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Understanding Sustainability Innovations Through Positive Ethical Networks

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  • Zahir Dossa
  • Katrin Kaeufer

Abstract

In this paper, a positive organizational ethics (POE)-based framework is informed by the microfinance and socially responsible investing movements to capture the process of sustainable financial innovations. Both of these movements are uniquely characterized by the formation of positive ethical networks (PENs) to develop sustainability innovations in response to external crises. The crisis–PEN–innovation framework proposed makes four contributions to the POE literature: (1) positions corporate sustainability through a POE lens; (2) formalizes the PEN construction through POE theory; (3) proposes PENs are mobilized to respond to external crises; and (4) demonstrates how PENs facilitate sustainability innovations. The theoretical framework is tested using theory-guided process tracing in the sustainable banking sector to understand how sustainability innovations were realized. The findings are consistent with the crisis–PEN–innovation framework proposed. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Zahir Dossa & Katrin Kaeufer, 2014. "Understanding Sustainability Innovations Through Positive Ethical Networks," Journal of Business Ethics, Springer, vol. 119(4), pages 543-559, February.
    • Handle: RePEc:kap:jbuset:v:119:y:2014:i:4:p:543-559
    DOI: 10.1007/s10551-013-1834-8
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    2. Daniel Alonso‐Martínez & Nuria González‐Álvarez & Mariano Nieto, 2019. "The influence of financial performance on corporate social innovation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(4), pages 859-871, July.
    3. Domenico Raucci & Lara Tarquinio, 2020. "Sustainability Performance Indicators and Non-Financial Information Reporting. Evidence from the Italian Case," Administrative Sciences, MDPI, vol. 10(1), pages 1-17, February.
    4. Gonzalo Díaz-Meneses & Julia Nieves, 2019. "Ethics for Innovation in Hospitality: How Incremental and Radical Novelties Are Induced by Managers’ Social and Ecological Responsibility," Sustainability, MDPI, vol. 11(22), pages 1-17, November.
    5. Lodsgård, Lise & Aagaard, Annabeth, 2017. "Creating value through CSR across company functions and NGO collaborations," Scandinavian Journal of Management, Elsevier, vol. 33(3), pages 162-174.
    6. Rob Lubberink & Vincent Blok & Johan Van Ophem & Onno Omta, 2017. "Lessons for Responsible Innovation in the Business Context: A Systematic Literature Review of Responsible, Social and Sustainable Innovation Practices," Sustainability, MDPI, vol. 9(5), pages 1-31, May.
    7. Li, Guangpei & Wang, Xiaoyu & Wu, Jinhua, 2019. "How scientific researchers form green innovation behavior: An empirical analysis of China's enterprises," Technology in Society, Elsevier, vol. 56(C), pages 134-146.
    8. Tariq, Adeel & Badir, Yuosre F. & Tariq, Waqas & Bhutta, Umair Saeed, 2017. "Drivers and consequences of green product and process innovation: A systematic review, conceptual framework, and future outlook," Technology in Society, Elsevier, vol. 51(C), pages 8-23.
    9. Alan Murray & Keith Skene & Kathryn Haynes, 2017. "The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context," Journal of Business Ethics, Springer, vol. 140(3), pages 369-380, February.
    10. Carla Gonzales-Gemio & Claudio Cruz-Cázares & Mary Jane Parmentier, 2020. "Responsible Innovation in SMEs: A Systematic Literature Review for a Conceptual Model," Sustainability, MDPI, vol. 12(24), pages 1-27, December.
    11. Savu Rovanto & Max Finne, 2023. "What Motivates Entrepreneurs into Circular Economy Action? Evidence from Japan and Finland," Journal of Business Ethics, Springer, vol. 184(1), pages 71-91, April.
    12. Monk, Alexander & Perkins, Richard, 2020. "What explains the emergence and diffusion of green bonds?," Energy Policy, Elsevier, vol. 145(C).
    13. Long, Thomas B. & Blok, Vincent, 2018. "Integrating the management of socio-ethical factors into industry innovation: towards a concept of Open Innovation 2.0," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(4).

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