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Understanding Sustainability Innovations Through Positive Ethical Networks

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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.

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Notes

  1. While organizations can be argued to be networks, the reverse is not always true—primarily from a structural perspective.

  2. Visit: http://news.bbc.co.uk/onthisday/hi/dates/stories/may/13/newsid2512000/2512413.stm.

  3. Visit: http://www.triodos.com/en/about-triodos-bank/know-where-your-money-goes/ to observe Triodos Bank’s “Know where your money goes” platform.

Abbreviations

CSR:

Corporate social responsibility

MF:

Microfinance

PEN:

Positive ethical network

POE:

Positive organizational ethics

POS:

Positive organizational scholarship

SRI:

Socially responsible investing

TGPT:

Theory-guided process tracing

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  1. Massachusetts Institute of Technology, Cambridge, MA, USA

    Zahir Dossa

  2. Community Innovators Lab, Department of Urban Studies & Planning, Massachusetts Institute of Technology, Building/Room 7-307, 77 Massachusetts Avenue, Cambridge, MA, 02139, USA

    Katrin Kaeufer

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  1. Zahir Dossa
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Dossa, Z., Kaeufer, K. Understanding Sustainability Innovations Through Positive Ethical Networks. J Bus Ethics 119, 543–559 (2014). https://doi.org/10.1007/s10551-013-1834-8

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