Research

20 pages, 1579 KiB

Open AccessArticle

From Neoclassical Economics to Common Good Economics

by Johannes Dolderer, Christian Felber and Petra Teitscheid

Sustainability 2021, 13(4), 2093; https://0-doi-org.brum.beds.ac.uk/10.3390/su13042093 - 16 Feb 2021

Cited by 8 | Viewed by 15024

The economy for the common good (ECG) has been developed as a practical economic model, starting in Austria, Bavaria, and South Tyrol in 2010. Nowadays, ECG is considered a viable approach for sustainable transformation across Europe, and also worldwide. Within economic policy, ECG [...] Read more.

The economy for the common good (ECG) has been developed as a practical economic model, starting in Austria, Bavaria, and South Tyrol in 2010. Nowadays, ECG is considered a viable approach for sustainable transformation across Europe, and also worldwide. Within economic policy, ECG expands social market economy concepts; from a theoretical perspective of economics the question arises, of whether the implicit theoretical model refines the neoclassical paradigm or actually transcends it. During the first scientific conference on the ECG, at the end of 2019 at the University of Applied Sciences Bremen, some 150 participants concluded that an investigation of ECG practices was necessary, and that the fundamental theory needs to be developed in an explicit and systematic way. This article is a first attempt at contrasting the theoretical basis of the ECG model with neoclassical economics, using core concepts and cornerstones of the latter’s paradigm. The outcome is the cornerstone of common good economics. Full article

(This article belongs to the Special Issue Sustainable Economy for the Common Good)

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30 pages, 709 KiB

Open AccessArticle

The Common Good Balance Sheet and Employees’ Perceptions, Attitudes and Behaviors

by Jasmin Wiefek and Kathrin Heinitz

Sustainability 2021, 13(3), 1592; https://0-doi-org.brum.beds.ac.uk/10.3390/su13031592 - 02 Feb 2021

Cited by 4 | Viewed by 4617

Abstract

The Common Good Balance Sheet (CGB) is an instrument to measure a company’s contribution to the common good. In our study, we investigate whether employees from companies with higher CBG scores perceive more corporate social responsibility than employees from companies with lower CBG [...] Read more.

The Common Good Balance Sheet (CGB) is an instrument to measure a company’s contribution to the common good. In our study, we investigate whether employees from companies with higher CBG scores perceive more corporate social responsibility than employees from companies with lower CBG scores and whether relationships can be found between the achieved CGB scores and employees’ job-related attitudes and behaviors. We conducted an online survey of 332 employees from eight German companies with published CGBs. According to results from multiple linear regression analyses, employees from companies with higher CGB scores perceive more CSR and are more satisfied with their jobs and payments. In addition, they report less job demands, more organizational support, more work meaningfulness and more organizational citizenship behaviors towards their company. Employees identify more with their company if high transparency and co-determination is practiced. However, the value and social impact of the companies’ products is not related to employees’ organizational identification. Moreover, employees from companies with high CGB scores do not report more organizational citizenship behaviors towards their colleagues. Our results indicate that the CGB is a tool that measures aspects concerning job-related attitudes and behaviors and allows comparability between companies. However, aspects relevant to job satisfaction may still be missing in the CGB scoring. Full article

(This article belongs to the Special Issue Sustainable Economy for the Common Good)

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22 pages, 563 KiB

Open AccessArticle

Priority Stakeholders’ Perception: Social Responsibility Indicators

by Rosane Maria Seibert, Clea Beatriz Macagnan and Robert Dixon

Sustainability 2021, 13(3), 1034; https://0-doi-org.brum.beds.ac.uk/10.3390/su13031034 - 20 Jan 2021

Cited by 6 | Viewed by 2623

Abstract

This study aims to build a list of composite indicators by information that enable the assessment of philanthropic higher education organizations’ (PHEOs) social responsibility based on the interests of their stakeholders. A list of 88 social responsibility indicators was built based on a [...] Read more.

This study aims to build a list of composite indicators by information that enable the assessment of philanthropic higher education organizations’ (PHEOs) social responsibility based on the interests of their stakeholders. A list of 88 social responsibility indicators was built based on a literature review and stakeholder interest to serve as a basis for the composite indicators. In order to identify and validate the indicators, field research was carried out. Stakeholders from Brazil and the United Kingdom scored them from one (not important) to five (very important) for each indicator identified in the literature review. With 540 valid answers, they suggested inclusions and exclusions according to their interests. Next, a correlation analysis was performed to identify and eliminate redundant indicators. The principal component analysis extracted the composite indicators. The results point to 11 principal components that are configured as composite indicators to evaluate the performance of PHEOs social responsibility considering the stakeholder’s interests, a factor that differentiates this research from the literature revision done. Some of the composite indicators are close to the social responsibility categories reviewed in the literature. However, others show more specific and in-depth interests, especially regarding the stakeholders themselves. These composite indicators help managers establish disclosure policies whenever they are focused on seeking legitimacy in the social context of PHEOs. It also contributes to the advancement of theoretical knowledge, presenting composite indicators, from the stakeholder’s perspective, for the disclosure of social responsibility of PHEOs. Full article

(This article belongs to the Special Issue Sustainable Economy for the Common Good)

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25 pages, 1547 KiB

Open AccessArticle

High-Commitment Work Practices and the Social Responsibility Issue: Interaction and Benefits

by Lorenzo Revuelto-Taboada, María Teresa Canet-Giner and Francisco Balbastre-Benavent

Sustainability 2021, 13(2), 459; https://0-doi-org.brum.beds.ac.uk/10.3390/su13020459 - 06 Jan 2021

Cited by 7 | Viewed by 3892

Abstract

Human Resource Management (HRM) has a potentially vital role to play in addressing the new challenges that companies have to face and in delivering initiatives in the framework of corporate sustainability. Our work attempts to shed light on the strategic role of High-Commitment [...] Read more.

Human Resource Management (HRM) has a potentially vital role to play in addressing the new challenges that companies have to face and in delivering initiatives in the framework of corporate sustainability. Our work attempts to shed light on the strategic role of High-Commitment Work Practices (HCWP) as a Corporate Sustainability (CS) partner and, more specifically, to analyze the implications of their integration on the competitiveness of the firm. With this purpose, we apply a qualitative methodology, using a single case study, to explore and explain why and how the interaction between HCWP and CS takes place. The results show how this interaction encourages the formulation and implementation of new socially responsible organizational initiatives that help the firm to improve its competitive position in the market through the development of employees’ innovative behavior. HCWP integrate with CS initiatives when CS values form part of the mission and strategy of the firm. Also, HCWP support CS deployment, primarily in its internal dimension. In addition, our work reveals that cultural factors such as organizational values and management style, and structural factors like empowerment and teamwork must be jointly considered when adopting a CS strategy aimed at developing innovative behavior and competitive advantage. Full article

(This article belongs to the Special Issue Sustainable Economy for the Common Good)

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17 pages, 1378 KiB

Open AccessArticle

Assessing the Economy for the Common Good Measurement Theory Ability to Integrate the SDGs into MSMEs

by Ana T. Ejarque and Vanessa Campos

Sustainability 2020, 12(24), 10305; https://0-doi-org.brum.beds.ac.uk/10.3390/su122410305 - 10 Dec 2020

Cited by 12 | Viewed by 3394

Abstract

Over the past decades, sustainability and corporate sustainability have gained a lot of attention. Currently, the focus of attention has shifted to the integration of the Sustainable Development Goals (SDGs) into businesses operation. The extant literature points to the proposed frameworks as not [...] Read more.

Over the past decades, sustainability and corporate sustainability have gained a lot of attention. Currently, the focus of attention has shifted to the integration of the Sustainable Development Goals (SDGs) into businesses operation. The extant literature points to the proposed frameworks as not fitting micro, small, and medium-sized enterprises (MSME) reality and, also, to a lack of empirical evidence in this field. With research at the intersection of business and SDGs still being scarce, the Economy for the Common Good (ECG) model allows operationalizing the SDGs employing its novel measurement theory. The present study is aimed at completing the statistical validation process of the ECG measurement theory using confirmatory factor analysis (CFA) on a sample of 206 European firms. Thus, after having performed an exploratory factor analysis (EFA), this study takes as a starting point the previously published knowledge and proceeds with the second step of the statistical validation process. The results of CFA confirm the conclusions of the EFA and allow to redefine the measurement scales included in the ECG framework to achieve a sufficient level of goodness of fit. Full article

(This article belongs to the Special Issue Sustainable Economy for the Common Good)

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22 pages, 296 KiB

Open AccessArticle

Alliances between For-Profit and Non-Profit Organizations as an Instrument to Implement the Economy for the Common Good

by Carmen Talavera and Joan R. Sanchis

Sustainability 2020, 12(22), 9511; https://0-doi-org.brum.beds.ac.uk/10.3390/su12229511 - 15 Nov 2020

Cited by 7 | Viewed by 4249

Abstract

The model of the Economy for the Common Good (ECG) has cooperation as one of its main principles. This alternative economic model proposes to prioritize cooperation over competition to favor the creation of social value. From this point of view, strategic alliances between [...] Read more.

The model of the Economy for the Common Good (ECG) has cooperation as one of its main principles. This alternative economic model proposes to prioritize cooperation over competition to favor the creation of social value. From this point of view, strategic alliances between organizations can be used as an instrument that supports implementation of the ECG model. In recent years, alliances between for-profit and non-profit entities have been strengthened as a method to facilitate actions focused on social responsibility and sustainability. Moreover, the ECG model has become an adequate management framework for corporate sustainability. This work aims to connect alliances between for-profit and non-profit organizations with the ECG model. First, this connection is manifested in a theoretical way. This paper is going to analyze how such alliances can contribute to increasing the values of the ECG model: human dignity, solidarity and social justice, environmental sustainability, and transparency and codetermination. Afterwards, this work analyzes two cases of this type of alliance—Grupo Vips-Fundación Hazlo Posible and Danone Foods-Grameen Bank—to determine the benefits that this type of cooperation can provide to society. We study their motives and the benefits that they bring to the organizations and the community. Therefore, this work assesses how these types of alliances influence the different topics included in the Common Good Matrix. Moreover, we conduct a comparative analysis between both cases. This work demonstrates that, by implementing this type of strategic alliances, the creation of social value is favored, thus contributing to implementation of the ECG model. Full article

(This article belongs to the Special Issue Sustainable Economy for the Common Good)

18 pages, 300 KiB

Open AccessArticle

Do Stakeholders Modulate Philanthropic Strategy? Corporate Philanthropy as Stakeholders’ Engagement

by María Lourdes Arco-Castro, María Victoria Lopez-Pérez, Sara Rodriguez-Gomez and Raquel Garde-Sánchez

Sustainability 2020, 12(18), 7242; https://0-doi-org.brum.beds.ac.uk/10.3390/su12187242 - 04 Sep 2020

Cited by 4 | Viewed by 3613

Abstract

Corporate philanthropy, as an expression of commitment to the common good, can contribute to the creation of social value in companies. This corporate philanthropy can be managed in various ways. The choice of how to channel corporate philanthropy could be, in accordance with [...] Read more.

Corporate philanthropy, as an expression of commitment to the common good, can contribute to the creation of social value in companies. This corporate philanthropy can be managed in various ways. The choice of how to channel corporate philanthropy could be, in accordance with stakeholder theory, the result of companies’ interactions with key stakeholders and, in accordance with the theory of signaling, a signal that companies use to respond to their demands. This approach contributes to the literature on bottom-up initiatives (stakeholder–managers) as opposed to top-down strategies (board–stakeholders) in relation to corporate social responsibility, which is becoming increasingly important in a society where networks of communication, cooperation and interaction are established. To this end, a study was conducted on 221 European companies indexed in the Dow Jones Sustainability Indices in the year 2018. The findings have several practical implications: The management of corporate philanthropy should take into account the stakeholders’ requirements, and stakeholders show greater affinity and trust with the company when philanthropy is channeled through foundations. By contrast, donations are not associated with stakeholder attitudes. As a theoretical implication, this paper supports the theories of stakeholders and signaling by explaining the role of philanthropy in the relationship with stakeholders. Full article

(This article belongs to the Special Issue Sustainable Economy for the Common Good)

23 pages, 2178 KiB

Open AccessArticle

Covid-19 and the Search for the Common Good: The Case of Parmon Spa (Italy)

by Giovanna Centorrino

Sustainability 2020, 12(16), 6657; https://0-doi-org.brum.beds.ac.uk/10.3390/su12166657 - 18 Aug 2020

Cited by 4 | Viewed by 4565

Abstract

The Covid-19 pandemic marks an extraordinary global crisis unseen in this last century, with its rapid spread worldwide and associated mortality burden, which is leading to profound economic consequences. In such an unprecedented scenario, most firms were not ready to deal with the [...] Read more.

The Covid-19 pandemic marks an extraordinary global crisis unseen in this last century, with its rapid spread worldwide and associated mortality burden, which is leading to profound economic consequences. In such an unprecedented scenario, most firms were not ready to deal with the resulting significant large-scale perturbations. Challenges for firms in the sector of the production of essential medical devices were among the most urgent. This study aims to investigate the behavior of a medium-size Italian enterprise that during this crisis, by converting part of its production line to the production of masks, undertook a path characterized by an ethics mindset, showing how its potentialities can also be used for the aim of common good. The case study is also presented to demonstrate that leadership ethical values and constant connection to the entrepreneurial ecosystem, maintaining a positive culture therein, have contributed toward a common good choice. Full article

(This article belongs to the Special Issue Sustainable Economy for the Common Good)

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