A relationship between corporate sustainability and organizational change (Part One)

Abstract

Purpose – In the present kaleidoscopic business landscape the concepts of corporate sustainability are increasingly affecting corporations’ relationships with society and shaping how business leaders interpret changes to their organizations. The path to sustainability is best viewed as an organizational change initiative for which the “how” and “why” must be considered. Broadly, change initiatives have a notably poor success rate, which is likely related to discord between an initiative and the people undertaking it. Corporate sustainability is a transformational change that impacts business culture and a firm’s relationship with its community. The purpose of this paper is to examine the corporate-societal relationship to better understand implications of undertaking sustainability change initiatives in today’s global environment in this three-part paper in terms of value creation, for whom, and how sustainability is becoming an increasingly significant portion of this equation. First, a basis for corporate sustainability and the concepts surrounding who the stakeholders need to be examined, after which the reasons for attempting sustainability, in terms of value creation, and considerations for the implementation (culture, identity, attachment) of said change initiative will be explored. Design/methodology/approach – Empirical and practitioner research papers were reviewed to: illustrate the meaning and approaches to corporate sustainability; and analyze how organizational change initiatives can best be used to facilitate organizational transformation. Findings – There is no consensus on the meaning of corporate sustainability, rather there continues to be an evolution of ideas and theories shaping the evolution of corporate sustainability. To implement any form of corporate sustainability requires that managers understand their objective and the cultural and psychological barriers of organizational change. Better engagement with those undertaking organizational change and clear articulation of the change’s purpose can better lend themselves to an initiative’s success. However, there is no panacea and managers must recognize that approaches may need to be altered. Research limitations/implications – Research tends to occupy one of two spheres, either corporate sustainability or change initiatives. More linkage between these two concepts and empirical research of the effectiveness of organizational change practices for corporate sustainability is needed. Practical implications – A better understanding of organizational change theories, practices, and procedures may benefit managers and organizations that endeavor to realize corporate sustainability. Social implications – Given the implications of recent corporate collapses and their perceived malice, there is now greater thought about the role these organizations have in society. Concepts regarding shared value and mutual benefit to society and corporations can be expected to remain at the forefront of the public decorum. Originality/value – This paper sought to draw stronger ties between corporate sustainability and organizational change, highlighting that the two are codependent.