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What to say and what to do: the disparity of the communication and investment in sustainability targets, given customer expectations

Author

Listed:
  • Hans Ulrich Buhl

    (FIM Research Center
    Branch Business and Information Systems Engineering of the Fraunhofer FIT)

  • Valerie Graf-Drasch

    (FIM Research Center
    Branch Business and Information Systems Engineering of the Fraunhofer FIT
    University of Hohenheim)

  • Christian Wiethe

    (Branch Business and Information Systems Engineering of the Fraunhofer FIT)

Abstract

Companies have many opportunities to engage in sustainable development. However, since transformations toward sustainability represent strategic shifts, such transformations should be undertaken with care. Companies might begin by translating particular sustainability targets into economically relevant advantages. Yet, appropriate decision support regarding how much to invest and which goals to communicate to customers is missing. Against this backdrop, we develop a formal mathematical decision model that helps companies simultaneously determine optimal levels of sustainability investment and public communication. Optimal sustainability solutions will balance customer expectations with a company’s financial investments. The feasibility and added value of our model are evaluated via prototypical instantiations at a German beverage company. Applicability and extensions of the model are discussed.

Suggested Citation

  • Hans Ulrich Buhl & Valerie Graf-Drasch & Christian Wiethe, 2023. "What to say and what to do: the disparity of the communication and investment in sustainability targets, given customer expectations," Journal of Business Economics, Springer, vol. 93(3), pages 485-507, April.
    • Handle: RePEc:spr:jbecon:v:93:y:2023:i:3:d:10.1007_s11573-022-01115-7
    DOI: 10.1007/s11573-022-01115-7
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    More about this item

    Keywords

    Sustainability targets; Sustainability reporting; Customer satisfaction; Kano model; Optimization model;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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