Industrial companies are in a situation that requires them to reconsider their social sustainability agenda in order to attract new employees. Building upon interviews with CEOs and HR managers in 20 small medium enterprises (SMEs), this study aims to analyze how high-tech companies and industrial engineering companies define and implement social sustainability into business strategies and operations. Data was collected from 20 interviews and secondary information coded for categorical data analysis in SPSS Statistics 22 software. The findings show that although the companies have adopted several kinds of International Organization for Standardization (ISO) standards, social sustainability is still absent from their operational activities and is considered of lower importance than environmental sustainability. Thus, the implementation of social sustainability can be considered symbolic rather substantive. The study also shows differences between the two groups of companies. The high-tech company group pays little attention to social sustainability aspects, instead focusing on product innovation development. While the industrial engineering group has some interest in social sustainability, their focus is primarily on issues linked to health and safety in order to meet increasing demands from supply chain compliance. Neglecting social aspects of sustainability, such as addressing gender equality and diversity, may cause difficulties in attracting a new workforce.
This case study aims to analyze how boards and top management in regional cluster organizations contribute to social sustainability commitment for themselves and their member organizations with specific focus on gender equality and diversity issues. The study adopts a case study research approach, where interviews, observations and secondary data constitute the basis for in-depth analysis. To deepen the case analysis, four theoretical perspectives are applied for pattern-matching: stakeholder, resource dependence, agency and institutional theory. Results of the study show that the boards are aware of stakeholder requirements, have necessary resources and expertise, and are well aware of the importance of social sustainability, but they act traditionally by focusing on economic incentives and responsibility. Board members act symbolically by transferring social responsibility to the top management of these cluster organizations through their applications for funds. From agency and stakeholder perspectives, the fund application regulates roles and responsibilities between the parties. Top management legitimates the responsibility by initiating projects and initiatives to strengthen social sustainability in a substantive way in member organizations. The study contribution shows that the board’s mission and role have symbolic significance for building social responsibility, while top management contributes substantively.
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