The facets of the sustainability paradox

Abstract

Purpose This paper aims to examine why the sustainability paradox exists and how it unfolds by focusing on intraorganizational dynamics. It explores how organizational actors perceive and make sense of sustainability and thereby contribute to the sustainability paradox. Design/methodology/approach In a case study on IREN, an Italian listed multi-utility with considerable engagements with sustainability, data collection through interviews, e-mails and document analysis revealed contradictions raised by directors and middle managers. Findings were analyzed by iterating with the literature used to frame this study, which combines organizational sensemaking, paradoxes and management control. Findings The sustainability paradox comprises various facets. Directors and middle managers interpret sustainability differently depending on their role within the organization and their perceptions of the concept itself. Different interpretations thus occur within and across organizational levels and functions, impacting how sustainability is implemented and monitored. The use of parallel management control systems (MCSs) reflects multiple and fragmented sensemaking, which explains the facets of the sustainability paradox. Research limitations/implications Although this work illuminates the role played by individuals at top- and middle-management organizational levels and MCSs in relation to the sustainability paradox, more research is needed on how individuals make sense of sustainability at the lowest organizational levels. Practical implications Organizations claiming commitment to sustainability must establish communication forms on the practicalities of sustainability throughout the organization to stimulate shared sensemaking and the design and use of inclusive MCSs. Originality/value This paper explains why and how organizations unconsciously enact various facets of the sustainability paradox.

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The path towards sustainability: The role of internal stakeholders and management accounting in a dialogic perspective

“…show the way to sustainability (Andriof et al, 2002;Bellucci et al, 2019), avoiding sustainable spot projects (Argento et al, 2022), which waste the company's financial resources and underlining as stakeholder participation is not enough compared to the dialogue that is possible to create among different organisational levels (Bellucci et al, 2019).…”

“…Sustainable initiatives, when applied as a single initiative and not integrated with the company strategy and business model, are determined to fail, especially when organisational units in a company work without a common and integrated sustainability goal (Argento et al, 2022;Unerman et al, 2018). It has emerged that the internal dynamics of sustainability implementation, that is, what allows organisations to avoid one-spot projects and adopt an integrated way to work for sustainability, are crucial to achieving success.…”

Corporate social responsibility: Does it really matter in the luxury context?

“…Finally, when customers' CSR sensitivity is high but the luxury company's BM is not aligned with sustainability issues, certain factors, such as commitment from key managers, internal communication supported by training programmes for employees (Jabbour & Santos, 2008; Jackson et al, 2011) and management accounting systems (Argento et al, 2022), can help to reduce this misalignment.…”