Cross-sectorial, dynamic, and innovative partnerships are essential to resolve the challenges of humankind in the 21st century. At the same time, trust in each other’s integrity and good will is a precondition for the solution of any complex problem, and certainly for the success of the United Nations Sustainable Development Agenda. Experience shows that a nation’s economic and social success is at its greatest if, and when, there is cooperation and even cocreation involving a fair division of labor and responsibility (...) among the different societal stakeholders. This paper uses Ralf Dahrendorf’s seminal work on obligations, as well as the European Commission’s Science with and for Society unit’s definition of responsible research and innovation (RRI), to motivate industry responsibilities to make the world a healthier place. (shrink)

Responsible innovation in artificial intelligence calls for public deliberation: well-informed “deep democratic” debate that involves actors from the public, private, and civil society sectors in joint efforts to critically address the goals and means of AI. Adopting such an approach constitutes a challenge, however, due to the opacity of AI and strong knowledge boundaries between experts and citizens. This undermines trust in AI and undercuts key conditions for deliberation. We approach this challenge as a problem of situating the knowledge of (...) actors from the AI industry within a deliberative system. We develop a new framework of responsibilities for AI innovation as well as a deliberative governance approach for enacting these responsibilities. In elucidating this approach, we show how actors from the AI industry can most effectively engage with experts and nonexperts in different social venues to facilitate well-informed judgments on opaque AI systems and thus effectuate their democratic governance. (shrink)

This paper investigates how social enterprises navigate through the ethical complexity of social change and extends the ethical quandaries faced by social enterprises beyond organisational boundaries. Building on the emerging literature on the ethics of SEs, I conceptualise ethics as an engagement with power relations. I develop theoretical arguments to understand the interaction between ethical predispositions of a SE and the normative structure of the social system in which it operates. I applied this conceptualisation in a hierarchical and heterogeneous rural (...) Indian context to provide insights into the moral ambiguity of ethical decision-making and suggest pathways for ethical actions. Taking a qualitative case study approach, I followed an exemplary SE’s implementation process in India. I observed ethical challenges in designing the implementation process, selecting the beneficiaries and sustaining the programme. I also identified three actions of the SE—the action of recognition, the action of reposition and the action of collaboration—and developed a transformative process model. I discuss the theoretical implications of this research for SEs and recommend a critical engagement with ethical theories to address systemic problems. (shrink)

This article examines the concept of creating shared value as articulated by Michael Porter and Mark Kramer, in non-Western and Western contexts. We define non-Western contexts as those in so-called “developing” countries and emerging economies, whereas Western ones pertain to dominant thinking in “developed” regions. We frame our research in postcolonial theory and offer an overview of existing critiques of CSV. We conduct a critical discourse analysis of 66 articles to identify how CSV is being cited by authors, and potential (...) underlying power dynamics that affect its relevance for non-Western contexts. Our review exposes increasingly critical views about the paradoxical positioning of CSV as an instrumental concept that can offer “win-win” solutions, particularly from those working in non-Western settings. Western perspectives generally tend to be more supportive of its instrumental nature, but also recognize the increasing complexity of the business-society nexus and stakeholder engagement. We argue that the CSV framework requires further development to maintain credibility and applicability, especially in non-Western domains. (shrink)

In this paper we investigate how different discourses on frugal innovation are articulated, and how the dynamics between these different discourses have led to a certain dominant understanding of frugal innovation today. We analyse the dynamic interactions between three discourses on frugal innovation: innovations for the poor, grassroots innovations by the poor, and more recently co-creating frugal innovations with the poor. We argue that this latter discourse is articulated as a hegemonic project as it is designed to accommodate demands from (...) both business and poor communities. We draw on Laclau and Mouffe’s concepts of ‘chain of difference’, ‘empty signifier’ and ‘floating signifier’ to explain the advent of the hegemonic discourse on co-creating innovations with the poor. We show how a floating signifier with radical potential, frugal innovation, has been hijacked and co-opted in a hegemonic project that has leveraged powerful ambiguous signifiers, with co-creation acting as an empty signifier. To clarify what is problematic in this hegemonic intervention, we expose how contemporary frugal innovation discourse contributes to a project of governing and exploiting rather than helping the poor, in ways that benefit formal economic actors while further worsening global inequalities. (shrink)

Corporate anti-corruption initiatives can make a substantial contribution towards curtailing corruption and advancing efforts to achieve the United Nations’ Sustainable Development Goals. However, researchers have observed that underdeveloped assumptions with respect to the conceptualization of corruption and how firms respond to corruption risk impeding the efficacy of anti-corruption programs. We investigate the relationship between the perceived level of corruption in foreign host countries and the organizational structure of subsidiary operations established by multinational corporations. Foreign host market corruption is disaggregated into (...) two components—private and public corruption. We employ an uncertainty-based perspective grounded in transaction cost theory to focus upon the distinct mechanisms through which private and public corruption can each be expected to impact a foreign subsidiary’s organizational structure [wholly-owned subsidiary or a joint venture with a local partner]. We expect that each type of corruption fosters a different type of uncertainty which predominates in shaping the MNC’s choice of foreign subsidiary investment structure. Hypotheses are developed and tested with a sample of 187 entries into 19 foreign host markets. Each type of corruption was found to exert a distinct effect upon the organizational structure of foreign subsidiaries. More precisely, while heightened perceived levels of public corruption were found to motivate MNCs to invest through a JV with a local partner rather than a WOS, more pronounced private corruption precipitated the opposite outcome. (shrink)

ABSTRACT:The transition from modern to postmodern society leads to changing expectations about the purpose and responsibility of leadership. Habermas’s social theory provides a useful analytical tool for understanding current societal transition processes and exploring their implications for the responsibility of business vis-à-vis society. We argue that integrative responsible leadership, in particular, can contribute to the reconciliation of business with societal goals. Integrative responsible leadership understood in a Habermasian way is not only a strategic endeavor but also a communicative endeavor. An (...) essential part of integrative responsible leadership in light of the current societal transformation processes is the facilitation of discourses about a shared base of norms and values. This is exemplified alongside current societal developments like the European migration crisis or the emerging nationalist and fundamentalist movements in some countries. We specify how and when leadership should resort to communicative action and discuss the implications for leadership. (shrink)

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

In A Treatise on Virtues and Rewards, Dragonetti advances a theory of action based on rewards for virtues. The idea of rewards, especially of awards, relies on the hypothesis that intrinsic motivations drive the actions of good or virtuous citizens. We apply this theory to virtuous entrepreneurs who voluntarily adopt ethical principles as promoted by a recent Italian law. These firms receive an ethical rating by the Italian Competition Authority and can access a set of economic and non-economic benefits. We (...) survey a sample of 152 private companies with an ER and examine their views on the economic and social motivations and benefits as well as the perceived usefulness of the ER for improving ethical behaviour. An exploratory factor analysis detects four categories of motivation and two categories of benefits, which we use in regression models to test Dragonetti’s theory. Overall, respondents see the ER as an effective tool, except in terms of improving economic performance. We also find that entrepreneurs with lower economic and higher responsiveness motivations attain higher ERs. However, in the respondents’ opinions, the ER is not producing any concrete benefits since we find no relationship between the ER and economic or competitive rewards. These findings have implications for the ICA as well as for private companies. (shrink)

Environmental research has usually highlighted that the existence of slack resources in an organization helps allocate investment to innovative initiatives. However, the existing literature has paid very limited attention to how slack resources can influence the effects of focused and diversified innovations in different ways. Agency theory scholars claim that a manager’s first preference when confronted with discretionary resources will not generate positive investments for the firm, but their own opportunistic preferences. The differences between focused and diversified environmental innovations allow (...) us to gain a better understanding of the financial impact of being focused and how slack resources matter in this context. We analyze a longitudinal sample of 5845 environmental patents from the 75 largest companies in the electrical components and equipment industry worldwide. Our results show that high levels of slack resources reduce the existing positive relationship between focused environmental innovations and a firm’s financial performance. These results contribute to delineating the theoretical and empirical implications of focused versus diversified environmental innovations and extend the literature on ethical dilemmas concerning managers’ use of slack resources in the firm. (shrink)

Multi-stakeholder partnerships have become a major driver to attain the United Nations Sustainable Development Goals. However, managing MSPs is difficult because of the multiple complexities they involve. We seek to contribute to a better understanding of how MSPs cope with these complexities by exploring the MSP scope. In our study of four global health MSPs, we find that a function-oriented scope in terms of focusing on a single intervention helped filter the relevant external and internal complexities, whereas an issue-oriented scope (...) focused on addressing the health issue with multiple interventions magnified the complexities. As a result, the latter MSPs became overwhelmed and self-absorbed, while the former MSPs managed to remain outward-looking and sustain their collaborative energy and support. On this basis, we identify three mechanisms through which the MSP scope either helped or hampered the ability to cope with complexity, and we discuss the theoretical and practical implications for MSPs addressing the SDGs. (shrink)

Despite the growing importance of stakeholder management, few studies have empirically examined the influence of stakeholder relationship capability on firm innovation, especially in emerging economies. This study investigates how SRC relates to firm innovation in the presence of governmental intervention and in combination with firm-level characteristics. Using a survey and multiple secondary datasets on the listed Chinese firms, our findings indicate that SRC is positively associated with firm innovation. Moreover, advanced legal development and high-tech status strengthen the positive link between (...) SRC and innovation, whereas state ownership and firm age weaken this relationship. These findings provide novel insights into how firms use stakeholder management to enhance innovation that is beneficial for economic growth. (shrink)

The United Nations’ increasing involvement in global sustainability culminated in 2015 with the release of the 2030 Agenda. This agenda puts businesses in the spotlight, and their innovation and stakeholder partnering activities are portrayed as essential strategies for achieving an ambitious set of 17 Sustainable Development Goals. In this study, we identify six distinct dynamic stakeholder engagement strategies—resilient specialists, opportunity explorers, uncommitted diversifiers, rainbow warriors, rainbow washers, and progressive learners—and distinguish two approaches to innovate, depending on the range of SDG (...) targets aimed to achieve simultaneously. On the one hand, for firms that take a narrow approach intended to achieve a reduced set of SDG targets, we predict that successful dynamic stakeholder engagement strategies are those that end up with an intensive collaboration with a reduced number of stakeholder groups. On the other hand, for firms adopting a broad innovation approach to satisfy a wide set of SDG targets, we predict that successful dynamic stakeholder engagement strategies are those that end up interacting with a wide number of stakeholder groups. Longitudinal analysis of more than 3900 Spanish firms supports our predictions and suggests clear implications for responsible innovation research and the advancement of sustainable development through collaboration. (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)

To date, the value of corporate social responsibility (CSR) activities has primarily been measured through the company’s reputation, with little attention given to exploring whether there are internal influences between CSR and other management practices. We argue that the efficacy of CSR extends beyond a company’s reputation for managing social and environmental concerns; in particular, it can influence other business practices such as risk management. Our results suggest that (a) overall, firms with better CSR performance are more likely to adopt (...) integrated risk management practices and (b) CSR activities that target both primary stakeholders and secondary stakeholders are equally important in facilitating the adoption of such risk management practices. Theoretically, we contribute to the CSR literature by providing a possible mechanism for risk reduction and insurance-like effects of CSR. Practically, we provide managerial implications demonstrating that the efficacy of CSR should not be viewed in isolation of other business practices. (shrink)

As stated by previous researchers, in an increasingly competitive environment, organizations need to develop successful innovations to compete and survive in the long term. Furthermore, sustainability and social issues are gaining increasing importance, to the extent that they are now a matter of high concern for firms and for society. Therefore, organizations cannot improve their results at any price and must be responsible for the consequences of their activities, including innovation. In these conditions, a growing demand for new leadership styles (...) and behaviors arises to face this complex context. Stewardship is a leadership behavior that shows great concern for the impact of the organization’s activity on society. A quantitative study has been conducted with the purpose of providing empirical evidence of the relationship between leaders’ stewardship behavior and innovation success, using radical innovation as an explanatory variable. To confirm the hypotheses, structural equations were used on a dataset from a sample of 300 questionnaires from Spanish companies. The study empirically validates the proposed conceptual model. Results show how radical innovation fully mediates the relationship between leaders’ stewardship behavior and innovation success. (shrink)

Previous Responsible Innovation (RI) research has provided valuable insights on the value conflicts inherent to societally desirable innovation. By observing the responses of firms to these conflicts, Value-sensitive Absorptive Capacity (VAC) captures the organizational capabilities to become sensitive to these value conflicts and thus, innovate more responsibly. In this article, we construct a survey instrument to assess VAC, based on previous work by CSR and RI scholars. The construct and concurrent validity of the instrument were tested in an empirical study, (...) including 109 employees of 30 food manufacturing firms. The results from the survey were then compared with the conceptual VAC dimensions. With this comparison, we do not only contribute to the substantiation of the VAC construct, but we also show how inductive and deductive approaches can be combined to build theory regarding RI in a transdisciplinary manner. (shrink)

One of the main contentions of the framework for Responsible Innovation (RI) is that social and ethical aspects have to be addressed by deliberative engagement with stakeholders and the wider public throughout the innovation process. The aim of this article is to reflect on the question to what extent is deliberative engagement suitable for conducting RI in business. We discuss several tensions that arise when this framework is applied in the business context. Further, we analyse the place of deliberative engagement (...) in several theories of business ethics. We conclude that there remains a tension between the ideal of RI and the way in which the competitive market operates. Hence, RI scholars should reflect more critically on changes that are required in the market in order to make RI possible, modify the ideal of deliberative engagement for RI in business, or attempt to strike a balance between these two responses. (shrink)

The circular economy (CE) framework has captured the attention of industry and academia and received strong policy support. It is currently deemed as a powerful solution for sustainability, despite ongoing criticism on its oversimplification and lack of consideration of socio-ethical issues. In parallel, the concept of RRI has emerged strongly with a strong focus on the integration of social desirability in innovation under transparency, democracy and mutual responsiveness principles. In this paper, we critically examine the literature on the CE and (...) RRI in order to find out how the different focus of RRI may provide an innovation governance framework to strengthen the CE framework. There are two main ways in which RRI could further the CE: first, anticipating unexpected consequences, helping to break disciplinary barriers and acknowledging systemic limits that are not currently taken into consideration; and second, the integration of socio-ethical issues in the CE, and addressing the social implications of the CE through stakeholder participation. However, future research should look at remaining blind spots of CE and RRI, such as non-technological innovation, the demand-side of innovation and the development of business models. With that objective, we suggest a research agenda for common development of the frameworks. (shrink)

In our time, innovation is considered an important way to address societal problems. That we expect so much from innovation to solve the challenges of our time, makes the question what could count as ‘responsible innovation’ more pressing. And that is what this thesis is about. The aim of this thesis is to offer philosophical reflections on responsible innovation in the business context. Since that is still a quite broad topic, the main title suggests its further focus: deliberation and food. (...) The first focus originates from the idea in the academic literature on responsible innovation, that innovators should not just assess by themselves what ‘responsible’ is, but should invite others to think along with them about the social and ethical aspects of innovation. Chapter 2 to 4 zoom in on this aspect of responsible innovation. The second focus has to do with the specific context of application, namely food and the food industry. Chapter 4 and 5 relate the topic of responsible innovation to this context. The question I raise in chapter 2 is whether the ideal of inclusive deliberation is suitable for innovation processes in businesses. I argue that this is not so easy, and provide different reasons why companies might not be willing to involve societal stakeholders into their innovation processes. First, the requirement of deliberation can be tension with the ability of companies to exploit their innovations commercially within a competitive market. Second, deliberation requires a certain degree of transparency about the innovation strategy of a company. Companies might not be willing to provide this transparency, because they fear knowledge leakage to other companies. Third, companies are controlled most often by people with a financial stake. Therefore, we can expect that financial considerations are decisive in the investment decisions of companies. This could conflict with the ideal of responsible innovation to ‘democratize’ innovation processes. Hence, I suggest that scholars should modify the ideal of deliberation in order to make it suitable to the business context, or they should suggest changes in the governance and regulation of markets so as to make deliberation more workable. Chapter 3 discusses the place of conflict and self-interest in deliberation. It starts with a discussion of the literature on stakeholder dialogue. In this literature, the ideal dialogue is presumed to aim at consensus. This also implies that participants avoid conflict and set self-interested considerations aside. I argue that this ideal of dialogue is problematic, especially for a dialogue between companies and NGOs. I show that companies can never completely set aside their profit-orientation, and hence that this ‘self-interest’ always influences their input in a dialogue. Furthermore, conflict and criticism can be necessary to make clear that societal problems require more attention, whether from the general public or from companies. Since the market is an imperfect institution, we need critical citizens and stakeholders such as NGOs to assess the behavior of companies. A certain degree of conflict between companies and NGOs may therefore be more desirable than a focus on consensus. For these reasons, I develop an alternative approach to dialogue in which conflict and self-interest have a legitimate place, and can even play a productive role. In chapter 4, a case-study is conducted to better understand how participants in a dialogue deal with conflicts. In this case-study, I analyzed different dialogues organized by the foundation ‘Ik Kies Bewust’, which issued a front-of-pack health label. In my analysis, I investigate the conflict between, on the one hand, the value of public health and healthy food, and, on the other hand, the commercial interests of companies. In the responses of companies to this conflict, three patterns became visible. First, companies frame their critics as not constructive, because, in their view, they only criticize but do not help to improve the label. Second, they stressed that they are really and genuinely motivated to make food healthier or to make a healthy food choice easier. Thereby, they seemingly tried to counter the image that they are just motivated to make profit. Third, they called on the government to take more control over the label, because this would make the label more reliable and more broadly adopted. I qualify these responses as defensive, which means that the conflict between commercial considerations and public interests is suppressed or ignored. An active response would require to recognize and confront the conflicts and dilemmas that companies face. The case-study makes clear how difficult it can be to engage in dialogue with critical stakeholders. In chapter 5, I reflect on how food innovation can be responsible. In trying to answer this question, I take a certain detour, by starting a discussion about the place of food in a life well-lived. For this purpose, I use the philosophy of Albert Borgmann. On the basis of my analysis of his philosophy, I argue that there are good reasons for engaging with food in active way, for example by growing your own vegetables and home-cooking, instead of consuming food merely passively. I also draw some implications for food innovation. In my view, people responsible for food innovation should critically assess whether new products or services enhance engagement or disengagement. Is it desirable, for example, to develop even more and better pre-packaged meals, or should we stimulate consumers to cook by themselves? I argue that it would be problematic if our overall pattern of dealing with food is characterized by disengagement and convenience, and hence that food innovation should not only go in this direction. (shrink)