As environmental degradation and climate change continue to threaten our livelihood, entrepreneurs have a crucial role to play in promoting environmental regeneration and infusing their ventures with sustainable decision-making. Building on advances in research on social and sustainable entrepreneurship, we propose that compassion is an important predictor of entrepreneurial decisions involving an ethical balancing act between concerns for environmental and economic sustainability. We further draw on emerging evidence in psychology, pointing to meditative practice as a powerful and accessible source of compassion. In two experimental studies, we test and find support for a mediation model predicting that, compared to an active control group, entrepreneurs engaging in a brief Loving-Kindness Meditation report an increase in compassion and, in turn, higher sustainable decision-making. On the basis of these findings, we offer contributions to research on the psychological drivers of sustainable entrepreneurship and to the literature about meditation and compassion in entrepreneurship.
Executive summaryAsking entrepreneurs to address grand environmental challenges is not particularly useful unless we better understand why and how entrepreneurs make environmentally sustainable decisions. Whereas prior research has emphasized cognitive predictors like values or self-efficacy, it has lagged behind in recognizing the central role of affective factors -emotions, moods, and feelings -in shaping how entrepreneurs make sustainability-related decisions. In this paper, we argue that Loving-Kindness Meditation (LKM) is an accessible contemplative practice through which entrepreneurs can cultivate feelings of compassion and therefore enhance their sustainable decision-making. Thus, in contrast to prior research, we put affect at the core of our study and propose a mediation model in which compassion transmits the positive effect of LKM on entrepreneurs' environmentally sustainable decisions. Our approach to LKM and compassion is theoretically based on psychological studies showing that even a very brief LKM intervention can elicit compassion. To explain how compassion relates to entrepreneurs' sustainable decision-making, we build on prior conceptual work on social entrepreneurship and further develop theory about the overlap between social and sustainable decision making among entrepreneurs.We test our theoretical propositions in two experimental studies. In study 1 we use random assignment of entrepreneurs who either listened to a brief guided LKM (treatment group) or to a recorded lecture about meditation (active control group) before