainability, servanthood, calling, meaning, and connectedness. The article also draws attention to the way that historical and cultural (...) factors have contributed to some overlapping in the conceptual development of spirit and environment. Finally, avenues for demonstrating and embedding both spiritual and environmental leadership into organizations are explored. (shrink)

Studies on why small and medium enterprises engage in pro-environmental behavior suggest that managers’ environmental responsibility plays a relatively greater role than competitiveness and legitimacy-seeking. These categories of drivers are mostly considered independent of each other. Using survey data and comparative case studies of wine firms in South Africa, this study finds that managers’ environmental responsibility is indeed the key driver in a context where state regulation hardly plays any role in regulating dispersed, rural firms. However, especially proactive firms are (...) also characterized by expectations of competitiveness gains. The authors thus emphasize the role of institutional context and potential interaction effects between these drivers in explaining the reasons why SMEs engage in pro-environmental behavior in developing countries. (shrink)

Many researchers believe the tremendous industrial development over the past two centuries is unsustainable because it has led to unintended ecological deterioration. Despite the ever-growing attention sustainable supply-chain management has received, most SSCM research and models look at the consequences, rather than the antecedents or motives of such responsible practices. The few studies that explore corporate motives have remained largely qualitative, and large-scale empirical analyses are scarce. Drawing on multiple theories and combining supply-chain and business ethics literature, we purport that (...) instrumental, relational, and moral motives are behind a firm’s engagement in SSCM practices. Specifically, we examine the links between corporate motives, SSCM practices, and firm performance. Using a sample of 259 supply-chain firms in Germany, we empirically test five hypothesized relationships. Our results reveal that relational and moral motives are key drivers, and that firms exhibiting high levels of moral obligations tend to outperform those primarily driven by amoral considerations. Findings of this study contribute to multiple literatures espousing sustainability management and can help policy makers, stakeholder groups, and scholars develop more robust strategies for encouraging firms to practice SSCM. (shrink)

We argue that the majority of the current approaches in research on corporate sustainability are inconsistent with the notion of sustainable development. By defining the notion of instrumentality in the context of corporate sustainability through three conceptual principles we show that current approaches are rooted in a bounded notion of instrumentality which establishes a systematic a priori predominance of economic organizational outcomes over environmental and social aspects. We propose an inclusive notion of profitability that reflects the return on all forms (...) of environmental, social, and economic capital used by a firm. This inclusive notion of corporate profitability helps to redefine corporate profitability as if sustainability matters in that it overcomes the bounded instrumentality that impairs current research on corporate sustainability. We apply this notion to different car manufacturers and develop conceptual implications for future research on corporate sustainability. (shrink)

This study examines the relationship among the employees–organization pro-environmental values fit, supervisors’ PEVs and employees’ pro-environmental behaviors. Informed by the PEB, organizational values and employee–organization fit literature, we propose and test hypotheses that under egoistic, altruistic and biosphere-value orientations, E–O PEVs fit versus non-fit have significant effects on employees’ private-sphere PEB and public-sphere PEB, identifying supervisors’ PEVs as a moderator. An empirical investigation indicates that the effect of E–O PEVs fit on employees’ private-sphere PEB and public-sphere PEB varies as the (...) value orientation differs. More specifically, under the context of altruistic and biosphere-value orientations, if the organizational PEVs do not match the employees’ PEVs, especially when the former exceeds the latter, employees’ PEB will rise as the organizational PEVs increase. As for egoistic value orientation, when organizational PEVs exceed employees’ PEVs, not only will public-sphere PEB stop decreasing and tend to stabilize, but also private-sphere PEB will rise to a slight degree. Furthermore, compared with altruistic and biospheric values dimensions, supervisors who promote egoistic PEVs will have a more significant effect on the relationship between global E–O PEVs fit and employees’ PEB. Finally, we suggest that the goals of an organization and its supervisors need to be combined within the actual situation of Chinese corporations to truly implement corporate green practices by balancing the profit goal and the environmental goal. (shrink)

Drawing from research on strategic choice, this study investigates the relationship between market turbulence and firms’ sustainable behavior, in the context of sustainability-related institutional adversity. It argues that the relationship between market turbulence and sustainability is mediated by network embeddedness, and this mediating role in turn is moderated by a firm’s innovative orientation. Data collected from a sample of Ontario restaurants inform predictions about firms’ propensity to adopt local wines in their portfolios, despite the limited market and normative support that (...) these wines receive compared with imported wines. The study shows that market turbulence enhances sustainable firm behavior, through the development of strong network relationships. Furthermore, the mediating effect of network embeddedness is particularly salient among firms that exhibit a stronger innovative orientation. These findings reveal how and when turbulent market conditions can contribute to a firm’s sustainable behaviors in the presence of limited institutional support for such behaviors. (shrink)

This paper critically examines the language drawn on to describe socially responsible activities (CSR) in the context of the corporate web page. I argue that constructions of CSR are made plausible and legitimised according to the context of the expression. The web site is a genre of communication which addresses a broad and discerning audience; hence fractures in the institutionalised nature of argument may be apparent. The focus of this paper is to examine how the rhetoric of CSR is legitimised (...) and to develop a framework of argumentation repertoires that operate in this context. (shrink)