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Adopting the Materiality Principle in Sustainable Operations Management

Author

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  • Michel Leseure

    (School of Mechanical and Design Engineering, University of Portsmouth, Portsmouth PO1 3DJ, UK)

  • David Bennett

    (Aston Business School, Aston University, Birmingham B4 7ET, UK
    Department of Technology Management and Economics, Chalmers University of Technology, 41258 Gothenburg, Sweden)

Abstract

This paper argues that operations management needs a commonly understood materiality principle to truly contribute to sustainability. A framework initially developed in international finance is generalized and used to model firms as borrowing resources from a common creditor, the environment, and to establish when a sustainable initiative is material in terms of impact. Our framework also solves the long-standing challenge of measuring impact at the level of an operations unit of analysis.

Suggested Citation

  • Michel Leseure & David Bennett, 2024. "Adopting the Materiality Principle in Sustainable Operations Management," Sustainability, MDPI, vol. 16(15), pages 1-18, July.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:15:p:6572-:d:1447340
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    References listed on IDEAS

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