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| Author: | Hahn, T. Figge, F. |
| Title: | Beyond the bounded instrumentality in current corporate sustainability research: toward an inclusive notion of profitability |
| Journal: | Journal of Business Ethics
2011 : DEC, VOL 104:3, p.325-345 |
| Index terms: | cars manufacturing profitability business ethics externalities sustainable development |
| Freeterms: | corporate sustainability bounded rationality return on capital employed |
| Language: | eng |
| Abstract: | We argue that most of the current research approaches on corporate sustainability are inconsistent with the notion of sustainable development. By defining the notion of instrumentality in corporate sustainability through three conceptual principles we show that current approaches stem from a bounded notion of instrumentality significantly favouring economic outcomes over environmental and social aspects. We propose an inclusive concept of profitability that represents the return on all forms of environmental, social and economic capital used by a firm. This helps to redefine corporate profitability as if sustainability matters in that it overcomes the bounded instrumentality that interferes current research on corporate sustainability. This notion is applied to various car manufacturers and conceptual implications are developed for future research on corporate sustainability. |
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