Escalating ecological degeneration and mounting social challenges highlight the need to rethink the current way of doing business. Human and business activities rely on functioning social-ecological systems but tend to take these for granted. Extant research on business sustainability has acknowledged the relevance of sustainability concerns for business strategy and organizing. Yet, dominant conceptualizations of business sustainability remain focused on the organization and its business case, in the quest to find strategies that translate less harmful social and environmental practices into competitive advantages. Only few scholars have gone beyond such a commercial logic and adopted a systems approach to derive business strategies from the logic of social-ecological systems. In this article, we propose that taking a systems approach means to conceptualize business sustainability in terms of regenerative business, that is, businesses that enhance, and thrive through, the health of social-ecological systems in a co-evolutionary process. As our main contribution, we develop the restore-preserve-enhance scale for regenerative business strategies reflecting a continuum of strategies for regeneration. These strategies follow from two main principles and related criteria for a systems-based level of aspiration and an adaptive management approach to regeneration. By doing so, we fundamentally shift the focus away from a business logic to a systems logic. Importantly, we offer concrete strategies for organizations to contribute to life-supporting conditions in social-ecological systems.
Sustainability standards for tropical agriculture promise better trade and fairer labour conditions for smallholders. Recent research on labour suggests that, besides such standards, configurations of buyer–supplier relationships crucially shape economic and labour conditions. However, a static configurational approach overlooks the role of supplier and labour agency over time. Using a matched case comparison of two certified rural enterprises in Ecuador, this article shows that suppliers can leverage standards to create value from vertical relationships with buyers. However, standards do not, by themselves, directly contribute to better conditions. They do so indirectly only if suppliers manage to become competitive in an elite market, augmenting rather than dampening unequal trade conditions. This study contributes to recent theory seeking to explain uneven labour outcomes with sustainability standards in global production networks.
Voluntary sustainability standards (VSS) aim to encourage ethical behaviors of organizations, yet studies show that many VSS adopters do not live up to these promises. Existing literature typically attributes the reason for this ineffectiveness to either policy–practice decoupling, owing to a lack of adhering to VSS requirements, or means–ends decoupling, owing to a lack of adapting to the local context. However, little is known about how the contradictory needs of adherence and adaptation evolve throughout VSS implementation. Building on the knowledge transfer literature, we develop a dynamic conceptual framework that distinguishes two phases of VSS implementation. Specifically, we theorize how tensions emerge in the transition between phases since the first phase primarily calls for adherence, whereas the second calls for adaptation. Applying this framework, we develop propositions to illustrate how these tensions relate to different VSS characteristics: stringency, enforcement, and scope. The article concludes with implications and future research directions for VSS scholarship.
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