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

Businesses have long been admonished for being unduly focused on the pursuit of profit. However, there are some organizations whose purpose is not exclusively economic to the extent that they seek to constitute common good. Building on Christian ethics as a starting point, our article shows how the pursuit of the common good of the firm can serve as a guide for humanistic management. It provides two principles that humanistic management can attempt to implement: first, that community good is a (...) condition for the realization of personal good, and second, that community good can only be promoted if it is oriented towards personal good. To better understand which community good can favor personal good and how it can be achieved, we examine two recent humanistic movements—Conscious Capitalism and Economy of Communion—that strive to participate in the common good. From the analysis of these two movements, we identify a shared managerial willingness to adopt the two principles. Moreover, we also reveal that Conscious Capitalism and Economy of Communion present different ways of linking community good and personal good, and therefore, different means exist for firms to participate in the common good. (shrink)

This article examines the explicit and implicit corporate social responsibility (CSR) framework and its implications for leadership style, in a major banking institution. Evidence for existence of the framework's key concepts in relation to leadership styles was explored through the self-reported sensemaking of leaders charged with CSR programme introduction. Qualitative data analysis indicated that explicit CSR is linked to an autocratic leadership style, whereas implicit CSR is more closely aligned with emergent and authentic styles. Although our results reinforced key aspects (...) of the explicit and implicit CSR framework, they demonstrated conflicting systems of both CSR and leadership within our case organisation and highlighted the difficulty in categorising such a complex concept as CSR according to specific frameworks. Overall, our data suggest that the leadership styles, needed to successfully implement explicit and implicit CSR programmes, are in conflict. Given our finding that these CSR systems can coincide within one organisation, we suggest that the debating style of transformational leadership may be the required linchpin. (shrink)

This paper explores how fair trade social enterprises manage paradoxes in stakeholder-oriented governance models. We use narrative accounts from board members, at governance events and board documents to report an exploratory study of paradoxes in three FTSEs which are partly farmer-owned. Having synthesized the key social enterprise governance literature and framed it alongside the broader paradox theory, we used narratives to explore how tensions are articulated, how they can be applied within an adapted paradox framework, and how governance actors seek (...) to mitigate paradoxes. The paper contributes to current debates in social enterprise scholarship concerning hybridity :455–476, 2010; in Institutional logics in action, Part B, 2012), hybrid organizing :397–441, 2014) and operational tensions :407–442, 2013) by illustrating empirically how the central social/enterprise paradox manifests in FTSEs governance arrangements. We build on the paradox categories proposed by Lüscher and Lewis :221–240, 2008) and adapted in Smith et al. :407–442, 2013) by developing a recursive model of legitimacy-seeking governance processes, conceptualizing how boards seek to mitigate, but not necessarily resolve, paradoxes. (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)

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)

The Corporate Social Responsibility (CSR) field presents not only a landscape of theories but also a proliferation of approaches, which are controversial, complex and unclear. This article tries to clarify the situation, mapping the territory by classifying the main CSR theories and related approaches in four groups: (1) instrumental theories, in which the corporation is seen as only an instrument for wealth creation, and its social activities are only a means to achieve economic results; (2) political theories, which concern themselves (...) with the power of corporations in society and a responsible use of this power in the political arena; (3) integrative theories, in which the corporation is focused on the satisfaction of social demands; and (4) ethical theories, based on ethical responsibilities of corporations to society. In practice, each CSR theory presents four dimensions related to profits, political performance, social demands and ethical values. The findings suggest the necessity to develop a new theory on the business and society relationship, which should integrate these four dimensions. (shrink)

Originally published in 1960, The Constitution of Liberty delineates and defends the principles of a free society and traces the origin, rise, and decline of the rule of law. Casting a skeptical eye on the growth of the welfare state, Hayek examines the challenges to freedom posed by an ever expanding government as well as its corrosive effect on the creation, preservation, and utilization of knowledge. In distinction to those who confidently call for the state to play a greater role (...) in society, Hayek puts forward a nuanced argument for prudence. Guided by this quality, he elegantly demonstrates that a free market system in a democratic polity—under the rule of law and with strong constitutional protections of individual rights—represents the best chance for the continuing existence of liberty. Striking a balance between skepticism and hope, Hayek's profound insights remain strikingly vital half a century on. This definitive edition of The Constitution of Liberty will give a new generation the opportunity to learn from Hayek's enduring wisdom. (shrink)

Despite the millions of hours donated to charity each year by employees on behalf of their employers there has been relatively little research into the motives for such pro-social behavior. The current paper extends Peterson’s (2004, Journal of Business Ethics 49, 371) study by exploring a unique form of employee volunteerism identified as intra-organizational, or employer-sanctioned volunteerism, and uniting the heretofore distinct charity support and organizational citizenship behavior literatures. Results of a preliminary study revealed that employee participation in such intra-organizational (...) volunteer programs is motivated by charity, firm, and personal benefits. Managerial and research implications are presented. (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)

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

Employee buy-in is a key factor in ensuring small- and medium-size enterprise (SME) engagement with corporate social responsibility (CSR). In this exploratory study, we use participant observation and semi-structured interviews to investigate the way in which three fair trade SMEs utilise human resource management (and selection and socialisation in particular) to create employee engagement in a strong triple bottomline philosophy, while simultaneously coping with resource and size constraints. The conclusions suggest that there is a strong desire for, but tradeoff within (...) these companies between selection of individuals who already identify with the triple bottomline philosophy and individuals with experience and capability to deal with mainstream brand management – two critical employee attributes that appear to be rarely found together. The more important the business experience to the organisation, the more effort the organisation must expend in formalising their socialisation programmes to ensure employee engagement. A key method in doing this is increasing employee knowledge of, and affection for, the target beneficiaries of the CSR programme (increased moral intensity). (shrink)

Existing research posits that decision makers use specific cognitive frames to manage tensions in sustainability. However, we know less about how the cognitive frames of individuals at different levels in organization interact and what these interactions imply for managing sustainability tensions, such as in Bottom of the Pyramid projects. To address this omission, we ask do organizational and project leaders differ in their understanding of tensions in a BOP project, and if so, how? We answer this question by drawing on (...) a 5-year study of a BOP project of a global pharmaceutical company in India. In line with the existing research, we found three kinds of frames—paradoxical, business case, and business—held differently across organizational levels and over time. We also found that the shift in frames of both project and organizational leaders was mediated by the decision-making horizon. The initial divergence across organizational levels, seen in paradoxical and business frames, was mediated by long-term decision-making horizon. However, there was an eventual convergence toward business frames associated with the shift from long- to shorter-term decision-making horizons and one that led to the project’s closure. We contribute by proposing a dynamic model of cognitive frames in sustainability, where the research has either alluded to top-down or bottom-up understanding. (shrink)

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

This conceptual article examines the relationship between marketing and sustainability through the dual lenses of anthropocentric and ecocentric epistemology. Using the current anthropocentric epistemology and its associated dominant social paradigm, corporate ecological sustainability in commercial practice and business school research and teaching is difficult to achieve. However, adopting an ecocentric epistemology enables the development of an alternative business and marketing approach that places equal importance on nature, the planet, and ecological sustainability as the source of human and other species’ well-being, (...) as well as the source of all products and services. This article examines ecocentric, transformational business, and marketing strategies epistemologically, conceptually and practically and thereby proposes six ecocentric, transformational, strategic marketing universal premises as part of a vision of and solution to current global un-sustainability. Finally, this article outlines several opportunities for management practice and further research. (shrink)

ABSTRACT:This study examines whether the empirical evidence on the relationship between corporate social performance (CSP) and corporate financial performance (CFP) differs depending on the publication outlet in which that evidence appears. This moderator meta-analysis, based on a total sample size of 33,878 observations, suggests that published CSP-CFP findings have been shaped by differences in institutional logics in different subdisciplines of organization studies. In economics, finance, and accounting journals, the average correlations were only about half the magnitude of the findings published (...) in Social Issues in Management, Business Ethics, or Business and Society journals (mean corrected correlation coefficientof.22 vs..49, respectively). Specifically, economists did not find null or negative CSP-CFP correlations, and average findings published in general management outlets (=.41) were closer to Social Issues in Management, Business Ethics, and Business and Society results than to findings reported in economics, finance, and accounting journals. (shrink)

In a society where the ideology of shareholder value maximization prevails, how do evaluators make appraisal and bonus decisions when corporate social responsibility measures and financial measures in the balanced scorecard point in different directions? To explore this question, we conducted two studies to develop and test a conceptual framework. Participants were asked to evaluate the performance of two managers, using a case we wrote about a commercial bank. We found that evaluators are more willing to drop CSR performance measures (...) than financial measures from the evaluations; perceived CSR relevance is influenced by where evaluators stand in regard to CSR and also by where evaluators believe shareholders stand ; and there is a financial bias in appraisal and bonus decisions when CSR measures are used in the BSC, consistent with SVM ideology. We conclude by discussing the implications of the influence of SVM ideology on the use of CSR measures in terms of business research, practice, and education. (shrink)

Driven by increased consumer interest and stakeholder pressure, the number of Fairtrade (FT) products has been steadily increasing. The mainstreaming of FT means that the products are now facing stiff competition within the generic product categories in which they operate. While consumers may pressure organizations for ethical conduct, they are less willing to pay premium prices for fairly traded products. For FT to continue to grow, more efficient operating models are required to offset the premium prices paid to producers to (...) ensure competitiveness in the market. One such improvement approach may be the management of FT supply chains. To investigate the feasibility of this approach, this article systematically combines literature on FT with key supply chain management (SCM) constructs and theories. We discuss existing SCM paradigms in the context of FT and demonstrate aspects where the efficiency of FT chains needs to be improved to ensure their viability. We present propositions that demonstrate the key limitations of the FT model from the point of view of SCM theory and practice and suggest the potential changes needed in the management of FT supply chains. The article provides a timely first attempt to systematically combine FT with SCM constructs, thus establishing a basis for the further development of FT chains and for the improvement of the operating efficiency within them. (shrink)

Providing people with information is considered an important first step in encouraging them to behave sustainably as it influences their consumption beliefs, attitudes and intentions. However, too much information can also complicate these processes and negatively affect behaviour. This is exacerbated when people have accepted the need to live a more sustainable lifestyle and attempt to enact its principles. Drawing on interview data with people committed to sustainability, we identify the contentious role of knowledge in further disrupting sustainable consumption ideals. (...) Here, knowledge is more than just information; it is familiarity and expertise or how information is acted upon. We find that more knowledge represents a source of dilemma, tension and paralysis. Our data reveal a dark side to people’s knowledge, leading to a ‘self-inflicted sustainable consumption paradox’ in their attempts to lead a sustainable consumption lifestyle. Implications for policy interventions are discussed. (shrink)

Despite a strong plea for integrating sustainability goals into traditional corporate bonus schemes, a comprehensive implementation of these systems has been lacking until recently. This article explores four illustrative cases from the Netherlands, where several multinationals started to pioneer with sustainable bonuses in the past few years. The article examines the setups and the different elements of bonus programmes used, in terms of performance criteria (focusing in particular on external vs. internal benchmarking), their link to specific stakeholders, type and size (...) of bonuses, target levels and transparency. While sustainable bonuses signal corporate awareness of responsibility vis-à-vis society and stakeholders, credibility varies considerably depending on these elements. Our case evidence sheds some light on the extent to which sustainable bonuses may be a credible sign of corporate responsibility or rather just another perverse mechanism meant to keep up bonus levels (window dressing). A definite assessment is hampered by the emergent state and lack of full transparency—while ‘justified’ by companies for competitive reasons, this raises questions. Insights are offered to appraise current and future systems and provide directions for further research. (shrink)