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Issues in Social and Environmental Accounting
Vol. 2, No. 1 June 2008
Pp. 145-154



                                           Research Note
                        Sustainable Management:
                          An Accounting Issue?

                                           Göran Svensson
                                       Oslo School of Management
                                                Norway
Abstract

There is an ongoing debate in the worldwide scholarly society regarding the causes of noted
climate change on the planet Earth. It is a concern also frequently debated in the non-scholarly
societies. Principally, it is about whether or not the causes of noted climate change are the re-
sult of natural or human-related factors. The objective of this research note is to raise the ques-
tion whether sustainable management is an accounting issue. It intends to pinpoint the need to
visualize sustainable aspects of management approaches.

Keywords: sustainable, management, accounting, business, environment, global, planet Earth.

INTRODUCTION                                                 ers, suppliers, societies and the environ-
                                                             ment (Mathur and Kenyon, 1997). In
Sustainable management need to con-                          fact, the planet Earth may be interpreted
tribute to the stakeholder value in a                        as representing a group of stakeholders
broader sense (Banerjee et al., 2003;                        consisting of the human, animal and
Fineman and Clarke, 1996; Freeman,                           vegetable kingdoms (Svensson, 2008).
1984; Waddock et al., 2002). Stake-
holder value is a broad concept and im-                      The IPCC WGI Fourth Assessment Re-
plies that a company has responsibilities                    port (2007) is an inter-governmental
and commitments to many different in-                        UN-report and it describes: (i) human
ternal and external stakeholders in the                      and natural drivers of climate change,
marketplace and society, not only to its                     (ii) observed climate change, (iii) cli-
investors and the owners of the com-                         mate processes and attribution, and (iv)
pany, but also to its employees, custom-                     estimates of projected future climate

Göran Svensson is Professor at Oslo School of Management, Norway, email: goran.svensson@set.hh.seHe holds a Ph.
D. at the School of Economics and Commercial Law, Göteborg University, Sweden. He is also professor at Halmstad
University, Sweden and Honorary Professor at Deakin University, Australia. Furthermore, he is a committed member
of the international research community as journal editor, numerous editorial boards and scholarly/research networks.
He is a frequent author of international journal articles and international conference contributions and engaged as a
book author. His research agenda consist of various research subjects and has published in areas such as: business
ethics, leadership, logistics, marketing, public sector management, sustainability and quality management. The author
can be contacted at Email: goran.svensson@set.hh.se
146              G. Svensson / Issues in Social and Environmental Accounting 1 (2008) 145-154


change (p. 2). This report supports im-                management research that strive to ad-
plicitly the need for truly sustainable                dress aspects or elements related to sus-
management approaches in the market-                   tainable management, such as: corporate
place and society – a field of research                social responsibility (e.g. Dyllick and
that so far has only to a minor extent                 Hockerts, 2002), sustainable supply net-
penetrated previous management re-                     work management (e.g. Young and Kiel-
search. In fact, there is still no explicit            kiewicz-Young, 2001), supply chain
link between research findings in natural              environmental      management       (e.g.
sciences and current management re-                    Lippman, 1999), green purchasing
search.                                                strategies (e.g. Min and Galle, 1997),
                                                       environmental purchasing (e.g. Zsidisin
The scientific evidence regarding a pro-               and Siferd, 2001), green marketing (e.g.
gressive climate change is becoming an                 Crane, 2000), environmental marketing
essential aspect that may influence the                (e.g. Sheth and Parvatiyar, 1995), envi-
ongoing discourse across subject areas                 ronmental marketing management (e.g.
in management research, such as ac-                    Peattie, 1995) and environmental prod-
counting. The evidence presented in the                uct differentiation (e.g. Reinhardt,
mentioned UN-report provides useful                    1999), reverse logistics (Zikmund and
knowledge and valuable foresight to dif-               Stanton, 1971), sustainability labeling
ferent stakeholders that may stimulate to              schemes (e.g. De Boer, 2003), environ-
the global sustainability and the local                mental management (Hoffman, 2000),
adaptability of management approaches                  life-cycle assessment (Welford, 1999),
(Svensson, 2008). The dilemma is that                  and ISO-14000-certifications (ISO,
current and future sustainable manage-                 2007).
ment will have to take place in an era
where economic conditions are affected                 Hart (1997) pinpoints the complexity of
and confronted with a supposed and                     achieving a sustainable global economy.
fearsome climate change (Stern, 2007).                 The dilemma is that current economic
                                                       models assume continuous growth in the
Interestingly, the concern for sustainable             marketplace and society. The planet
management in the marketplace and so-                  Earth needs to be capable of supporting
ciety is far from a recent topic (e.g. Car-            ongoing and future management if they
son, 1962). It has been concluded that                 are to be considered genuinely sustain-
sustainable management and its develop-                able. There is no simple solution to this
ment should meet the needs and require-                situation, but different perspectives may
ments of the present without compro-                   contribute to create conditions and mod-
mising the ability of future generations               els of sustainable management. In line
to meet their own needs (Brundtland,                   with this, the question is posed whether
1987).                                                 it may be an accounting issue? In other
                                                       words, could accounting make a contri-
Current management research is far                     bution to the field of sustainable man-
from addressing the core needs and re-                 agement? This research note does not
quirements as well as the multiple as-                 intend to answer this specific question,
pects of sustainable management. There                 but outlining the surrounding context
are a number of more-or-less isolated,                 where is may evolve and take place. Ac-
and to some extent replicated, views in                cordingly, it aspires to provide a seed
G. Svensson / Issues in Social and Environmental Accounting 1 (2008) 145-154    147


and incentive for further debate and re-               may be seen as sustainable manage-
search in the field of accounting man-                 ment. There are several areas that con-
agement.                                               tribute to this. For example, govern-
                                                       ment legislation may frame and define
Current views on management ap-                        the criteria of sustainable management.
proaches need to be conceptually broad-                In fact, all societies have laws that
ened and re-positioned to highlight the                govern the expected and perceived ac-
extensiveness of sustainable manage-                   tions and behaviours in management as
ment, which is not limited to only the                 they tend not to be self-regulative
business- and environmental levels, but                (Carson, 2003; Davies, 2001; Piety,
the global perspective should be incor-                2004; Rondinelli, 2003). Governments
porated. The global level of sustainable               have enacted legislation to provide the
management needs to be driven by the                   arena for management that is accept-
stakeholders of the global society and its             able within the society (Hoffman et al.,
political unions/governments. The busi-                2003). In extension, the legislation in-
ness- and environmental-levels of sus-                 dicates what management that may be
tainable management will follow and                    categorised as sustainable or not. An-
adapt as agreements and requirements                   other area that influences the view of
are formalized and stipulated.                         sustainable management is lobby
                                                       groups. Historically, they have been
Confronting the risks and dangers of                   able to impact societies’ and their citi-
restricted views of sustainable manage-                zenry’s expectations and perceptions
ment approaches, as well as the benefits               of companies’ management (Grit,
of applying broader ones, may make a                   2004; Rushton, 2000; Whawell, 1998;
fruitful contribution to business and the-             Zylidopoulos, 2002). Companies are
ory over time and across contexts. Fur-                also confronted with societal expecta-
thermore, this may well contribute to                  tions and perceptions beyond purely
more durable and sustainable achieve-                  economic issues, such as environ-
ments across different areas. This re-                 mental and social change responsibili-
search note seeks to make a contribution               ties (Handelman, 2000; Handelman
towards bridging the ends of the three                 and Arnold, 1999). A long time ago,
levels of sustainable management,                      Drucker (1981) and Friedman (1962)
namely between the business- and envi-                 address the need for ethical concerns in
ronmental-orientations on the one side                 management practices.
and the planet-orientation on the other.
                                                       Increased education among stake-
                                                       holders in societies plays a role in in-
SUSTAINABLE MANAGEMENT                                 fluencing the expectations and percep-
                                                       tions of sustainable management
It is troublesome to determine what                    (Sørensen, 2002). Furthermore, the
may be classified as sustainable and                   media has always occupied an impor-
non-sustainable management. An es-                     tant position in modern and open so-
sential aspect is that there are expecta-              cieties (Collier, 2000; Wheeler et al.,
tions and perceptions that vary across                 2002). Therefore, socially responsible
marketplaces and societies, and that                   managers are the key to develop, man-
influence the prevailing view of what                  age and monitor the performance sus-
148              G. Svensson / Issues in Social and Environmental Accounting 1 (2008) 145-154


tainable management and avoid dilem-                   IMPLICATIONS
mas in the marketplace and society
(Sims and Brinkmann, 2003). Socially                   Sustainable management discloses a
responsible managers do the right thing                number of challenging implications for
because it is the right thing to do. It is             practice and research. In fact, it may
the correct action to take and an action               well have impact beyond existing man-
that society expects. Executives should                agement focused aspects. Other non-
‘act ethically not out of fear of being                management aspects are also likely to be
caught when doing wrong. Rather, they                  involved. As a consequence, sustainable
should embrace ethical actions and                     management may be seen as an ap-
behaviour in sustainable management                    proach that asks for both management
because of the freedom, self-                          and non-management aspects to widen
confirmation, and success that it                      current accounting approaches. The
brings’ (Thomas et al., 2004, p. 64).                  combination of aspects may generate
Cragg (2000, p. 213) states that:                      novel and challenging insights. It may
‘commerce without conscience is a                      evolve as a research field on its own,
formula for human exploitation, not                    due to its concern for possible aspects of
human development’. Professional as-                   accounting and its effect on the planet to
sociations may be important too in in-                 be considered in sustainable manage-
fluencing the expectation and percep-                  ment.
tions of sustainable management in the
marketplace and society (Richardson,                   There are several concerns to be high-
2001). In addition, companies should                   lighted as a consequence of sustainable
not bring pressure to bear on their em-                management when it comes to the prac-
ployees to violate their professional                  tical and research implications for for-
obligations (Carson, 2003).                            profit organizations (and in extension for
                                                       non-profit ones). Its intended impact is
Companies usually experience competi-                  rather far-reaching and long-term in
tion and are geared up to meet it. When                business and theory, in order to avoid
this competition is having a deleterious               entering into a dead-end argument inher-
effect on the company then it can force                ent in current management approaches.
individuals into situations that may lead              It may be necessary to impose a series of
them to compromise their values and                    significant changes in accounting across
ideals in sustainable management                       industries worldwide. These changes
(Cohan, 2002; Fraedrich, 1992; McKen-                  require a non-conservative approach.
dall et al., 2002; Sethi, 2003). With the
awakening of globalization has come a                  It should be noted that other sectors be-
realization in first world economies that              yond the profit-driven ones, such as the
there are companies who appear to have                 public sector, also need to restructure
diverse sets of actions and behavioural                and reshape their management ap-
standards depending upon the country in                proaches and the way these standards are
which they find themselves at the time                 maintained nowadays. In other words,
(McMurtry, 2002; Sørensen, 2002).                      sustainable management is a concern
                                                       that needs global attention across sectors
                                                       and practices.
G. Svensson / Issues in Social and Environmental Accounting 1 (2008) 145-154   149


There is an inherent complexity in social              goes beyond the current management
and environmental performances caused                  approaches. It also requires a holistic
by a set of generic components and in-                 view of the interfaces (i.e. interactions,
terfaces. This complexity is not feasible              co-ordinations, co-operations and com-
to manage through traditional manage-                  petitions). In sum, it means that the eco-
ment approaches. On the one side, there                nomic, social and ecological factors
are the generic components such as ac-                 should be addressed in conjunction with
tors, activities and resources. On the                 one another.
other, there are the generic interfaces
such as interaction, coordination, co-                 My view of sustainable management
operation and competition. Together,                   should not be seen as a criticism of cur-
they shape generic criteria to outline                 rent management approaches. On the
sustainable social and environmental                   contrary, it represents an amendment to
performances in sustainable manage-                    move ahead and broaden management
ment.                                                  approaches in the future as per the sce-
                                                       narios outlined in the mentioned UN-
Traditionally, management approaches                   report (IPCC WGI, 2007).
refers at best to business- and environ-
ment-oriented business practices, while                Svensson (2008) defines ‘anti-climate
the sustainable management refers ex-                  change management approach’ in two
plicitly to the planet-oriented ones, and              principal levels, namely: 1) a business-
requires drastic new-thinking of man-                  and environment-oriented approach that
agement approaches.                                    connects the components and interfaces
                                                       between the upstream and downstream
As indicated previously, three levels of               business echelons from the point-of-
sustainable management may be distin-                  origin to the point-of-consumption. It
guished, namely business, environ-                     also re-connects the components and
mental and global. The global level of                 interfaces from the environmental eche-
sustainable management should empha-                   lons following the point-of-consumption
size economic, ecological and social                   to the environmental echelons prior to
aspects of business and theory, which                  the point-of-origin; and 2) a planet-
should be the core. The generation and                 oriented approach of components and
maintenance of sustainable management                  interfaces considering economic, social
in the global society may be seen as sur-              and ecological factors in the global soci-
rounded by these concerns, where eco-                  ety and its political unions/governments.
nomic factors are the driving force, sur-              Current management approaches have a
rounded by social factors, all of which                predominant emphasis on a business-
are surrounded by ecological factors that              orientation of corporate practices and to
determine the long-term limits for busi-               some extent also an environment-
ness and theory. They are all intercon-                orientation. But what is still missing in
nected.                                                management approaches that have
                                                       planet-orientation, because there is or
Sustainable management on a global                     will be a need for visualizing the efforts
level requires a holistic view of the com-             performed and benefits achieved that
ponents (i.e. actors, activities and re-               goes beyond the business- and environ-
sources) of the business practices that                mental levels of business. Otherwise,
150              G. Svensson / Issues in Social and Environmental Accounting 1 (2008) 145-154


there is or will be no incentive for busi-             CONCLUSIONS
nesses to dedicate any efforts on the
planet-oriented level of business.                     Sustainable management may be seen as
                                                       derived from the findings from different
Management approaches are currently                    disciplines of natural science, summa-
limited to the connection of upstream                  rized in the referenced UN-report. The
and downstream business echelons. Sus-                 core essence of sustainable management
tainable management is not only about                  will need the support and regulation of
connecting those business echelons, but                the global society and its political un-
the total circulation of the components in             ions/governments where the boundaries
the different interfaces (i.e. the re-                 of economic, social and ecological fac-
connection of environmental echelons).                 tors are mostly determined.
The circle should be closed up. Sustain-
able management indicates that neither                 Sustainable management is required at
global nor business levels have a begin-               the level of individuals, companies, in-
ning or an end. It connects upstream and               dustries etc, while the global society and
downstream echelons, as well as re-                    its supporting structures may stipulate
connecting prior and posterior environ-                the playground and the rules of the
mental echelons. The environmental                     game, such as the United Nations, the
echelons contribute to closing the circle              European Union, the largest national
of the business echelons that in turn may              economies and other major economic
contribute to the sustainable manage-                  unions/regions and trade associations
ment on the global level. Sustainable                  worldwide. Sustainable management is
management strives to complement this                  not likely to work out successfully if
lack of explicit attention in business.                both approaches are not addressed si-
These loops should in turn be brought                  multaneously, because there is a mutual
together on a global level, where the                  reliance and interdependence that should
economic, social and ecological factors                not be underestimated or neglected be-
restrain the degrees of freedom.                       tween local practices and global sustain-
                                                       ability (Svensson, 2008).
This means that sustainable management
(SM) is a function of three levels of                  Actions to prevent a deterioration of the
management as follow:                                  noted climate change on the planet need
SM = f(SMBusiness , SMEnvironment,                     to be addressed in future management
SMGlobal)                                              approaches. The actions undertaken
                                                       should be widened beyond their local
This formula contributes to stipulate the              orientation and towards global sustain-
generic criteria of an extended manage-                ability on the planet. The author believes
ment approach in business to support                   that many organizations would be will-
sustainable management. These criteria                 ing and capable of becoming planet-
may prevent sustainable management                     oriented in their management ap-
from being invisible or neglected to                   proaches, if appropriate support were
companies, leaderships, employees, cus-                provided by the global society and its
tomers, suppliers, competitors, share-                 political unions/governments. This is
holders or other stakeholders.                         where the conditions of economic, social
                                                       and ecological factors may be stipulated.
G. Svensson / Issues in Social and Environmental Accounting 1 (2008) 145-154   151


Therefore there is a need for global                         Future / World Commission on
regulations and agreements to encourage                      Environment and Development.
and force sound planet-oriented manage-                      New York: Oxford University
ment approaches that create and contrib-                     Press.
ute to global sustainability in local prac-            Carson, T. L. (2003) “Self-Interest and
tices worldwide across business and                          Business Ethics: Some Lessons of
non-profit organizations and sectors.                        the Recent Corporate Scandals”,
                                                             Journal of Business Ethics, Vol.
There is an ongoing debate in the world-                     43, pp. 389-394
wide scholarly society regarding the                   Carson, R. (1962) Silent Spring. Boston:
causes of noted climate change. It is a                      Houghton Mifflin
concern also frequently debated in the                 Cohan, J. A. (2002) ““I Didn’t Know”
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climate change are the result of natural                     reered Out of Control? A Case
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sustainable management may provide a                         Myopia”, Journal of Business
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opens up a range of challenging and                          tion and ethical global business”,
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Journal of Energy Technologies and Policy                 JETP@iiste.org                       Periodicals Directory, JournalTOCS, PKP
Historical Research Letter                                HRL@iiste.org                        Open Archives Harvester, Bielefeld
                                                                                               Academic Search Engine, Elektronische
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International Affairs and Global Strategy                 IAGS@iiste.org                       OCLC WorldCat, Universe Digtial Library ,
Research on Humanities and Social Sciences                RHSS@iiste.org                       NewJour, Google Scholar.

Developing Country Studies                                DCS@iiste.org                        IISTE is member of CrossRef. All journals
Arts and Design Studies                                   ADS@iiste.org                        have high IC Impact Factor Values (ICV).

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11.svesson 0145www.iiste.org call for_paper-154

  • 1. Issues in Social and Environmental Accounting Vol. 2, No. 1 June 2008 Pp. 145-154 Research Note Sustainable Management: An Accounting Issue? Göran Svensson Oslo School of Management Norway Abstract There is an ongoing debate in the worldwide scholarly society regarding the causes of noted climate change on the planet Earth. It is a concern also frequently debated in the non-scholarly societies. Principally, it is about whether or not the causes of noted climate change are the re- sult of natural or human-related factors. The objective of this research note is to raise the ques- tion whether sustainable management is an accounting issue. It intends to pinpoint the need to visualize sustainable aspects of management approaches. Keywords: sustainable, management, accounting, business, environment, global, planet Earth. INTRODUCTION ers, suppliers, societies and the environ- ment (Mathur and Kenyon, 1997). In Sustainable management need to con- fact, the planet Earth may be interpreted tribute to the stakeholder value in a as representing a group of stakeholders broader sense (Banerjee et al., 2003; consisting of the human, animal and Fineman and Clarke, 1996; Freeman, vegetable kingdoms (Svensson, 2008). 1984; Waddock et al., 2002). Stake- holder value is a broad concept and im- The IPCC WGI Fourth Assessment Re- plies that a company has responsibilities port (2007) is an inter-governmental and commitments to many different in- UN-report and it describes: (i) human ternal and external stakeholders in the and natural drivers of climate change, marketplace and society, not only to its (ii) observed climate change, (iii) cli- investors and the owners of the com- mate processes and attribution, and (iv) pany, but also to its employees, custom- estimates of projected future climate Göran Svensson is Professor at Oslo School of Management, Norway, email: goran.svensson@set.hh.seHe holds a Ph. D. at the School of Economics and Commercial Law, Göteborg University, Sweden. He is also professor at Halmstad University, Sweden and Honorary Professor at Deakin University, Australia. Furthermore, he is a committed member of the international research community as journal editor, numerous editorial boards and scholarly/research networks. He is a frequent author of international journal articles and international conference contributions and engaged as a book author. His research agenda consist of various research subjects and has published in areas such as: business ethics, leadership, logistics, marketing, public sector management, sustainability and quality management. The author can be contacted at Email: goran.svensson@set.hh.se
  • 2. 146 G. Svensson / Issues in Social and Environmental Accounting 1 (2008) 145-154 change (p. 2). This report supports im- management research that strive to ad- plicitly the need for truly sustainable dress aspects or elements related to sus- management approaches in the market- tainable management, such as: corporate place and society – a field of research social responsibility (e.g. Dyllick and that so far has only to a minor extent Hockerts, 2002), sustainable supply net- penetrated previous management re- work management (e.g. Young and Kiel- search. In fact, there is still no explicit kiewicz-Young, 2001), supply chain link between research findings in natural environmental management (e.g. sciences and current management re- Lippman, 1999), green purchasing search. strategies (e.g. Min and Galle, 1997), environmental purchasing (e.g. Zsidisin The scientific evidence regarding a pro- and Siferd, 2001), green marketing (e.g. gressive climate change is becoming an Crane, 2000), environmental marketing essential aspect that may influence the (e.g. Sheth and Parvatiyar, 1995), envi- ongoing discourse across subject areas ronmental marketing management (e.g. in management research, such as ac- Peattie, 1995) and environmental prod- counting. The evidence presented in the uct differentiation (e.g. Reinhardt, mentioned UN-report provides useful 1999), reverse logistics (Zikmund and knowledge and valuable foresight to dif- Stanton, 1971), sustainability labeling ferent stakeholders that may stimulate to schemes (e.g. De Boer, 2003), environ- the global sustainability and the local mental management (Hoffman, 2000), adaptability of management approaches life-cycle assessment (Welford, 1999), (Svensson, 2008). The dilemma is that and ISO-14000-certifications (ISO, current and future sustainable manage- 2007). ment will have to take place in an era where economic conditions are affected Hart (1997) pinpoints the complexity of and confronted with a supposed and achieving a sustainable global economy. fearsome climate change (Stern, 2007). The dilemma is that current economic models assume continuous growth in the Interestingly, the concern for sustainable marketplace and society. The planet management in the marketplace and so- Earth needs to be capable of supporting ciety is far from a recent topic (e.g. Car- ongoing and future management if they son, 1962). It has been concluded that are to be considered genuinely sustain- sustainable management and its develop- able. There is no simple solution to this ment should meet the needs and require- situation, but different perspectives may ments of the present without compro- contribute to create conditions and mod- mising the ability of future generations els of sustainable management. In line to meet their own needs (Brundtland, with this, the question is posed whether 1987). it may be an accounting issue? In other words, could accounting make a contri- Current management research is far bution to the field of sustainable man- from addressing the core needs and re- agement? This research note does not quirements as well as the multiple as- intend to answer this specific question, pects of sustainable management. There but outlining the surrounding context are a number of more-or-less isolated, where is may evolve and take place. Ac- and to some extent replicated, views in cordingly, it aspires to provide a seed
  • 3. G. Svensson / Issues in Social and Environmental Accounting 1 (2008) 145-154 147 and incentive for further debate and re- may be seen as sustainable manage- search in the field of accounting man- ment. There are several areas that con- agement. tribute to this. For example, govern- ment legislation may frame and define Current views on management ap- the criteria of sustainable management. proaches need to be conceptually broad- In fact, all societies have laws that ened and re-positioned to highlight the govern the expected and perceived ac- extensiveness of sustainable manage- tions and behaviours in management as ment, which is not limited to only the they tend not to be self-regulative business- and environmental levels, but (Carson, 2003; Davies, 2001; Piety, the global perspective should be incor- 2004; Rondinelli, 2003). Governments porated. The global level of sustainable have enacted legislation to provide the management needs to be driven by the arena for management that is accept- stakeholders of the global society and its able within the society (Hoffman et al., political unions/governments. The busi- 2003). In extension, the legislation in- ness- and environmental-levels of sus- dicates what management that may be tainable management will follow and categorised as sustainable or not. An- adapt as agreements and requirements other area that influences the view of are formalized and stipulated. sustainable management is lobby groups. Historically, they have been Confronting the risks and dangers of able to impact societies’ and their citi- restricted views of sustainable manage- zenry’s expectations and perceptions ment approaches, as well as the benefits of companies’ management (Grit, of applying broader ones, may make a 2004; Rushton, 2000; Whawell, 1998; fruitful contribution to business and the- Zylidopoulos, 2002). Companies are ory over time and across contexts. Fur- also confronted with societal expecta- thermore, this may well contribute to tions and perceptions beyond purely more durable and sustainable achieve- economic issues, such as environ- ments across different areas. This re- mental and social change responsibili- search note seeks to make a contribution ties (Handelman, 2000; Handelman towards bridging the ends of the three and Arnold, 1999). A long time ago, levels of sustainable management, Drucker (1981) and Friedman (1962) namely between the business- and envi- address the need for ethical concerns in ronmental-orientations on the one side management practices. and the planet-orientation on the other. Increased education among stake- holders in societies plays a role in in- SUSTAINABLE MANAGEMENT fluencing the expectations and percep- tions of sustainable management It is troublesome to determine what (Sørensen, 2002). Furthermore, the may be classified as sustainable and media has always occupied an impor- non-sustainable management. An es- tant position in modern and open so- sential aspect is that there are expecta- cieties (Collier, 2000; Wheeler et al., tions and perceptions that vary across 2002). Therefore, socially responsible marketplaces and societies, and that managers are the key to develop, man- influence the prevailing view of what age and monitor the performance sus-
  • 4. 148 G. Svensson / Issues in Social and Environmental Accounting 1 (2008) 145-154 tainable management and avoid dilem- IMPLICATIONS mas in the marketplace and society (Sims and Brinkmann, 2003). Socially Sustainable management discloses a responsible managers do the right thing number of challenging implications for because it is the right thing to do. It is practice and research. In fact, it may the correct action to take and an action well have impact beyond existing man- that society expects. Executives should agement focused aspects. Other non- ‘act ethically not out of fear of being management aspects are also likely to be caught when doing wrong. Rather, they involved. As a consequence, sustainable should embrace ethical actions and management may be seen as an ap- behaviour in sustainable management proach that asks for both management because of the freedom, self- and non-management aspects to widen confirmation, and success that it current accounting approaches. The brings’ (Thomas et al., 2004, p. 64). combination of aspects may generate Cragg (2000, p. 213) states that: novel and challenging insights. It may ‘commerce without conscience is a evolve as a research field on its own, formula for human exploitation, not due to its concern for possible aspects of human development’. Professional as- accounting and its effect on the planet to sociations may be important too in in- be considered in sustainable manage- fluencing the expectation and percep- ment. tions of sustainable management in the marketplace and society (Richardson, There are several concerns to be high- 2001). In addition, companies should lighted as a consequence of sustainable not bring pressure to bear on their em- management when it comes to the prac- ployees to violate their professional tical and research implications for for- obligations (Carson, 2003). profit organizations (and in extension for non-profit ones). Its intended impact is Companies usually experience competi- rather far-reaching and long-term in tion and are geared up to meet it. When business and theory, in order to avoid this competition is having a deleterious entering into a dead-end argument inher- effect on the company then it can force ent in current management approaches. individuals into situations that may lead It may be necessary to impose a series of them to compromise their values and significant changes in accounting across ideals in sustainable management industries worldwide. These changes (Cohan, 2002; Fraedrich, 1992; McKen- require a non-conservative approach. dall et al., 2002; Sethi, 2003). With the awakening of globalization has come a It should be noted that other sectors be- realization in first world economies that yond the profit-driven ones, such as the there are companies who appear to have public sector, also need to restructure diverse sets of actions and behavioural and reshape their management ap- standards depending upon the country in proaches and the way these standards are which they find themselves at the time maintained nowadays. In other words, (McMurtry, 2002; Sørensen, 2002). sustainable management is a concern that needs global attention across sectors and practices.
  • 5. G. Svensson / Issues in Social and Environmental Accounting 1 (2008) 145-154 149 There is an inherent complexity in social goes beyond the current management and environmental performances caused approaches. It also requires a holistic by a set of generic components and in- view of the interfaces (i.e. interactions, terfaces. This complexity is not feasible co-ordinations, co-operations and com- to manage through traditional manage- petitions). In sum, it means that the eco- ment approaches. On the one side, there nomic, social and ecological factors are the generic components such as ac- should be addressed in conjunction with tors, activities and resources. On the one another. other, there are the generic interfaces such as interaction, coordination, co- My view of sustainable management operation and competition. Together, should not be seen as a criticism of cur- they shape generic criteria to outline rent management approaches. On the sustainable social and environmental contrary, it represents an amendment to performances in sustainable manage- move ahead and broaden management ment. approaches in the future as per the sce- narios outlined in the mentioned UN- Traditionally, management approaches report (IPCC WGI, 2007). refers at best to business- and environ- ment-oriented business practices, while Svensson (2008) defines ‘anti-climate the sustainable management refers ex- change management approach’ in two plicitly to the planet-oriented ones, and principal levels, namely: 1) a business- requires drastic new-thinking of man- and environment-oriented approach that agement approaches. connects the components and interfaces between the upstream and downstream As indicated previously, three levels of business echelons from the point-of- sustainable management may be distin- origin to the point-of-consumption. It guished, namely business, environ- also re-connects the components and mental and global. The global level of interfaces from the environmental eche- sustainable management should empha- lons following the point-of-consumption size economic, ecological and social to the environmental echelons prior to aspects of business and theory, which the point-of-origin; and 2) a planet- should be the core. The generation and oriented approach of components and maintenance of sustainable management interfaces considering economic, social in the global society may be seen as sur- and ecological factors in the global soci- rounded by these concerns, where eco- ety and its political unions/governments. nomic factors are the driving force, sur- Current management approaches have a rounded by social factors, all of which predominant emphasis on a business- are surrounded by ecological factors that orientation of corporate practices and to determine the long-term limits for busi- some extent also an environment- ness and theory. They are all intercon- orientation. But what is still missing in nected. management approaches that have planet-orientation, because there is or Sustainable management on a global will be a need for visualizing the efforts level requires a holistic view of the com- performed and benefits achieved that ponents (i.e. actors, activities and re- goes beyond the business- and environ- sources) of the business practices that mental levels of business. Otherwise,
  • 6. 150 G. Svensson / Issues in Social and Environmental Accounting 1 (2008) 145-154 there is or will be no incentive for busi- CONCLUSIONS nesses to dedicate any efforts on the planet-oriented level of business. Sustainable management may be seen as derived from the findings from different Management approaches are currently disciplines of natural science, summa- limited to the connection of upstream rized in the referenced UN-report. The and downstream business echelons. Sus- core essence of sustainable management tainable management is not only about will need the support and regulation of connecting those business echelons, but the global society and its political un- the total circulation of the components in ions/governments where the boundaries the different interfaces (i.e. the re- of economic, social and ecological fac- connection of environmental echelons). tors are mostly determined. The circle should be closed up. Sustain- able management indicates that neither Sustainable management is required at global nor business levels have a begin- the level of individuals, companies, in- ning or an end. It connects upstream and dustries etc, while the global society and downstream echelons, as well as re- its supporting structures may stipulate connecting prior and posterior environ- the playground and the rules of the mental echelons. The environmental game, such as the United Nations, the echelons contribute to closing the circle European Union, the largest national of the business echelons that in turn may economies and other major economic contribute to the sustainable manage- unions/regions and trade associations ment on the global level. Sustainable worldwide. Sustainable management is management strives to complement this not likely to work out successfully if lack of explicit attention in business. both approaches are not addressed si- These loops should in turn be brought multaneously, because there is a mutual together on a global level, where the reliance and interdependence that should economic, social and ecological factors not be underestimated or neglected be- restrain the degrees of freedom. tween local practices and global sustain- ability (Svensson, 2008). This means that sustainable management (SM) is a function of three levels of Actions to prevent a deterioration of the management as follow: noted climate change on the planet need SM = f(SMBusiness , SMEnvironment, to be addressed in future management SMGlobal) approaches. The actions undertaken should be widened beyond their local This formula contributes to stipulate the orientation and towards global sustain- generic criteria of an extended manage- ability on the planet. The author believes ment approach in business to support that many organizations would be will- sustainable management. These criteria ing and capable of becoming planet- may prevent sustainable management oriented in their management ap- from being invisible or neglected to proaches, if appropriate support were companies, leaderships, employees, cus- provided by the global society and its tomers, suppliers, competitors, share- political unions/governments. This is holders or other stakeholders. where the conditions of economic, social and ecological factors may be stipulated.
  • 7. G. Svensson / Issues in Social and Environmental Accounting 1 (2008) 145-154 151 Therefore there is a need for global Future / World Commission on regulations and agreements to encourage Environment and Development. and force sound planet-oriented manage- New York: Oxford University ment approaches that create and contrib- Press. ute to global sustainability in local prac- Carson, T. L. (2003) “Self-Interest and tices worldwide across business and Business Ethics: Some Lessons of non-profit organizations and sectors. the Recent Corporate Scandals”, Journal of Business Ethics, Vol. There is an ongoing debate in the world- 43, pp. 389-394 wide scholarly society regarding the Carson, R. (1962) Silent Spring. Boston: causes of noted climate change. It is a Houghton Mifflin concern also frequently debated in the Cohan, J. A. (2002) ““I Didn’t Know” non-scholarly societies. Principally, it is and “I Was Only Doing My Job”: about whether or not the causes of noted Has Corporate Governance Ca- climate change are the result of natural reered Out of Control? A Case or human-related factors. This is where Study of Enron’s Information sustainable management may provide a Myopia”, Journal of Business seed for further debate. In sum, the au- Ethics, Vol. 40, pp. 275-299. thor argues that sustainable management Collier, J. (2000) “Editorial: Globaliza- opens up a range of challenging and tion and ethical global business”, fruitful implications as well as openings Business Ethics: A European Re- for further research. It may be novel re- view, Vol. 9, No. 2, pp. 71-75. search that will be cutting edge and of Cragg, W. (2000) “Human Rights and great interest among scholars, practitio- Business Ethics: Fashioning a ners, and politicians. The questions re- New Social Contract”, Journal of mains: is it an accounting issue too?! If Business Ethics, Vol. 27, pp. 205- so, what practices and principles would 214. be crucial? How could it be supported Crane, A. (2000) “Marketing and the and reported? Undoubtedly, I am con- Natural Environment: What Role vinced that it is a scholarly topic con- for Morality?”, Journal of Macro taining multiple possibilities and chal- Marketing, Vol. 20, No. 2, pp. lenges for future research efforts in mak- 144-154. ing contributions to sustainable manage- Davies, H. (2001) “Ethics in regulation”, ment approaches from an accounting Business Ethics: A European Re- perspective. view, Vol. 10, No. 4, pp. 280-287. Drucker P.F. (1981) “What is ‘business ethics’?”, The Public Interest REFERENCES Spring, pp. 18-36. De Boer, J. (2003) “Sustainability La- Banerjee, S. B., Iyer, E. S. & Kashyap, belling Schemes: the Logic of R. K. (2003) “Corporate Environ- Their Claims and Their Functions mentalism: Antecedents and Influ- for Stakeholders”, Business Strat- ence of Industry Type”, Journal egy and the Environment, Vol. 12, of Marketing, Vol. 67, April, pp. pp. 254-264. 106-122. Dyllick, T. & Hockerts, K. (2002) Brundtland, G. H. (1987) Our Common “Beyond the Business Case for
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