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IMS Sustainability
IMS Sustainability
www.emeraldinsight.com/0955-534X.htm
IMS approach
An integrated management to corporate
systems approach to corporate sustainability
sustainability
353
Muhammad Asif
School of Management and Governance, Received May 2010
University of Twente, Enschede, The Netherlands Revised June 2010
Accepted July 2010
Cory Searcy
Department of Mechanical and Industrial Engineering,
Ryerson University, Toronto, Canada
Ambika Zutshi
School of Management and Marketing,
Deakin University, Burwood, Australia, and
Niaz Ahmad
National Textile University, Faisalabad, Pakistan
Abstract
Purpose – This paper seeks to describe an integrated management systems (IMS) approach for the
integration of corporate sustainability into business processes.
Design/methodology/approach – An extensive review of published literature was conducted.
Building on existing research, the paper presents an original framework for structuring the integration
of corporate sustainability with existing business infrastructure. The framework is supported by a
detailed set of diagnostic questions to help guide the process. Both the framework and the diagnostic
questions are based on the “Plan-Do-Check-Act” cycle of continuous improvement.
Findings – The paper highlights the need for a systematic means to integrate sustainability into
business processes. Building on that point, the paper illustrates how an IMS approach can be used to
structure the entire process of managing, measuring, and assessing progress towards corporate
sustainability.
Practical implications – The paper should be of interest to both practitioners and researchers. The
framework and diagnostic questions will help guide decision makers through the process of building
sustainability into their core business infrastructure. Since the framework and diagnostic questions
provide the flexibility to accommodate specific organizational contexts, it is anticipated that they will
have wide applicability.
Originality/value – The paper makes several contributions. The framework provides a systematic
approach to corporate sustainability that has not been elaborated on in previous publications. The
unique set of diagnostic questions provides a means to evaluate the extent to which corporate
sustainability has been integrated into an organization.
Keywords Integrated management systems, Management systems, Corporate sustainability,
Stakeholders, Corporate strategy
Paper type Conceptual paper
European Business Review
Vol. 23 No. 4, 2011
pp. 353-367
q Emerald Group Publishing Limited
The authors’ thanks are due to the Editor and reviewers for their valuable comments on earlier 0955-534X
drafts of this article. DOI 10.1108/09555341111145744
EBR 1. Corporate sustainability
23,4 Managers in many corporations are under increasing pressure to address the issue of
sustainability. From a corporate perspective, sustainability encompasses economic,
environmental and social issues that have business implications. Corporate
sustainability has its theoretical roots in stakeholder theory. Stakeholder theory
recognizes that organizations have obligations not only to shareholders, but also to other
354 interest groups such as customers, suppliers, employees and the wider community,
amongst many others (Freeman, 1984). Meeting the demands of these stakeholders is
necessary for a variety of reasons, including sustaining a continued supply of resources
and for legitimation reasons (DiMaggio and Powell, 1983; Suchman, 1995). Any
approach to corporate sustainability must, therefore, have an explicit focus on
stakeholder requirements.
As Seuring and Muller (2008) highlight, early conceptualizations of sustainability
had a relatively narrow focus on environmental protection. In recent years, however,
there has been growing recognition that environmental protection is only a sub-set of
corporate sustainability. As Hart (1997, p. 133) explains:
Those who think that sustainability is only a matter of pollution control, are missing the big
picture [. . .] focusing on sustainability requires putting business strategies to a new test,
taking the entire planet as the context in which they do business.
Similarly, Dyllick and Hockerts (2002) pointed out that a myopic interpretation of the
term “sustainability” misses several important criteria which organizations have to
fulfill in order to be sustainable. Corporate sustainability is now widely conceptualized
in terms of the “triple bottom line” (TBL) (Elkington, 1999). In short, this means that
organizations need to explicitly consider the environmental, economic and social
impacts (positive and negative) of their activities (Edgeman, 1998; Edgeman and
Hensler, 2001; Hediger, 1999). This concept is also symbolized in literature by “triple P
(planet, people, and profit)” which implies that a company creates more value over the
long run and encounters fewer risks if it takes into consideration the environmental
(planet), social (people), and financial issues (profit) as compared to a company that
focuses merely on the profit (Asif et al., 2008; Dyllick and Hockerts, 2002; Holliday, 2001;
Salzmann et al., 2005; Shrivastava, 1995). Moreover, the outcomes from the various
impacts need to be addressed simultaneously and in an integrated manner for a
sustainable competitive advantage. This concept of sustainability is shown in Figure 1.
The figure illustrates three key concepts. First, it shows that earlier conceptualizations
of sustainability had environmental connotations and thus presented a narrow view of
the concept. Second, the figure highlights that sustainability is frequently discussed in
the literature using the terms “triple P” and “TBL”. These are essentially two different
perspectives on the same concept. Finally, Figure 1 shows that sustainability is a critical
aspect of overall business continuity. Corporate sustainability heavily emphasizes the
need to meet key stakeholder requirements in a systematic manner. This in turn
provides the organization with legitimacy and a license to continue its business. The
stakeholder perspective is further discussed later in the paper.
Corporate sustainability is a dynamic concept and the specific environmental,
economic, and social aspects and priorities that an organization focuses on will
continually change. This can be attributed to three main reasons. The first is the
influence of internal and external environmental factors on the organization’s resources.
IMS approach
Environmental
considerations to corporate
(the old concept) sustainability
Triple P
Corporate
Triple bottom line
(economic, social, and
355
(people, planet, and
sustainability
profit) environmental)
Stakeholder Stakeholder
Business continuity feedback Figure 1.
feedback
(legitimacy / license The concept
to operate) of sustainability
These could include changes in government regulations, the political environment, the
emergence of a new competitor or even a change in the senior management team. Second,
the legitimacy, urgency, and power of the organization’s key stakeholders are
continuously changing (Mitchell et al., 1997). Third, the complexity of business
operations has dramatically increased over time. Organizations now face diverse
challenges, both anticipated and unanticipated, such as rapidly changing market
conditions, coordination of operations at a global level, and an increased reliance on
outsourcing. Addressing the challenges of corporate sustainability, therefore, requires a
flexible approach in which organizations continuously scan their environment to
proactively identify priority issues so that their business strategies can be adapted
accordingly. In other words, the dynamic concept of sustainability requires
organizations to develop the capacity to continuously address emerging issues.
In recognition of these challenges, a number of management systems (MSs) have
emerged to help managers systematically address an organization’s key stakeholder
requirements. Examples include MSs for environment, corporate social responsibility,
quality, and occupational health and safety. Given their focus on methodically
addressing stakeholder requirements, these MSs provide interesting leverage points for
integrating sustainability issues into mainstream business processes. There is,
nevertheless, a need to explore how organizations can capitalize on their experience with
standardized MSs to more systematically integrate sustainability issues throughout the
organization, and to assess the success or failure of the integration efforts.
This paper contributes towards filling this gap by presenting an integrated
management systems (IMS) approach to corporate sustainability. The paper adopts an
explicitly multidisciplinary approach to sustainability integration and contributes to
theory and practice in two ways. First, it presents a framework to integrate
sustainability with business processes. The framework is based on the PDCA cycle of
continuous improvement. Second, the paper presents a structured set of diagnostic
questions to evaluate the extent of integration. Together, the framework and diagnostic
questions promote the vertical and horizontal integration of sustainability into
mainstream business infrastructure. The remainder of the paper is organized into three
sections. Section 2 presents an overview of the literature on corporate sustainability and
the integration of MSs. Section 3 presents the conceptual framework, which provides
EBR the basis for structuring management, measurement, and assessment efforts associated
23,4 with corporate sustainability and its integration with corporate infrastructure. The
paper concludes with a brief summary and a discussion of areas for future research.
Rocha et al. (2007) Integration of MSs could provide a framework for integrating
corporate sustainable development into business processes
Integration of sustainable development needs to be considered
from both a micro and macro perspective in order to ensure its
effectiveness
Jørgensen (2008) Integration of MSs could pave the way for sustainable development
Organizations need to carry out integration at three levels –
correspondence, generic, and integration
Oskarsson and Malmborg (2005) Integration of MSs provides a necessary roadmap for sustainable Table I.
development A summary of the
Fresner and Engelhardt (2004) Corporate sustainability could be achieved in a stepwise approach literature on corporate
consisting of cleaner production followed by integration of MSs and sustainability through
sustainable product service design integration of MSs
EBR 3. The conceptual framework
23,4 The integration of sustainability into business processes can be facilitated through an
IMS approach. Such an approach provides both the flexibility and clarity needed to
address the many issues associated with the management, measurement, and
assessment of corporate sustainability. Building on that premise, a conceptual
framework for corporate sustainability through the integration of MSs is shown in
358 Figure 2. The framework builds on previous research conducted by:
.
Mitchell et al. (1997) who described a typology of stakeholders in relation to their
requirements;
.
Choo (1996), Daft and Weick (1984) and Weick (1987) who elaborated on
environmental scanning to provide an informed understanding of the
environment in which an organization operates; and
.
Asif et al. (2009), Jørgensen (2008) and Zeng et al. (2007) who highlighted various
levels of integration and how integration alters activities at each organizational
level.
The framework also builds upon the research of:
.
Rocha et al. (2007) by considering various perspectives on corporate
sustainability integration; and
.
Fresner and Engelhardt (2004) and Oskarsson and Malmborg (2005) by
providing an integrated use of MSs to address key stakeholder requirements.
As Figure 2 shows, the process of integrating sustainability starts with the identification
of key stakeholders and their requirements. Unarguably, organizations are under
pressure from a wide variety of primary and secondary stakeholders. A detailed
environmental scan, including an assessment of strengths, weaknesses, opportunities,
and threats and a stakeholder analysis, can assist a manager in determining what
Plan Do Check
Stakeholder
requirements MSs to address
(To determine the urgency, legitimacy, and
stakeholder Integrated MS
Economic
Quality
power of stakeholder requirements)
and strategy
Environmental scanning
Environment
QMS • Integrated objectives
Enacting • Integrated manuals
responsibly EMS Systemization of • Integrated procedures
Ecological
This paper provides an original process for the integration of sustainability into
mainstream business processes. The integration process consists of identifying
stakeholder requirements, systemization of their demands, and then addressing those
demands in an integrated manner. Integration also builds social and technical structures
to ensure that business processes meet not only the economic concerns of the enterprise
but also the ecological and social concerns of broader society. As the paper emphasizes,
the integration of sustainability could be organized using a meta-management
approach. It focuses on integration at the strategic level, thus minimizing the chances of
conflicting stakeholder demands. It also promotes integration throughout the
organization from both a vertical and horizontal perspective.
This paper also develops a set of original questions to structure thinking about how
to evaluate an integration process. As the questions highlights, top management
commitment is required throughout the entire process of integrating corporate
sustainability with existing business infrastructure. As the paper further notes,
sustainability integration needs to become a regular feature of organizational strategy
and the decision-making process in order to consistently cater to the emerging needs of
stakeholders. Measurement and assessment provide a means for monitoring the success
of these efforts and provide the impetus for triggering continuous improvement.
The paper concludes that integration of MSs provides an important means for
corporate sustainability when carried out in a systematic manner. It also corroborates
the finding of Rocha et al. (2007) that an IMS facilitates the integration of sustainability
into business processes and, thus, a separate ISO standard is not required for corporate
sustainability. Further research could focus on how the meta-management of
integration of sustainability unfolds in practice, and whether the diagnostic questions
mentioned in this paper provide a basis for structuring the integration of sustainability
into business processes.
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Corresponding author
Muhammad Asif can be contacted at: m.asif@utwente.nl