New research shows that employees want to work for companies that make sustainability a priority.

Abstract

Purpose – The purpose of this article is to investigate why stakeholder frameworks have struggled for acceptance in strategy and to put forward a clearly articulated framework which, while firm-centric, acknowledges that stakeholders hold the key to organization success. Design/methodology/approach – The framework outlined is the result of more than two decades of action research. This has involved an iterative process of framework design and field testing with clients to assess validity followed by redesign. This evolution has been conducted in conjunction with a continuous review of progress in the strategy-related literature. Findings – For many directors, managers, consultants and academics, there is a disconnect between strategy and what is often referred to as “stakeholder management”. In the latter, stakeholders are the first and final focus. Such a perspective might suit the needs and language of fields like public policy, social services, welfare and ethics, but it isn't appropriate for strategy and strategic planning. Being stakeholder-centric, it holds back the acceptance of a stakeholder framework in strategy. The firm-centric stakeholder framework for strategy gels with boards, CEOs and senior executives, focusing as it does on the long-term prosperity and sustainability of an organization. Originality/value – Organizations in all sectors – business, government and not-for-profit – can benefit greatly by re-orienting their thinking and the way they go about designing strategy and structuring their strategic plans. A firm-centric stakeholder approach to strategy solves many conceptual and practical problems that directors and managers face in designing organization objectives and shaping precise strategies.

Financial institutions need to focus on governance, not the environment.

Abstract

Purpose - Esty and Winston (2006) assert that businesses need to adopt ‘eco-advantage.’ This paper aims to explore the viability of SMEs achieving ‘eco-advantage’ by considering their understanding of sustainability issues, how they adopt and innovate in terms of sustainability and the benefits and obstacles they face.Design/methodology/approach - The research approach is exploratory, comprised of 15 SME embedded cases based in the UK. The cases are participants in short interventions in sustainable product and process design as a part of a university knowledge transfer project, representing the overall case. Cases are based on interviews with company participants and collaborating academics, supplemented by documentary and observational evidence. Findings - The results build on the work on ‘eco-advantage’ (Esty and Winston, 2006), highlighting marketing, rather than compliance issues as a catalyst for change. The newly aware SME enters a development process which involves cumulative capabilities, gaining a nascent inner confidence, which includes espousing wider sustainable values and attempts at influencing internal and upstream practices in four dominant ways: use of alternative materials, enhancing recyclability (Sharma et al, 2010), local sourcing, and product to service shift (Maxwell and van der Vorst 2003), though few fully embrace strategic ecological and economic advantage. Obstacles include ephemerality of benefits (Shearlock et al, 2000) and practicalities, of implementing internal and supply chain innovations.Research limitations/implications - The results reveal the scope and challenges for SMEs to adopt more sustainable practices, encompassing innovations and a broad set of capabilities. Further research points to the need to monitor benefits as well as inputs in evaluating sustainability improvements and consider longitudinal business sustainability issues. Originality/value - The paper informs the emerging debate on sustainability in SMEs, providing a rich source of data to enhance the provision of business support and knowledge transfer activities, where a more holistic and customised approach is required to realise the real environmental and economic benefits accrued from implementing sustainable improvements.