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Building on recent developments in optimal distinctiveness (OD) research, we identify two dimensions of corporate social responsibility (CSR) practices – CSR scope conformity and CSR emphasis differentiation – and examine the antecedents of both. We theorize that private ownership and enhanced media coverage may increase scope conformity and emphasis differentiation, while such effects may be contingent on industrial context. In socially contested industries, the impact of private ownership on scope conformity will be mitigated, and the impact of media coverage on scope conformity will be amplified. Meanwhile, in highly competitive industries, the impact of private ownership and media coverage on emphasis differentiation will be mitigated. We test our predictions using a database of 942 Chinese publicly listed firms between 2008 and 2016. Our findings imply that the choice of optimal CSR strategy has to be made in accordance with the embedding context. The multidimensionality view of OD enables firms to better orchestrate firms’ strategic positioning along different dimensions of complex practices, which leads to better customization of societal expectations and the industrial competitive landscape.
Climate change and the pursuit of sustainability and sustainable business might be regarded as among the world’s “wicked problems”, especially as they are multi-dimensional problems. Achieving corporate accountability in this context is also difficult when corporate structures are complex as they operate globally and through supply chains. At the European level, under the Green Deal, the Sustainable Finance Initiative and the Sustainable Corporate Governance Initiative include new reporting requirements to amend and expand the scope and application of the 2014 Non-Financial Reporting Directive, alongside changes to directors’ duties to ensure they take account of stakeholders’ needs and environmental and human rights due diligence requirements. This paper will argue that these legislative and regulatory efforts are to be welcomed, but the complexity of the regulation threatens to undermine its potential impact. It may therefore be necessary to reduce some of the complexity of the regulatory arrangements. However, some complexity may increase resilience and adaptability for responding to the risks involved in the uncertainty and unpredictability of climate change and in dealing with complex corporate structures. The answer is to provide robust regulation that will prompt the corporate behaviours required to avoid the catastrophic trajectory we currently face.
This study examined the impact of green human resource management (GHRM) and green supply chain management (GSCM) on the economic, social, and environmental performance of 272 (ISO-certified) textile firms in Pakistan. It investigated how a firm's size and the number of years since adopting GSCM practices influence performance. Survey data were collected from these firms through a cluster sampling approach and then analyzed through structural equation modeling. Results highlighted that GHRM positively influences a firm's environmental and social performance. Results further indicated that inbound and outbound GSCM activities mediate between GHRM and a firm's environmental and social performance. The moderation results revealed that a firm's size is crucial for improving performance. From an emerging economy perspective, this study draws the attention of policymakers and managers, concluding that implementing GHRM improves the green orientation of all the departments within a firm and helps organizations achieve sustainability goals.
Latin America has traditionally been both an object of great interest to business and human rights (BHR) scholars and a source of important contributions to the discussion of the most pressing challenges in the field. This article is an attempt at a systematic review of the Latin American contributions to the BHR scholarship to date. It relies on systematic data collection and qualitative analysis of an original dataset of existing literature on BHR in the Latin American context, with the hope of providing a baseline assessment of the state of the field and contributing to building an interdisciplinary and diverse research agenda moving forward. Special focus is paid to how particular regional characteristics shape Latin American contributions. More broadly, the article offers an opportunity to reflect on the place of Global South perspectives in the development of the field.
Sustainability encompasses social, economic and environmental issues with the primary aim to fulfil the needs of the present society without compromising the potential needs of future generations. Product design has been identified to greatly influence the sustainability of New Product Development. This study aims to identify and review the fundamental factors in which product design has the ability to influence and improve the overall environmental sustainability of a product. A comprehensive literature review has been performed to establish trends over the past four decades. The factors that have significant potential, such as the 6Rs, waste and energy, which aid designers in the implementation of environmental sustainability during the product design process have been identified and discussed. Through this analysis, a new conceptual framework has been conceived, facilitating designers in implementing environmental sustainability during product development. In addition, future research opportunities have been identified.
A wide variety of social innovations exist today that offer urgently needed pathways for transforming societal systems into more just, sustainable and regenerative ways of organising human existence on this planet. However, a more systematic and practically useful understanding is needed of how individuals and organisations can strengthen the transformative capacity of people working on connecting, spreading, maturing and structurally embedding these innovations. This study presents an updated conceptual framework of network leadership roles and practices, and describes how these can contribute to more widespread, systemic and lasting impact of social innovations.
Technical summary
This study tests and refines a conceptual framework, describing the roles and practices of network leadership that can support the development of transformative capacities, in the context of social innovation networks. Such capacities include spreading social innovations in wider society, embedding them in policy and public discourse, and generating continuity and further development of social innovation activities. We studied five cases of transnational social innovation networks involving community-led and student-led sustainability initiatives. Practitioners in these networks were asked to rate and comment on the perceived recognisability and importance of network leadership roles and practices, as well as challenges, which we articulated in a previous study and further developed in the current study through participant observation and document analyses. This resulted in a revision of the roles and practices, the identification of relations between roles and a better understanding of how they can contribute to transformative capacity development. The interviews also helped to clarify the practical usefulness of the framework, suggesting possible applications for evaluating, prioritising and aligning roles performed by various individuals and organisations. The findings are relevant for better understanding and guiding distributed agency in transformative social innovation networks.
Social media summary
Roles and practices for network leadership to enable more widespread, systemic and lasting impact of social innovation.
Consumers are increasingly interested in the sustainability of food products, but so far, no specific European Union (EU) legislation has been developed to harmonise sustainability claims. We analyse which efforts already undertaken within the EU dealing with sustainability claims on products apply to sustainable food claims. We show that whilst sustainability can address three different dimensions (environmental, social and economic), it is crucial to clearly define sustainability in order to allow for the development of concrete regulations and guidance documents. EU legislative initiatives so far seem to be focused on environmental aspects, whilst Member States approach sustainability more broadly. At the same time, substantiation methods can only be successful when sustainability is well defined. We conclude that whilst there is a large range of initiatives taken at different levels, the foundation of these initiatives remains weak when there is no clear scope of terminology nor clarification of substantiation requirements. Currently existing self-regulatory initiatives could support protecting consumers from misleading claims by providing specific provisions for (food) business operators on how to make sustainability claims. Only when claims can be trusted and understood by consumers will they be able to make more sustainable purchase decisions. This plays an important role in the overall policy objective of the EU of climate neutrality by 2050.
This article focuses on the correlation between the secondary objectives of the European Central Bank (ECB) and the right to a healthy environment. Whereas the primary mandate of the ECB is maintaining price stability, the applicable law also envisages secondary objectives, such as supporting economic growth and sustainable development. Crucially, however, there is an emerging scientific literature suggesting a trade-off between economic growth and environmental sustainability. This results in a balancing problem: To what extent environmental protection and sustainability can be balanced with economic growth within the ECB’s monetary policy? This article aims to analyse this issue with a specific focus on legal implications in terms of the right to a healthy environment. This study reveals the failure of the member states to comply with the international obligations under the right to a healthy environment in shaping the law of the ECB.
Research on “corporate biosphere stewardship” and the related concept of “keystone actor” has proliferated in recent years. We scrutinize the program focusing on issues and assumptions associated with inequality, naturalizing social processes, or reification, and characterizing corporations as equivalent stakeholders in sustainable development with other actors and organizations. As a result, we argue the program does not promote the stated claim of transformative change for sustainability. We suggest that the research program should develop a deeper analysis of social dynamics, forces, and structures, based in social theory, particularly sociological work, which can help reveal common taken for granted assumptions.
Technical Summary
We highlight important assumptions associated with the research program in sustainability science developed around “corporate biosphere stewardship” and the promise of “science-business initiatives.” In doing so, we interrogate a central concept in this research, “keystone actors.” We analyze the program based on associated research outputs and communications, focusing on three key challenges 1) inequities related to the concentration of political-economic power 2) concerns with naturalizing social processes, or reification, and 3) the limitations of characterizing corporations as commensurable stakeholders in sustainable development. This research program has revealed some important conditions and dynamics in relation to consolidation and concentration in global industries. However, it has been limited by insufficient integration of knowledge from social science, particularly sociology. Thus, the approach tends to undertheorize social dynamics, processes, and structures. Despite being framed as an effort at “improving the prospects for transformative change,” the implications, outcomes, and recommendations that emerge from this research program may inadvertently promote increased control and power of elite actors by presenting an ostensible inevitability of corporate dominance for bringing about social welfare and sustainability. We suggest greater attention to social structural dynamics, and particularly social struggles and social movements, when considering the potential for transformational change for sustainability.
This study examines the effect of board gender diversity (BGD) and sustainability committees on environmental performance. Using a quantile regression approach and a sample of publicly listed firms in Italy, we find that BGD and sustainability committees have different effects on firms' environmental performance over different points of conditional distribution. This shows that BGD and sustainability committees have greater quantitative impact in firms performing better environmentally and are positively related to environmental performance. We further discover that large Italian firms that reach a critical mass of three female directors maintain a stronger attitude towards environmental sustainability. Overall, the results confirm that BGD and sustainability committees enhance board effectiveness and help promote sustainable environmental initiatives. This study provides empirical evidence from a context that has not yet been investigated. It further augments the literature by employing a quantile regression approach, mostly unexamined by previous studies.
Firms with well-formulated competitive market strategies could still fail due to their lack of effective nonmarket strategy. Climate change poses significant threats to firms and presents firms’ need to develop nonmarket strategy integrated with market strategy. Relying on the unique dataset of US S&P 500 firms’ responses to climate change, this study seeks to ask why some firms attempt to engage in climate policy making, while others do not do so. The results found that firms with organizational resources and capabilities underlying their carbon market strategy are more likely to support mandatory climate policy. It sheds light on the significance of integrated market and nonmarket strategies, particularly when business opportunities are controlled more by governments than by markets.
It is not only worth talking about the chances of survival in the fight against emerging environmental and socio-economic threats, but it is necessary to use all possible means to influence public awareness. It is awareness that shapes our attitudes and literacy. The core of these tools is cross-sectoral place-based education. This raises the question of the role of new energy actors in the education process. As ‘first movers’, they have enormous power in the local community. Are they therefore merely energy producers, or perhaps, using their position, are they actively involved in creating local energy behaviours? A combination of social research methods including qualitative studies helped respond to this question. As the study shows, an opportunity for effective education is contextualisation, embedding educators in the local social structure and including first movers – energy producers – in this process. Biogas entrepreneurs transpose the knowledge of renewable energy – a globally known issue – to the local level. The provision of comprehensive education requires institutional support focused on building partnerships between policy makers, teachers and practitioners, enabling not only trans-sectoral contact but also the exchange of experience.
This introductory chapter frames the issue of companies and their role in the climate crisis. It lays out the science of climate change and the causal connection between the historic and present contributions of companies to climate change through their greenhouse gas emissions. The chapter highlights the global temperature goals under the Paris Agreement and the consequential emission reductions it necessitates. This chapter also introduces some key concepts in company law theory such as shareholder primacy and shareholder wealth maximization and their role in Anglo-American company law. The chapter provides an explanation of a number of corporate forms, including traditional for-profit corporate models (both private and public) as well as a variety of hybrid and social enterprise forms. The imperatives of profit making, as illustrated by dominant corporate norms, are relevant (in varying degrees) to all of these corporate forms. The chapter concludes with a summary of systemic barriers of short-termism as well as opportunities such as corporate social responsibility and societal expectations which surround companies in the context of climate change, and why the United Kingdom is used as a model jurisdiction.
The agriculture and food sectors contribute significantly to greenhouse gas emissions. About 15 percent of food-related carbon emissions are channeled through restaurants. Using a contingent valuation (CV) method with double-bounded dichotomous choice (DBDC) questions, this article investigates U.S. consumers’ willingness to pay (WTP) for an optional restaurant surcharge in support of carbon emission reduction programs. The mean estimated WTP for a surcharge is 6.05 percent of an average restaurant check, while the median WTP is 3.64 percent. Our results show that individuals have a higher WTP when the surcharge is automatically added to restaurant checks. We also find that an information nudge—a short climate change script—significantly increases WTP. Additionally, our results demonstrate that there is heterogeneity in treatment effects across consumers’ age, environmental awareness, and economic views. Our findings suggest that a surcharge program could transfer a meaningful amount of the agricultural carbon reduction burden to consumers that farmers currently shoulder.
Since so much of how humans do life is in need of rethinking, it is hardly surprising that as part of that we need to look again at the way we do business. This short chapter is not a comprehensive guide for business and technology in the Anthropocene but just has a few top-level thoughts, drawn partly from the evidence and logic of the book so far, and partly from 20 or more years consulting in organisations, including a few of the world’s technology giants.
This article makes the case for a ‘holistic’ approach to human rights due diligence, arguing that such a standard must be interpreted in the light of mutually reinforcing principles of environmental law, climate law and human rights law. Through a review of emerging climate change-related litigation, it shows how a concept of ‘climate due diligence’ is gradually consolidating. Building on the United Nations Guiding Principles on Business and Human Rights, the article explores climate due diligence both as a standard of conduct and as a business process, presenting its main features. It argues that corporations should integrate climate due diligence into their processes and policies to be best prepared for likely regulatory and judicial developments, such as the upcoming European Union’s regulation on human rights and environmental due diligence.
Australia has committed to reducing emissions under the Paris Agreement by 2030, in alignment with the United Nations' (UN) Sustainability Development Goal (SDG) climate action. This article investigates the responses of Australian high-emission businesses to Australian government action and legislation in relation to climate change, specifically the carbon tax, and how this knowledge can assist in delineating future carbon legislation. A qualitative study of the responses of 17 high-emission businesses and three industry associations to carbon legislation during the implementation of the carbon tax in Australia identified the use of resistive, reactive or cooperative strategies by the businesses. Issues related to carbon legislation identified by businesses included differences in time orientation, multiple regulations, political uncertainty, international positioning and the need for long-term and consolidated policies. Given these findings, this article argues that well-designed top-down legislative measures are necessary to steer businesses towards a carbon-neutral regime.
The UN Sustainable Development Goals to 2030 call for action by the globe to tackle some of the most pressing problems facing humanity. There is a key role for business in helping to meet the goals, and in particular, small- to medium-sized enterprises (SMEs), which account for over 90% of global businesses. Many organisations that were already engaged in addressing sustainability prior to the release of the SDGs will need to shift their approach to accommodate the new framework, including SMEs like Sydney Theatre Company (STC). This paper explores the use of the SDG Compass as a tool for making that shift by revisiting a previous case study on STC's sustainability journey since 2008 to assess the efficacy of the SDG Compass as a guide to addressing the SDGs. It finds that the SDG Compass is prohibitively complex for SMEs which could impede engagement with the SDGs by SMEs.
This paper proposes that the United Nation's sustainable development goals (SDGs) and associated targets form an effective framework for determining real-world research impact. Existing bibliometrics that assess the quality of academic work are usually quantitative and self-referential, reducing the focus on real-world issues. The same measurements are often adopted by funding bodies, pressuring researchers to increase compliance, and further reducing integrity and real-world impact. A series of world cafés were conducted, collecting data on how researchers, their institutions, and network organisations can contribute to, and measure research aligned with the SDGs and targets. The results showed that participants were generally positive towards using the SDGs and targets to measure impact and quality of academic research. Suggestions to assist greater adoption of the SDGs and targets as a measure of impact included: aligning governmental and institutional funding; changing key performance indicators; increasing cross-disciplinary work; aligning mission/vision statements; and legitimising SDG-focused projects at conferences.