Perspectives on Corporate Excellence in Retailing

This paper focuses on the strategic and organizational determinants of superior corporate performance in retailing. Previously published studies on excellent companies at large, and on excellent retailing companies are reviewed, and the results of a content analysis of a small sample of excellent retailing companies are reported. Cheif among the hallmarks of excellent retailing companies uncovered are: excellence in human resources, focus on planning and control, market dominance, intimate knowledge of the served markets, technology edge and equitable sharing.     

Corporate Social Performance, Stakeholder Orientation, and Organizational Moral Development

This article begins with an explanation of how moral development for organizations has parallels to Kohlberg's categorization of the levels of individual moral development. Then the levels of organizational moral development are integrated into the literature on corporate social performance by relating them to different stakeholder orientations. Finally, the authors propose a model of organizational moral development that emphasizes the role of top management in creating organizational processes that shape the organizational and institutional components of corporate social performance. This article represents one approach to linking the distinct streams of business ethics and business-and-society research into a more complete understanding of how managers and firms address complex ethical and social issues.     

Possible Ethical Implications in the Deployment of the EFQM Excellence Model

It may be quite rightly stated that the EFQM Model of the European Foundation for Quality Management is the basic reference model for those organisations whose aim is to achieve excellence. It offers an integral and integrating approach to the most relevant dimensions of the reality of the organisation and permits the establishment of framework that is both objective and rigorous and based on a structured diagnosis.The EFQM Excellence Model is based on a humanist approach that situates the client (in all aspects/senses) as the centre and ultimate reason of the activity of the organisation, emphasizing the role of the latter as a responsible member of the community. An ethical approach is therefore adopted as the best way to serve the long-term interest of the organisation and the people that integrate it (as well as their sustainability in time), exceeding expectations and the policy of society in general.This article analyses in depth, and from the point of view of ethics (one of the key aspects in the search for excellence), the possible ethical implications in the deployment of the nine basic criteria of the EFM Excellence Model which facilitate the understanding of the most relevant dimensions of the reality of an organisation.     

Editorial: Special Issue on the Impact of Business Ethics on Public Life

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 (CST) 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.     

Exploring the Relationship Between Business Model Innovation,Corporate Sustainability,and Organisational Values within the Fashion Industry

The objective of this paper is to examine the relationship between business model innovation, corporate sustainability, and the underlying organisational values. Moreover, the paper examines how the three dimensions correlate with corporate financial performance. It is concluded that companies with innovative business models are more likely to address corporate sustainability and that business model innovation and corporate sustainability alike are typically found in organisations rooted in values of flexibility and discretion. Business model innovation and corporate sustainability thus seem to have their origin in the fundamental principles guiding the organisation. In addition, the study also finds a positive relationship between the core organisational values and financial performance. The analysis of the paper is based on survey responses from 492 managers within the Swedish fashion industry.     

Beyond the Bounded Instrumentality in Current Corporate Sustainability Research: Toward an Inclusive Notion of Profitability

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.     

Corporate sustainability and organizational culture

The concept of corporate sustainability has gained importance in recent years in both organizational theory and practice. While there still exists a lack of clarity on what constitutes corporate sustainability and how to best achieve it, many scholars suggest that the pathway for the adoption of corporate sustainability principles leads via the adoption of a sustainability-oriented organizational culture. In this paper, we provide a closer examination of this suggested link between the cultural orientation of an organization and the pursuit of corporate sustainability principles. Specifically, we seek to assess (1) what constitutes a sustainability-oriented organizational culture, (2) whether it is possible for organizations to display a unified sustainability-oriented organizational culture, and (3) whether organizations can become more sustainable through culture change. Directions and challenges for practical management and future research are identified and outlined.     

Giving Voice in a Culture of Silence. From a Culture of Compliance to a Culture of Integrity

This article argues that attempting to overcome moral silence in organizations will require management to move beyond a compliance-oriented organizational culture toward a culture based on integrity. Such cultural change is part of good corporate governance that aims to steer an organization to enhance creativity and moral excellence, and thus organizational value. Governance mechanisms can be either formal or informal. Formal codes and other internal formal regulations that emphasize compliance are necessary, although informal mechanisms that are based on relationship-building are more likely to achieve moral excellence. Such a shift can be viewed as a transformative strategy for overcoming the destructive side effects and business risks of the tendency within corporate cultures to remain mute when faced with issues that violate personal or corporate values. Genuine dialogues and appropriate ethical decision-making training can deepen the understanding and create a mindful awareness (of ethical values) and induce trust that embrace both complying with rules and regulations, as well as inciting creative “ethical innovation” with respect to human interaction in multinational companies.     

Institutional dynamics and organizations affecting the adoption of sustainable development in the United Kingdom and Brazil

This paper provides an exploratory comparative assessment of the institutional pressures influencing corporate social responsibility (CSR) in a developed country, UK, vs. a developing country, Brazil, based on a survey of different actors. Information on sustainability concerns, organizational strategies and mechanisms of pressure was collected through interviews with environmental regulatory agencies, financial institutions, media and non‐governmental organizations. Our results confirm that the more advanced awareness and CSR responsiveness in the UK is a consequence of a predominance of coercive and normative forces on the organizational field. The institutional forces tend to build a Brazilian organizational field that is relational based and risk intensive. The findings lend support to the view that CSR responses are unlikely to be easily transformed into uniform standardized practices across the globe. This paper contributes to a collective understanding of the organizational field and a common template for CSR in the context of developed and developing countries.     

Industry Specific Sustainability Benchmarks: An ECSF Pilot Bridging Corporate Sustainability with Social Responsible Investments

This paper investigates the state of the art with respect to sustainability reporting, its linkages with the corporations, internal measurement and monitoring systems and their combined impact on the quality of contemporary sustainability benchmarks, developed by SRI analysts and so-called rating and screening agencies. This research originated from the EU-funded research initiative to create a new generation management framework for corporate sustainability and responsibility (CS-R). The aim of it is to develop a coherent set of assessment –, measurement – and monitoring tools. The sustainability benchmark tool should align the interests of corporations implementing CS-R and various organizations supporting SRI, such as fund managers, analysts and screening agencies. This paper show the essentials features of an actual sustainability benchmark which is currently under construction. This approach will have significance impact on the further development of SRI and CS-R practices, as well as support the development of sustainability reporting standards.     

The dark triad and corporate sustainability: An empirical analysis of personality traits of sustainability managers

Middle managers responsible for sustainability operationalize top management decisions on the organization's social and environmental activities. With their focus on sustainability, they could be expected to consider ethical issues particularly well in their decisions and to possess ethical personality traits. While earlier research has focused on top management this paper examines the influence of personality traits of middle managers on their corporate sustainability preferences. Based on a primary survey sample of 204 professionals responsible for sustainability in their company, we study the relationship between dark triad personality traits (Machiavellianism, narcissism, and psychopathy) of sustainability managers and their environmental and social responsibility preferences. The analysis shows that managers who score higher on the dark triad personality scale are less concerned about environmental and social responsibility issues. The business environment, analyzed in a cross-cultural comparison between the United States and Europe, and the organizational context function as a moderator of the influence of personality traits on sustainability preferences. The results suggest that dark triad personality traits should be considered in recruitment and assessment processes of middle managers responsible for corporate sustainability.     

Sustainabilty and retail marketing: Corporate,product and store perspectives

This paper investigates sustainability in retailing based on three different perspectives: i) the overall corporate management, ii) the development of an attractive product range, iii) the daily in-store management and activities. The purpose is to identify a set of main themes for each perspective, investigate contradictions and areas of conflict, and discuss how to bridge the perspectives. A qualitative case study approach is applied investigating the global retailer IKEA. The study includes Sweden, Germany and the UK. The research showed that the corporate, product and store perspectives are complementary but also involve contradictions and barriers to giving a higher priority to sustainability. These concern the time perspective, the set of stakeholders considered and the overall priority. Developing goals and benefits linked to sustainability, using effective arenas for interactions and linking sustainability to the legend and culture are suggested as three bridges that may overcome the contradictions.     

Bridging the gap: How sustainable development can help companies create shareholder value and improve financial performance

This study examines the effect of integrating sustainability into corporate strategy on various aspects of shareholder value creation and financial performance in the British capital market. The employed method is based on the content analysis of corporate disclosures and a new technique for assessing the adoption of the corporate sustainability concept (embracing the environmental, social, and financial aspects of a company's policies at the same time). Using extensive data of FTSE 350 firms covering the years 2006–2012, 65 companies were selected as meeting corporate sustainability criteria. For the above period, we find that these firms were characterized by higher financial risk exposure, lower asset growth rates, lower BV/MV ratios, lower EVA ratios, and higher MVA ratios. Such relations were generally present among different size and industry groupings. The results support the thesis that firms that incorporate sustainability issues into their business operations are better able to leverage their resources toward stronger financial performance and shareholder value creation than other companies. The paper contributes to the literature by offering a more holistic approach to corporate sustainable performance measurement and shedding additional light on its relation to financial performance in the context of the recent global financial crisis and its direct aftermath.     

Corporate Image: Employee Reactions and Implications for Managing Corporate Social Performance

Corporate image is a function of organizational signals which determine the perceptions of various stakeholders regarding the actions of an organization. Because of its relationship to the actions of an organization, image has been studied as an indicator of the social performance of the organization. Recent research has determined that social performance has direct effects on the behaviors and attitudes of the organization's employees. To better understand these effects, this study develops and empirically tests a model which links corporate leaders' actions, employees' perceptions of corporate image, and the employees' level of association with the organization. The effects of managing the social environment of an organization on its employees' perceptions of image, attitudes, and intended behaviors are discussed.     

The Sustainability Balanced Scorecard: A Systematic Review of Architectures

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 (BSC), 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 (SBSCs). 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.     

Detecting Supply Chain Innovation Potential for Sustainable Development

In a world of limited resources, it could be argued that companies that aspire to be good corporate citizens need to focus on making best use of resources. User value and environmental harm are created in supply chains and it could therefore be argued that company business ethics should be extended from the company to the entire value chain from the first supplier to the last customer. Starting with a delineation of the linkages between business ethics, corporate sustainability, and the stakeholder concept, this article argues that supply chains generally have a great innovation potential for sustainable development. This potential could be highlighted with system thinking and the use of change management knowledge, promoting not only innovations within technology but also within organizational improvement. We propose process models and performance indicators as means of highlighting improvement potential and thus breaking down normative business ethics’ requirements to an opertionalizable corporate level: Good business ethics should focus on maximizing stakeholder value in relation to harm done. Our results indicate that focusing on supply chains reveals previously unknown innovation potential that seems to be related to limited system understanding. The assumption is that increased visibility of opportunities will act as a driver for change. Results also highlight the importance of focusing on sustainability effects of the core business and clearly relating value created to harm done.     

Meaning Making by Managers: Corporate Discourse on Environment and Sustainability in India

The globally generated concepts of environment and sustainability are fast gaining currency in international business discourse. Sustainability concerns are concurrently becoming significant to business planning around corporate social responsibility and integral to organizational strategies toward enhancing shareholder value. The mindset of corporate managers is a key factor in determining company approaches to sustainability. But what do corporate managers understand by sustainability? Our study explores discursive meaning negotiation surrounding the concepts of environment and sustainability within business discourse. The study is based on qualitative interpretive research drawing from symbolic interactionism (Blumer, Symbolic interactionism: perspective and method. Prentice-Hall, Englewood Cliffs, 1969) which postulates that meaning in discourse is an essentially contested domain dependent upon negotiation in the Habermasian tradition of mutually respectful dialogue (Habermas, The theory of communicative action: lifeworld and system: a critique of functionalist reason. Beacon Press, Boston 1987). Data from semi-structured intensive interviews of a small sample of senior corporate managers was analyzed to examine how corporate elites in India frame their approach to sustainability issues and respond to external pressures for deeper corporate responsibility. The findings point to the existence of a distinctively local narrative with strong potential for the discursive negotiation of personal and collective understanding of ethical and socio-cultural values that may help internalize broader sustainability considerations into corporate decision-making processes.     

Visualizing CSR: A visual framing analysis of US multinational companies

The aim of this research study is to investigate how different levels of corporate social responsibility are visually framed through corporate publications used in marketing communications. Photographs used as visual marketing communication tools in the annual and sustainability reports of top American multinational companies that practice and promote measures of corporate social responsibility were analyzed. Findings indicate the corporations overall emphasize environmental sustainability efforts and visually communicate their practices through depictions of employees while other social responsibility efforts are often communicated through depictions of consumers. A discussion on the patterns of visual frames that communicate corporate social responsibility and the impact of visuals on organizational identity, brand image, and reputation are offered.     

Correlates of organizational effectiveness: A multilevel analysis of a multidimensional outcome

This paper explores the relationship between environmental scarcity, organization size, and board composition with measures of financial and social performance. All three correlates were found to be related to both measures of performance and the hypotheses were largely supported. Anomalous relationships, however, were found between organizational size and social performance as well as outsider representation and financial performance. This study demonstrates that normative explorations focusing only on financial performance can lead to misleading conclusions about organizational effectiveness.William Q. Judge is currently an assistant professor of strategic management at the University of Tennessee at Knoxville. He is continuing his research in the areas of organizational effectiveness, stakeholder management, and corporate governance.