IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v30y2021i1p237-251.html
   My bibliography  Save this article

Representatives of future generations as promoters of sustainability in corporate decision processes

Author

Listed:
  • Julia Bogacki
  • Peter Letmathe

Abstract

Current protests of the young generation emphasize that interests of future generations should be taken more into account by policy makers and in corporate decision processes. As organizations contribute to enduring environmental and social problems, they are required to promote sustainability in order to preserve options for the well‐being of future generations. However, organizational decision makers often take a short‐term perspective and neglect investments in intergenerational justice. Previous theoretical work has acknowledged the importance of representing future generations in today's decision‐making processes to adopt a long‐term perspective in order to promote intergenerational justice. In a laboratory experiment, we show that appointing representatives of future generations at the organizational level can foster investments in intergenerational justice. Although this outcome is more pronounced when aligned with the representatives' individual incentives, it even persists for a representative who is monetarily penalized for advocating the interests of future generations.

Suggested Citation

  • Julia Bogacki & Peter Letmathe, 2021. "Representatives of future generations as promoters of sustainability in corporate decision processes," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 237-251, January.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:1:p:237-251
    DOI: 10.1002/bse.2618
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.2618
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.2618?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Shibly Shahrier & Koji Kotani & Tatsuyoshi Saijo, 2016. "Intergenerational sustainability and the degree of capitalism in the society: A field experiment," Working Papers SDES-2016-10, Kochi University of Technology, School of Economics and Management, revised Jul 2016.
    2. Okhuysen, Gerardo A. & Galinsky, Adam D. & Uptigrove, Tamara A., 2003. "Saving the worst for last: The effect of time horizon on the efficiency of negotiating benefits and burdens," Organizational Behavior and Human Decision Processes, Elsevier, vol. 91(2), pages 269-279, July.
    3. Armin Falk & James J. Heckman, 2009. "Lab Experiments are a Major Source of Knowledge in the Social Sciences," Working Papers 200935, Geary Institute, University College Dublin.
    4. Todd L. Cherry & Peter Frykblom & Jason F. Shogren, 2002. "Hardnose the Dictator," American Economic Review, American Economic Association, vol. 92(4), pages 1218-1221, September.
    5. Yoshio Kamijo & Asuka Komiya & Nobuhiro Mifune & Tatsuyoshi Saijo, 2016. "Negotiating with the future: Incorporating imaginary future generations into negotiations," Working Papers SDES-2016-13, Kochi University of Technology, School of Economics and Management, revised Oct 2016.
    6. Howard, Gregory E., 2011. "The Value and Applicability of Bargaining in an Intergenerational Setting," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103227, Agricultural and Applied Economics Association.
    7. Simon Cadez & Albert Czerny & Peter Letmathe, 2019. "Stakeholder pressures and corporate climate change mitigation strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 1-14, January.
    8. Fokko J. Eller & Michael M. Gielnik & Hendrik Wimmer & Corinna Thölke & Sara Holzapfel & Silke Tegtmeier & Jantje Halberstadt, 2020. "Identifying business opportunities for sustainable development: Longitudinal and experimental evidence contributing to the field of sustainable entrepreneurship," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1387-1403, March.
    9. Loewenstein, George & Thaler, Richard H, 1989. "Intertemporal Choice," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 181-193, Fall.
    10. Shubham & Parikshit Charan & L.S. Murty, 2018. "Secondary stakeholder pressures and organizational adoption of sustainable operations practices: The mediating role of primary stakeholders," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 910-923, November.
    11. Padilla, Emilio, 2002. "Intergenerational equity and sustainability," Ecological Economics, Elsevier, vol. 41(1), pages 69-83, April.
    12. Tost, Leigh Plunkett & Wade-Benzoni, Kimberly A. & Johnson, Hana Huang, 2015. "Noblesse oblige emerges (with time): Power enhances intergenerational beneficence," Organizational Behavior and Human Decision Processes, Elsevier, vol. 128(C), pages 61-73.
    13. Chermak, Janie M. & Krause, Kate, 2002. "Individual Response, Information, and Intergenerational Common Pool Problems," Journal of Environmental Economics and Management, Elsevier, vol. 43(1), pages 47-70, January.
    14. Steinel, Wolfgang & De Dreu, Carsten K.W. & Ouwehand, Elsje & Ramírez-Marín, Jimena Y., 2009. "When constituencies speak in multiple tongues: The relative persuasiveness of hawkish minorities in representative negotiation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 109(1), pages 67-78, May.
    15. Bodo Sturm & Joachim Weimann, 2006. "Experiments in Environmental Economics and Some Close Relatives," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 419-457, July.
    16. Bazerman, Max H. & Neale, Margaret A. & Valley, Kathleen L. & Zajac, Edward J. & Kim, Yong Min, 1992. "The effect of agents and mediators on negotiation outcomes," Organizational Behavior and Human Decision Processes, Elsevier, vol. 53(1), pages 55-73, October.
    17. Fischer, Maria-Elisabeth & Irlenbusch, Bernd & Sadrieh, Abdolkarim, 2004. "An intergenerational common pool resource experiment," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 811-836, September.
    18. Valley, Kathleen L. & White, Sally Blount & Neale, Margaret A. & Bazerman, Max H., 1992. "Agents as information brokers: The effects of information disclosure on negotiated outcomes," Organizational Behavior and Human Decision Processes, Elsevier, vol. 51(2), pages 220-236, March.
    19. Joerg Chet Tremmel, 2006. "Establishing intergenerational justice in national constitutions," Chapters, in: Joerg Chet Tremmel (ed.), Handbook of Intergenerational Justice, chapter 10, Edward Elgar Publishing.
    20. Siarhei Manzhynski & Frank Figge, 2020. "Coopetition for sustainability: Between organizational benefit and societal good," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 827-837, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pankaj Koirala & Raja Rajendra Timilsina & Koji Kotani, 2021. "Deliberative Forms of Democracy and Intergenerational Sustainability Dilemma," Sustainability, MDPI, vol. 13(13), pages 1-18, July.
    2. Nurlan Orazalin & Monowar Mahmood, 2021. "Toward sustainable development: Board characteristics, country governance quality, and environmental performance," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3569-3588, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Klaudijo Klaser & Lorenzo Sacconi & Marco Faillo, 2021. "John Rawls and compliance to climate change agreements: insights from a laboratory experiment," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 21(3), pages 531-551, September.
    2. Pankaj Koirala & Raja Rajendra Timilsina & Koji Kotani, 2021. "Deliberative Forms of Democracy and Intergenerational Sustainability Dilemma," Sustainability, MDPI, vol. 13(13), pages 1-18, July.
    3. Helena Fornwagner & Oliver P. Hauser, 2022. "Climate Action for (My) Children," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(1), pages 95-130, January.
    4. Valentina Bosetti & Francis Dennig & Ning Liu & Massimo Tavoni & Elke U. Weber, 2022. "Forward-Looking Belief Elicitation Enhances Intergenerational Beneficence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(4), pages 743-761, April.
    5. Jörg Spiller & Friedel Bolle, 2013. "Inter-Generational Thoughtfulness in a Dynamic Public Good Experiment," Discussion Paper Series RECAP15 008, RECAP15, European University Viadrina, Frankfurt (Oder).
    6. Mostafa Shahen & Koji Kotani & Tatsuyoshi Saijo, 2020. "How do individuals behave in the intergenerational sustainability dilemma? A strategy method experiment," Working Papers SDES-2020-1, Kochi University of Technology, School of Economics and Management, revised May 2020.
    7. Mostafa Shahen & Koji Kotani & Tatsuyoshi Saijo, 2020. "Does perspective-taking promote intergenerational sustainability?," Working Papers SDES-2020-12, Kochi University of Technology, School of Economics and Management, revised Sep 2020.
    8. Raja Rajendra Timilsina & Yoshinori Nakagawa & Yoshio Komijo & Koji Kotani & Tatsuyoshi Saijo, 2021. "Imaginary future generations: A deliberative approach for intergenerational sustainability dilemma," Working Papers SDES-2021-12, Kochi University of Technology, School of Economics and Management, revised Nov 2021.
    9. Timilsina, Raja R. & Kotani, Koji & Nakagawa, Yoshinori & Saijo, Tatsuyoshi, 2022. "Intragenerational deliberation and intergenerational sustainability dilemma," European Journal of Political Economy, Elsevier, vol. 73(C).
    10. Raja R Timilsina & Yutaka Kobayashi & Koji Kotani, 2022. "Non-kinship successors for resource sustainability," Working Papers SDES-2022-2, Kochi University of Technology, School of Economics and Management, revised Jan 2022.
    11. Shibly Shahrier & Koji Kotani & Tatsuyoshi Saijo, 2017. "Intergenerational sustainability dilemma and a potential solution: Future ahead and back mechanism," Working Papers SDES-2017-9, Kochi University of Technology, School of Economics and Management, revised Aug 2017.
    12. Timilsina, Raja R & Kotani, Koji & Nakagawa, Yoshinori & Saijo, Tatsuyoshi, 2021. "Concerns for future generations in societies: A deliberative analysis of the intergenerational sustainability dilemma," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 90(C).
    13. Mostafa E. Shahen & Wada Masaya & Koji Kotani & Tatsuyoshi Saijo, 2020. "Motivational Factors in Intergenerational Sustainability Dilemma: A Post-Interview Analysis," Sustainability, MDPI, vol. 12(17), pages 1-16, August.
    14. Johannes Abeler & Felix Marklein, 2017. "Fungibility, Labels, and Consumption," Journal of the European Economic Association, European Economic Association, vol. 15(1), pages 99-127.
    15. Raja Timilsina & Koji Kotani & Yoshinori Nakagawa & Tatsuyoshi Saijo, 2018. "Does deliberation change individual opinions and hence resolve the intergenerational sustainability dilemma in societies?," Working Papers SDES-2018-7, Kochi University of Technology, School of Economics and Management, revised Oct 2018.
    16. Thieme, Lutz & Winkelhake, Olaf & Hartmann, Ulrich, 2014. "Fairness als universelle Norm? Empirische Evidenz ohne Manna [Fairness as a universal norm? Empiric evidence without manna]," Working Papers of the European Institute for Socioeconomics 12, European Institute for Socioeconomics (EIS), Saarbrücken.
    17. Barmettler, Franziska & Fehr, Ernst & Zehnder, Christian, 2012. "Big experimenter is watching you! Anonymity and prosocial behavior in the laboratory," Games and Economic Behavior, Elsevier, vol. 75(1), pages 17-34.
    18. Raja R. Timilsina & Yoshinori Nakagawa & Koji Kotani, 2020. "Exploring the Possibility of Linking and Incorporating Future Design in Backcasting and Scenario Planning," Sustainability, MDPI, vol. 12(23), pages 1-14, November.
    19. Matteo M. Galizzi & Daniel Navarro-Martinez, 2019. "On the External Validity of Social Preference Games: A Systematic Lab-Field Study," Management Science, INFORMS, vol. 65(3), pages 976-1002, March.
    20. Katerina Sherstyuk & Nori Tarui & Majah-Leah V. Ravago & Tatsuyoshi Saijo, 2016. "Intergenerational Games with Dynamic Externalities and Climate Change Experiments," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(2), pages 247-281.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:30:y:2021:i:1:p:237-251. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.