Creating a Sustainable Competitive Position Through Ethical Behaviour

Abstract In this chapter, we discuss the main themes of book and give examples how rest chapters are related to these themes. We have identified two aspects that partly overlapping equally relevant for international firms’ work with ethical questions their business. One concerns behaviour sustainability can be applied as a part corporate strategy may strengthen competitive position. This is particularly when considering it cannot taken granted there always positive relationship actors sometimes question an emphasis on goes beyond accepted norms regulations. The other theme crucial role in supporting level contributing towards achieving sustainable development goals (SDGs). Solving many challenges climate change, migration, poverty inequality likely require involvement firms. identifies several routes forward achieve this. Keywords Sustainability Ethical Competitive position Sustainable Corporate Responsible business Citation Ghauri, P.N., Elg, U. Hånell, S.M. (2023), "Creating Position Through Behaviour", (Ed.) Creating Position: Challenges International Firms (International Business Management, Vol. 37), Emerald Publishing Limited, Bingley, pp. 1-8. https://doi.org/10.1108/S1876-066X20230000037001 Publisher: Limited Copyright © 2023 Pervez N. Ulf Elg Sara Melén Hånell License published under Creative Commons Attribution (CC BY 4.0) licence. Anyone reproduce, distribute, translate create derivative works (for both commercial non-commercial purposes), subject full attribution original publication authors. terms licence seen at http://creativecommons.org/licences/by/4.0/legalcode. will investigate between positioning firms, one hand, behaviour, hand. It do so from different but perspectives. firms support contribute SDGs. Both perspectives draw upon construct, viewing consisting environmental, social economic dimension (Hahn et al., 2015). (IB) research has established idea advantage by using resources capabilities most efficient way, thereby creating long-term (Buckley & 2004; Teece, 2014). More recently, been proposed need put more effort into externalities minimizing negative if they want global market (Ghauri Cooke, 2022; Montiel 2021). suggests considerations become advantage. At same time, link requires further IB scholars discussed Tarnovskaya Chapter 5. investigates, perspectives, whether benefit good transparent competencies managing lead Driving Practices importance being increasingly emphasized all types stakeholders such governments, non-governmental organizations (NGOs), society general, media becomes stronger (Hadjikhani 2012). critical companies understand consider company strategies general (Elg 2017; Ghauri 2021; Mellahi For operations multiple markets across world, recognized cultural contextual forces major influencing ethics (Bartlett Ghoshal, 2000; Enderwick, 2018). Earlier studies what considered desired not correspond values held another world (Bondy 2012; recent study fashion H&M its implementing fair wages supply chain, was shown managers initially experienced resistance local suppliers factories Bangladesh (Tarnovskaya 2022). were hesitant engage dialogue about buyer H&M. time started implement Bangladesh, clearly ethically behaviour. Chapters 6 7 Tolstoy Tolstoy, illustrate multinational enterprise (MNE) drive practices around emerging context. Structural Cultural Variations Between Markets factors regarding vary (Arregle 2016; Strauss 2017). Stakeholders – customers, suppliers, partners, host communities, governments perceptions make interpretations doable (Crilly 2016). Cerne (Chapter 9) argue discrepancies institutional logic western logics prevailing market. may, turn, frictions must managed. Despite posed forces, emphasize key driving (Van Tulder Wettstein 2019). Some managerial capacity outreach which them suitable taking strong leadership Still, 8), organizational innovation redesign core pillars transform MNE. Importance Achieving Goals transnational. four threats (Wettstein example, Sönnichsen 3) describes develop CE construct way very substantial way. argued operating internationally world. study, found 71% emissions came 100 (Griffin, supports view difficult without active also collaborations political Contributions Global United Nations’ SDGs introduced 2015 achieved 2030 (Agenda 2030) spelled out 17 areas where expected (UnitedNations, However, ESG (environmental, governance) coined even earlier 2005. That initiative went CSR (corporate responsibility) had quite prevalent (Perez Table 1 illustrates issues dealt scheme. Companies follow model given ‘social license’, whereby believe appropriate deserves trust. consistent our belief behave obtain license’ gain trust and, thus, competitive. 1. Mechanisms Achieve ESG. Environmental (E) Social (S) Governance (G) Waste pollution Resource depletion Greenhouse gas emission Deforestation Climate change Employee relations diversity Working conditions Local communities Health safety Conflict Tax Executive remuneration Donations lobbying Corruption bribery Board structure Source: Based Perez al. (2022). Since introduction ESGs, allocated improving ESGs now than 90% S&P 500 publish reports Although investments responses limited lately, focus including increasing (Vanderford, brand performance company, while others characterized greenwashing claim able stipulated reports. reason scepticism find correlation financial (Artz Dorfleitner Halbritter, Andersson Arvidsson 13) specifically EU’s finance platform envisions investors drivers transformation. Their though play important here, does necessarily ambitions policymakers. might platform’s failure or new changes game plan. As illustrated Fig. 1, complementary fact, grouped schemes. While goals, some them. 2 direct through stakeholders. Many value-creating collaboration. Sacco Magnani 11) resilience-building interact value chains (GVCs) collaboration fulfilling Opens window.Fig. 1.The Link 2. How Can Contribute Implications Role Goal 1: No End forms everywhere 7: Affordable clean energy Ensure access affordable 8: Decent growth Promote inclusive decent 9: Industry, infrastructure Build resilient promote 10: Reduce within countries 12: consumption production patterns 13: action—Take urgent action combat impacts 17: Partnerships Strengthen revitalize partnership generate quality employment, equal opportunities human capital eradicate poverty? What transition? green technologies developed MNEs tackle pollution? adopt models? include SMEs chain? development? adapt product incorporate marginalized communities? To extent policies reduce intra- regional inequality, regards wages, gender, health living standards? developing R&D capability, restructuring GVC packaging? use standards home markets? respective industries? inequalities countries? (United Nations, 2015) (Ghauri, things context proposing states, should rethink strategies, researchers still wondering responsibility achievement problem is, comprehend seeking profit maximization globe. addressing ways (Lashitew, Overall, goals. Put explicitly, possibility seriously undermined participation Furthermore, interconnected complementary. (SDG problems confronting lives those poor resources, frugal innovations, making affordable, actions CE. Several trying SDG identify barriers facing. 2) show constraints due lack willingness partners risky working environment no obvious gains. Here, resourceful multinationals vital securing investments. Zhao, Ku Dilyard 4) corporations innovate order waste crisis simultaneously strengthening positions, Drennan, Rovira Nordman Safari 12) orientation affect consumer Small Large builds understanding present common insights adhere undertaking Zantan Van Tulder, small large discussion, forget potential following SDG-based Dominguez 10) explains small- medium-sized enterprises (SMEs) integrate circular economy (CE) principles models contributes meeting overcome resource scarcity. A case French start-up highlights drivers, engaged non-economic value. comparison corporations, struggle scarce smaller certain advantages over inherent strengths lie innovativeness, results speed, responsiveness closeness customers (Hutchinson Quinn, (2018), firm Swedish life-science sector described situation saying: ‘They giants 50–100 times larger us, move faster They like elephants, mice’. attributed success firm’s innovativeness speed decisions. book, we, aim large, deal well involved staying long period ESG/SDG-based Outline Rest Book Different studies, conceptual, parts We, provide state-of-the-art knowledge topic hopefully connect ESG, positioning, demonstrate constructs each other. Researchers who interested type valuable concepts useful own research. divided three parts. Part deals conceptual authors views. predominantly dealing sustainability-related issues, presents References Arregle, Miller, Hitt, Beamish, 2016Arregle, J. -L., T. L., M. A., P. W. 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World 54(1), 54–65. https://doi.org/10.1016/j.jwb.2018.10.004 Prelims Behaviour One: Exploring Ethics 2: Approach: Opportunities 3: Fashion Circular Economy Manage Marketing B2B Textiles 4: Crisis Innovations Corporations 5: Source Advantage. it? Two: Wrestling Issues 6: Approach Leadership Development: Water Transformation: Doughnut Model When Institutional Logics Collide: Navigate Values Three: Around Panafrica: Meeting 11: Resilience Extended Value Chain: Case STMicroelectronics Orientation Affect Consumers' Relationships Online Brands? EU's Finance Platform: Game Plan Quest Advantage Index