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Instrumental and Integrative Logics in Business Sustainability

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  • Jijun Gao
  • Pratima Bansal

Abstract

Prior research on sustainability in business often assumes that decisions on social and environmental investments are made for instrumental reasons, which points to causal relationships between corporate financial performance and corporate social and environmental commitment. In other words, social or environmental commitment should predict higher financial performance. The theoretical premise of sustainability, however, is based on a systems perspective, which implies a tighter integration between corporate financial performance and corporate commitment to social and environmental issues. In this paper, we describe the important theoretical differences between an instrumental and integrative logic in managing business sustainability. We test the presence of each logic using data from 738 firms over 13 years and find evidence of integrative logic applied in business. Copyright Springer Science+Business Media B.V. 2013

Suggested Citation

  • Jijun Gao & Pratima Bansal, 2013. "Instrumental and Integrative Logics in Business Sustainability," Journal of Business Ethics, Springer, vol. 112(2), pages 241-255, January.
    • Handle: RePEc:kap:jbuset:v:112:y:2013:i:2:p:241-255
    DOI: 10.1007/s10551-012-1245-2
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