2.4 CORPORATE SUSTAINABILITY THEORIES
Rezaee (2017:69-73) discusses several theories including shareholder, stakeholder, resource-based view of the firm, institutional, legitimacy, and stewardship relevant to corporate sustainability. These theories can collectively explain the interrelated dimensions of sustainability performance and their integrated link to corporate culture, business model, and managerial strategies, processes, and practices and their implications for international businesses. For the purpose of this study, the stakeholder theory, the natural resource-based view (NRBV) of the firm and institutional theory will be elaborated on.
The stakeholder theory was introduced in the 1980s by Edward Freeman. He defined a stakeholder as “any group or individual who can affect or is affected by the achievement of the organisation’s objectives. The basic principle behind the stakeholder theory is if you have a more compelling relationship with other external …show more content…
The speed of accomplishing mainstreaming is reliant on the leadership, training and organisational capabilities to integrate CS and sustainable policies in the overall strategy and core operational processes of an organisation. (http://www.csrquest.net/)
CS entails to be implemented at all business levels (normative, strategic, and operative) and in all business processes. Thus, allowing for complexity to be reduced, changes to be effective, efficient and comprehensible. Furthermore, to enable target-oriented planning and realisation, and simultaneously provide the basis for reporting. (Sukitsch, Engert & Baumgartner 2015:11506).
The implementation of corporate sustainability is a systematic, holistic and result-oriented approach with the intention of proactively enhancing implementation of the modified mission statement, circulating continuous improvement, and creating a learning organisation. (Sukitsch, Engert & Baumgartner
Rezaee (2017:69-73) discusses several theories including shareholder, stakeholder, resource-based view of the firm, institutional, legitimacy, and stewardship relevant to corporate sustainability. These theories can collectively explain the interrelated dimensions of sustainability performance and their integrated link to corporate culture, business model, and managerial strategies, processes, and practices and their implications for international businesses. For the purpose of this study, the stakeholder theory, the natural resource-based view (NRBV) of the firm and institutional theory will be elaborated on.
The stakeholder theory was introduced in the 1980s by Edward Freeman. He defined a stakeholder as “any group or individual who can affect or is affected by the achievement of the organisation’s objectives. The basic principle behind the stakeholder theory is if you have a more compelling relationship with other external …show more content…
The speed of accomplishing mainstreaming is reliant on the leadership, training and organisational capabilities to integrate CS and sustainable policies in the overall strategy and core operational processes of an organisation. (http://www.csrquest.net/)
CS entails to be implemented at all business levels (normative, strategic, and operative) and in all business processes. Thus, allowing for complexity to be reduced, changes to be effective, efficient and comprehensible. Furthermore, to enable target-oriented planning and realisation, and simultaneously provide the basis for reporting. (Sukitsch, Engert & Baumgartner 2015:11506).
The implementation of corporate sustainability is a systematic, holistic and result-oriented approach with the intention of proactively enhancing implementation of the modified mission statement, circulating continuous improvement, and creating a learning organisation. (Sukitsch, Engert & Baumgartner