Showing papers on "Corporate sustainability published in 2009"
TL;DR: In this article, the combination of insights from innovation theory, sustainable development practice and small business characteristics is used to unlock new knowledge on factors that influence the translation of sustainable innovation within small and medium-sized enterprises into practice.
Abstract: 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.
580 citations
TL;DR: The Global Reporting Initiative (GRI) is the best-known framework for voluntary reporting of environmental and social performance by business worldwide as discussed by the authors. But the institutional logic of this new entity, as an instrument for corporate sustainability management, leaves out one of the central elements of the initial vision for GRI: as a mobilizing agent for many societal actors.
567 citations
TL;DR: The authors analyzed two mutually exclusive leading and lagging global corporate sustainability portfolios (Dow Jones) and found that leading sustainability firms do not underperform the market portfolio, and their lagging counterparts outperform both the market and the leading portfolio.
Abstract: Does investing in sustainability leaders affect portfolio performance? Analyzing two mutually exclusive leading and lagging global corporate sustainability portfolios (Dow Jones) finds that (1) leading sustainability firms do not underperform the market portfolio, and (2) their lagging counterparts outperform the market portfolio and the leading portfolio. Notably, we find leading (lagging) corporate social performance (CSP) firms exhibit significantly lower (higher) idiosyncratic risk and that idiosyncratic risk might be priced by the broader global equity market. We develop an idiosyncratic risk factor and find that its inclusion significantly reduces the apparent difference in performance between leading and lagging CSP portfolios.
459 citations
TL;DR: In this paper, the authors argue that the use of such a term has the effect of obfuscating the real situation regarding the impact of corporate activity upon the external environment and the consequent implications for the future.
Abstract: Over recent years, there has been a focus in corporate activity upon the concept of corporate social responsibility (CSR) and one of its central platforms, the notion of sustainability, and particularly sustainable development. We argue in this article that the use of such a term has the effect of obfuscating the real situation regarding the effect of corporate activity upon the external environment and the consequent implications for the future. One of the effects of persuading that corporate activity is sustainable is that the cost of capital for the firm is reduced as investors are misled into thinking that the level of risk involved in their investment is lower than it actually is. We analyse the effects of this misrepresentation and argue for a fuller debate about sustainability.
430 citations
TL;DR: In this paper, a generic model termed the sustainability innovation cube (SIC) is presented for structuring innovations' sustainability effects in order to better inform corporate decision-makers about how to minimize the directional risk of SOI.
Abstract: Corporations increasingly subscribe to the principles of corporate sustainability, which is generally described as the integration of economic, environmental and social dimensions. Concerning innovation management, this emphasises the role of sustainability-oriented innovations (SOI). SOI is considered a tool both to address sustainability issues and to tap into new customer segments and markets. Yet SOI are very risky: both their market success and non-economic sustainability are uncertain. This paper presents a generic model termed the "Sustainability Innovation Cube" (SIC) for structuring innovations' sustainability effects in order to better inform corporate decision-makers about how to minimize the directional risk of SOI. The model includes the three dimensions: target, life cycle and innovation type. A qualitative expert study reveals the opportunities and challenges related to the developed model. Finally, practical implications are derived, limitations are discussed and a brief outlook is given.
410 citations
TL;DR: In this paper, a generic model termed the sustainability innovation cube (SIC) is presented for structuring innovations' sustainability effects in order to better inform corporate decision-makers about how to minimize the directional risk of SOI.
Abstract: Corporations increasingly subscribe to the principles of corporate sustainability, which is generally described as the integration of economic, environmental and social dimensions. Concerning innovation management, this emphasises the role of sustainability-oriented innovations (SOI). SOI is considered a tool both to address sustainability issues and to tap into new customer segments and markets. Yet SOI are very risky: both their market success and non-economic sustainability are uncertain. This paper presents a generic model termed the “Sustainability InnovationCube” (SIC) for structuring innovations’ sustainability effects in order to better inform corporate decision-makers about how to minimize the directional risk of SOI. The model includes the three dimensions: target, life cycle and innovation type. A qualitative expert study reveals the opportunities and challenges related to the developed model. Finally, practical implications are derived, limitations are discussed and a brief outlook is given.
306 citations
TL;DR: In this article, a case study conducted in the mining industry was used to identify the organizational culture of a global leading mining company, and the authors used the model of Schein for organizational culture to characterize corporate sustainability strategies: introverted, extroverted, conservative and visionary strategies.
Abstract: The relationship between corporate sustainability and organizational culture seems to be underestimated within the discussion of sustainable development. The research presented in this paper is based on a case study conducted in the mining industry. The hypothesis is that ambitious corporate sustainability activities and strategies have to be embedded in the organizational culture in order to be successful. If aspects of sustainable development are not part of the mindset of leaders and members of the organization, corporate sustainability activities will not affect the core business efficiently and are more likely to fail.
The model of Schein for organizational culture is used to characterize corporate sustainability strategies: introverted, extroverted, conservative and visionary strategies are distinguished. Each strategy is assessed regarding the relation and the integration in the levels of organizational culture according to the model of Schein. The model consists of three levels, i.e. artifacts, values and basic assumptions. This framework is used for a case-study to identify the organizational culture of a global leading mining company. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.
256 citations
TL;DR: In this article, the authors discuss what the business contribution to sustainable development is (or should be) and propose criteria for assessing corporate sustainability, which are applied for the analysis of Global Reporting Initiative (GRI)• reports of five major cement manufacturers.
Abstract: Purpose – The purpose of this paper is to discuss what the business contribution to sustainable development is (or should be) and to propose criteria for assessing corporate sustainability. These criteria are applied for the analysis of Global Reporting Initiative (GRI)‐reports of five major cement manufacturers. This will result in a discussion if GRI‐based sustainability reports really contain the information needed for judging corporate sustainability.Design/methodology/approach – Starting from a literature review of common definitions and principles, the main criteria of corporate sustainability were developed and a set of evaluation criteria for analyzing sustainability reports was proposed. Definitions and principles from concepts such as eco‐efficiency, triple‐bottom‐line, the natural step and stakeholder value were considered. Using these criteria analysis was made of the GRI‐based sustainability reports of five major cement manufacturers in order to find out to what extent the reports really addr...
233 citations
TL;DR: In this paper, the authors present a management tool, a systematic method for implementing corporate social responsibility successfully on the basis of a triple bottom line approach to sustainability, which allows for specifying and systematizing appropriate areas of action, taking into account the continuum of economic, ecologic,1 and social dimensions.
Abstract: Current corporate social responsibility (CSR) approaches attempt to implement the vision of sustainable development at the corporate level. In fact, the term “corporate sustainability” may be a more accurate descriptive label for these attempts. Ambitious governmental, business and academic goals, and corresponding efforts have been established. Nonetheless, a truly satisfactory implementation of the broad CSR concept as well as the more specific challenges of corporate sustainability continue to be an elusive goal at the corporate management level. This article presents a description of a new management tool, a systematic method for implementing CSR successfully on the basis of a triple bottom line approach to sustainability. It fills in many of the still missing gap on the corporate level. The method presented here offers a multi-purpose approach for the collection, systematization, quantification, and evaluation of all the relevant issues found within a corporate environment. It allows for specifying and systematizing appropriate areas of action, taking into account the continuum of economic, ecologic,1 and social dimensions. Accordingly, the article is best characterized as a treatment of complex CSR issues, developed against the normative anchor of sustainability as the conceptual background.
217 citations
Book•
03 Mar 2009
TL;DR: The Capital Approach to SustainabilityGiovanni Ruta and Kirk Hamilton as mentioned in this paper, and the Role of Innovation Timothy J. Foxon, Simon Dietz and Eric Neumayer
Abstract: Contents:Preface1. IntroductionGiles Atkinson, Simon Dietz and Eric NeumayerPART I: FUNDAMENTALS OF SUSTAINABLE DEVELOPMENT2. Ethics and Sustainable Development: An Adaptive Approach to Environmental ChoiceBryan G. Norton3. The Capital Approach to SustainabilityGiovanni Ruta and Kirk Hamilton4. Sustainable Development in Ecological EconomicsJeroen C.J.M. van den Bergh5. Ecological and Social ResilienceW. Neil Adger6. Benefit-Cost Analysis and a Safe Minimum Standard of ConservationAlan RandallPART II: INTERGENERATIONAL EQUITY7. Valuing the Far-off Future: Discounting and its AlternativesCameron Hepburn8. Population and SustainabilityGeoffrey McNicoll9. Technological Lock-in and the Role of Innovation Timothy J. FoxonPART III: INTRAGENERATIONAL EQUITY AND THE SOCIAL DIMENSION10. Distribution, Sustainability and Environmental PolicyGeoffrey Heal and Bengt Kristrom11. Environmental Justice and SustainabilityJulian Agyeman12. Vulnerability, Poverty and Sustaining Well-being W. Neil Adger and Alexandra WinkelsPART IV: GROWTH, CONSUMPTION AND NATURAL WEALTH 13. The Resource Curse and Sustainable DevelopmentRichard M. Auty14. Structural Change, Poverty and Natural Resource DegradationRamon Lopez15. Economic Growth and the EnvironmentMatthew A. Cole16. Sustainable ConsumptionTim JacksonPART V: PROGRESS IN MEASURING SUSTAINABLE DEVELOPMENT 17. Environmental and Resource AccountingGlenn-Marie Lange18. Genuine Saving as an Indicator of SustainabilityKirk Hamilton and Katharine Bolt19. Measuring Sustainable Economic WelfareClive Hamilton20. Environmental Space, Material Flow Analysis and Ecological FootprintingIan MoffattPART VI: SUSTAINABLE DEVELOPMENT AT DIFFERENT SCALES21. Sustainable Cities and Local SustainabilityYvonne Rydin22. Sustainable AgricultureClement A. Tisdell23. Corporate Sustainability: Accountability or Impossible Dream?Rob Gray and Jan BebbingtonPART VII: THE INTERNATIONAL DIMENSION 24. International Environmental Cooperation: The Role of Political FeasibilityCamilla Bretteville Froyn25. Trade and Sustainable DevelopmentKevin P. Gallagher26. The International Politics of Sustainable DevelopmentJohn Vogler27. Financing for Sustainable DevelopmentDavid PearceIndex
194 citations
TL;DR: In this paper, the authors conceptualized how future changes in corporate social disclosure (CSD), aimed at improving accountability for corporate performance to key stakeholder groups, might be brought about.
Abstract: Purpose – The purpose of this paper is to conceptualise how future changes in corporate social disclosure (CSD), aimed at improving accountability for corporate performance to key stakeholder groups, might be brought about.Design/methodology/approach – Drawing on the work of the Austrian economist Ludwig von Mises with respect to human (and organisational) action and the work of Leon Festinger and Kurt Lewin with respect to human (and organisational) change, the paper examines how academics and other corporate stakeholders might effect changes in CSD.Findings – Managers act in a way which maximises their formal happiness (from von Mises) and change occurs following the creation of cognitive dissonance (Festinger) which leads to “unfreezing” (Lewin). Stakeholders can effect change by creating cognitive dissonance. With specific reference to Anglo‐American limited liability and publicly traded corporations, such cognitive dissonance and unfreezing normally involves a perceived threat to profitability.Resear...
TL;DR: The authors found that employees from a subculture with a stronger emphasis on hierarchical and bureaucratic values emphasize an economic understanding of corporate sustainability and that these differences can be partially explained by the presence of organizational subcultures and by differences in employee awareness of the organization's sustainability practices.
Abstract: In this paper we present findings of how employees from a single organization understand corporate sustainability. Responses from 255 survey participants indicate (1) that differences exist in how employees understand corporate sustainability and (2) that these differences can be partially explained by the presence of organizational subcultures and by differences in employee awareness of the organization's sustainability practices. In particular, findings reveal that employees from a subculture with a stronger emphasis on hierarchical and bureaucratic values emphasize an economic understanding of corporate sustainability. Implications for research and practice are discussed. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: In this article, the influence of societal, political and regulatory characteristics and developments on the quality of corporate sustainability disclosures in Norway is explored, and the authors present an assessment both of mandatory reporting under the Norwegian Accounting Act, and of voluntary reporting in annual and separate non-financial reports, by the 100 largest firms in Norway.
Abstract: This article explores the influence of societal, political and regulatory characteristics and developments on the quality of corporate sustainability disclosures in Norway. The paper presents an assessment both of mandatory reporting under the Norwegian Accounting Act, and of voluntary reporting in annual and separate non-financial reports, by the 100 largest firms in Norway. Our results reveal that only 10% of the companies comply with the legal requirements on environmental reporting, while only half of the firms comply with the legal reporting provisions on working environment and gender equality. The vast majority of firms also report unsatisfactorily on non-financial issues in the voluntary disclosures assessed. Analysing the causes of these results, we contend that the situation is characterized by (1) an apparent lack of political and social drivers for sustainability reporting in Norway and (2) an absence of sufficient monitoring and enforcement of the environmental reporting legislation on the part of Norwegian authorities. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.
TL;DR: In this paper, a triple-bottom-line accounting framework and software tool is presented for a small company in the United Kingdom, where the concept of shared responsibility has been applied to avoid double-counting and noncomparability of results.
Abstract: Summary
A determination of the sustainability performance of a company ought to fulfill certain requirements. It has to take into account the direct impacts from on-site processes as well as indirect impacts embodied in the supply chains of a company. This life cycle thinking is the common theme of popular footprint analyses, such as carbon, ecological, or water footprinting. All these indicators can be incorporated into one common and consistent accounting and reporting scheme based on economic input−output analysis, extended with data from all three dimensions of sustainability. We introduce such a triple-bottom-line accounting framework and software tool and apply it in a case study of a small company in the United Kingdom. Results include absolute impacts and relative intensities of indicators and are put into perspective by a benchmark comparison with the economic sector to which the company belongs. Production layer decomposition and structural path analysis provide further valuable detail, identifying the amount and location of triple-bottom-line impacts in individual upstream supply chains. The concept of shared responsibility has been applied to avoid double-counting and noncomparability of results. Although in this work we employ a single-region model for the sake of illustration, we discuss how to extend our ideas to international supply chains. We discuss the limitations of the approach and the implications for corporate sustainability.
TL;DR: In this paper, the authors investigated strategies adopted by the corporate sustainability function in Novozymes, a multinational company with a solid track record in corporate sustainability, to implement a bottom-of-the-pyramid (BOP) project within key areas of the company's operational core.
Abstract: A new branch of corporate sustainability, Bottom-of-the-Pyramid (BOP), seeks out new market opportunities with low-income consumers in the developing world that simultaneously contribute to the sustainable development of these regions. While many companies consider the addition of BOP strategies to their sustainability portfolio, many also hesitate because of the uncertainties that surround this new sustainability practice. This article investigates strategies adopted by the corporate sustainability function in Novozymes, a multinational company with a solid track record in corporate sustainability, to implement a BOP project within key areas of the company's operational core. There are four internal organizational barriers that interlock one another and that have so far prevented the implementation of this project in key areas of operations. The article examines the challenges for sustainability managers who seek to overcome interlocking cognitive, processual, and structural barriers to the implementation of this new branch of sustainability practices.
08 Apr 2009-Canadian Journal of Administrative Sciences-revue Canadienne Des Sciences De L Administration
TL;DR: Research in corporate sustainability - what really matters?, Sanjay Sharma globalization and environmental sustainability - an analysis of the impact of globalization using the natural step framework, Joyce S. Osland et al community sustainability comes to the Southern Appalachian region of the USA - the case of Johnson County, Tennessee, W. Edward Stead et al eco-sustainability orientation in China and Japan - differences between proactive and reactive firms, Oana Branzei and Ilan Vertinsky motivations for participating in a US voluntary environmental initiative - the multi-state working group and EPA's EMS pilot program, Nicole D
Abstract: Research in corporate sustainability - what really matters?, Sanjay Sharma globalization and environmental sustainability - an analysis of the impact of globalization using the natural step framework, Joyce S. Osland et al community sustainability comes to the Southern Appalachian region of the USA - the case of Johnson County, Tennessee, W. Edward Stead et al eco-sustainability orientation in China and Japan - differences between proactive and reactive firms, Oana Branzei and Ilan Vertinsky motivations for participating in a US voluntary environmental initiative - the multi-state working group and EPA's EMS pilot program, Nicole Darnall factors influencing successful and unsuccessful environmental changes initiatives, Linda C. Angell and Gordon P. Rands the altering of a firm's environmental management capability during the acquisition integration process, Kimberley M. Ellis et al strategic environmental human resource management and organizational performance - an exploratory study of the Canadian manufacturing sector, Carolyn P. Egri and Robert C. Hornal information disclosure in environmental policy and the development of secretly environmentally-friendly products, Trudy Heller and Jeanne Mroczko sustainable stakeholder accounting - beyond complementarity and towards integration in environmental accounting, W. Richard Sherman et al enhancing environmental management teaching through applications of toxic release information, Mark Cordano and Irene Hanson Frieze childhood's end? sustaining and developing the evolving field of organizations and the natural environment, Mark Starik.
TL;DR: In this paper, the authors analyzed the understanding and relevance of some major CEE companies that are leaders in sustainability reporting and concluded that the understanding of corporate responsibility is context-specific, but also that the differences are not as stark as one might expect.
TL;DR: In this article, a conceptual integration of business models into contexts of corporate sustainability is proposed, which can serve as a starting point to investigate first, if business cases for sustainability can be realized under industry and firm-specific circumstances and second, if an organization's resources and activities are configured in a way that allows for creating value on the private and public level.
Abstract: This paper proposes a conceptual integration of business models into contexts of corporate sustainability. A business model can be interpreted as the blueprint of an organization’s business logic. It can serve as starting point to investigate first, if business cases for sustainability can be realized under industry- and firm-specific circumstances and second, if an organization’s resources and activities are configured in a way that allows for creating value on the private and public level. Therefore, conventional business model perspectives have to be enhanced through accentuation and extension to integrate sustainability aspects. After discussing some general business model rhetoric which can be found in corporate sustainability contexts, a promising conventional business model concept is introduced and further developed to propose a generic template for “business models for sustainability.” This conceptual work is guided by the following principle: A business model for sustainability is the blueprint of a company’s business logic which internalizes the business case for sustainability. The intention of this paper is threefold: First, identify currently perceived intersections of corporate sustainability and business models. Second, generic business model templates for issues of corporate sustainability are rare; a gap that shall be filled by moving from rhetoric to a generic template for business models for sustainability. Third, open up a new field which may be labelled “strategic business model management."
TL;DR: The methodology is presented using two different functional forms: the Cobb-Douglas and the translog functional forms and it is shown that the methodology can be used as an integrative sustainability assessment tool for policy measures.
TL;DR: In this article, the authors explore which user groups access online corporate sustainability information, and assesses the relative use of sustainability reports and other forms of social and environmental information disseminated on corporate Websites.
TL;DR: In this paper, a systematic collection of data in petrochemical, textile, and beverage companies established in different Brazilian states was used to define four strategic generic types of organization, termed variously as sleeper, reactor, defender and innovator.
Abstract: Continual efforts to work with government and society are crucial to persuade businesses to become even better engaged in sustainability practices in developing countries. This study rebuilds the SCP (structure–conduct–performance) paradigm to incorporate environmental variables and to address the environmental strategy choices. Grounded theory was adopted in a systematic collection of data in petrochemical, textile and beverage companies established in different Brazilian states. In-depth personal interview, site visit and documentary evidence were coded and analysed. The empirical results demonstrate that environmental regulation and enforcement, environmental risk and demands from stakeholders play a central role in increasing the corporate commitment to the natural environment. The study defines four strategic generic types of organization, termed variously as sleeper, reactor, defender and innovator, owing to their solutions to environmental issues. This typology contributes as a roadmap for business decision makers to choose the appropriate environmental strategy in a global economy. Copyright © 2008 John Wiley & Sons, Ltd and ERP Environment.
16 Dec 2009
TL;DR: In this article, the authors investigate whether the first-time issuance of a standalone corporate sustainability report led to changes in reputation as measured by Fortune Most Admired scores, and find, on average no significant changes in reputational scores.
Abstract: In this chapter, we investigate whether the first-time issuance of a standalone corporate sustainability report led to changes in reputation as measured by Fortune Most Admired scores. Based on a sample of 59 U.S. companies issuing their first standalone sustainability report over the period from 2001 to 2007, and controlling for the financial “halo effect” reported by Brown and Perry (1994), we find, on average no significant changes in reputational scores. However, cross sectional analysis shows that issuing companies from socially exposed industries experienced decreases in scores. Further, report quality, at least at the extremes appears to be positively related to changes in perceived reputation. These results are consistent with Godfrey's (2005) arguments with respect to corporate reputation.
TL;DR: In this paper, the authors present the concept of global strategic sustainability, represented by a conceptual framework, the "spheres of strategic sustainability" and examine routes, solutions and a vision for corporate strategic sustainability in the macro context of the global physical environment and the planet.
Abstract: Purpose – The purpose of this paper is to present the concept of global “strategic sustainability”, represented by a conceptual framework, the “spheres of strategic sustainability”. The paper examines routes, solutions and a vision for corporate strategic sustainability in the macro context of the global physical environment and the planet. This builds on previous research identifying key drivers and strategies for corporate sustainability. Design/methodology/approach – The paper is conceptual in nature and underpinned by Gaia theory, ecosystems theory and the laws of thermodynamics. These three offer specific foci for sustainability research including holism, integration and synthesis: without which, sustainability research would be difficult to achieve. Findings – The paper identifies two major domains – “corporate” and “consumer” strategic sustainability. It examines the corporate domain in which routes are identified through responses to existing globalisation, corporate strategy and corporate culture. Research limitations/implications – The paper provides insight and preliminary conceptual development towards a full theoretical model of corporate and consumer strategic sustainability. The framework will guide future conceptual and empirical investigations and broaden and deepen our understanding of how firm's can construct strategic business models that incorporate sustainability. Originality/value – The paper offers a conceptual framework that develops the concept of “corporate strategic sustainability” and provides positive, practical solutions to incorporating sustainability into business models. It also challenges the current dominant socio-economic paradigm and sets the scene for a more positive eco-paradigm that serves the present and future needs of the planet, environment, businesses and human society.
TL;DR: In this article, a conceptual, theoretical approach is proposed to differentiate corporate sustainability and operational robustness in terms of profitability and costs, then defines and develops internal, external, and uncontrollable fragility factors.
Abstract: Purpose – There is significant anecdotal evidence of increasing global supply chain fragility; and, for this reason, robustness and operational sustainability are of notable concern to senior executives. Though the issues are myriad, four factors dominate these concerns: increasing complexity of products, processes, and technologies, increasing structural complexity of supply chains, increasing diversity and global nature of business systems, and the environmental costs and impacts of extended supply chains. This paper aims to focus on these factors.Design/methodology/approach – This conceptual, theoretical paper differentiates corporate sustainability and operational robustness in terms of profitability and costs, then defines and develops internal, external, and uncontrollable fragility factors. A process that measures and integrates these factors is proposed for brainstorming and decision making. Additionally, methods to represent and compare alternatives, progress against internal or external targets,...
TL;DR: In this article, a CSR performance measurement framework based on the adoption of the Balanced Scorecard approach is presented, taking into account the social indicators suggested by the traditional balanced scorecard views, an extension of its structure is proposed in order to better embody the environmental and social aspects of company performance.
Abstract: The exact contribution of corporate social responsibility (CSR) to a company as well as to its stakeholders should be measurable in order to be evaluated correctly. The difficult task of measuring the results of CSR has been a matter of significant research both by academics and by practitioners. Some of the literature on corporate social responsibility combines CSR with stakeholder theory introducing corporate social performance. The literature has attempted to describe emerging models of the issues that lead to a coherent model of what would represent corporate social performance. However, it is the case that social aspects are “soft” in nature, therefore being difficult to quantify. Innovated methods of performance measurement such as that of Balanced Scorecard has lately been introduced in some companies in their attempt to include non-financial indicators to give a more balanced and forecasting power to the traditional financial performance assessment system, but the view of corporate social responsibility is rarely taken into account. Furthermore, management frameworks that try to cover social and environmental aspects, such as Global Reporting Initiative, by providing a number of related performance measures, are not able to connect them with corporate strategy and are poor evaluators of cause–effect relationships. In the present paper, a CSR performance measurement framework based on the adoption of the Balanced Scorecard approach is presented. For the development of the proposed framework, the existing assessment of CSR and Corporate Sustainability actions of the Greek companies of different sectors was analysed in order to identify common practices in CSR performance evaluation as well as existing limitations. Taking into account the social indicators suggested by the traditional balanced scorecard views, an extension of its structure is proposed in order to better embody the environmental and social aspects of company performance.
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01 Jan 2009
TL;DR: Humanism in Business as discussed by the authors investigates the possibility of creating a human-centered, value-oriented society based on humanistic principles, and presents philosophical, spiritual, economic, psychological and organizational arguments that show how humanism can be used to understand, and possibly transform, business at three different levels: the systems level, the organizational level and the individual level.
Abstract: What is the purpose of our economic system? What would a more life-serving economy look like? There are many books about business and society, yet very few of them question the primacy of GDP growth, profit maximization and individual utility maximization. Even developments with a humanistic touch like stakeholder participation, corporate social responsibility or corporate philanthropy serve the same goal: to foster long-term growth and profitability. Humanism in Business questions these assumptions and investigates the possibility of creating a human-centered, value-oriented society based on humanistic principles. An international team of academics and practitioners present philosophical, spiritual, economic, psychological and organizational arguments that show how humanism can be used to understand, and possibly transform, business at three different levels: the systems level, the organizational level and the individual level. This groundbreaking book will be of interest to academics, practitioners and policymakers concerned with business ethics and the relationship between business and society.
TL;DR: In this article, a multi-stage fuzzy reasoning model is presented to assess a corporation's sustainability, which can be used to assess the sustainability of a corporation, record its historical evolution, and compare the company to its direct competitors.
Abstract: Corporations interact with society and the physical and biological environment in ways that affect both sides. In this capacity, corporations play an important role in the sustainability of a region or country. Symmetrically, a corporation's sustainability depends on the sustainability of its wider environment. In this paper, a multi-stage fuzzy reasoning model is presented to assess a corporation's sustainability. The model has two fundamental components: human and ecological. The human component has up to four inputs: economic, political, knowledge, and welfare. The ecological component can also have up to four inputs: air, water, land, and biodiversity. Each of these eight components has a number of basic inputs suitable for evaluating a given corporation. The model can be used to assess a corporation's sustainability, record its historical evolution, and compare the company to its direct competitors. Equally importantly, sensitivity analysis of the model reveals the most important basic indicators affecting corporate sustainability, identifying areas which managers and executives should place special attention. An application example based on three large international corporations in the same industry illustrates the usefulness of the model.
TL;DR: This paper identified the strategies that individuals committed to the cause of sustainable investment use when attempting to persuade institutional investors (e.g., pension funds) to invest in socially and environmentally responsible ways, and suggested that market short-termism and internal organizational contexts dominated by a lack of moral engagement and disempowerment of SI teams are factors that impede champions' efforts.
Abstract: The present study identifies the strategies that individuals committed to the cause of Sustainable Investment (SI) use when attempting to persuade institutional investors (e.g., pension funds) to invest in socially and environmentally responsible ways. This article is based on interviews with 15 pioneers of the SI movement in the United Kingdom. Building on the literature on issue-selling, green championship, and corporate social responsibility, this study identifies four tactics that pioneers have employed to "sell" SI in investment institutions: making the business case for SI; forming internal coalitions with mainstream investment professionals; industry networking; gaining credible expertise. The results also suggest that market short-termism and internal organizational contexts dominated by a lack of moral engagement and disempowerment of SI teams are factors that impede champions' efforts. The article opens new avenues for research and recommends ways in which organizational and institutional impediments to SI may be overcome.
01 Jan 2009
TL;DR: In this article, a triple-bottom-line accounting framework and software tool is presented for a case study of a small company in the United Kingdom, where the concept of shared responsibility has been applied to avoid double-counting and noncomparability of results.
Abstract: Summary A determination of the sustainability performance of a company ought to fulfill certain requirements. It has to take into account the direct impacts from on-site processes as well as indirect impacts embodied in the supply chains of a company. This life cycle thinking is the common theme of popular footprint analyses, such as carbon, ecological, or water footprinting. All these indicators can be incorporated into one common and consistent accounting and reporting scheme based on economic input−output analysis, extended with data from all three dimensions of sustainability. We introduce such a triple-bottom-line accounting framework and software tool and apply it in a case study of a small company in the United Kingdom. Results include absolute impacts and relative intensities of indicators and are put into perspective by a benchmark comparison with the economic sector to which the company belongs. Production layer decomposition and structural path analysis provide further valuable detail, identifying the amount and location of triple-bottom-line impacts in individual upstream supply chains. The concept of shared responsibility has been applied to avoid double-counting and noncomparability of results. Although in this work we employ a single-region model for the sake of illustration, we discuss how to extend our ideas to international supply chains. We discuss the limitations of the approach and the implications for corporate sustainability.
TL;DR: In this paper, the authors present a methodological proposal for carbon footprint calculation on the basis of the "method composed of financial accounts" abbreviated as MC3, considering the Spanish version "metodo compuesto de las cuentas contables".
Abstract: Corporate carbon footprint (CCFP) is one of the most widely used indicators to synthesise environmental impacts on a corporate scale. We present a methodological proposal for CCFP calculation on the basis of the “method composed of financial accounts” abbreviated as MC3, considering the Spanish version “metodo compuesto de las cuentas contables”. The main objective is to describe how this method and the main outputs obtained work. This latter task is fulfilled with a practical case study, where we estimate the carbon footprint of a wine-producing company for the year 2006. Results show the origin of impacts generated, providing this firm with disaggregated information on the contribution to its CCFP of each one of its activities and consumptions. Keywords: ecological footprint analysis; carbon corporate footprint; MC3 1. Introduction: Corporate Sustainability and Ecological Footprint Analysis Over the last few decades, organisations have gained better awareness on issues that have traditionally played a secondary role or were simply not regarded as business strategies. This is particularly true in the case of environmental sustainability-related questions.