Instrumental and integrative logics in business sustainability

Jijun Gao, Pratima Bansal

Research output: Contribution to journalArticleResearchpeer-review

137 Citations (Scopus)

Abstract

Prior research on sustainability in business often assumes that decisions on social and environmental investments are made for instrumental reasons, which points to causal relationships between corporate financial performance and corporate social and environmental commitment. In other words, social or environmental commitment should predict higher financial performance. The theoretical premise of sustainability, however, is based on a systems perspective, which implies a tighter integration between corporate financial performance and corporate commitment to social and environmental issues. In this paper, we describe the important theoretical differences between an instrumental and integrative logic in managing business sustainability. We test the presence of each logic using data from 738 firms over 13 years and find evidence of integrative logic applied in business.

Original languageEnglish
Pages (from-to)241-255
Number of pages15
JournalJournal of Business Ethics
Volume112
Issue number2
DOIs
Publication statusPublished - 2013
Externally publishedYes

Keywords

  • Business sustainability
  • Corporate environmental commitment
  • Corporate social commitment
  • Instrumental approach
  • Integrative approach
  • Simultaneous decision-making

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