Rack CS – Sustainability and Corporate Social Responsibility (CSR)

TAOP Resources Page -- Aisle C (Contemporary Topics and Issues)

Rack CS (Sustainability): Sustainable Business Practices | CSR and Stakeholder Theory | Business Ethics and Governance | Social Responsibility and Ethics | Corporate Governance | Sociomateriality


Jump to: Importance | Challenges | Research Areas | Foundational Works | TAOP Episodes | References

Why are Sustainability and CSR Important Contemporary Topics?

People care more about sustainability and Corporate Social Responsibility (CSR) nowadays because of a combination of growing awareness, changing values, and pressing global challenges. First and foremost is growing environmental awareness. People are increasingly aware of the impacts of climate change, such as extreme weather, rising sea levels, and biodiversity loss. Meanwhile, concerns about overconsumption and the depletion of natural resources are leading people to worry about waste and environmental damages caused by human actions.

But what can be done about it, and how effective would any actions be? Responses to environmental concerns include government policies and investor pressures. In recent times, new policies and regulations have targeted emissions, waste management, and ethical practices to encourage businesses to adopt sustainable operations. Some investors have also prioritized Environmental, Social, and Governance (ESG) criteria when making decisions. There are also social pressures with younger generations entering the workforce who are more environmentally conscious and aware of emergent social inequities like uneven access to clean water. Still, the efficacy of these activities and their staying power are increasingly being called into question as the economic pressures on firms remain stronger. Meanwhile, CSR and sustainability initiatives are also being attacked as inefficient and expensive, driving firms to avoid rather than embrace them.

While one can argue that there is a moral imperative to protect the planet and its natural resources for future generations, operationalizing that imperative is complex and challenging. Not everyone agrees as to the extent of such an imperative nor the best way to enact it. However, global resources are finite and some of them are becoming rarer (e.g., rare earth minerals needed for technology, hydrocarbons for fuel), thus sustainability will likely remain a pressing topic.


Relevant Theories or Literature Streams

The menu for this rack lists several subtopics that might be of interest and which we may produce a dedicated page in future. The Rack CS menu at the top and bottom of the page and resource links below will include active and available subpages. Also, Aisle B (Theories) may include resource pages on some of these streams.

Note: This is not intended to be comprehensive, but illustrative of the different perspectives that research can take in matters pertaining to the meaning of work (Scite, 2024).

Definition and Scope. The meanings of sustainability and CSR are open to debate, although there is general agreement at some level. According to some literature, sustainability refers to the ability of organizations to operate in a manner that meets present needs without compromising the ability of future generations to meet their own needs. CSR encompasses the ethical obligations of organizations to contribute positively to society and the environment. Borusiak (2021) describes CSR as a process through which businesses contribute to sustainable development, highlighting the interconnectedness with sustainability.

Operationalizing Sustainability and CSR. There are different literature streams looking at the relationships among firms and internal or external stakeholders. Both sustainability and CSR emphasize the importance of stakeholder engagement and relevance of stakeholder perspectives in developing sustainable practices (Ikram et al., 2020). Internally, scholars are examining how organizations integrate sustainability into their business practices (Schmidt et al., 2018), organizational strategies (Ashraf et al., 2021), and performance metrics (e.g., Taticchi et al., 2013).

Challenges and Barriers. Organizations face various challenges in implementing sustainability and CSR initiatives, including resource constraints, lack of awareness, and resistance to change. For example, Walisundara et al. (2022) discuss how green manufacturing practices can contribute to sustainable performance, highlighting the need for organizations to overcome barriers to implement effective sustainability strategies. There are also ethical considerations stemming from expectations of firms to operate responsibly and contribute positively to society. He (2018), for example, emphasizes that CSR can help organizations maintain stability when facing conflicts.

Organizational Outcomes. Whereas the above may indicate a short-term perspective, there is also interest in the longer-term outcomes of protecting the environment while maintain firms’ competitive advantages. Sustainability and CSR can drive innovation as, for example, shown by Rachinger et al. (2019) who investigated the relationship between digitalization and business model innovation. They indicated that organizations can leverage sustainability initiatives to enhance their market position (Rachinger et al., 2019). Sustainability and CSR can also create long-term value for organizations and society. Ercantan and Eyupoglu (2022) explore how green human resource management practices can encourage employees to engage in sustainable behaviors, emphasizing the role of CSR in fostering a culture of sustainability.

Global Outcomes. But ultimately, the question is how to know that the accumulation of organizational and national / societal efforts can make a true different. Bristol-Alagbariya (2020), for example, discusses how environmental and social performance standards can enhance business sustainability in developing countries, highlighting the need for organizations to adapt their CSR practices to local contexts. This global perspective underscores the importance of understanding the diverse challenges and opportunities organizations face in implementing these initiatives.


Some Contemporary Areas of Research

Please note that this is not to be considered an exhaustive list. We welcome feedback to ensure currency on contemporary challenges and research efforts. This is also not intended to provide a comprehensive look at ongoing research in any of these areas but just to highlight some of the specific topic areas being pursued as of this writing.

Integration of CSR and Sustainability Strategies. Research is focused on how organizations can effectively integrate CSR initiatives with sustainability strategies to create a cohesive approach that addresses social, environmental, and economic challenges. This integration is essential for achieving long-term organizational goals and meeting stakeholder expectations (Syafii, 2021). Scholars are also exploring the relationship between CSR activities and organizational performance metrics, such as profitability and market share. This research aims to provide empirical evidence of the business case for CSR and its contribution to long-term sustainability (Heliani, 2023). Particular practices are also being looked at by researchers. For example, to what extent are organizations adopting green supply chain practices as part of their sustainability efforts?Current research is examining the challenges and benefits of implementing sustainable practices throughout the supply chain, including the role of CSR in promoting environmental responsibility (Coşkun & Kazan, 2021).

Impacts of External Events or Conditions. How well do sustainability and CSR initiatives survive various shocks, or how do some shocks or crises enable them? For example, the COVID-19 pandemic prompted some organizations to reassess their CSR strategies and commitments. Madaan et al. (2023), for example, explores how businesses have adapted their CSR initiatives in response to the challenges posed by COVID-19, including shifts in focus towards community support and employee well-being. There is also growing interest in how technological advancements can enhance CSR efforts and contribute to sustainable development. Some researchers are examining the roles of innovation in promoting environmentally friendly practices and improving corporate performance (Wang, 2023).

Leader and Stakeholder Orientation. How do the actions and words of various actors affect sustainability? What qualities are best suited for leaders and stakeholders to exhibit to enhance sustainability outcomes? The influence of leadership styles on the effectiveness of CSR initiatives is a critical area of study. For example, how can transformational leadership can drive CSR practices and foster a culture of sustainability within organizations (Wangthong, 2023)? What about effective stakeholder engagement for fostering success in CSR initiatives (Vagin et al., 2022)? Finally, the relationship between corporate governance structures and CSR practices is a significant area of research. Studies explore how governance mechanisms can support or hinder the implementation of CSR initiatives and promote sustainable business practices (Kizilgüneş & Koçak, 2021).

Culture and Society. Research is investigating how cultural factors influence CSR practices across different regions and industries. This includes examining the impact of national culture on organizational attitudes towards CSR and sustainability (Putri & Naili, 2023). Organizations are increasingly recognizing the importance of social investments as part of their CSR strategies. Research explores how social investments can contribute to community development and enhance the overall impact of CSR initiatives (Bylinskaya & Loginova, 2021).

Various Worries, Concerns, and Other Barriers. Organizations may not always be properly positioned to enact sustainability initiatives due to their expense or difficulties in complying with new regulations or policies (Wangthong, 2023). Implementing CSR and sustainability initiatives often requires significant investments of time, money, and human resources, so leaders are concerned about the return on investment for such activities (Shafiq et al., 2023). Meanwhile, leaders can be caught in a double bind. A negative reputation for being perceived as non-compliant with sustainable or CSR practices can lead to a loss of trust and loyalty from consumers or society but implementing them may encounter resistance from employees and management who are accustomed to traditional business practices. How can one build a culture favorable to sustainment (Sajko et al., 2020)?


Foundational Works

The foundational works given below may help build a foundation for pursuing this area of research. It is important to contextualize such a contemporary challenge as sustainability in the context of more foundational elements of organization studies. Earlier conceptions of organizations and their relationships to the environment drive many of the habits and norms that presently may present barriers to sustainability or that could provide enablers.

Archie Carroll, A Three-Dimensional Conceptual Model of Corporate Performance (1979)

Corporate Social Performance (CSP) This framework, developed by Archie Carroll, emphasizes the importance of evaluating the social performance of organizations based on their CSR activities. This work outlines the dimensions of CSR, including economic, legal, ethical, and discretionary responsibilities.

Brundtland Report, formally titled “Our Common Future” (1987)

Sustainable Development Theory focuses on the need for organizations to operate in a manner that meets present needs without compromising the ability of future generations to meet their own needs. This report helped popularize the concept of sustainable development and has had an influence on CSR practices globally.

Edward Freeman, “Strategic Management: A Stakeholder Approach” (1984).

This book is useful for understanding stakeholder theory that posits that organizations have responsibilities not only to shareholders but also to a broader range of stakeholders, including employees, customers, suppliers, and the community.

John Elkington, The Triple Bottom Line (TBL) framework, “Cannibals with Forks: The Triple Bottom Line of 21st Century Business” (1997).

This book emphasizes the need for organizations to focus on three dimensions: social, environmental, and economic performance. This framework can be helpful for organizations seeking to balance profit with social and environmental responsibilities.

W. Richard Scott’s “Organizations: Rational, Natural, and Open Systems” (1992).

Institution theory examines how institutional environments shape organizational behavior and practices. provides a comprehensive overview of institutional theory, highlighting how organizations adapt to societal norms and expectations regarding CSR and sustainability.


117: Economic Sociology & Valuation – Marion Fourcade

Economic sociology bridges economics and sociology, exploring questions such as how social environments explain and influence economic activities. Of interest for this episode is the subfield of economic valuation, in which researchers have been studying how the monetary worth of something is formed or constructed. One influential work is Marion Fourcade’s “Cents and Sensibility: Economic Valuation and the Nature of ‘Nature’,” published in the American Journal of Sociology in 2011. The article explores the economic valuation of peculiar goods, things that are intangible or otherwise cannot be exchanged in a market yet have a social value, and uses a case study of the legal proceedings following oil spills in the US and France to explain why the monetary awards were calculated so differently from each other.
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62: Consumerism & Meaning at Work — WALL-E

This is another episode where we look at organizations through the medium of film. WALL-E, a 2008 animated film from Pixar, is the story of a robot who at one time was part of a massive clean-up effort on Earth while all the humans left to live on cruise ships in space. In this episode, we talk about the setting and the story for clues about organizational behavior and management.
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Available Resource Pages

Aisle C – Management Topics

Curated lists of resources regarding contemporary issues, topics, and challenges that are driving today’s organization research. Includes a wide range of subjects from the gig economy to the meaning of work
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Rack CI – Inequality and Justice

Curated list of resources regarding the study of diversity, equity, inclusion, and accessibility in organizations and the removal of discrimination and systemic biases that deny basic human dignity and respect
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Rack CR — Resource Management

Curated list of resources regarding collaboration and networking in contemporary organizations. Includes modern knowledge sharing, cross-disciplinary collaboration, and interorganizational networks
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Rack CW – Meaningful Work

Curated list of resources regarding present-day attitudes toward work and work-life balance. Includes discussing traditional vs. contemporary work models, employee well-being, and member commitment to the organization
Read More

References

Ashraf, M., Ullah, H., Khan, R., & Khan, M. (2021). Impact of management control systems on sustainability of agricultural small and medium firms: mediating role of corporate social responsibility (csr) practices. Sustainable Business and Society in Emerging Economies, 3(4), 653-664. https://doi.org/10.26710/sbsee.v3i4.2073

Borusiak, B. (2021). Sustainability, sustainable development and corporate social responsibility., 27-33. https://doi.org/10.18559/978-83-8211-074-6/i2

Bristol-Alagbariya, E. (2020). Ifc environmental & social performance standards: soft law project & company financing partnerships towards good environmental governance, business sustainability and sustainable development in developing countries. IAGS. https://doi.org/10.7176/iags/81-07

Bylinskaya, A. and Loginova, T. (2021). Economic and social contradictions in the implementation of corporate social responsibility of companies.. https://doi.org/10.2991/assehr.k.210322.098

Coşkun, S. and Kazan, H. (2021). Visualization of the global supply chain research domain through bibliometric analysis. Journal of Transportation and Logistics, 6(1), 125-136. https://doi.org/10.26650/jtl.2021.943712

Ercantan, O. and Eyupoglu, Ş. (2022). How do green human resource management practices encourage employees to engage in green behavior? perceptions of university students as prospective employees. Sustainability, 14(3), 1718. https://doi.org/10.3390/su14031718

He, J. (2018). The value of corporate social responsibility in the scope of triangle model. American Journal of Industrial and Business Management, 08(01), 59-68. https://doi.org/10.4236/ajibm.2018.81004

Heliani, H. (2023). Relationship between working capital management, corporate social responsibility, liquidity risk, and profitability on the performance and sustainability. International Journal of Business Law and Education, 4(2), 1257-1269. https://doi.org/10.56442/ijble.v4i2.315

Ikram, M., Zhang, Q., Sroufe, R., & Ferasso, M. (2020). The social dimensions of corporate sustainability: an integrative framework including covid-19 insights. Sustainability, 12(20), 8747. https://doi.org/10.3390/su12208747

Kizilgüneş, M. and Koçak, F. (2021). Investigation of corporate social responsibility in sports within the scope of corporate sustainability. The Journal of Eurasia Sport Sciences and Medicine, 3(2), 70-83. https://doi.org/10.53431/jessm.985779

Madaan, G., Kaur, M., Gowda, K., Gujrati, R., & Uygun, H. (2023). Business responses towards corporate social responsibility and sustainable development goals during covid-19 pandemic. Journal of Law and Sustainable Development, 11(1), e0309. https://doi.org/10.37497/sdgs.v11i1.309

OpenAI. (2024). Why do people care so much about sustainability and CSR nowadays; What are the foundational theoretical streams or texts that organization researchers are using most to examine matters of digital transformation and the gig economy. ChatGPT (November 2022 version) [Large Language Model].

Putri, M. and Naili, Y. (2023). Reconceptualisation of corporate social responsibility model in the era of sustainable development. Review of Economics and Finance, 21, 11-21. https://doi.org/10.55365/1923.x2023.21.2

Rachinger, M., Rauter, R., Müller, C., Vorraber, W., & Eva, S. (2019). Digitalization and its influence on business model innovation. Journal of Manufacturing Technology Management, 30(8), 1143-1160. https://doi.org/10.1108/jmtm-01-2018-0020

Sajko, M., Boone, C., & Buyl, T. (2020). CEO greed, corporate social responsibility, and organizational resilience to systemic shocks. Journal of Management, 47(4), 957-992. https://doi.org/10.1177/0149206320902528

Schmidt, F., Zanini, R., Korzenowski, A., Schmidt, R., & Nascimento, K. (2018). Evaluation of sustainability practices in small and medium-sized manufacturing enterprises in southern brazil. Sustainability, 10(7), 2460. https://doi.org/10.3390/su10072460

Scite. (2024). What is the relationship between sustainability and corporate social responsibility in organization studies; What are the major contemporary research topics in corporate social responsibility and sustainability in organizations; What are the major research topics regarding how organizations are trying to cope with digital transformation; What worries organizational leaders most about corporate social responsibility and sustainability; What are the foundational theoretical streams or texts that organization researchers are using most to examine matters of sustainability and CSR in organizations. Scite (April 2024 version) [Large Language Model].

Scott, W. R. (1995). Institutions and organizations: Ideas, interests and identities. Sage.

Shafiq, M., Hayat, A., Argani, H., & Mehmood, S. (2023). An examination of CSR’s role in fostering organizational commitment and employee performance. Journal of Business and Environmental Management, 1(1), 63-78. https://doi.org/10.59075/jbem.v1i1.151

Syafii, M. (2021). Socially responsible investment. Fara Id and Wealth Management, 1(1). https://doi.org/10.58968/fwm.v1i1.158

Taticchi, P., Tonelli, F., & Pasqualino, R. (2013). Performance measurement of sustainable supply chains. International Journal of Productivity and Performance Management, 62(8), 782-804. https://doi.org/10.1108/ijppm-03-2013-0037

Vagin, S., Kostyukova, E., Spiridonova, N., & Vorozheykina, T. (2022). Financial risk management based on corporate social responsibility in the interests of sustainable development. Risks, 10(2), 35. https://doi.org/10.3390/risks10020035

Walisundara, W., Thevanes, N., & Arulrajah, A. (2022). Green manufacturing practices and sustainable performance of organization in selected manufacturing companies in kegalle district of sri lanka. Vidyodaya Journal of Management, 8(II). https://doi.org/10.31357/vjm.v8iii.6090

Wang, W. (2023). Corporate social responsibility, technological innovation and corporate performance: inputs to sustainable development. International Journal of Research Studies in Management, 11(4). https://doi.org/10.5861/ijrsm.2023.1041

Wangthong, S. (2023). A structural equation model of factors influencing sustainability of chemical industry in thailand. Journal of Law and Sustainable Development, 11(8), e566. https://doi.org/10.55908/sdgs.v11i8.566

Jump to: Importance | Challenges | Research Areas | Foundational Works | TAOP Episodes | References

Rack CS (Sustainability): Sustainable Business Practices | CSR and Stakeholder Theory | Business Ethics and Governance | Social Responsibility and Ethics | Corporate Governance | Sociomateriality

Aisle C (Topics and Issues): Agility and Adaptability (CA) | Digital Technologies (CD) | Employee Well-Being (CE) | Diversity, Equity, Inclusion (CI) | 21st Century Leadership (CL) | Resource Management (CR) | Sustainability (CS) | Meaningful Work (CW)

Resources: Main Page | Research Methods (A) | Major Theories (B) | Issues and Contemporary Topics (C) | Professional Education (D)