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Creating Shared Value
Abstract
THE CAPITALIST SYSTEM is under siege. In recent years business increasingly has been viewed as a major cause of social, environmental, and economic problems. Companies are widely perceived to be prospering at the expense of the broader community.
... Digital transparency, specifically, includes practices such as the disclosure of supply chain processes, ethical certifications, and environmental impacts, often facilitated by technology (Auger et al., 2003). Scholars argue that digital transparency, when adequately implemented, can create competitive advantages by differentiating ethical brands from competitors (Porter and Kramer, 2011). ...
... By embracing transparency, companies address the concerns of stakeholders who increasingly prioritise ethical and sustainable practices. Transparency also supports the concept of shared value, as proposed by Porter and Kramer (2011) transparency not only fulfil their ethical obligations but also build stronger and more loyal customer bases. ...
This paper investigates the role of digital transparency in enhancing consumer awareness of product origins and sustainability. As consumers increasingly seek to make informed, ethically aligned purchasing decisions, digital platforms - such as blockchain-enabled systems, mobile apps, and e-commerce sites - offer a medium for brands to communicate supply chain transparency. Through a comprehensive literature review, this article examines how transparency practices impact consumer trust, decision-making, and the adoption of sustainable products. Findings reveal that while digital platforms can significantly influence ethical consumption, their effectiveness depends on the clarity, accessibility, and perceived credibility of information presented. Key challenges, including greenwashing and information overload, can hinder transparency efforts, thereby reducing consumer trust. Additionally, stakeholder theory and the theory of planned behaviour provide insights into the ethical responsibilities of brands and the cognitive factors shaping consumer choices. Practical recommendations are offered, including the need for simplified, interactive transparency tools and collaboration with third-party certifiers to enhance authenticity. The study highlights the importance of evolving digital transparency practices to meet the ethical demands of modern consumers and suggests ways for future research to explore the impact of transparency across diverse consumer segments and regions.
... Third, value is subjective, varying among stakeholders based on their perceptions and expectations. Value is conceptualised regarding the recipient subject [40,41] as it deems something valuable when able to meet its implicit or explicit needs [42]. The subjective value perception results in the subject's willingness to pay or commit resources for the activities, products, and services [34]. ...
... This collaborative approach fosters a more profound comprehension of users' needs, preferences, and expectations [14]. As a result, value streams take on a more user-centric dimension, ensuring that they resonate more closely with the users expected value [42]. This shift towards collaboration has the potential to realign CSS offerings with the users' expected value, ushering in a new era of CSS user-centric design. ...
... In Cummins et al., (2024) they show how environmental efforts that are transparent have a positive impact on consumer perceptions. Green satisfaction and trust are found to significantly affect green brand equity (Chen, 2010).To create shared value, benefitting both business and society, Kramer, & Porter, (2011) propose that sustainability be integrated into the value chain.decreases satisfaction and trust, as Ha (2022) explains. ...
This paper looks at the rising influence of sustainability on consumer preferences and brand loyalty, and the factors that influence sustainable purchasing behavior. The research employs a mixed-method approach (surveys (n = 400), focus groups and interviews) to investigate demographic drivers, motivators, and communication strategies that influence sustainability preferences. Regression analysis (β = 0.52, p < 0.001 and β = 0.38, p = 0.002) confirms that environmental awareness (85%) and education level (72%) are the most important predictors. When examining the association between ethical values and sustainability preferences, the analysis shows that there are strong associations between these two (r = 0.65) and the role of personal responsibility and moral alignment. Environmental concern and ethical values are the two key motivators (40% and 30% respectively), while product quality and social influence are the two other motivators (20% and 10% respectively). Social media (4.5/5) and in store promotions (4.2/5) were the most effective communication channels to promote sustainability messages. Qualitative insights reinforce the value of transparent messaging, credibility and emotional connections, but concerns regarding greenwashing reaffirms that messaging needs to be genuine linked to third party certifications. The results provide a holistic framework for incorporating sustainability into branding strategies that can help businesses build trust, boost customer loyalty, and gain a long term competitive advantage in an ever more eco conscious market.
... While socially sustainable values such as good working conditions, gender equality, and equity are fundamentally a question of human rights, they also create long-term business value (M. E. Porter & Kramer, 2019). A meta-analysis covering more than 60,000 companies shows a robust relationship between employee job satisfaction and business performance (Harter et al., 2020). ...
While global demand for shipping continues to grow, the maritime industry is concerned by the impending shortage of skilled seafarers. The challenge is twofold: there is a need to attract and recruit new talent, and to retain, upskill, and reskill existing personnel. This study aims to investigate what motivates students to enrol in and complete a maritime education, and to stay in the profession. A register-based follow-up study, a survey questionnaire, and interviews were conducted with former and current students at a maritime upper secondary school in Sweden. Results show that motives include an interest in shipping or boating, or seeking a practical occupation. It has not been possible to identify any major differences between women's and men's motives. However, women complete their educations to a greater extent than men. Pivotal for seafarers' decision to stay in a seafaring profession is having reasonable working and employment conditions, varied work tasks, and a sense of professional pride. Experiences of good companionship and togetherness are important driving forces. Conversely, social exclusion, harassment, and poor working environments influence the decision to leave the maritime industry. Even though women are at increased risk of being exposed to unwelcome behaviour, they choose to stay at sea to a greater extent than their male colleagues. A sustainable skills supply requires a holistic perspective. Satisfied employees who are allowed to grow in their professional role are likely to act as excellent ambassadors and thereby contribute to the continued recruitment of seafarers.
... Sustainable business practices aim to meet current needs without compromising future generations' abilities to meet theirs, encompassing environmental, social, and economic dimensions (Brundtland, 1987;Geissdoerfer, 2017). Companies are increasingly recognizing that sustainability enhances corporate reputation and drives long-term profitability (Kramer, 2011). Implementing sustainable supply chain practices reduces costs, improves resource efficiency, and mitigates environmental risks (Govindan, 2014). ...
As the digital landscape evolves, so does the complexity of cyber threats, underscoring the need for skilled cybersecurity professionals. This study focuses on integrating SAP's Authorization and Trust Management Service (XSUAA) into the cybersecurity curriculum at FH Aachen - University of Applied Sciences. This strategic move aims to improve practical skills and streamline training for employers. A mixed methods evaluation showed moderate student enthusiasm, with interest and perceived career relevance scoring 3.8 and 3.65 out of 5, respectively. However, students struggled with basic concepts, scoring an average of 2.47 out of 5. Feedback called for more hands-on experiences and better access to resources. These insights have led to curriculum revisions that better integrate theory with practical application using real-world tools such as SAP's XSUAA. Such improvements are critical to preparing students for immediate entry into the workforce and enhancing graduates' employability in the dynamic field of cybersecurity.
... Citing Porter and Kramer (2019), Group opined that the most important asset an organization can have is its employees' knowledge and productivity. They added that all intangible assets such as patents, copyrights, intellectual property, brands, trademarks, and research and development (R&D) are created by people. ...
... But several other researches in this field address the challenges to allocate resources, especially in healthcare sector due to growing demands for comprehensive care, easy and quick access and personalized quality services [6]. Similarly changes in social needs, competitions in beneficial features, harmful structures in services etc lead organizations to new opportunities like "searching the technical excellence" for reformation or reshaping and raising agility in unpredictable situations [2] [3]. Most of the healthcare organizations are forced to adopt some technological platforms to bridge such gaps. ...
This study envisages the effect of technological platform on the perception of internal and external customers, especially in healthcare organizations. The relevance of this study emphasis perspective changes of customers while using technological platforms in services. It is due to the differences in the following aspects - organizational values, administrative controls over operational activities, proactive practices in treatments, competitiveness in diagnosis, distinctiveness in services, sustainability features in practices etc. The operational activities of a healthcare system vary with nature and values of various categories of hospitals like private, corporate, government, mission etc. For attracting customers and making easiness in services, hospitals are adopting technological modules like pre-consultation work-ups, health packages, automated answers to enquiries, automatic inter-departmental references, scheduled services etc successfully implemented by other categories. The systemic reviews of literatures illustrate that adopting new technological platforms are able to make changes in performances but there are chances to differ the performances from customer’s perception. This analysis includes systematic reviews and meta-analysis. For consistency and validity, a standardized protocol was carried out in data collection, extraction, and quality testing. According to the data, the willingness of customers to return to a hospital for further needs or proactively refer other customers to the same organization determines its effectiveness of services. The conclusive part of the study envisages a) Customers have a natural ability to perceive the services in comparison to the organization's declared values b) Customers' mindset prepares them to receive the services according to their degree of need (stated or implied) c) Healthcare organizations are structured in a way that the output of a subsystem is the input of another, and so on; therefore any technological changes or the improvement in any process can have a sequence of challenging effects in the perception of the customers. d) The technological platforms used by the organization can influence the outcome of services received and the sustainability of the organization e) Several unforeseen factors such as social alienation, employee turnover, price fluctuations, etc. are also forcing healthcare organizations to adopt different platforms and cultures to provide the services in a cost-effective manner and it causes the greatest compatibility challenge in the perception of customers.
... Penerapan prinsip keberlanjutan dalam manajemen menjadi semakin penting seiring dengan meningkatnya perhatian terhadap isu lingkungan dan sosial (Elkington, 1998). (Porter & Kramer, 2019), perusahaan yang mengintegrasikan prinsip keberlanjutan ke dalam strategi mereka dapat memperoleh keunggulan kompetitif jangka panjang. Studi oleh (Schaltegger et al., 2006) menunjukkan bahwa perusahaan yang berfokus pada keberlanjutan dapat meningkatkan reputasi mereka di pasar dan menarik pelanggan yang lebih peduli terhadap isu-isu sosial dan lingkungan. ...
This research aims to explore the implementation of the basic management functions of planning, organizing, directing, and controlling in the context of modern organizations influenced by technological advances and sustainability principles. The method used is a literature-based and case study approach to analyze the role of digital technologies, such as big data and automation, in supporting data-driven strategic planning, organizing cross-disciplinary teams, and controlling technology-based performance. The results show that transformational leadership is highly relevant in hybrid and remote work environments, which can increase employee motivation and engagement. In addition, the application of sustainability principles in management has a positive impact on organizational reputation and performance in the long term. This research confirms that the adaptation of management functions to technology and sustainability is critical for organizational success in this digital age.
... The use of Artificial Intelligence (AI) algorithms for data analysis improves strategic decision-making and risk management, strengthening corporate governance (Brynjolfsson & McAfee, 2014). Integrating sustainability into governance practices enhances the image of startups and ensures long-term viability, aligning with social and environmental responsibility (Elkington, 1999;Porter & Kramer, 2011). Effective governance structures help startups manage risks and navigate regulatory environments (Shu & Chiang, 2020). ...
This article explores the evolution of corporate governance practices in agtech startups across various stages of the life cycle: ideation, validation, traction, scalability, and maturity. Based on a systematic literature review that initially identified 496 articles, subsequently refined to 4 main studies, and empirical research conducted with founders and CEOs of Brazilian agtechs, this study proposes a new classification model adapted to the Brazilian context. The results indicate that the formalization of governance practices can be facilitated by a structured model that emphasizes internal organization, product development, risk governance, and sustainability. In addition to enhancing transparency and talent retention, the proposed model highlights the importance of adapting governance practices to the specific needs of each development stage. This work uniquely contributes to the literature by directly linking governance practices to the needs of startups in emerging sectors, providing a validated framework with practical implications for managers and policymakers and suggesting directions for future research.
... Through this economic circulation and the formation of local bonds, jizak e production is shaping the community. This is like the concept of creating shared value, 88 the difference being that it is not companies trying to solve local issues but rather jizak e producers working for natural environment conservation and community building, which is the essence of the authenticity of jizak e (Figure 4). ...
Studies have suggested borrowing concepts from the wine industry for saké marketing communication. In fact, saké breweries attempt to expand consumer reach by adopting wine-centric terms like terroir. Furthermore, the terms premium and luxury are used synonymously to describe certain saké brands without proper definitions. However, Japanese saké is not a wine but a distinct alcoholic beverage unique to Japan, and undefined and borrowed terms fail to convey its distinct character. Discussion on what criteria to apply when conveying the luxury value of saké to consumers is lacking. Therefore, this study aims to discover what constitutes “luxury” in the unique context of saké by conducting unstructured interviews with three well-established breweries. The larger question this study explores is how the luxury value of experiential products closely linked to a nation’s culture can be conveyed to consumers in foreign markets. The findings indicate that while authenticity applies to local saké and wine alike, saké exists within a different ecosystem marked by harmony among saké production, nature conservation and community building. Thus, the luxury value of saké is tied to sustainability and regional preservation.
... At the heart of this issue is the question of whom an enterprise is for. The shareholder primacy model has brought a lot of clarity to this issue (Fama & Jensen, 1985), but centering different residual claimants by a firm would suggest they operate according to different logics (Hansmann, 2000), a use further complicated by emerging models of socially-engaged value-creation (Chandra, 2019;Kramer & Porter, 2011;Emerson, 2003) and the possibility of converting capital-based enterprises to other organizational models through social acquisitions (Vieta, 2021;Vieta, 2019;Jensen, 2016;Campbell et al., 2021). Whether these changes in organizational form can be conducted in an economically and socially justified manner depends on whether their governance models can integrate alternate, non-investor-centered perspectives (Ellerman, 2021;Biggiero, in this volume). ...
Implika is a comprehensive digital solution designed for sustainability scoring, reporting, and tracking. The system analyzes companies' performance through tailored questions and forms created for sustainability scoring, and calculates scores based on predefined metrics. Each process is managed in alignment with detailed process breakdowns and authorized role definitions, ensuring increased efficiency. Developed with a cloud-based infrastructure, the product utilizes .NET technology on the backend and React technology on the frontend. Reporting services are provided in a flexible and user-friendly manner, thanks to the integration with Microsoft Power BI.
Amidst rapid technological progress and increasing regulatory demands, the Chinese video game industry has undergone rapid changes that have provided a fruitful context for examining corporate competencies. Drawing on the Resource-Based View (RBV) and Dynamic Capability View (DCV) theories, this study investigates how firm capabilities (FC) and firm resources (FR) contribute to value creation (VC), which subsequently influences firm performance (FP) and sustainable competitive advantage (SCA). A quantitative research approach was employed, utilizing the data collected from a questionnaire survey of 241 video game firms. The data analysis was conducted using SmartPLS4 software, revealing that FC/FR has a significant effect on VC, which, in turn, mediates the relationship between FC/FR and FP. This study identifies three dimensions of VC—customer value (CV), employee value (EV), and shareholder value (SV)—with EV showing stronger mediating effects than CV and SV. It then uses the BSC framework to assess FP’s intermediary role in bridging VC with SCA through the integration of both financial and non-financial performance indicators relevant to the dynamic video game industry. These results have strong theoretical and practical implications, offering valuable guidance for fostering sustainable development. Specifically, they provide actionable insights for managers to enhance value creation and firm performance while also offering policy recommendations to support regulatory compliance and promote sustainable practices in China’s dynamic video game industry.
The implementation of Environmental, Social, and Governance (ESG) principles in the pharmaceutical industry within emerging markets presents both a significant challenge and a valuable opportunity for sustainable development. Given the crucial role of this sector in public health, adopting ESG practices can substantially influence not only the industry's environmental footprint but also its social and governance responsibilities. In emerging markets, where regulatory frameworks may be less stringent compared to developed economies, the pharmaceutical industry often operates under increased scrutiny. Therefore, alignment with global ESG standards is essential for companies aiming to enhance competitiveness, attract investment, and meet the rising expectations of stakeholders. This study focuses on the Serbian pharmaceutical sector and employs a mixed-method approach, combining semi-structured interviews and focus groups to assess the extent of ESG adoption. The findings reveal that while some companies have partially integrated ESG principles into their operations, others have not adopted them at all. Key challenges, such as limited financial resources, diverse regulatory frameworks, and potential resistance to change, hinder widespread ESG implementation. However, the long-term benefits of ESG compliance including improved reputation, better risk management, and financial sustainability, underscore the importance of these principles for companies in this sector. Environmental aspects are leading concern, such as waste reduction, carbon footprint minimization through sustainable supply chains, and proper disposal of pharmaceutical products remain crucial.
Resumo Este artigo contribui para o debate sobre a interação entre teorias e práticas de desenvolvimento e expressões artísticas e culturais locais. Utilizando uma abordagem que integra diversos métodos e fontes, tanto primárias quanto secundárias, da etnografia à pesquisa documental, examino o processo de estruturação do projeto social da Filarmônica Minerva, com vistas a promover inclusão social na cidade de Morro do Chapéu, Bahia. O projeto integra a uma rede de projetos sociais de educação musical, a Plataforma Sinfonia do Amanhã, cuja metodologia de atuação, Creating Shared Value, aponta que a relação com os projetos beneficiados se dá de maneira estratégica e continuada. Analisando a trajetória da filarmônica até a sua estruturação como projeto social, evidencia-se como sua atuação voltada ao impacto social atual está ligada a diretrizes corporativas de atuação e noções globais de desenvolvimento, bem como ao desenvolvimento do capitalismo cultural.
The emergence of anthropomorphized AI Assistants can be linked to the advanced convergence of machine learning and natural language processing algorithms that could mimic human brains. Conversational-AI has led users to expect a sense of authenticity in their anthropomorphized assistants, more so, in a social context; which creates newer avenues for brands to better connect with their consumers. The present study aimed to develop a consequential model of AI-authenticity while drawing inferences from a series of human-robot interaction based theories, viz. “Computers as Social Actors” (CASA); “Media Equation” (ME), “Stereotype Content Model” (SCM) and “Socio-Cognitive Computational Trust” (SCCT) theory. Partial-Least-Square based Structural-Equation-Modeling was performed to examine the hypothesized framework; while, bootstrapping technique was utilized to better assess the effect of mediation analysis. The predictive relevance of the developed model was evaluated based on cross-validated redundancy approach. The findings designated ‘Emotional Attachment’, ‘Customer Engagement’ and ‘Cognitive Trust’ as major consequences of brand authenticity; while ‘warmth’was accounted as a positive, but weak mediator in authenticity-cognitive trust relationship, due to probable effects of uncanny valley phenomenon. ‘Cognitive Trust’remained a significant predictor of ‘continuous usage intentions’and ‘word-of[1]mouth’ behaviour. The proposed AI-authenticity framework could aid underpinning effective customer retention and extension strategies.
With an emphasis on the moderating effect of institutional quality, this study examines the effect of private investment on the sustainable development of Sub-Saharan African (SSA) nations. The analysis uses Generalised Method of Moments (GMM) and Feasible Generalised Least Squares (FGLS) methodologies to address potential endogeneity concerns and to improve the robustness of the results respectively. The study made use of panel data from 30 SSA nations from 2009 to 2019 obtained from World Develop-ment Indicators and Heritage Foundation. The results show that institutional quality and private investment have each have substantial and favourable impacts on sustainable development. Nevertheless, the results further demonstrates their combined influence have a negative impact on sustainable development, indicating that although both are advantageous separately; their combined influence might not always be in line with the objectives of sustainable development in the SSA context. This demonstrates a threshold effect by showing that the advantages of private investment in sustainable development decline in settings with inadequate institutional frameworks. The results imply that in order to guarantee that investments successfully support sustainable development, SSA nations should give priority to fortifying institutional frameworks in addition to encouraging private investment. These findings offer practical policy suggestions for creating a supportive atmosphere that optimises the positive developmental effects of private sector involvement.
As the world grapples with escalating environmental crises, environmental nonprofit organizations (ENPOs) have emerged as key actors in promoting environmental stewardship. Unlike corporations, ENPOs operate within a unique framework where mission-driven objectives often supersede financial gains, allowing them to adopt bold and innovative environmental practices. The roots of ENPO leadership can be traced back to the conservation movements of the 19 and 20th centuries, shaped by various social, political, and economic factors. However, in the 21st century, ENPOs have increasingly focused on sustainability and forming partnerships with the private sector and community groups. Their leadership is characterized by advocacy and policy influence, scientific rigor, grassroots mobilization, a global perspective, and strategic partnerships. The significance and impact of these partnerships are explored through global case examples that showcase the essential roles of multiple stakeholders, including governments, research institutions, corporations, and community groups, in advancing environmental leadership within ENPOs. Such collaborative efforts enable ENPOs to harness the unique capabilities of each partner, enhancing their capacity to achieve sustainability goals and develop adaptive strategies and innovative solutions for emerging environmental challenges, thereby significantly amplifying their impact. Finally, strategic solutions to the challenges facing ENPOs in the execution of their missions are discussed.
Corporations are major contributors to the triple planetary crisis. In response to these challenges, the United Nations Global Compact, launched in 2000, encouraged corporations to align their business practices with principles of sustainability and sustainable development. The 2015 Paris Agreement further reinforced corporate commitments to environmental sustainability, recognizing that corporations possess substantial resources and expertise that can be effectively mobilized to address global environmental crises. Corporate environmental leadership has become increasingly critical as businesses face growing pressure from stakeholders to demonstrate environmental responsibility. This chapter examines the interconnected concepts of environmental leadership and corporate environmentalism, exploring their distinct yet complementary aspects in advancing an organization’s commitment to sustainability. Corporate environmentalism operationalizes the environmental leadership vision of corporations through specific policies, practices, and initiatives aimed at minimizing environmental impact, such as environmental management systems, the circular economy, and the integration of the environmental, social, and governance (ESG) framework into corporate strategies. ESG has evolved into a critical set of criteria for evaluating a corporation’s operations, offering a comprehensive sustainability framework. This chapter also discusses strategic solutions to environmental leadership challenges within organizations, as well as the global impact of environmental leadership initiatives across various industries, demonstrating environmental, economic, and social benefits.
This chapter proposes a conception of stakeholder management from the perspective of Relational Economics, emphasizing justice based on business ethics and corporate social responsibility (CSR). CSR embodies equity and justice among stakeholders, forming the core of good corporate citizenship. The chapter links corporate social responsibility with sustainable development goals (SDGs), highlighting their importance for business development and ethical stakeholder relations. The concept of Relational Economics views firms as being embedded in social relations, integrating governance, leadership, and management with ethical values and societal responsibilities. Stakeholder management, as envisioned in this framework, supports a new vision of the firm and civil society, promoting decision-making for the common good through reflective judgment. This research explores how Relational Economics and stakeholder theory converge, presenting firms as nexuses of stakeholders and emphasizing the importance of sustainable development in global business practices. The chapter further discusses how stakeholder theory enhances strategic planning by integrating social, cultural, and environmental considerations. It questions traditional economic theories, advocating a more inclusive and ethical approach to business that aligns with global sustainability goals. The study underscores the role of stakeholder management in addressing the complex challenges of sustainability, ethics, and global corporate responsibility, proposing it as essential for the development of just and sustainable business practices.
The chapter deals with the nature of the firm. The question of the nature of the firm is posed here from the perspective of the firm as a cooperative actor. Based on arguments for a perspective of the firm as a corporate actor, the nature of the firm is the (corporate) intention of the corporate actor to realize shared value creation and therefore to relationalize stakeholders’ ability and willingness to cooperate in the process and to enable and ensure it in the form of legitimate governance of stakeholder resources and interests. This perspective requires a distinction between a traditional theory of the firm and a relational (constructivist) theory of the firm. Against the background of this distinction, the understanding of corporate intentionality must be defined, on the one hand, and questions of leadership and the logic of economic action within the firm as well as the consideration and involvement of stakeholders must be redefined, on the other. An alternative theory of the firm is necessary if we do not want to remain at the level of bonobo monkeys in economic theorizing.
Purpose
This study aims to help develop “business principles for stakeholder capitalism” in two steps. First, the study defines internal logic of three theories of capitalism and two variants within each theory. Second, it examines approaches to integration into modern democratic capitalism. Treating the three theories as substitutes identifies relative strengths and weaknesses; complementarity and partial overlap approaches to integration study the institutional settings within which stakeholder capitalism operates. Empirical outcomes reflect competition between market and stakeholder businesses for participants, with institutional conditions determining the scope of collective action.
Design/methodology/approach
The approach aligns three typologies in a unique conceptual arrangement defining the three theories of capitalism: forms of capitalism, potential failures of each form and associated types of goods. The first method examines the internal logic of each theory of capitalism. The second draws on traditional narrative review of references documenting each theory of capitalism and variants together with modern Marxist anti-capitalism.
Findings
Three typologies align uniquely with the theories of capitalism, each having two variants. Both variants of stakeholder capitalism are compatible with compassionate capitalism, constitutional government or polycentric governance but not with self-interest capitalism, dictatorship or Marxism. A theory of modern democratic capitalism allocates roles for private, club and social goods with empirically variable mixes occurring across countries. Competition among different types of enterprises provides an empirical test for comparative advantages of stakeholder capitalism. Future research should consider approaches for testing the proposed conceptual scheme in practice concerning capacity to deal with grand challenges, wicked problems and black swan events.
Research limitations/implications
Research approach is limited to logical examination of theories and literature documentation without direct empirical confirmation. The study does not address practical implications for managers and public officials or social implications concerning private incentives, stakeholder cooperation or collective action.
Originality/value
Originality lies in shifting terms of debate about stakeholder capitalism from advocacy of substitute theories to understanding of its relationship to market capitalism and collective action capitalism. Value lies in explaining desirability of theoretical integration of three types of capitalism into a comprehensive framework for modern democratic capitalism.
This study aims to analyze some of the issues of organizational sustainability reporting and its interrelations with corporate citizenship. It departs from the assumption that appropriate research for organizational sustainability reporting contributes to the management governance leading to face the challenges of sustainability collaboration, innovation and sense making required by the development of a corporate citizenship. The method employed is the meta-analytic and meta-cognitive, reflective and descriptive based on the literature review of the issues on sustainability management governance. It is concluded that the issues of organizational sustainability reporting enhance the corporate citizenship of firms.
This chapter explores the evolution of CSR from simple philanthropy to strategic core in modern business. The best way to incorporate them is within the strategies of a corporation so that their effects are both effective and sustainable. This Chapter give more inputs on Ethical leadership in context of modern CSR; otherwise, firms are drawn toward a superficial “greenwashing” rather than an authentic stewardship for society and the environment. There are two basic CSR models discussed in this chapter. One, Carroll's CSR Pyramid, and the second one is the Triple Bottom Line model, where the organization frames CSR as three-dimensional responsibility toward people, profit, and planet. Chapter also include CSR Supporting Governance and responsibility. The Chapter also include example by Patagonia, for instance, tangible benefits through CSR would be the building up of brand reputation. Further, the chapter extends environmental impacts of CSR on Consumer Consumption regarding carbon reduction, renewable energy & Others.
Complexity theory emerged as an alternative to the traditional economic system based on Newtonian thinking. After 1980, with globalization, economic systems have become more complex and it has become necessary to adapt to this complex system in order to be competitive. The global value chain is important in understanding institutional complexity. The global value chain is important in both institutional complexity and sustainable development, and there is no study that examines these three concepts together. In this framework, it is aimed to contribute to the literature and provide a source for future studies. In this study, institutional complexity theory is investigated for Turkey in terms of sustainable development. Since the complexity theory describes a non-linear system, the analysis was made with a non-linear model. STAR model was used and analyzed with R program. Twenty-four different non-linear regressions were used to investigate the relationship between each other and there is both long and short-run causality between sustainable development and institutional complexity.
Business model innovation (BMI) has become increasingly important in recent years, but the question remains as to why only a small number of companies are doing it. In addition, the rate of companies innovating in general is decreasing in Switzerland, especially among small and medium-sized enterprises (SME). Therefore, the aim of this study was to investigate the barriers to business model innovation among small and medium-sized enterprises in Switzerland. A quantitative approach with a written survey sent to 4000 companies was adopted. A sample of 405 company managers from the Swiss canton of Schwyz responded. The data were statistically analysed using SPSS.
The results show that medium-sized companies and those in high-tech sectors are more likely to engage in business model innovation. In contrast, smaller companies and those in less technical sectors face more challenges. The analysis identified seven barriers to BMI that are significant. Two barriers turned out to be triggers for BMI rather than actual obstacles. Past barriers were more intrinsic, related to diversity, risk aversion and own expertise. For current BMI plans, the most relevant barriers are more likely to be related to cost, technology and capacity. Additionally, the relevance of BMI may increase as companies focus on data and digital business models. These findings can assist companies in identifying and overcoming barriers in the innovation process. Furthermore, organisations such as economic development agencies or higher education institutions can adapt their services to better support SMEs in overcoming these barriers and fostering innovation.
This paper aims to appraise the impact of ESG credentials on the financial performance of agricultural companies with main headquarters in Europe by examining the strategic ESG investment behaviour of firms in twelve specific sectors. The methodology consists of a two-fold approach: first, cross-sectional FGLS regression with generalised least squares; second, overall interlinkages between considered variables through Bayesian network analysis. The research questions focus on the implications of each ESG pillar – environmental, social, and governance – on the performance of agricultural companies. Key findings entail that the environmental dimension strongly relates to agricultural companies’ outcomes, such as toxic chemicals reduction strategies, waste recycled to the total waste contribution, biodiversity impact reduction, and eco-design products. As regards the social pillar of ESG, salaries and wages positively relate only to shareholders’ earnings, while governance factors like CEO compensation, board structure type, and board’s gender diversity favourably influence the financial performance of agricultural companies. ESG implications for agricultural companies are beneficial when they implement sustainable strategies. These strategies include establishing targets for water efficiency policies, increasing employee turnover, maintaining a steadfast water efficiency policy, enhancing the use of environmentally-friendly products, and reevaluating board structures from unitary to two-tier or mixed types.
Given the severe financial impact on the hospitality and tourism sector caused by the pandemic, this paper proposes a series of strategic actions in an enhanced service ecosystem to transform a value preservation approach to value creation with a focus on the international hotel chains (IHCs), referred to as keystone firms. The paper first reviews the relevant literature on the ecosystem, value creation, and their relevance to service firms and IHCs, followed by presenting and discussing several successful examples of ecosystem strategies adopted by IHCs. Drawing on this discussion, the paper proposes five pathways or strategies to enhance the ecosystem of IHCs to achieve value creation for relevant stakeholders. Future research in this vein is suggested to conclude this paper.
CSR, or Corporate Social Responsibility, has become an important part of every organisation in the present times, considering a company's ethics and its interest in society. This study investigates how CSR affects ethical practices in business by exploring the relationships between a company's approach toward various topics related to corporate ethics and its performance. Through a systematic literature review and empirical analysis using proprietary data sets of CSR activities in Australia, we investigate the relationship between corporate social responsibility (CSR) performance or activity level and ethical behaviors practiced by an organisation, identifying both the costs and benefits of integrating CSR into enterprise strategies. The data was collected using surveys and interviews with business leaders and employees in several sectors, which allowed us to gather comprehensive information regarding the implementation of CSR.
The aim of this paper is to increase the awareness of educators, entrepreneurs, policymakers, and managers in business and non-governmental organizations (NGOs) that the key elements for outstanding corporate responsible investment are brand building with Sustainable Development Goals (SDGs), environmental, social, and governance (ESG), and United Nations Principles of Responsible Investment (UN PRI), incorporate PRI policy into corporations, and disclosure of ESG issues. To critically identify their relationship to the topic, by using NVivo, a text search was performed for the mentioned keywords. This is managerially relevant to organizations which are working on SDGs, ESG and PRI for corporate brand building. Based on the quantitative analysis of environmental materials on school uniforms of ESG School HK in Hong Kong and the focus group interviews in July 2024 and October 2024, it is further illustrated that technology may be applied for responsible and transparent product/service workflow for responsible investment. A validation model is needed to link up with the findings of this paper for improving organizational performance and brand building.
We compare the following layoff-related outcomes between firms with high corporate social responsibility scores (HCSR) versus firms with low CSR scores (LCSR): the likelihood and magnitude of decisions to lay off employees, the amount of severance compensation paid to terminated employees, and the degree of voluntary disclosure about layoff details. We find that HCSR firms are more likely to lay off employees and such layoffs are of higher magnitude compared to LCSR firms. However, compared with LCSR firms, HCSR firms provide greater severance benefits and more transparent disclosures about layoffs, suggesting HCSR firms maintain their socially responsible status and manage the pain of downsizing through enhanced severance payments and more detailed voluntary disclosures. Finally, we test the salience of our main findings using an alternate channel of CSR, namely, membership in the 100 Best Companies to Work For in America list. This analysis confirms the notion that the social capital and reputation enjoyed by these firms mitigates the political costs typically ascribed to layoffs.
This paper proposes a model of creating shared value as a framework for responsible application of artificial intelligence in Serbia, taking into account key social and economic challenges brought by this technology. The work relies on analysis of existing literature in the fields of artificial intelligence, creating shared value and Serbia's strategies for AI development. Key challenges and opportunities related to AI application in Serbia have been identified. The proposed model of creating shared value can provide a responsible and beneficial development of the AI sector in Serbia, considering the social and economic impacts of this technology.
This paper aims to examine the impact of environmental protection, economic development, social responsibility, and governance on the sustainable development of enterprises. In the context of green products in China, consumer willingness to purchase these products is a crucial factor influencing a company’s approach to sustainable operations. The research model proposes four hypotheses and focuses on analyzing the significant relationships between them. We used a questionnaire survey to survey N = 230 consumers about their thoughts on green products for the sustainable development of enterprises. We applied structural equation model to the whole data analysis. Our research has identified green products as crucial success factors for business sustainability. The findings reveal that companies offering environmentally friendly products in the market can: (1) enhance their corporate social responsibility and (2) contribute to sustainable development. Our results demonstrate several positive correlations: environmental protection is positively linked to governance, economic development is positively correlated with governance, social responsibility is positively associated with governance, and governance, in turn, is positively related to corporate sustainable development.
The co-benefit business model innovation is a potential business strategy for pursuing value creation for multiple stakeholders and sustainable business development. Corporate social responsibility (CSR) has significant implications for the co-benefit business model innovation during crises. Using a grounded coding approach in multiple cases, this study elaborates on how pure commercial CSR, normalized CSR, advanced CSR, and pure CSR constitute different CSR combinations, and how CSR combinations influence the co-benefit business model innovation and bring about the ultimate effects. Using a fuzzy-set qualitative comparative analysis, this study draws the following conclusions: As enterprises grow in size and the social environment improves, enterprises gradually shift their focus from pure commercial CSR to high-level CSR, eventually placing greater emphasis on advanced CSR and pure CSR. Enterprises with strong economic goals should drive co-benefit business model innovation through highly normalized CSR and advanced CSR. Enterprises with general economic goals should promote co-benefit business model innovation through highly advanced CSR. Enterprises with high economic expectations of co-benefit business model should consider both highly commercial CSR and normalized CSR, while enterprises with highly advanced CSR and co-benefit business model innovation tend to generate high social benefits. Finally, the study provides recommendations for enterprises on how to scientifically undertake CSR based on the resource endowment and staged development needs and strike to achieve the co-benefit targets.
Purpose
This study examines the impact of crowdsourcing and open innovation (CSOI) in an emerging country like India. The study also investigates the moderating effects of technology support (TES) on improving firm performance and socio-economic conditions (SEC) in emerging countries.
Design/methodology/approach
A theoretical model has been developed with the help of stakeholder theory, dynamic capability view (DCV) and existing literature. Later, the theoretical model is validated using the partial least squares structural equation modelling technique to analyse 303 respondents from India.
Findings
The results of this study demonstrate that CSOI has a significant and positive role in the SEC in emerging countries, showing the emergence of an economy close to stakeholder capitalism or the Francesco Pope one. The study also finds that TES significantly moderates successful crowdsourcing practices and open innovation activities, influencing sustainability-related factors.
Practical implications
This study shows that CSOI practices can influence the SECs in emerging countries by improving intermediate sustainability-related contextual issues like environmental, social and economic factors. This implies that CSOI are relevant in emerging countries to ensure the socio-economic growth of the society where so many constraints prevail.
Originality/value
This is a preliminary study on CSOI practices that firms in emerging countries follow. Using stakeholder theory and DCV to develop the unique conceptual model is essential to the body of knowledge. The inclusion of moderators like TES is a unique value proposition. Moreover, the proposed theoretical model has a high predictive power, making the model impactful and novel.
In this research endeavor, we investigate the potential influence exerted by ESG performance on the market capitalization of non-financial corporations included within the UK FTSE All-Share Index during the eleven-year period spanning 2010 to 2021. Integrating insights from Resource-Based View and Stakeholder Theory, this research extends the literature by considering the moderating effect of governance on the ESG–market capitalization association. This study analyzes a comprehensive dataset of UK firms, employing robust econometric techniques to substantiate its conclusions. The results demonstrate a robust positive association between the overall ESG pillars and market capitalization. Environmental, social, and governance performances independently contribute to an increased market value. The analysis reveals that firms with superior internal governance structures, characterized by the presence of independent board members, board size, an independent audit committee, and the implementation of a split CEO–chair structure, experience a magnified positive impact from ESG disclosures on market capitalization. Effective governance mechanisms enhance the credibility and effectiveness of ESG initiatives, aligning them with stakeholder expectations and regulatory standards. This alignment fosters trust and cooperation, driving better financial performance and increasing market value. This research adds its voice to the increasingly compelling body of evidence that underscores the financial advantages associated with ESG integration and highlights the critical role of internal governance in amplifying these benefits. The findings have significant implications for policymakers, investors, and corporate managers. They advocate for the strategic incorporation of ESG criteria into corporate governance frameworks to achieve sustainable financial success.
Destination management has undergone a profound transformation under the wave of the shift toward smart tourism. The aim of the paper is to provide an overview of this emerging change and, adopting a deductive approach, derive propositions to enhance the overall understanding of the phenomenon. The originality of our contribution lies in the attempt to relate smart tourism to local development.
Social Media, and the enormous amount of data generated (Big Data) are crucial factors in increasing the degree of smartness of a destination as well as in providing a smart touristic experience. Furthermore, low-cost carriers have further revolutionised destination management. They have established novel approaches to the booking process from the point of view of tourists, and a smarter approach in the interaction with tourists themselves. Their presence further increases the smartness of a destination and its attractiveness toward different segments of travellers, including digital nomads and potential start-uppers, who can act as key drivers of local growth and development.
Substantial sustainability innovation is not a mere aspiration; it's a structured journey that combines hard work, strategy, and collaboration. Substantial sustainability innovation represents a fundamental rethinking of business operations and strategies, challenging organizations to evaluate their impact on the environment, society, and economy. The subjects and concepts suggested in this chapter are deeply rooted in academic research as well as expert insights, and are characterized by a commitment to long-term value creation and competitive advantage. It transcends the boundaries of traditional sustainability practices, emphasizing a holistic view of sustainability that encompasses economic, social, and environmental dimensions.
This research examines the effects of corporate social responsibility (CSR) on the performance of a prominent commercial bank in South Korea, with a specific focus on how organizational trust mediates this relationship and how previous performance moderates it. Anchored in the Warmth and Competence theory and the micro‐foundations perspective on CSR, we develop a moderated mediation model to delineate the intricate interactions among these variables. Employing a time‐lagged research design and gathering multi‐level, multi‐source data from 5223 employees across 520 bank branches, our findings reveal that CSR positively and indirectly influences financial performance by bolstering organizational trust. Additionally, our results pinpoint past financial performance as a crucial moderator in the CSR‐trust dynamic, indicating that the trust‐enhancing impact of CSR intensifies in organizations with a history of high performance. By elucidating the mediating role of trust and the conditional effect of past financial performance, this study advances a deeper understanding of the circumstances and mechanisms through which CSR affects organizational outcomes. These insights are vital for understanding CSR's role in promoting sustainable development within organizations. By fostering trust and enhancing performance, CSR initiatives can support organizations in establishing enduring, mutually advantageous relationships with stakeholders, thereby fostering the creation of sustainable value for both businesses and the broader community. This study underscores the importance of a multi‐level, context‐aware approach to CSR that recognizes both the micro‐level foundations and the macro‐level contingencies of socially responsible activities as drivers of sustainable organizational development.
Impact investing urges investors to weigh the social and environmental impacts of their investment decisions. However, in practice, it remains unclear whether investors in financial products are driven by ethical motivations, such as environmental considerations, and what factors influence their trust in the non-financial aspects (e.g., green attributes) of these investments. This study investigates the ethical motivations behind investors’ decisions to invest in green bonds using a machine learning-assisted causal inference framework based on data collected on all green and conventional bonds issued worldwide from 2007 to 2022. It also explores the underlying factors contributing to investors’ trust in green bonds by examining four perspectives: the issuer’s environmental performance, the transparency and governance of environmental disclosure related to bonds, and the financing purpose of the bonds. The results indicate that (1) investors are willing to forgo financial gains for environmental causes, with this sacrifice quantified as an 18 basis points (bps) green premium, demonstrating a clear ethical motivation; (2) the credibility of bond information, financing purposes, and issuer’s greenhouse gas emission intensity directly influence investors’ trust in green bonds, while bond information disclosure and the issuer’s environmental (E) scores have only indirect effects; and (3) companies with weaker environmental performance often adopt proactive disclosure or certification policies to bolster investors’ green trust. This study is the first to explore the factors influencing investors’ trust in green bonds and to analyze the overall causal transmission mechanism among these factors using a causal inference framework.
This study explores the accelerating shift towards environmentalism in family business as global enterprises increasingly commit to sustainable development goals (SDGs). Specifically, it examines the challenges and capacities within the food and non-alcoholic beverages industry in Kosova, focusing on the integration of clean technology and renewable energy. Utilizing a quantitative approach, the research assesses the financial feasibility for firms to adopt green practices and explores the broader implications for market dynamics. The findings highlight significant opportunities and challenges that family businesses face, particularly in response to growing consumer demand for environmentally friendly products and services. This paper offers new insights into the complexities of corporate sustainability efforts and suggests strategies to enhance environmental responsibility in family business practices. By mapping the current landscape and identifying key barriers and facilitators to sustainable practices, this research contributes valuable perspectives to the ongoing discourse on corporate contributions to environmental sustainability.
The study focuses on analyzing the impact of corporate social responsibility (CSR) on economic growth and reducing inequality, highlighting the importance of CSR in achieving sustainable development and social justice. The main aim is to analyze how different CSR initiatives contribute to economic development, social prosperity, and the reduction in inequality by reviewing the methods used to assess their impact. The research methodology includes a detailed literature review, bibliometric analysis and scientific mapping, surveys of various business organizations, and a gap analysis regarding the identification of gaps between the current state of CSR activities and the expected outcomes. The research shows that companies perceive CSR as a key tool for improving corporate image, responding to stakeholder expectations, and investing in social justice. Despite positive intentions, challenges include the lack of clearly defined methodologies for measuring the impact on economic inequality, as well as difficulties in assessing the long-term effects of CSR initiatives. Key conclusions highlight the need for more structured approaches to assessing the social and economic effects of CSR, recommending that companies improve their transparency and accountability and implement clear indicators of success to achieve sustainable economic and social outcomes.
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