Testing and Verification of a New Corporate Sustainability Assessment Method for Manufacturing: A Multiple Case Research Study

Abstract

This paper aims at answering the question of how to design a theoretically sound corporate sustainability assessment (CSA) method that can strengthen the ability of manufacturing companies to contribute to global sustainable development (SD). In our effort to answer this question, we conduct a case study to test a newly designed CSA method to develop assessment tools for each of four different case companies. The method combines criteria-based indicators development with qualitative system dynamics modeling based on mental models of decision-makers. This strategy ensures a holistic approach to what corporate sustainability and sustainable manufacturing are. The paper is intended to serve, first of all, as a practical guide to the development of CSA tools. The scientific value of the method is discussed in terms of how it assists in the development of a tool that provides the potential to overcome shortcomings of existing approaches to sustainability assessment and to embrace the complexity of the sustainability concept. From the case study results, we demonstrate the capability of the new method by showing how it satisfies scientific requirements to sustainability assessment and fulfills functions of CSA. We also show how it may overcome some of the observed limitations of existing CSA tools.Sustainability 2018, 10, 4121 2 of 40 nature of conducting sustainability assessments by the private sector can potentially lead to selective interpretation and reporting of sustainability performance outcomes, increasing the danger of greenwashing. There is also a necessity to extend the scope of such assessments beyond a company's internal performance indicators toward external data on sustainable development trends, risks, and opportunities [20]. Despite these recommendations, the success of the existing efforts is argued to be very limited [21] due to the fact that research on how to translate social and environmental boundaries into contextually-based measures of sustainable development is still in an embryonic stage (ibid). Thus, the translation of societal-level indicators to a corporate context remains one of the most significant challenges in the operationalization of SDGs in the business world. It has been argued that strategically mindful firms with a solid corporate philosophy that values environmentalism are more willing to practice corporate sustainability [22], which is driven by the corporate sustainability strategy [23].Research about corporate sustainability assessment is still dominated by neoclassical thinking that implies the use of the so-called paradigm of rational and objective knowledge [24]. Therefore, many of the currently prevailing assessment tools are quite technocratic and deterministic by nature, with characteristics of their techno-rational roots and a high level of engineering. Such tools are often considered to be 'truth machines', with the ability to deterministically predict the behaviour of systems in the future. The technocratic approach has resulted in significant limitations of CSA as ...

Corporate Sustainability Assessments in the Information Communication Technology Sector in Malaysia

“…This case highlights the significant interplay between the home and host country contexts, which illustrates the complexity of how global multinationals approach CSAs. The case conforms with expectations set in the extant literature, including the importance of company commitments to sustainability standards and guidelines (i.e., GRI, UNGC and CDP) and the significant influence in directing the development of the sustainability principles, goals and issues (i.e., [30,39,44]). Yet, it is evident that the subsidiary extends beyond the headquarters commitments, demonstrating significant autonomy and proactiveness in their sustainability approach.…”

“…As [29] recently postulated, CSA is "a platform from which the private sector can implement systematic processes to address sustainability" [29] (p. 1). Indeed, [30] (p. 3) argue that sustainability assessment at the company level can be seen as "an instrument to evaluate organisational performance to assist decision-makers in determining which actions should or should not be taken in an attempt to contribute to sustainable development". A range of research has shown the broader utility of CSA supporting the private sector to engage with sustainable development (e.g., [1,16,29,31]).…”

“…While the body of literature is growing on the use of the CSA as a tool to inform decision-making for sustainable development, it nevertheless remains used across differing contexts with different meanings. Specifically, within the extant literature, there appears to be two distinct perspectives on CSA as either a method for an evaluation of sustainability performance (e.g., [36,37]) or as a broader management process (e.g., [25,30,33,38]). In this research, we adopt the second perspective, with the CSA as a holistic management process adopted by companies to address sustainability within their business operations [29][30][31].…”

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