Trade‐offs in corporate sustainability: you can't have your cake and eat it

Abstract

The mainstream of the literature on corporate sustainability follows the win-win paradigm, according to which economic, environmental and social sustainability aspects can be achieved simultaneously; indeed, corporate sustainability has often been defi ned by the intersection of these three areas. However, given the multi-faceted and complex nature of sustainable development, we argue that trade-offs and confl icts in corporate sustainability are the rule rather than the exception. Turning a blind eye to trade-offs thus results in a limited perspective on corporate contributions to sustainable development. In order to overcome this situation, we propose an initial framework for the analysis of trade-offs in corporate sustainability. By doing so, we pursue two aims. First, the framework serves as a starting point for a more systematic analysis of trade-offs in corporate sustainability, as it identifi es different levels and dimensions to characterize such trade-offs. Second, it serves to contextualize the contributions to this special issue on trade-offs in corporate sustainability. Based on the framework, we fi nally point to some promising avenues for future research on trade-offs in, and a more inclusive notion of, corporate sustainability. Copyright

Sustainability exploration and sustainability exploitation: from a literature review towards a conceptual framework

“…For instance, while focusing merely on the economic bottom line would lead to the economic viability of the organisation, such focus would not necessarily lead to sustainability in terms of environmental and social aspects (Lozano, 2008a). However, there is a tendency in recent literature to emphasise trade-offs in CS that address situations in which the economic, environmental and social aspects of CS cannot be achieved simultaneously (Hahn et al, 2010).…”

“…Drawing on the theoretical underpinnings of exploitation and exploration, this study implies that both specific competencies and capabilities matter in ensuring that sustainability efforts contribute to the overall organisational performance. Therefore, while recognising the trade-offs in CS (Hahn et al, 2010), it can be proposed that organisations should simultaneously favour short-term efficiency and long-term discovery (Benner and Tushman, 2003;Gibson and Birkinshaw, 2004) to maximise performance benefits. As such, the following question for future research is proposed:…”

Sustainability Balanced Scorecards and their Architectures: Irrelevant or Misunderstood?

“…Hahn and Figge consider trade-offs between conflicting sustainability objectives to be at the core of corporate sustainability management (Hahn et al 2010) and, in order to resolve trade-off dilemmas, demand that all corporate sustainability tools specify the ''relationship of the different sustainability aspects among each other'' (Hahn and Figge 2011, p. 328). They furthermore conclude that the SBSC is incapable of specifying these relationships because it is limited to linear cause-and-effect chains .…”

Measuring Corporate Sustainability Performance

“…Organizational conduct concerning sustainable development relies on the insights, reasons, values and resolutions of individual participants. Trade-offs in corporate sustainability at the organizational degree apply to disputes between various sustainability features concerning the function and effect of corporations as individual organizations [5].…”

“…The temporal aspect constitutes an essential sector of possible trade-offs in corporate sustainability, considering all trade-offs between present and future features in sustainability-related corporate conduct. The process dimension focuses on trade-offs in corporate policies, processes and changes for sustainable development, constituting the driving vehicles and paths towards sustainable development [5]. The most crucial success component for sustainability is steady leadership within the corporation.…”