Legitimizing Corporate (Un) Sustainability: A Case Study of Passive SMEs

Abstract

The objective of this article is to explore how decision makers in small-and medium-sized enterprises explain their lack of commitment to sustainability through various justifications. These justifications are intended to rationalize and legitimize, through socially acceptable arguments, the absence of substantial actions in this area. A case study based on 33 interviews in nine Canadian small-and medium-sized enterprises showed that managers rationalize their lack of commitment to sustainability in several different ways. These can be grouped into three main types of justifications: prioritization of economic survival, looking for a scapegoat, and denial and minimization (denial of negative impacts, minimization of sustainability issues, selfproclaimed sustainability). The study contributes to bridge the gap between the literatures on neutralization theory, resistance to institutional pressures, and corporate unsustainability. It also sheds further light on the reasons underlying the lack of commitment to sustainable development and how managers justify this to themselves and others.

Proactive environmental and social strategies in a small‐ to medium‐sized company: A case study of a Japanese SME

“…It has been suggested that SMEs do not engage in sustainability initiatives because of lack of capital and financial resources (D'Amato, Veijonaho, & Toppinen, 2020) and that SMEs regard sustainability initiatives as costs with few benefits (Collins, Roper, & Lawrence, 2010; Revell & Rutherfoord, 2003), and their owners appear to be ‘laggards’ (Chassé & Boiral, 2017, p. 324). It could be argued that there is no evidence to suggest such assertions in the present study.…”

“…Even though the pressures to adopt sustainability practices have grown, how ‘SMEs respond to them remains a controversial topic’ (Chassé & Boiral, 2017, p. 324). ‘SMEs engagement in environmental practices differs across types of practices, and across firms, and countries’ (Hoogendoorn et al, 2015, p. 778).…”

An analysis of environmental sustainability in small & medium‐sized enterprises: Patterns and trends

“…Barriers prohibit or create an obstacle for SMEs to implement sustainable practices. Similar to drivers, barriers can be internal to organizations such as lack of resources and lack of management commitment, or they can be external to organizations such as lack of government support and lack of consumer demand for sustainable product (Chassé & Boiral, ; Ghadge, Kaklamanou, Choudhary, & Bourlakis, ; McEwen, ; Tounés, Tornikoski, & Gribaa, ). For example, in Ghadge et al's study (), poor market structure, lack of appropriate logistic, and underdeveloped environmental legislation are all barriers to implementing sustainable practices.…”

Linking owner–managers' personal sustainability behaviors and corporate practices in SMEs: The moderating roles of perceived advantages and environmental hostility

“…Second, little research has focused on the specific business realities that SME managers must face when making decisions in terms of CS (Chassé & Boiral, ; Ditlev‐Simonsen & Midttun, ; Hahn & Scheermesser, ). By definition, the operationalization of CS often requires trade‐offs (Angus‐Leppan, Benn, & Young, ; Hahn, Figge, Pinkse, & Preuss, ) between the individual and the organizational/institutional levels.…”