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