Identifying Worldviews on Corporate Sustainability: A Content Analysis of Corporate Sustainability Reports

Companies commonly issue sustainability or corporate social responsibility (CSR) reports. This study seeks to understand worldviews of corporate sustainability, or the corporate message conveyed regarding what sustainability or CSR is and how to enact it. Content analysis of corporate sustainability reports is used to position each company report within stages of corporate sustainability. Results reveal that there are multiple coexisting worldviews of corporate sustainability, but the most dominant worldview is focused on the business case for sustainability, a position anchored in the weak sustainability paradigm. We contend that the business case and weak sustainability advanced in corporate sustainability reports and by the Global Reporting Initiative are poor representations of sustainability. Ecological embeddedness, or a locally responsive strategy that is sensitive to local ecosystems, may hold the key to improved ecological sensemaking, which in turn could lead to more mature levels of corporate sustainability worldviews that support strong sustainability and are rooted in environmental science. This must be supported by government regulation. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

A Transdisciplinary Exploratory Model of Corporate Responses to the Challenges of Environmental Sustainability

Global surveys of business leaders identify the environment as a major issue of concern, but uncertainties about how to address the challenges of environmental sustainability are cited as a significant inhibitor to business responses. Persistent levels of corporate uncertainty in this domain may be due to the complexity of issues and difficulties in meaningfully capturing this complexity. Calls have been made for new ways to produce knowledge about complex societal challenges, including environmental sustainability. This paper aims to reduce business uncertainties and to stimulate business and research initiatives. The paper describes a field study of a global corporation's pioneering responses to environmental sustainability. The study highlights academic and practitioner collaboration to generate, transfer and implement new knowledge through an innovative research approach. The outcome is a transdisciplinary, exploratory model, presenting a progression of integrated activities and processes within eight categories of corporate responses. Implications for research and practice are considered. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.     

Corporate Sustainability and Economic Performance: an Empirical Analysis of a Voluntary Environmental Program in the USA

Voluntary environmental programs (VEPs) are designed based on a win–win approach to environmental protection that reconciles environmental protection and economic performance. Despite the claims about VEPs, there has been an ongoing debate over their efficacy with regard to whether environmental goals are balanced by economic interests on both theoretical and empirical grounds. To resolve this controversy, this paper empirically investigates a public VEP by the US Environmental Protection Agency: Green Lights (GL). For this, the paper constructs a treatment effects regression model to account for the effects of non‐random assignment for GL participants and non‐participants. The proposed model can simultaneously estimate probit models that predict corporate participation in the GL program and linear models that test the extent to which this participation contributes to economic performance. The results indicate significant positive effects of corporate participation in the GL program on economic performance, providing support for the win–win perspective. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment     

Two Dimensions of Corporate Sustainability Assessment: Towards a Comprehensive Framework

Over the last years, many approaches have emerged that attempt to measure the contribution of firms to sustainable development, i.e. corporate sustainability. Our review of existing methodologies for the assessment of corporate sustainability reveals two major shortcomings. First, value creation as a core condition for sustainability as well as for further contributions to economic sustainability is often ignored in these assessments, suggesting that financial and non‐financial organizational processes are separable. Second, existing approaches fail to differentiate between the actual contribution of a firm to sustainability on the one hand, and governance‐related features aimed at attaining this contribution on the other. We argue that the implementation of sustainability‐oriented organizational structures and managerial instruments alone does not necessarily guarantee sustainability performance. Therefore, besides the dimension of current sustainability performance, we introduce the notion of sustainability governance as a second distinct dimension of corporate sustainability assessment. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.     

Recipes for Successful Sustainability: Empirical Organizational Configurations for Strong Corporate Environmental Performance

We examine 45 existing case studies of firms with strong corporate environmental performance (CEP) to empirically identify four organizational configurations for successful sustainability. These four configurations represent different combinations of variables describing a firm's external environment, organizational structure, and its strategy‐related activities. More specifically, these configurations vary in having a benign or challenging external environment, a mechanistic or organic structure, a low‐cost or differentiation strategy, hands‐on or hands‐off participation by the top management team, high or low consideration given to stakeholders, and a short‐ or long‐term time orientation. Taken together the four organizational configurations introduce an understanding of equifinality for achieving CEP. In other words, given an adequate variety of ingredients, there are multiple recipes for successful sustainability. Implications for scholars, practitioners and policy‐makers and other stakeholders are discussed. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.     

The Road to Sustainability: Exploring the Process of Corporate Environmental Strategy Over Time

We explore corporate environmental strategy over time, investigating the patterns of evolving environmental investment decisions. Longitudinal case studies provide evidence that environmental strategy evolves through a feedback process, wherein outcomes of earlier decisions have an impact on subsequent decisions. Specifically, positive feedback from outcomes like innovation triggers higher goals, enhancing the undertaking of advanced investments, whereas negative feedback from outcomes, such as increased costs, decelerates the adoption of further investments. The study points to an emergent view of environmental strategy, where capabilities that are gradually developed in concomitance with environmental outcomes lead to an upgrading of environmental goals, thus triggering the feedback process. The process eventually culminates in higher levels of environmental conduct, being more and more integrated with business strategy and competitive advantage. Managers' values and environmental attitudes influence environmental decisions and actions, affecting the acceleration of the feedback process and the magnitude of responses. Managerial implications are discussed. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment     

ISO 26000 and the Standardization of Strategic Management Processes for Sustainability and Corporate Social Responsibility

The standard ISO 26000 aims to provide guidance on social responsibility and help all types of organizations contribute to sustainable development. Such guidance is important since there is still no consistent understanding of what corporate sustainability and social responsibility (CSSR) encompass. Many companies lack a strategic approach to CSSR and instead follow unsystematic procedures; thus, formal strategic planning could improve operational efficiency. Against this background, this article critically examines the contribution of ISO 26000 to the strategic management processes of different types of companies. This allows the potential of ISO 26000 for guiding companies on their path to sustainability to be identified. The analysis shows that the standard is most useful for beginners in CSSR. However, ISO 26000 does not cover the entire range of strategic management processes. Instead, the standard is especially helpful for internal and external analyses and in providing starting points for implementing sustainability strategies. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.     

Sustainability Targets in Executive Remuneration: Targets,Time Frame,Country and Sector Specification

Existing remuneration plans for CEOs still mainly focus on financial performance and do not necessarily promote sustainable value creation for their firms. By way of reaction to this, a growing number of academics and practitioners are acknowledging the need for the inclusion of sustainability targets in executive remuneration. This study examines the current status of the use of sustainability targets in executive remuneration specified by country, sector and targets. Based on a sample of 490 listed firms from 11 countries and different sectors, the use of targets related to sustainability in executive remuneration is assessed. The targets are specified by kind of target (short term and long term) and content of target (environmental, social or a combination of both). The results of this study show that (a) in 2010 on average 33% of the firms used sustainability targets in remuneration, (b) mainly the ‘dirty’ industries use targets, (c) the targets used are mainly short‐term targets and (d) they focus on social issues. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

Sustainability in the Transport and Logistics Sector: Lacking Environmental Measures

Sustainability as part of the development of companies' business strategies is gaining in importance. Due to its impact on the environment, this is particularly essential for companies of the transport and logistics sector. This paper explores several factors that influence the environmental behaviour of transport and logistics companies in Austria. It discusses the importance of the economic impact on environmental management decision in detail and analyses the sector's specific characteristics in terms of environmental behavior. A case‐based approach involving multiple field studies with face‐to‐face expert interviews and secondary data analysis was used to evaluate environmental performance and specific practices. Using selected cases, we will demonstrate how environmental measures contribute to overall business performance and draw general conclusions regarding the transport and logistics sector. Furthermore, suggestions are given as to how the government can further support transport and logistics companies in this regard. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.     

Corporate environmentalism strategy in the Spanish consumer product sector: a typology of firms

In recent years, the protection of the environment has gained a growing importance. Accordingly, small and large firms have become aware of their responsibility and begun to develop environmental strategies as an enterprising challenge. In such a situation, this study describes firms' environmental orientation and its impact on the design of corporate and marketing strategies in the Spanish consumer product sector. The purpose of this paper is to identify different groups of firms according to their environmental behaviour. The information was obtained through 81 personal interviews with firms in the final consumer product sector. With the data obtained we have conducted several exploratory and confirmatory factor analyses and a cluster analysis. Findings have proved that there is a specific firm type characterized by certain variables: influence of external forces; environmental orientation; corporative and marketing strategies; size; macro‐sector and, if existing, the environment department. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

Organizational Sustainability Determinants in Different Cultural Settings: A Conceptual Framework

Since the link between organizations’ sustainability initiatives and effects from the societal environment has not been consistently established in the literature, this paper provides a conceptual framework to demonstrate the antecedents to the levels of sustainability initiatives undertaken by firms. Taking insights from institutional theory, it proposes that the relationship between the sustainability determinants and the level of sustainability initiatives is mediated by coercive, mimetic and normative isomorphic pressures. Moreover, it suggests that culture plays a significant role in moderating the extent to which the various types of isomorphic pressure on firms may influence the levels of firms’ sustainability initiatives. The implications of the framework are discussed in the light of encouraging sustainability initiatives and overall sustainable development in various cultural settings as well as undertaking future research to enhance the framework and its applicability. Copyright © 2018 John Wiley & Sons, Ltd and ERP Environment     

Boards and Sustainability: the Contingent Influence of Director Interlocks on Corporate Environmental Performance

This paper highlights the importance of a firm's board with respect to sustainability issues by analysing the relationship between director interlocks, i.e. directors who simultaneously belong to the boards of directors of several companies, and a firm's environmental performance. The previous literature has focused on the influence of firm‐level resources on corporate environmental performance. This study utilizes insights from a resource‐based view and research on social capital to demonstrate that the environmental performance of a firm is also influenced by the difficult‐to‐imitate capabilities that are embedded in the network relationships of its directors. Our results support a contingency perspective of the social capital theory that finds that director interlocks are positively connected with the environmental performance of a firm in two specific situations: (1) when the firm is linked to a larger parent company and (2) in cases of low and high levels of interlock diversity. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.     

Cultivating Ecological Knowledge for Corporate Sustainability: Barilla's Innovative Approach to Sustainable Farming

In this paper, we link three theoretical perspectives – organizational knowledge, ecological knowledge and social–ecological systems – to derive new conceptions of multi‐disciplinary, multi‐tier, sustainability‐oriented knowledge. Our study examines how collaboration between pasta‐producer Barilla, the farmers/smallholders supplying the firm and scientists generated sustainability practices in the agri‐food industry by creating transformative ecological, technical and scientific knowledge. In 2010, Barilla initiated a sustainable farming project to significantly reduce the environmental impact of cultivating durum wheat, its most important raw material. Core components included replacing monoculture with crop rotation, collectively creating innovative approaches that support farmers’ decision making and generating widely accessible guidelines for sustainability‐oriented cropping knowledge and practices. These collaborative efforts initiated profound transformations within and beyond the organization's boundaries via increased production yields, reduced environmental impacts and improved sustainability of farming practices, which generated economic, social and ecological benefits for farmers, surrounding communities and the firm. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment     

危机环境中的企业困境与自救——国内外企业危机研究综述与比较分析

随着金融危机、疫情危机等带来的商业环境剧烈变化,企业危机话题越来越受到国内外学者的关注。基于文献计量方法,统计分析了CSSCI库与SSCI库中2005—2019年的相关文献,梳理并比较国内外企业危机话题的演化趋势、研究现状与发展前沿。研究发现,国内外企业危机研究基本在第一阶段都普遍关注公司治理与财务管理问题,第二阶段关注金融危机对企业造成的影响,第三阶段则主要关注产品伤害危机相关问题,但在本阶段国内外研究呈现一定的分化。从研究内容来看,国内外企业危机研究基本从危机的形式、应对及预警三个方面展开,其中在危机应对角度上国内研究主要是基于已有理论框架论述危机管理策略,国外研究则强调利用实证数据推导特定危机问题下的特定危机应对方法。最后,在未来趋势方面,国内趋于关注“社会化媒体”“溢出效应”及“品牌危机”等话题,而国外研究则更关注“企业社会责任”话题。     

Corporate engagement in processes for planetary sustainability: understanding corporate capacity in the non‐renewable resource extractive sector,Australia

In recent years corporations have come under increasing pressure from governments, consumers, investors, competitors, business partners and communities to balance their pursuit of economic gain with environmental and social concerns. Non‐renewable resource extractive corporations in particular, due to their profile, visibility and activities, have come under mounting pressure to embed the concept of ecological sustainability into strategic decision‐making processes and operations. In this regard, there is a growing base of evidence that describes efforts, successes and failures in the sector to meet mounting societal expectations. However, to date there has been limited explanatory research into corporate capacity to engage in processes for ecological sustainability. This paper presents an emergent explanation of the internal factors mediating corporate engagement in ecological sustainability in non‐renewable resource extractive corporations in Australia. It identifies the five factors of leadership, resources, structures, culture and understanding and conceptualizes these internal factors as capacity for engagement. While all of the factors are seen as interdependent and essential, leadership is identified as the most critical. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.     

Corporate governance and sustainability in water utilities. The effects of decorporatisation in the city of Naples,Italy

The recent economic literature has largely investigated sustainability in the provision of public utilities, highlighting the role of governance models in the determination of economic results. Little attention however has been devoted to the social and environmental dimensions of sustainability. In Italy, a long-lasting debate on governance structures in the water sector has been fuelled by scholars and policymakers for more than 30 years, whereas the first (and unique) experiment involving the return of full public management in water provision is taking place in the city of Naples. The present work analyses this peculiar case study, aiming to assess the effects of a major governance shift that occurred in the early 2010s—that is, decorporatisation—in terms of economic, social and environmental sustainability. We resort to a bundle of qualitative and quantitative techniques to address the research question and our exploratory results suggest that decorporatisation was overall beneficial: Although little changed in terms of economic sustainability, the social and environmental dimensions benefitted from the shift in governance.     

The Role of Corporate Sustainability in a Low‐Cost Business Model – A Case Study in the Scandinavian Fashion Industry

This multi‐level case study illustrates how corporate sustainability contributes to the low‐cost business model of a Scandinavian fashion company. Contrary to parts of the extant literature, we do not find that corporate sustainability directly adds measurable value (e.g. a better brand image); neither does it exert coercive control over critical supplier relationships. However, corporate sustainability minimizes the downside risk of the business model. It does so by (1) creating implicit contracts that reach beyond traditional ‘shareholder value’, (2) transferring risk to suppliers and (3) improving leadership by motivating management and employees, and by directing their attention to critical issues. For companies, we offer the insight that corporate sustainability is a necessary complement to shareholder value, even if the relationship is not obvious at first sight. We also suggest that concerted actions of companies or a positive connotation of certification create effective control over suppliers. As to public policy, we conclude that regulators could introduce mandatory disclosure of suppliers to facilitate controls through stakeholders, or alternatively an industry‐wide comply‐or‐explain code of conduct. We also address how regulators can take direct actions against countries with unsustainable labor policies. Last, we suggest future research topics, e.g. expanding the notion of a business model by interpreting ‘adding value’ as prevention of losses. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.     

Corporate sustainability and innovation in SMEs: Evidence of themes and activities in practice

Recently, innovation processes towards sustainable development have received increasing attention in academic literature. This research introduces the combination of insights from innovation theory, sustainable development practice and small business characteristics to unlock new knowledge on factors that influence the translation of sustainable innovation within small and medium‐sized enterprises (SMEs) into practice. The sustainability themes and activities as described for large companies (i.e. in the sustainability reporting and management literature) were used as starting point in this study. It presents empiric results of the PRIMA Project conducted within the rubber and plastics industry (RPI) on sustainable innovation activities. It will show that many sustainable innovations are directed at the improvement of technological processes (eco‐efficiency) and to lower costs of production. These innovations can be seen as incremental. Companies with sustainability integrated in their orientation and innovation processes show value creation: the development of products new to the market (radical innovations) and cooperation with stakeholders. The PRIMA project shows that more insight in SME innovative characteristics and (e)valuation of sustainable innovation efforts provides opportunities to improve the sustainability performance of SMEs. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.     

Corporate sustainability and financial performance: Collective reputation as moderator of the relationship between environmental performance and firm market value

Markets value superior corporate sustainability performance in part because investors use a firm's environmental performance as a signal of desirable but difficult-to-observe attributes, such as the firm's integrity capacity. Yet a signaling conflict can arise when a firm belongs to an organizational form that has a collective reputation for being unethical. In such circumstances, the firm's environmental performance may no longer credibly signal its underlying integrity capacity, leading markets to adjust downward the value they would otherwise place on the firm's environmental performance. Using longitudinal data on South Korean firms, we find that improvements in firm environmental performance lead to smaller increases in market values for firms belonging to a poorly reputed organizational form. However, firms can partially recover lost value by adopting firm features that reduce the signaling conflict, thereby restoring the notion of corporate sustainability performance driving firm market values.