PurposeThis paper seeks to explore patterns of integrating corporate responsibility issues into corporate governance mechanisms and their development over time.Design/methodology/approachData from the Business in the Community Corporate Responsibility Index is explored to reveal dominant governance patterns of corporate responsibility issues for the 51 organizations continuously participating in the index since its launch in 2002.FindingsThis research reports three major findings: First, there is increasing CEO leadership for the corporate responsibility agenda of the firm. Second, governance structures developed over time are now increasingly making use of corporate responsibility committees. In 2002 about 15 percent of the firms were using a CR committee, the number had increased by 2008 to more than 60 percent. Third, firms with a CR committee in place outperform others in the Corporate Responsibility Index.Research limitations/implicationsWhile this paper gives a good insight into which structures companies set up to deal with the corporate responsibility agenda, interviews with practitioners would help to understand why this is the case and in which direction the governance of corporate responsibility is expected to evolve.Practical implicationsTo understand how companies are governing their corporate responsibility activities is useful for managers seeking to learn from best practices.Originality/valueThis paper is the first empirical research looking at the development of governance structures for corporate responsibility beyond a single case study design.
Purpose -This paper aims to explore how stakeholders are voluntarily granted influence in corporate decision making.Design/methodology/approach -The stakeholder governance practices of 46 companies were explored in a multiple comparative case analysis, drawing on publicly available sources.Findings -The research finds that stakeholders are granted a voice regarding operational, managerial as well as strategic issues. The power granted to stakeholders varies from non-participation to co-decision making. The majority of engagements found are a combination of low power and low scope of participation, which are limited in their potential to align the views of those inside and outside the corporate boundaries.Research limitations/implications -The data used in this research relied on publicly available sources, such as company reports, articles and web sites.Practical implications -By seeing an array of different stakeholder governance mechanisms managers can reflect on their own approach to stakeholders and see how other companies use stakeholder engagement for scenario planning and innovation.Originality/value -The paper is the first to empirically analyse a broad range of companies regarding their voluntary stakeholder engagement mechanisms. This design allows the creation of a heuristic for stakeholder governance as well as for identifying clusters.
Organizational citizenship behaviors for the environment (OCBEs) are increasingly advocated as a means of complementing formal practices in improving environmental performance. Adopting a capability perspective, we propose that a firm's employee involvement capability translates into environmental performance through the manifestation of unit-level OCBEs, and that this relationship is amplified by a shared vision capability. In a cross-country and multi-industry sample of 170 firms, we find support for our hypotheses, shedding light on contextual determinants of OCBEs, and on how firms may engender a positive relationship between top-down environmental initiatives and bottom-up behaviors.
humanistic management, human dignity, business case, moral case,
Purpose-This paper aims to create empirical evidence regarding shared value strategies recently propagated by Michael Porter and Mark Kramer. Design/methodology/approach-The authors analyze a single case study of a collaboration between BASF, André Maggi Group and Fundaçã o Espaç o Eco in Brazil. The objective is to evaluate whether the applied strategy can be considered as a case of shared value creation. Findings-The case study on the collaboration between BASF, FEE and the André Maggi Group does qualify as a shared value strategy, more precisely as a case of redesigning productivity in the value chain. Research limitations/applications-This single case study creates some evidence for shared value strategies; however, more research is needed to generalize the results. Practical implications-The socio-eco-efficiency analysis offered by Fundaçã o Espaç o Eco creates a differentiation strategy for BASF in Brazil. The work enables BASF's clients to reduce negative impacts while increasing their financial, social and environmental performance. Originality/value-This paper is the first empirical verification of the shared value concept. It demonstrates that shared value strategies do enhance financial as well as socio-environmental performance and build stronger client relationships.
Purpose -The purpose of this paper is to present a model of corporate social entrepreneurship. The case of Odebrecht demonstrates how companies are using society's sustainability challenges to innovate, in particular by adopting a corporate social entrepreneurship approach that allows the company to differentiate from competitors and create shared value.Design/methodology/approach -This research applies a comparative case study design in combination with a review of the literature in order to present a model of corporate social entrepreneurship.Findings -The case study of two major projects within the Odebrecht group allows us to design a model of corporate social entrepreneurship explaining how the company transforms external triggers such as socio-environmental risks into sustainability innovations, creating competitive advantages.Research limitations/implications -The two case studies provide some evidence of how companies blend sustainability and innovation within corporate social entrepreneurship strategies. More research is needed in order to refine the patterns and components of the corporate social entrepreneurship model.Practical implications -Integrating sustainability into the innovation process allows Odebrecht to differentiate itself from competitors and have meaningful engagement with stakeholders. This helps the company to grow, especially in developing economy markets, which face similar sustainability challenges as Latin America.Originality/value -The combination of corporate entrepreneurship models and these case studies of sustainability innovation helps to create a model of corporate social entrepreneurship explaining how companies can transform external sustainability challenges into shared value creation. Keywords Sustainable innovation, Corporate social entrepreneurship, Shared value, Social intrapreneurship Paper type Case study Union's ''2020 Horizon'', the report calls for inclusive forms of growth creating employment and education, internalising externalities, valuing ecosystem services, as well as avoiding carbon emissions. These initiatives as well as many others demonstrate global society's struggle to achieve sustainable development to ensure that future generations have the same access to essential resources and services as we have today (World Commission on Environment and Development, 1987).This societal demand has met with a new consciousness in the corporate world that realises that satisfying society's sustainability needs not only helps to avoid risks, but may also create opportunities, for -as Porter and Kramer (2011) termed it -shared value creation. Companies at the higher end of corporate sustainability maturity have started to adopt their
conflict, crisis, Kohlberg, legitimacy, moral learning, organizational development, organizational learning,
In this paper we present the Sustainability Delta model as an improvement over existing environmental, social and governance (ESG) methodologies used in firm valuation. Starting from the question of how banks should integrate sustainability criteria into their valuation methods, we find that ESG methodologies currently do not consider the potential to generate higher future revenues due to sustainable innovations, and also lack consideration of different scenarios such as higher standards in legislation or consumer demand. To address these shortcomings the Sustainability Delta model is developed. Simulation results on the sugar manufacturing industry in Brazil demonstrate that by using the Sustainability Delta we estimate an improved firm value of 1.24%. The Sustainability Delta would allow for a more accurate valuation of firms as well as for the more effective allocation of capital for investors, which should bring market pressure to improve sustainability practices and thus contribute to sustainable development.
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