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A theory of credible cross‐temporal corporate commitments as goal‐based private sustainability governance

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  • Janina Grabs

Abstract

Goal‐based corporate supply chain commitments to zero‐deforestation, carbon neutrality, or sustainable sourcing have become important elements of businesses' sustainability and reputation management practices. However, we still know little about the conditions under which such cross‐temporal commitments are likely to be successful. This article introduces commitment credibility as a crucial but understudied antecedent of success. Drawing on the economic theory of imagined futures, it shows how cross‐temporal signaling via commitments may change suppliers' expectations and related actions and thereby co‐create more sustainable futures. By using insights from credible commitment theory, it argues that this pathway relies on high motivational and/or imperative credibility of the committed company. Contrasting the example of zero‐deforestation commitments in the palm oil sector with commitments to sustainable seafood and no farmworker exploitation, it highlights that the involvement of critical stakeholders (as external accountability partners or third‐party implementing agents) is of particularly high importance for on‐the‐ground success.

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  • Janina Grabs, 2023. "A theory of credible cross‐temporal corporate commitments as goal‐based private sustainability governance," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5146-5160, December.
    • Handle: RePEc:bla:bstrat:v:32:y:2023:i:8:p:5146-5160
    DOI: 10.1002/bse.3423
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