Tuesday, November 19, 2013

Managerial discretion and corporate commitment to the natural environment

Looks at two approaches: the "managerial view" and the "inertial view".  The difference is whether executives significantly influence their firms' environmental commitment or if other factors are more influential and limit the influence of execs

Inertial: Organizational change comes externally
Managerial: Manager is the agent of change

Findings

  • If one of the firms' environmentally responsible members is part of the dominant coalition the relationship between executives and environmental commitment is greater
  • Study does not make definite statements about the direction of causality in the relationship (the same will be true of our study)
  • having an executive with environmental responsibility does not guarantee environmentally important advances...the exec also needs discretion

"No study has empirically analyzed the interplay between external and internal factors in relation to organizations' environmental commitment" hmmmm


Aragón-Correa, J., Matías-Reche, F., & Senise-Barrio, M. (2004). Managerial discretion and corporate commitment to the natural environment. 
Journal Of Business Research57(9), 964-975. doi:10.1016/S0148-2963(02)00500-3

(Aragón-Correa et al., 2004)

A Brief Tutorial on the Development of Measures for Use in Survey Questionnaires

"Many well-conceived research studies have never seen the light of day because of flawed measures"

Guidelines for writing items:

  • statements should be simple and short as possible
  • language should be familiar to target respondents
  • do not mix items that assess behaviors with items that assess affective responses
  • leading questions should be avoided and they bias responses
  • keeping a measure short is an effective means of minimizing bias caused by boredom and fatigue
Likert-type scales are the most frequently used scaling technique in survey questionnaire research and are the most useful in behavioral research
  • some researchers use 7 and 9 point scales
  • Likert (1932) developed the scales to be composed of the five qual appearing intervals with a neutral midpoint as we are already used to strongly disagree, disagree, neither agree nor disagree, agree, strongly agree
  • Coefficient alpha reliability with Likert scales has been shown to increase up to the use of five points, but then it levels off
Reporting the manner in which the items are derived is important. Our items must be clearly linked to the theoretical construct being assessed.



Hinkin, T. R. (1998). A brief tutorial on the development of measures for use in survey questionnaires.Organizational Research Methods1(1), 104-121. doi: 10.1177/109442819800100106

Market-focused sustainability: market orientationn plus!

The Manager is still  the agent today.

The 100% owner of a business may in relatives terms own less because of stakeholders. 
  • managers have additional "owners" such as customers, and various others stakeholders.  Often the manager wants to serve these stakeholders interest outside of profitability
  • Typical Corporate Social Responsibility (CSR) doesn't involve customers, thus its often the bare minimum before customers will be interested in their products
  • Market-focused sus. depends on relationship building with stakeholders
  • Two theories have promise to explain sustainability efforts: Institutional theory and Systems theory
Institutional Theory: "attends to the deeper and more resilient aspects of social structure...it considers the process by which structures, including schemas, rules, norms, and routines, become established as authoritative guidelines for social behavior...it inquires into how these elements are created, diffused, adopted, and adapted over space and time; and how they fall into decline and disuse" scott 2005 p. 461-not one of our sources

Systems Theory: Basically the notion that all systems regardless of nature (social, ecological, biological, mechanical) is composed of multiple, interconnected elements.  Systems theory seeks to understand the interdependence of organizations within its environmental and social system.



Hult, G. (2011). Market-focused sustainability: market orientation plus!. Journal Of The Academy Of Marketing Science,39(1), 1-6. doi:10.1007/s11747-010-0223-4

Monday, November 18, 2013

Individual Environmental Initiative: Championing Natural Environmental Issues in U.S. business Organizations

There is little research on the process of how individuals help transform ambiguous environmental issues to actual organizational actions

Champions: "individuals who, through formal organizational roles and/or personal activism, attempt to introduce or create change in a product, process, or method within an organization

  • There is difficulty for managers to acknowledge fault for negative environmental issues due to industrial activity and to change business systems to counter these detrimental effects."
  • without a champion organizational innovations don't normally go beyond the idea stage
Three activities in the championing process: 1) identify/generate idea or issue 2) make it attractive 3) sell it to the decision maker
  • They have a unique vantage point to monitor org, public and regulatory processes and stay up to date on business trends and upcoming environ. legislation
  • Issue framing comes down to three important factors: opportunity/threat, urgency, and geographical impact
  • champions direct their selling attempts to upper management
An Organization's Paradigm: "The collective values and beliefs of an organization's members about its distinctive attributes

Used qualitative data analysis (n=132) procedures recommended by Strauss (1987)!!! I can't find this fucking thing





Anderson, L. M., & Bateman, T. S. (2000). INDIVIDUAL ENVIRONMENTAL INITIATIVE: CHAMPIONING NATURAL ENVIRONMENTAL ISSUES IN U.S. BUSINESS ORGANIZATIONS. 
Academy Of Management Journal43(4), 548-570. doi:10.2307/1556355

The Stakeholder Approach Revisited

Idea Development of the term "stakeholder"

  • Stakeholder "any group or individual that can affect or is affected by the achievement of a corporation's purpose"
  • thus, managers need an "explicit strategy" to account with this group
  • Executives find thinking of stakeholder relationships helpful to dealing with the types of change affecting their corporations
The Basic Argument for Stakeholder Theory in Business
  • You have to take into account the effects of your actions on others and their potential effects on you. No matter what your purpose or orientation is
  • Thus it is imperative that you understand stakeholder behaviors, values and backgrounds/contexts
  • These ideas can be applied to rethink business functions, structures, and process and how strategic planning processes work to take these stakeholders into account
Implications:
  • Freeman says we don't need a separate CSR approach as stakeholders are defined so widely
  • Shareholders are stakeholders, they both have to move in the same general direction over time
  • With changes brought on by globalization, information technology, and ethics scandals (Like banks and stuff) there is even more urgency to adopt the stakeholder approach



Freeman, R. (2004). The Stakeholder Approach Revisited. Zeitschrift Fuer Wirtschafts- Und Unternehmensethik5(3), 228-241.

FROM GREEN-BLINDNESS TO THE PURSUIT OF ECO-SUSTAINABILITY: AN EMPIRICAL INVESTIGATION OF LEADER COGNITIONS AND CORPORATE ENVIRONMENTAL STRATEGY CHOICES

Branzei, O.,Vertinsky, I., & Zietsma, C. (2000). FROM GREEN-BLINDNESS TO THE PURSUIT OF ECO-SUSTAINABILITY: AN EMPIRICAL INVESTIGATION OF LEADER COGNITIONS AND CORPORATE ENVIRONMENTAL STRATEGY CHOICES. Academy Of Management Proceedings & Membership Directory, C1-C6.

Difference between corporate instrumental and normative approaches with regards to environmental concerns.
  • Instrumental orientation states that "firms do what they have to do to manage the natural environment in order to maximize their profits".
  • Normative view suggests that "since corporate decisions affect the state of the natural environment, firms should espouse a fundamental moral obligation to protect nature, adopting proactive environmental strategies".
The study investigates "how leaders' personal values, and their perceptions of corporate environmental commitment, influence their firm's pursuit of proactive strategies towards the natural environment and their firms' subsequent adoption of environmental innovation."

According to their literature review when companies do not have a long-term commitments to proactive environmental strategies, change is brought on by government regulation and the market. Both of these are subject to failure since government regulation may not be adequately enforced and market mechanisms can be ineffective if consumers cannot verify "green" claims by manufacturers. Therefore "voluntary corporate commitments are seen as essential for achieving long-run sustainability".

"The more the leaders of the organization are committed to environmental protection, the more likely that the firm will develop an environmental plan and environmentally-oriented organizational structures". Ultimately the organization's leaders' personal values, roles, and commitments influence the company's actions and environmental performance. Also leaders are not necessarily the CEO or CFO, a leader is someone that can closely communicate with top management and is proactively interested in pro-environmental issues.

Hypothesis:
1) There is a positive relationship between a leader's personal values and the firm's adoption of proactive environmental strategies.
2) The CEO's perception of corporate environmental commitment mediates the relationship between the CEO's personal values and the adoption of proactive environmental strategies.
3) There is a positive relationship between the CEO's personal values and the firm's environmental innovation activity.
4) The CEO's perception of corporate environmental commitment mediates the relationship between the CEO's personal values and the firm's environmental innovation activity.
5) There is a positive relationship between the use of proactive environmental strategies and the firm's environmental innovation activity.

Results:
"CEO's personal values had a significant positive effect both on firms' adoption of proactive environmental strategies (H1) and environmental innovation (H3).

The perceived corporate commitment mediates both relationships (H2&H4) so that the stronger the perceived commitment the more likely the choice of proactive strategies and, respectively, the adoption of environmental innovation.

Finally, the choice of proactive environmental strategies had a significant effect on firms' environmental innovation (H5)."

"Findings suggest that pro-environmental personal values and the perceived corporate environmental commitment represent key variables in the choice of proactive environmental strategies and in the adoption of environmental innovation"

Sustainability Rises: On the CFO's 'To-Do' List

LeBlanc, Brendan. (2012). SUSTAINABILITY RISES: On the CFO’s ‘To-Do’ List. Financial Executive, 28(2), 54-57.

"Chief financial officers are becoming increasingly familiar with sustainability, due to a heightened understanding of the impact of social and environmental policies on a company's financial performance."

Sustainability issues of concern: 

1) Stakeholder engagement - In recent years stakeholder expectations have been increasingly focused around the company's social and environmental practices and polices. New resolutions in the boardroom are not only including more environmentally conscious issues, but are receiving the support by vote to make significant changes in the company's policies and actions. 

"The 2011 proxy season was a clear indicator of where things are going - with votes on the largest category of all shareholder resolutions focusing on social/environmental issues."

"In 2005, less than 3 percent of all shareholders' resolutions on social and environmental issues reached the critical support threshold of more than 30 percent. By 2010, 26.8 percent hit that level, and in the 2011 proxy season, the number was 31.6 percent." This drastic increase in percentage indicates that the new focus was more than just a trend.

"This boardroom movement towards more responsible practices and transparency is clearly tied to the company's purse strings. Investors are being guided by more clearly defined social principals and companies must follow suit or risk losing needed capital"
 
2) Resource use
3) Green house emissions

Financial Risk Management

It was through the Financial Risk Management segment that sustainability became more prevalent.

"In 2009, the U.S. Securities and Exchange Commission began to allow the term "financial risk" in shareholder proposals discussing environmental and other issues. Then, in February 2010, the SEC issued guidance to companies regarding their responsibility to disclose material risks related to climate change".

Once the SEC took action in their guidance methods, CFOs began integrating sustainability with finances. Using data CFOs could see how much water and energy was used, "greenhouse gas emissions, employee transportation, telecommuting, virtual conferencing, copy paper purchases, supply and distribution chain polices and practices - anything that contributes to the company's environmental impact." Global impacts of multinational organizations have also been added to the list of interest.

"Even if legislation does not require additional reporting, companies will have to continue to respond to shareholder pressure. CFOs, seeing financial risk tied directly to sustainability resolutions, are uniquely able to influence their organizations and build a consensus towards action..." 

url = http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=74476496&site=eds-live&scope=site





  

The Change Leadership Sustainability Demands

Change ain't ever easy, and sure as hell ain't easy for organizations.  Thus, Luneburger and Goleman discuss just how an organization undergoes the transformation between a solely economic focused business unto a sustainable, forward thinking leader. 

"Sustainability initiatives can’t be driven through an organization the way other changes can. They have three distinct stages, and each requires different organizational capabilities and leadership competencies."  True dat, right?

Companies don't deny that transitioning into amore sustainable companies isn't a good idea.  Rather, they just stumble into a bad plan to make that transition; they assume making one change over a long period of time will suffice.  Alas, it actual requires "three distinct cases, each needing different leadership skills on the part of the executive heading the effort."

Phase One: Sustainability leader within the organization has the great idea to change and must determine a way to translate this idea into a business plan.

Phase Two: That great idea and plan manifests itself into something concrete;  It must have clearly laid out initiatives and "hard commercial targets." Sustainability and idealism infect the entire company, not just the one leader.
"At the end of this phase, sustainability becomes an organization-wide imperative that is tracked through economic, environmental and social metrics over the business planning cycle."

Phase Three:Sustainability becomes a core value of the company, in its DNA, and its leader must anticipate future needs, set long-term goals, etc.  (i.e. what we were sayin' anyway)

Lueneburger, C. & Goleman, D. (2010). The Change Leadership Sus tainability Demands., MIT SloanManagement Review, Summer, 49-55.

Towards Sustainability: Examining the Drivers and Change Process within SMEs


Dunphy's Sustainability Phase Model
This article is a treasure trove. 

"This paper provides a thorough literature review of the current stage of the development of such frameworks, as well as a comparison with assessments of where 21st century corporations stand with regards to sustainability."
  • In the 2010 Sustainability and Innovation Global Executive Study (SIGES) (MIT, 2011) of 3,000 executives, 57% reported that pursuing sustainability-related strategies is necessary to be competitive. This study labeled 24% of the respondents as “embracers” when in addition to seeing sustainability as necessary to be competitive they also reported their organization as having a business case for sustainability and reported it as a permanent part of management’s agenda. These embracers see themselves as outperforming their competitors (70%) and report their organizations’ sustainability related actions have increased their profits (66%).
  • Because change is difficult, especially on an organizational level, Lueneburger & Goleman (2010) indicate that their research shows that sustainability initiatives evolve through three distinct phases: in the first phase the systemic challenge is to create the sustainability vision; the second phase is to translate that vision into action; and in the third phase the organization anticipates future needs. 
  • Demartini et al. (2011) present an extensive literature search on sustainable management of SMEs, from which they conclude that at present there exists no convincing evidence that sustainability strategies now being used by large companies are viable for SMEs, and that therefore a great deal of research needs to be done, because of the large numbers of SMEs.
  • Howard-Grenville (2006), however, provides compelling evidence that internal factors are also important drivers of corporate action with respect to environmental sustainability, and that even organization sub-cultures can have distinct impacts on what the corporation overall decides to do or not do. The author states that “[a]ttending explicitly to what an organization’s culture and subcultures are, not what they ought to be, and how these cultures shape interpretations and action, should yield insight into a more complex picture of the motivators and practices of corporate environmental management.”(p.47). This argues strongly for the use of qualitative research methodology, at least in the beginning, in order to avoid being “fed” the official line rather than the actuality of what the driving cultural attitudes towards sustainability are in the organization, and who/which groups within the SME, if any, actually have the power to take the organization to the next “wave.”  
A large portion of the article is a discussion of the following:
As noted in the previous section, research on organizational change has typically been focused on large-scale organizational change. One such model is Kotter’s Eight Stage Process of Creating Major Change (Kotter, 1995). This model states that there are eight stages that an organization must move through, and that each stage must be adequately addressed if the desired change is to occur and become part of a new operating environment. These steps include: 
1) Establishing a sense of urgency    
2) Creating the guiding coalition   
3) Developing a vision and strategy  
4) Communicating the change vision  
5) Empowering broad-based action  
6) Generating short-term wins 
7) Consolidating change and producing more change   
8) Anchoring new approaches in the culture   
  
The general observations that most change efforts do not succeed is echoed in the field of sustainability, with most experts in agreement that progress towards sustainability has been modest at best (Doppelt, 2003). In examining what goes wrong with organizational efforts to move towards sustainability, Doppelt (2003) has identified what he terms “seven sustainability blunders”. These include: 

1) Patriarchal thinking that leads to a false sense of security 
2) A “siloed” approach to environmental and socioeconomic issues 
3) No clear vision of sustainability 
4) Confusion over cause and effect 
5) Lack of information 
6) Insufficient mechanisms for learning 
7) Failure to institutionalize sustainability 








Sloan, K. Klingenburg, B. Rider, C. (2013). Towards Sustainability: Examining the Drivers and Change Process within the SMES, Journal of Management and Sustainability, 3(2), 19-30.

Sunday, November 17, 2013

Business Ethics: Where are we Going?

This articles asks the questions as to whether or not businesses public images are worsened by stricter policies and regulations or by shallower practices themselves. It proposes a solution by teaching current and future business students the importance of corporate social responsibility and business ethics.


  • "Business permeates our entire living experience and the public expects responsible behavior from business, as it would a family member. As a society, we have put our trust in companies that "bring good things to life" and give us "better living through chemistry."
  • Ethics vs. Legality.  Just because it is legal, doesn't mean that it is ethical. Ethical behavior should transcend legality. 
  • For the business community to formulate a specific code that would apply to all conceivable situations and activities would be as doomed to failure as government attempts to do the same thing. 
    • Instead of these "thou shalt nots," consider ethical guidelines proposed by Robert W. Austin in 1961 (converted into questions by article author)
      • Can I affirm that I am subordinating my person interests to the interests of the company?
      • Am I placing my duty to society above my duty to the company and above my personal interests?
      • Have I revealed the facts of the situation where my private interests conflict with those of my company, or the company's with those of society?
  • "Idealism" is not for holy days but for every day--"ethical behavior is good business." Results in "greater drive and motivation, it attracts better quality people who appreciate working with a respected company; and it improves relations with customers, competitors and the public."
  • After reviewing various colleges and universities business programs, the author discovered that hardly any truly focused on ethics beyond lip service.  The curriculum "in most cases is an emphasis on practicality, a concentration on what is, not what should be."
  • Need for a paradigm shift in economics education: ethics should not be contingent upon one's character, but rather practice and contemplation in ethics through better education. 
  • The author proposes seminars on such, emphasis on better decision making, business world leaders giving information on business ethics applications--not just faculty, 
  • Making a stance against unethical behavior is not enough--many businesses do not abide by their own policies.  
  • Businesses may want to consider having someone in particular who is in charge of public policy, environmental responsibility, and other corporate responsibilities. 
  • "The decision for the future rests within the business community. There appears to be a clear prescription of what is required, and some guidelines that can help in bringing about the required changes in corporate behavior.  The crucial question is whether the business community is willing to make the short-term concessions necessary to achieve its long term goal: survival." 
Wabam. 

Saul, George. (1981). Business Ethics: Where are We Going? The Academy of Management Review, 6(2), 269-276. 

Saturday, November 16, 2013

Sustainability-Driven Implementation of Corporate Social Responsibility: Application of the Integrative Sustainability Triangle

The opening line of the article, "Today, there is a broad consensus that the maximization of profit--as still advocated in microeconomic theory--can no longer be the exclusive goal of companies within the context of the overall economy."  One of these alternative goals that has risen over the past to decades, of course, is corporate sustainability. 

The article uses the term "Corporate Social Responsibility" (CSR)--a corporate contribution to sustainable development."

The early development of CSR and its link to sustainable development
  • "The business of business is business" evolves into corporations being quasi-public institutions, and that stakeholders and corporations can both receive benefits from their contributions (referred to as "coalition"). 
  • "Strategic Management" - Corporate Planning, Systems Theory, Organization Theory. Contrasted the shareholder value paradigm and focused on the corporation and short-term profits.
  • "Human Relation Approach" - focused on 'soft factors' and strengthening relationships with stakeholders.  Corporations focused not solely on corporate goals but societal objectives. Business ethics rise. 
  • This stemmed 'CSR Europe' in 1996 that fostered standards of legal requirements against social exclusion.  The author states that this is problematic because it applies general solutions to specific and complicated problems.
  • United Nations introduce "Sustainable Development" in 1987 (development that meets the needs of the present without compromising the needs of the future), but there have been many who haven't fully understood the concept in its application.
  • Eco-efficiency--integrating ecology and economy through efficient use of natural resources, introduced by UNCED to make business approaches better.
Corporate Sustainability- meeting the needs of the direct and indirect stakeholders (such as shareholders, employees, clients, pressure groups, communities, etc) without compromising the ability to meet the needs of future stakeholders as well. 

Implementation and horizontal integration
  • The idea of corporate sustainability remains vague and is thus the source of many failed attempts to incorporate the term into daily business practices.  There is no real general approach, but there shouldn't be--sustainability is a complex concept that cannot be generally applied amongst vastly different industries. 
  • Indicators such as kg of waste, sales volume, pounds of water, etc. used to measure "sustainability"
  • eco-efficiency operator (implemented by Schaltegger and Sturm)- ratio of economic to ecological life-cycle burden. Leads to a win-win situation through efficient use of resources and corresponding benefits. 
The article proposes that there is a need for integrative concepts to provide simple and supportive yet comprehensive and conclusive augmentation of sustainability in corporations.  The answer?  The integrative sustainability triangle:
  • Ecology, Economy and Society are the three main components.  (Hauntingly similar to the triple bottom line). 
  • Solutions to today's issues must be inter-disciplinary. 
  • connecting each component are indicators of "strong", "partial" and "weak" association to signify its relationships and triggers.
  • the center, of course, is the "quadruple" in which all components are major influencers. 
What does this mean?
  • Win-Win situations should be sought out and stakeholders should be the basis for the identification of issues. 
  • Selection of focal topics--business size, regional activities--break down general approach in to more applicable factors.
  • Anchoring and implementation must have support in highest forms of management.
  • Efficient reporting and communication is the final indicator of a company's engagement with stakeholders and social responsibility. 

There's more here, but I didn't want to keep going into this one theory of resolving sustainability issues since we need like 30 more sources.  Note this as having more to go on though. 

Kleine, A. Hauff, Michael. (2009). Sustainability-Driven Implementation of Corporate Social Responsibility: Application of the Integrative Sustainability Triangle. Journal of Business Ethics, 3(85), 517-533. 

Friday, November 15, 2013

Sustainability: Virtuous or Vulgar?

Just as businesses have various motivations and interpretations of how to apply sustainability to their corporations, sustainability itself seems to have no clear definition.   Some view it as more economical, some view it as preserving biodiversity and habitat, others view it as more efficiently meeting human needs. This article proposing a five-fold definition:

1. "Development of efficient technologies and markets for meeting human needs, which is generally the purview of engineering, physical science, biotechnology, economics, and business."
2. "Understanding the state and nature of ecosystems, which is generally the purview of ecology and environmental science."
3. "Understanding how exploitation affects ecosystems, which is generally the purview of applied ecology and environmental science."
4. "Understanding how exploitation affects human cultures, which is generally the purview of sociology, political science, policy, law, anthropology, and the arts and humanities."
5. "Understanding the meaning of normative concepts such as human needs, socially just, depriving, and ecosystem health, which is generally the purview of ethics and philosophy."

Keeping this in mind, sustainability is multi-discipline, multi-dimensional and requires the cooperation beyond just an ecologist and an economist; rather, we must incorporate ethics and legitimation into science and economics.  As complex as the environment, so are the methods used to maintain it.

The article then divides sustainability into two forms:

Weak Sustainability- concerned with preserving human welfare and commiserated with economic principles.
Strong Sustainability- concerned with sustaining natural capital, aligned with conservation.

Sustainability now is about balancing its three primary virtues: concern for human need, ecosystem health, and social justice. "What counts as sustainable or good, even for the most specific managing scenario (e.g., harvesting or water use), requires knowing whether proposed management satisfy the guiding virtues of sustainability."

"If we attain sustainability, it will not only require critical changes in technology, but also the most profound shift in ethical thought witnessed in the last four centuries." (What a statement, right?)

And, as a side note, the reason this paper is entitled "Virtuous or Vulgar?" is because it debates whether sustainability is rooted in anthropocentric or non-anthropocentric values and whether or not we should choose one or the other.  I found this debate interesting, but not particularly relatable to our research purposes.

Nelson, M.  Vucetich, J. (2010). Sustainability: Vulgar or Virtuous? Bioscience, 60(7), 539-534.

Sustainabilty: How Stakeholder Perceptions Differ From Corporate Reality

" A strong reputation is widely acknowledged to be the most valuable asset of a firm, and sustainability has become an important component of corporate reputation."  Many businesses report that sustainability is an important factor in their decision making processes.  Yet there is a gap between stakeholder perceptions and company performance.  Companies that more fully integrate sustainability into daily business practices are better able to convince consumers of their green practices.

Benefits of Sustainability in Business
  • Reduction of energy use can create cost savings.
  • Waste revenue can create new revenue streams when firms sell instead of discard by-products.
  • Sustainability initiatives can stimulate a culture of innovation within the firm.
  • Motivated and driven graduates seeking employment may prefer working for companies who are well received environmentally.
  • Customers are more willing to pay higher prices or remain loyal to more sustainable focused companies.
  • Investors and lenders often perceive such companies as better investments and lower risk companies.
Key Facts Regarding Businesses and Sustainability
  • Sustainability initiatives are included in as many as 20% of mainstream advertising messages.
  • 91% of all U.S.-based businesses have formal reporting policies related to their sustainability efforts.
  • 88% of respondents stated that good corporate citizenship was important.This was equally reflected among stakeholders. 

 Study Factors
  • Methods included a perceptual survey and a third-party rating.
  • Total sample size of individuals was 2,400 individuals, 800 for each stakeholder category represented.
  • Future employees considered were defined as students graduating from a college or university in the next eight months.
  • Stakeholders from six different countries were selected: China, Germany, India, Japan, the United Kingdom, and the United States (400 from each, divided equally into 3 stakeholder categories).
  • Smartview 360 platform of CRD Analytics used as the measure for actual sustainability performance.  Methodology based on GRI, including NASDAQ OMX CRD Global Sustainability Index.
  • Results from research was interpreted into a Sustainability Perception Score (SPS) and a Sustainability Reality Score (SRC) for all firms, creating a Sustainability IQ Matix. 
 Why does Perception Not Meet Reality?
  • Individuals lack motivation to interpret sustainability messages; "In effect, although individuals wish to appear moral, their underlying attitudes and subsequent behaviors do not correspond to their publicly stated intentions."
  • Because sustainability and environmental issues are seemingly unsolvable, individuals actively avoid information related to sustainability.
  • Additionally, the jargon of sustainability terms is often misunderstood and not clearly laid out.  Consider the various implications of the term "Organic." Stakeholders without a specialized understanding of these differences are unable to interpret them. 
  • When firms put sustainability efforts into a language stakeholders can understand, stakeholders may not understand the extent to which such actions are truly sustainable.  Yet firms can have weak sustainable initiatives overall but because consumers understand them, they are placed under the 'halo effect' while more sophisticated, long-term sustainably minded firms are overlooked. 
  • Category Biases- Businesses in industries that are heavily frowned upon, such as oil companies or financial industries, are overlooked sustainably speaking because of their reputation.
  • Brand Biases- Walt Disney has one of the highest ratings, and Wal-mart one of the lowest for company images.  Yet Wal-mart is emerging as a sustainability leader in the corporate world. 
Cerruti, J. Loock, M. Muyot, M. Peloza, J. (2012). Sustainability: How Stakeholder Perceptions Differ From Corporate Reality. California Management Review, 55 (1), 74-97.

Thursday, November 14, 2013

For Research Methods: Practical Strategies for combining qualitative and quantitative methods


General Points
  • two reasons why its hard to combine qual and quant methods: its a technical problem, and there is a conflict between paradigms in their combination
  • He says combining the two is essentially like fact checking, you look to see if you get the same conclusions twice
  • This demonstrates that your results are not simply due to the invalidity of a particular method: mixed methods actually strengthens your argument for each
Research Designs on Complementary Assistance:
  • there is a "division of labor" in using the complementary strengths of qual and quant methods
  • There are two decisions to be made: which method is the priority (for us qual) and which comes first in the design (for us quant)
  • The complementary method assists the principal method
  • he says "qualitative projects can be supplemented by the strengths that quantitative methods offer"
  • Initial small-scale quant methods guides decision that the researcher makes to the bigger qualitative research
  • Our preliminary questionnaire provides context for understanding our sample and "help to focus the analysis of large amounts of qualitative data
  • This process is frequently used by anthropologists

Morgan, D. (1998). Practical strategies for combining qualitative and quantitative methods: Applications to health research. Qualitative Health Research8(3), 362-376.

(Morgan, 1998)
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Wednesday, November 13, 2013

Research Design: Qualitative, Quantitative, and Mixed Methods Approaches

One of the most cited methods resources for studies like ours.  I have the physical book. If y'all wanna see it let me know.


  • We are using mixed methods.
  • Our study is a sequential exploratory strategy.  This means quantitative first, then priority given to the qualitative findings
  • Most basic purpose is to use quantitative data to assist in interpretation of qualitative findings.
  • Purpose of combining qualitative with quantitative is also to see "the distribution of a phenomenon within a chosen population"
  • Sequential exploratory strategy's two phases are "easy to implement  and straightforward to describe and report"
  • This model is advantageous when designing a a new instrument...US!
  • "This model could make a largely qualitative study more palatable to a quantitative adviser...unfamiliar with the naturalistic tradition"
Data Analysis and Validation procedures
  • In the proposal we need to identify the procedures within the design. Types of procedures:
  • Data transformation: creating codes and themes in our transcriptions, counting their occurrences, essentially quantifying our qualitative data.  
  • Explore Outliers: initial quantitative data could produce extreme or outlier cases.  Follow-up with these cases can give insight to why they were deviant.
Researchers  advocate for the use of validity procedures for both qual and quant phases in a proposal.  We have to address potential threats to internal validity and discuss past use of similar instruments. p. 221




Creswell, J. W. (2003). Research design : qualitative, quantitative, and mixed method approaches / John W. Creswell. Thousand Oaks, Calif. : Sage Publications, c2003.


Why Companies Go green: A Model fo Ecological Responsiveness


 This study sought to identify the motivations and contextual factors inducing corporate ecological responsiveness.  The scope consisted of 53 firms in the U.K. and Japan; under closer examination, it became apparent that competitiveness, legitimation and ecological responsibility were the three main motivators.  Additionally, such motivators were heavily influenced by three contextual conditions: field cohesion, issue salience, and individual concern.

Corporate ecological responsiveness is defined by "a set of corporate initiatives aimed at mitigating a firm's impact on the natural environment." Such initiatives include but are not limited to "changes to the firm's products, processes, and policies, such as reducing energy consumption and waste generation, using ecologically sustainable resources, and implementing an environmental management system."
Methods pursued included in-depth interviews (88), participant observations (60 hours), and archival documents. The companies selected included food retailers, P&O subsidiaries, auto manufacturers, oil companies and Japanese companies--this choice made because Japan "offered a dramatically different cultural and institutional context from Britain's, and yet the firms were at similar points of industrialization."  Additionally, the U.K. and Japan experienced similar ecological issues because of their island geographies.

Study:
Interviews were conducted with environmental managers or environmental directors; in the absence of such a position, multiple senior managers were interviewed.  Interviews generally lasted between one and two hours, were tape-recorded and remained broad in scope to better address a range of motivations and guiding themes. "We started each interview by asking what the firm had done with respect to the natural environment and then asked the respondent to trace the history of each initiative he or she mentioned and to tell us why the initiative was adopted."  Additionally, as the interview progressed, the interviewer slanted questions based on the supposed driving factor.  In example, if it appeared that "her or his firm was motivated by legitimation, we asked if legitimation, ecological responsibility or competitiveness best described the firm's motivations."  Interviewees were then asked to comment on the "relevance of the contextual variables."

Participant observations consisted of observed training seminars at two firms with extensive notes--500 pages worth.  "They served to highlight some of the issues and concerns raised by organization members who were not convinced of the value of ecologically responsive initiatives."

Archival documents were derived from "published sources, a newspaper search of the Reuters and Data Star databases, company accounts, annual reports, and corporate environmental reports to provide a background for the interviews."  This research gave specific points of discussion during these interviews, such as the published decision to replace CFCs with HCFCs.  In this, interviewers were able to specifically point out decisions and actions taken and ask what motivated such behavior.  What was discovered was that companies had several motivations.

Categories of Motivation:
Competitiveness as motivation is defined as "the potential for ecological responsiveness to improve long-term profitability."  According to interviewees, such motivations included "energy and waste management, source reductions resulting in a higher output for the same inputs (process intensification), eco-labeling and green marketing, and the development of 'ecoproducts.'"  Additionally, competitiveness paid the most attention to cost-benefit analysis of these ecological responses, and often times such decisions secured "the highest returns, independent of their ecological consequences."  Thus, more decisions were made for financial gain rather than ecological stewardship; the ethical benefit was merely a by-product.

Legitimation as motivation refers to "the desire of a firm to improve the appropriateness of its actions within an established set of regulations, norms, values or beliefs."  Examples of this include "complying with legislation, establishing an environmental committee or environmental manager position to oversee a firm's ecological i,pacts and advise senior management, developing networks or committees with local community representation, conducting environmental audits, establishing an emergency response system, and aligning the firm with environmental advocates."  Hence, such motivation was not driven simply to do good, but to avoid bad publicity and "making stakeholders nice and warm and cuddly." Expectations are met rather than exceeded.

Ecological responsibility as motivation results from the 'concern that a firm has its social obligations and values."  Companies in this category act "out of a sense of obligation, responsibility or philanthrophy rather than out of self-interest."  Most companies included in such motivations were lead by one individual in a position of leadership rather who wanted to do good, unlike legislative or competitive driven companies that take groups of individuals agreeing.

Context of Motivation:
In addition to the categories of motivations, the study sought the context of motivations.  The first being issue salience, or "the extent to which a specific ecological issue has meaning for organizational constituents."  The more scientifically complex an issue, the less likely a company was to pursue it, as neither the company nor its stakeholders could proficiently grasp its meaning and importance.  "Issue salience will be positively associated with legitimation and competitiveness."

The second context for motivation is field cohesion, or "the intensity and density of formal and informal network ties between constituents in an organizational field."  Thus, certain industries and groups of companies continually influence each other's behaviors and decisions.  There is an inherent connectedness between "employees, owners, and local residents" that "increased the frequency and intensity of interactions, placing the firms operating within that field under greater scrutiny and resulting in concerns about legitimacy." Thus, field cohesion is "positively associated with legitimation and negatively associated with competitiveness and ecological responsibility."

The last motivation context is individual concern for the natural environment, in which "personal values can influence a firm's ecological responses."  "Individual concern will be positively associated with ecological responsibility and legitimation."

Bansal, P. Roth, K. (2000 August). Why Companies Go Green: A Model of Ecological Responsiveness. Retrieved from http://www.jstor.org/stable/1556363

Tuesday, November 12, 2013

Consumer-defined sustainably-oriented firms and factors influencing adoption

General Aspects

  • he conducted 20 in-depth interviews with mid- and senior-level managers finding that government intervention, organizational values, and potential benefits encourage sustainable approaches
  • his theoretical approach is based on stakeholder theory
3 Factors influencing the sustainable orientation of a firm: good for business, org. values, govt. intervention.

Good for Business (based on interviewees accounts):
  • external pressure in terms of direct and derived demand insist that company's suppliers use more environ. friendly inputs
  • because of this demand sales increase for taking these steps
  • suggested that non-economic buying criteria in decision making is associated with upper-level manager's/owner endorsement
  • There is optimism for future sales of companies adopting sustainability (question?)
  • Sustainability Profitability: increased sales and cost savings
  • short-term profits are forgiven...pay-back periods "protracted" for sustainable endeavors
  • some businesses move to sustainability because of employee influence...it boosts morale and productivity
Organizational Values (samsies...interviewees say this)
  • sense of higher calling, core values
  • social issues are more pertinent to managers
  • sometimes owners mandate eniron. activities that are sometimes unprofitable
  • its seen sometimes as the "right thing to do"
  • local impact of sus. efforts creates deeper connections with customers
  • despite costs of sus. actions, when informant expresses feelings of individual responsibility or owner expresses preference for sus. practices, or if org. objectives are geared towards societal transformation (hospitals?) change happens
Government Intervention (yes yes informants)
  • obviously govt. intervention/regulation increases sus. efforts
  • some regulations limit harmful activities, others encourage beneficial ones
  • some regulations create new industries (like those who help firms follow regulations)
  • sometimes "industry-imposed" norms create change
  • "recently implemented govt. stimulus package is focused on funding sustainably-oriented firms"
  • Tons of government money behind alternative energy. positive performance for green financial products is promising



Ramirez, E. (2013). Consumer-defined sustainably-oriented firms and factors influencing adoption. Journal of Business Research, 66(11), 2202-2209. dpi:10.1016/j.jbusres.2012.01.012
(Ramirez, 2013)

Jesse