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Journal Article•DOI•

Planetary Boundaries: Ecological Foundations for Corporate Sustainability

Gail Whiteman1, Brian Walker2, Paolo Perego1•
Erasmus University Rotterdam1, Commonwealth Scientific and Industrial Research Organisation2
01 Mar 2013-Journal of Management Studies (Blackwell Publishing Ltd)-Vol. 50, Iss: 2, pp 307-336
TL;DR: In this paper, the authors introduce a new development in the natural sciences, the delineation of nine "planetary boundaries" which govern life as we know it, and call for more systemic research that measures the impact of companies on boundary processes that are at, or possibly beyond, three threshold points.
Abstract: Management studies on corporate sustainability practices have grown considerably. The field now has significant knowledge of sustainability issues that are firm and industry focused. However, complex ecological problems are increasing, not decreasing. In this paper, we argue that it is time for corporate sustainability scholars to reconsider the ecological and systemic foundations for sustainability, and to integrate our work more closely with the natural sciences. To address this, our paper introduces a new development in the natural sciences � the delineation of nine �Planetary Boundaries� which govern life as we know it. We call for more systemic research that measures the impact of companies on boundary processes that are at, or possibly beyond, three threshold points � climate change, the global nitrogen cycle, and rate of biodiversity loss � and closing in on others. We also discuss practical implications of the Planetary Boundaries framework for corporate sustainability, including governance and institutional challenges.
Citations
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Posted Content•
A natural resource-based view of the firm

[...]

Stuart L. Hart1•
University of Michigan1
01 Jan 1994
TL;DR: In this paper, a natural resource-based view of the firm is proposed, which is composed of three interconnected strategies: pollution prevention, product stewardship, and sustainable development, and each of these strategies are advanced for each of them regarding key resource requirements and their contributions to sustained competitive advantage.
Abstract: Historically, management theory has ignored the constraints imposed by the biophysical (natural) environment. Building upon resource-based theory, this article attempts to fill this void by proposing a natural-resource-based view of the firm—a theory of competitive advantage based upon the firm's relationship to the natural environment. It is composed of three interconnected strategies: pollution prevention, product stewardship, and sustainable development. Propositions are advanced for each of these strategies regarding key resource requirements and their contributions to sustained competitive advantage.

902 citations

Journal Article•DOI•
Sustainability‐oriented Innovation: A Systematic Review

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Richard Adams1, Sally Jeanrenaud2, John Bessant2, David Denyer3, Patrick Overy2 •
University of Surrey1, University of Exeter2, Cranfield University3
01 Apr 2016-International Journal of Management Reviews
TL;DR: In this article, a review of 100 scholarly articles and 27 grey sources drawn from the period of the three Earth Summits (1992, 2002 and 2012), the authors address four specific deficiencies that have given rise to these limitations: the meaning of SOI, how it has been conceptualized, its treatment as a dichotomous phenomenon and a general failure to reflect more contemporary practices.
Abstract: This article is intended as a contribution to the ongoing conceptual development of Sustainability-Oriented Innovation (SOI) and provides initial guidance on becoming and being sustainable. We organize and integrate the diverse body of empirical literature relating to SOI and, in doing so, develop a synthesized conceptual framework onto which SOI practices and processes can be mapped. SOI involves making intentional changes to an organization’s philosophy and values, as well as to its products, processes or practices to serve the specific purpose of creating and realising social and environmental value in addition to economic returns. A critical reading of previous literature relating to environmental management and sustainability reveals how little attention has been paid to SOI and what exists is only partial. In a review of 100 scholarly articles and 27 grey sources drawn from the period of the three Earth Summits (1992, 2002 and 2012), we address four specific deficiencies that have given rise to these limitations: the meaning of SOI, how it has been conceptualised, its treatment as a dichotomous phenomenon and a general failure to reflect more contemporary practices. We adopt a framework synthesis approach involving first constructing an initial architecture of the landscape grounded in previous studies which is subsequently iteratively tested, shaped, refined and reinforced into a model of SOI with data drawn from included studies: so advancing theoretical development in the field of SOI.

817 citations

Cites background from "Planetary Boundaries: Ecological Fo..."

  • ...…the science–business gap through innovative initiatives, recognizing that corporate sustainability must be rooted in ecological science, and that business has a key role in helping to reduce its impact and ensuring it stays within the limits of the planetary boundaries (Whiteman et al. 2013)....

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  • ...2013) promoting innovation in the use of natural resources and far greater efficiency in transforming those resources to meet human needs at a systems level (Whiteman et al. 2013)....

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  • ...…implication of occupying this space is the need for an interdisciplinary science of sustainability (Leach et al. 2013) promoting innovation in the use of natural resources and far greater efficiency in transforming those resources to meet human needs at a systems level (Whiteman et al. 2013)....

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  • ...For example, NGOs such as the WBCSD and the WWF are helping bridge the science–business gap through innovative initiatives, recognizing that corporate sustainability must be rooted in ecological science, and that business has a key role in helping to reduce its impact and ensuring it stays within the limits of the planetary boundaries (Whiteman et al. 2013)....

    [...]

Journal Article•DOI•
W(h)ither Ecology? The Triple Bottom Line, the Global Reporting Initiative, and Corporate Sustainability Reporting

[...]

Markus J. Milne1, Rob Gray2•
University of Canterbury1, University of St Andrews2
01 Nov 2013-Journal of Business Ethics
TL;DR: In this paper, the authors identify and isolate the concept of the "triple bottom line" (TBL) as a core and dominant idea that continues to pervade business reporting, and business engagement with sustainability.
Abstract: This paper offers a critique of sustainability reporting and, in particular, a critique of the modern disconnect between the practice of sustainability reporting and what we consider to be the urgent issue of our era: sustaining the life-supporting ecological systems on which humanity and other species depend. Tracing the history of such reporting developments, we identify and isolate the concept of the ‘triple bottom line’ (TBL) as a core and dominant idea that continues to pervade business reporting, and business engagement with sustainability. Incorporating an entity’s economic, environmental and social performance indicators into its management and reporting processes, we argue, has become synonymous with corporate sustainability; in the process, concern for ecology has become sidelined. Moreover, this process has become reinforced and institutionalised through SustainAbility’s biennial benchmarking reports, KPMG’s triennial surveys of practice, initiatives by the accountancy profession and, particularly, the Global Reporting Initiative (GRI)’s sustainability reporting guidelines. We argue that the TBL and the GRI are insufficient conditions for organizations contributing to the sustaining of the Earth’s ecology. Paradoxically, they may reinforce business-as-usual and greater levels of un-sustainability.

765 citations

Journal Article•DOI•
Business Models for Sustainability: Origins, Present Research, and Future Avenues

[...]

Stefan Schaltegger1, Erik G. Hansen1, Florian Lüdeke-Freund2•
Lüneburg University1, University of Hamburg2
01 Mar 2016-Organization & Environment
TL;DR: In this paper, Hansen, Große-Dunker, and Reichwald proposed a case-based theory building for sustainability-oriented business models, using Interface Inc. and Bendigo Bank as examples of sustainability-driven organizations.
Abstract: While a consensus appears to have evolved among many sustainability researchers and practitioners that sustainable development at the societal level is not very likely without the sustainable development of organizations, the business model as a key initiating component of corporate sustainability has only recently moved into the focus of sustainability management research. Apparently, the usual approaches to sustainable development of philanthropy, corporate social responsibility, and technological process and product innovation are insufficient to create the necessary radical transformation of organizations, industries, and societies toward genuine, substantive sustainable development. More in-depth research is needed on whether both modified and completely new business models can help develop integrative and competitive solutions by either radically reducing negative and/or creating positive external effects for the natural environment and society (cf. Boons & Lüdeke-Freund, 2013; Hansen, Große-Dunker, & Reichwald, 2009; Schaltegger, Lüdeke-Freund, & Hansen, 2012; Stubbs & Cocklin, 2008). One of the first articles in this field was published in Organization & Environment. The Stubbs and Cocklin (2008) article titled “Conceptualizing a ‘Sustainability Business Model” was a seminal study published a few years before the currently emerging wave of academic business model publications. The Stubbs and Cocklin study revealed a set of normative principles of organizational development that together form an “ideal type” of sustainability-oriented business model. These authors pioneered the field of case-based theory building for sustainability-oriented business models, using Interface Inc. and Bendigo Bank as examples of sustainability-driven organizations. Their ideal type comprised different structural and cultural attributes of an organization, such as developing community spirit, investing in employees’ trust and loyalty, and engaging in sustainability assessment and reporting. They also advanced propositions about sustainabilityoriented business models dealing with an organization’s purpose and goals, its performance measurement approach, the need to consider all stakeholders, how nature should be treated, whether the organization’s leaders drive the necessary cultural and structural changes to implement sustainability, and whether a systems-level, as well as a firm-level, perspective should be employed.

658 citations

Journal Article•DOI•
Cognitive Frames in Corporate Sustainability: Managerial Sensemaking with Paradoxical and Business Case Frames

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Tobias Hahn1, Lutz Preuss2, Jonatan Pinkse3, Frank Figge1•
KEDGE Business School1, Royal Holloway, University of London2, Grenoble School of Management3
01 Oct 2014-Academy of Management Review
TL;DR: In this article, a cognitive framing perspective on corporate sustainability is developed, which explores how differences between them in cognitive content and structure influence the three stages of the sense-making process, that is, managerial scanning, interpreting, and responding with regard to sustainability issues.
Abstract: Corporate sustainability confronts managers with tensions between complex economic, environmental, and social issues. Drawing on the literature on managerial cognition, corporate sustainability, and strategic paradoxes, we develop a cognitive framing perspective on corporate sustainability. We propose two cognitive frames—a business case frame and a paradoxical frame—and explore how differences between them in cognitive content and structure influence the three stages of the sensemaking process—that is, managerial scanning, interpreting, and responding with regard to sustainability issues. We explain how the two frames lead to differences in the breadth and depth of scanning, differences in issue interpretations in terms of sense of control and issue valence, and different types of responses that managers consider with regard to sustainability issues. By considering alternative cognitive frames, our argument contributes to a better understanding of managerial decision making regarding ambiguous sustainability issues, and it develops the underlying cognitive determinants of the stance that managers adopt on sustainability issues. This argument offers a cognitive explanation for why managers rarely push for radical change when faced with complex and ambiguous issues, such as sustainability, that are characterized by conflicting yet interrelated aspects.

655 citations

Cites background from "Planetary Boundaries: Ecological Fo..."

  • ...The often-bemoaned reluctance of firms and their managers to address the immense challenges that sustainability presents in a radical fashion (Whiteman et al., 2013) may thus be rooted in the cognitive predispositions and limitations that are inherent in both frames....

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  • ...At the same time, Unilever’s upper management has pioneered novel sustainable agriculture practices (Whiteman et al., 2013)....

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References
More filters
Journal Article•DOI•
The Tragedy of the Commons

[...]

Garrett Hardin1•
University of California, Santa Barbara1
13 Dec 1968-Science
TL;DR: The population problem has no technical solution; it requires a fundamental extension in morality.
Abstract: The population problem has no technical solution; it requires a fundamental extension in morality.

22,421 citations

"Planetary Boundaries: Ecological Fo..." refers background in this paper

  • ...While firm or industry focused actions on corporate sustainability are unlikely to deal effectively with the tragedy of commons (Hardin, 1968; Levy, 1997a), greater awareness of thresholds provides individual firms and business associations like the World Business Council for Sustainable…...

    [...]

  • ...Because these are joint problems affecting the global commons (Hardin, 1968; Ostrom et al., 1999), individual firms cannot easily set meaningful individual targets that will effectively solve the problem in isolation (although such target setting does get the ‘ball rolling’ in terms of focusing attention and action on priority areas, and establishing front-runners)....

    [...]

  • ...While firm or industry focused actions on corporate sustainability are unlikely to deal effectively with the tragedy of commons (Hardin, 1968; Levy, 1997a), greater awareness of thresholds provides individual firms and business associations like the World Business Council for Sustainable Development with a collective yardstick to measure global sustainable performance, and offers a strategic guideline for assessing the scope of corporate sustainability efforts – are firms addressing each of the boundary processes and in which ways? In particular, the Planetary Boundaries analysis highlights the urgency of three interrelated thresholds: climate change, rate of biodiversity loss, and impacts on the nitrogen cycle....

    [...]

  • ...Because these are joint problems affecting the global commons (Hardin, 1968; Ostrom et al., 1999), individual firms cannot easily set meaningful individual targets that will effectively solve the problem in isolation (although such target setting does get the ‘ball rolling’ in terms of focusing…...

    [...]

Journal Article•DOI•
A safe operating space for humanity

[...]

Johan Rockström1, Johan Rockström2, Will Steffen3, Will Steffen1, Kevin J. Noone1, Åsa Persson2, Åsa Persson1, F. Stuart Chapin4, Eric F. Lambin5, Timothy M. Lenton6, Marten Scheffer7, Carl Folke8, Carl Folke1, Hans Joachim Schellnhuber9, Hans Joachim Schellnhuber10, Björn Nykvist2, Björn Nykvist1, Cynthia A. de Wit1, Terry P. Hughes11, Sander van der Leeuw12, Henning Rodhe1, Sverker Sörlin13, Sverker Sörlin1, Peter K. Snyder14, Robert Costanza15, Robert Costanza1, Uno Svedin1, Malin Falkenmark1, Malin Falkenmark16, Louise Karlberg1, Louise Karlberg2, Robert W. Corell, Victoria J. Fabry17, James Hansen18, Brian Walker19, Brian Walker1, Diana Liverman20, Diana Liverman10, Katherine Richardson, Paul J. Crutzen21, Jonathan A. Foley14 •
Stockholm University1, Stockholm Environment Institute2, Australian National University3, University of Alaska Fairbanks4, Université catholique de Louvain5, University of East Anglia6, Wageningen University and Research Centre7, Royal Swedish Academy of Sciences8, Potsdam Institute for Climate Impact Research9, University of Oxford10, James Cook University11, Arizona State University12, Royal Institute of Technology13, University of Minnesota14, University of Vermont15, Stockholm International Water Institute16, California State University San Marcos17, Goddard Institute for Space Studies18, Commonwealth Scientific and Industrial Research Organisation19, University of Arizona20, Max Planck Society21
23 Sep 2009-Nature
TL;DR: Identifying and quantifying planetary boundaries that must not be transgressed could help prevent human activities from causing unacceptable environmental change, argue Johan Rockstrom and colleagues.
Abstract: Identifying and quantifying planetary boundaries that must not be transgressed could help prevent human activities from causing unacceptable environmental change, argue Johan Rockstrom and colleagues.

8,837 citations

"Planetary Boundaries: Ecological Fo..." refers background in this paper

  • ...The rainforest has evolved ecologically to turn crisis (El Niño Southern Oscillation events) into opportunity for continuous development’ (Rockström et al., 2009b, appendix 1, p. 6)....

    [...]

  • ...Unveiled in Nature in December 2009, scholars (predominantly from the natural sciences) synthesized a vast wealth of ecological theory, models, and empirical studies to identify a set of nine ‘Planetary Boundaries’ that define what has been termed ‘the safe operating space’ for humanity – if we cross these boundaries we will face ‘a state less conducive to human development’ (Rockström et al., 2009a, p. 472)....

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  • ...The Planetary Boundaries threshold analysis underscores the additional need for greater disclosure on nitrogen emissions and rate of biodiversity loss related to the activities of multinational firms....

    [...]

  • ...The Planetary Boundaries framework therefore highlights the need for more practical experimentation in global governance (Baron and Lyon, 2011; Walker et al., 2009)....

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  • ...In this paper, we argue that the scientific framework of Planetary Boundaries provides us with a rich and detailed foundation for management studies on corporate sustainability....

    [...]

Ecosystems and human well-being: synthesis

[...]

Millenium Ecosystem Assessment
01 Jan 2005

8,490 citations

"Planetary Boundaries: Ecological Fo..." refers background in this paper

  • ...On the negative side, the Millennium Ecosystem Assessment by the World Resources Institute (2005) reported that 60 per cent of ecosystems were significantly degraded....

    [...]

Journal Article•DOI•
The Tragedy of the Commons

[...]

Garrett Hardin1•
University of California, Santa Barbara1
03 Jul 2009-Journal of Natural Resources Policy Research
TL;DR: The tragedy of the commons as a food basket is averted by private property, or something formally like it as mentioned in this paper, which is why the commons, if justifiable at all, is justifiable only under conditions of low-population density.
Abstract: The tragedy of the commons as a food basket is averted by private property, or something formally like it. The pollution problem is a consequence of population. Analysis of the pollution problem as a function of population density uncovers a not generally recognized principle of morality, namely: the morality of an act is a function of the state of the system at the time it is performed. Those who have more children will produce a larger fraction of the next generation than those with more susceptible consciences. Perhaps the simplest summary of the analysis of man’s population problems is this: the commons, if justifiable at all, is justifiable only under conditions of low-population density. As the human population has increased, the commons has had to be abandoned in one aspect after another. The man who takes money from a bank acts as if the bank were a commons.

7,119 citations

Journal Article•DOI•
Human alteration of the global nitrogen cycle: sources and consequences

[...]

Peter M. Vitousek1, John D. Aber2, Robert W. Howarth3, Gene E. Likens, Pamela A. Matson4, David W. Schindler5, William H. Schlesinger6, David Tilman7 •
Stanford University1, University of New Hampshire2, Cornell University3, University of California, Berkeley4, University of Alberta5, Duke University6, University of Minnesota7
01 Aug 1997-Ecological Applications
TL;DR: In this article, a review of available scientific evidence shows that human alterations of the nitrogen cycle have approximately doubled the rate of nitrogen input into the terrestrial nitrogen cycle, with these rates still increasing; increased concentrations of the potent greenhouse gas N 2O globally, and increased concentration of other oxides of nitrogen that drive the formation of photochemical smog over large regions of Earth.
Abstract: Nitrogen is a key element controlling the species composition, diversity, dynamics, and functioning of many terrestrial, freshwater, and marine ecosystems. Many of the original plant species living in these ecosystems are adapted to, and function optimally in, soils and solutions with low levels of available nitrogen. The growth and dynamics of herbivore populations, and ultimately those of their predators, also are affected by N. Agriculture, combustion of fossil fuels, and other human activities have altered the global cycle of N substantially, generally increasing both the availability and the mobility of N over large regions of Earth. The mobility of N means that while most deliberate applications of N occur locally, their influence spreads regionally and even globally. Moreover, many of the mobile forms of N themselves have environmental consequences. Although most nitrogen inputs serve human needs such as agricultural production, their environmental conse- quences are serious and long term. Based on our review of available scientific evidence, we are certain that human alterations of the nitrogen cycle have: 1) approximately doubled the rate of nitrogen input into the terrestrial nitrogen cycle, with these rates still increasing; 2) increased concentrations of the potent greenhouse gas N 2O globally, and increased concentrations of other oxides of nitrogen that drive the formation of photochemical smog over large regions of Earth; 3) caused losses of soil nutrients, such as calcium and potassium, that are essential for the long-term maintenance of soil fertility; 4) contributed substantially to the acidification of soils, streams, and lakes in several regions; and 5) greatly increased the transfer of nitrogen through rivers to estuaries and coastal oceans. In addition, based on our review of available scientific evidence we are confident that human alterations of the nitrogen cycle have: 6) increased the quantity of organic carbon stored within terrestrial ecosystems; 7) accelerated losses of biological diversity, especially losses of plants adapted to efficient use of nitrogen, and losses of the animals and microorganisms that depend on them; and 8) caused changes in the composition and functioning of estuarine and nearshore ecosystems, and contributed to long-term declines in coastal marine fisheries.

5,729 citations

"Planetary Boundaries: Ecological Fo..." refers background in this paper

  • ...Scientific data have indicated for a few decades that the human-produced levels of nitrogen far exceed naturally occurring levels (Vitousek et al., 1997)....

    [...]

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A safe operating space for humanity

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01 Oct 1995-Academy of Management Review
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Trending Questions (1)
What is the content of planetary boundaries?

The content of planetary boundaries includes nine critical Earth-system processes and their associated thresholds, such as climate change, biodiversity loss, nitrogen and phosphorus cycles, ozone depletion, ocean acidification, and more.

See answers from 3 other papers