Shaping Tomorrow : Boards and Their Strategic Contributions to Sustainability Transition
Kyllönen, Jenni (2024)
2024
Master's Programme in Leadership for Change
Johtamisen ja talouden tiedekunta - Faculty of Management and Business
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Hyväksymispäivämäärä
2024-05-16
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tuni-202404284733
https://urn.fi/URN:NBN:fi:tuni-202404284733
Tiivistelmä
Overreaching megatrends including the depletion of nature's resources and mounting well-being concerns coupled with recent events such as the ending of the covid-19 pandemic, rising inflation rates and escalating tensions in trade policies have placed increasing attention to corporate sustainability, corporate governance and policy making among scholars and practitioners.
Thus, this study aims to add to the existing literature by assessing and analysing the sustainability transition from the perspective of board members. Another objective is to shed light to the board members’ expectations about the future of sustainable board work. Hence, the research seeks to delve into the perceived realities of individual board members regarding their experiences and views on the sustainability transition and ultimately answer the research question “how board members envision their involvement in and understanding about the sustainability transition?”.
This study is conducted in the context of board work in Finnish SMEs and it employs a narrative research approach. Primary data was collected by interviewing eight board members representing various characteristics regarding age and experience. The collected data was analysed through a six-phase framework including but not limited to inductive coding, theme development and constructing the narratives.
The research yielded four distinct narratives. The storylines express how board members contribute to the sustainability transition through integrated organizational advancement, governance dynamics and business model innovation. Additionally, they indicate that board members embrace sustainability and perceive the sustainability transition largely through external factors among which are industry norms.
The findings highlight the role of boards and corporate governance in the sustainability transition, as the study found that boards continuously assume a more strategic role in organizations, compared with a supervising one. However, there is evidence that the call for the business case for corporate sustainability remains unanswered, as boards are grappling to find equilibrium among excellence in sustainability and economic viability. Thus, based on the findings it could be concluded that the current stage of the sustainability transition would lay between the take-off and acceleration phases of transition.
When looking into the future, board members underscore the importance of diversity within boards as the key element of sustainable board work. According to the findings, board members bring their personal values and experience to board work which then translates into organizational mission, vision and values. This, in turn, leads strategy creation.
Thus, this study aims to add to the existing literature by assessing and analysing the sustainability transition from the perspective of board members. Another objective is to shed light to the board members’ expectations about the future of sustainable board work. Hence, the research seeks to delve into the perceived realities of individual board members regarding their experiences and views on the sustainability transition and ultimately answer the research question “how board members envision their involvement in and understanding about the sustainability transition?”.
This study is conducted in the context of board work in Finnish SMEs and it employs a narrative research approach. Primary data was collected by interviewing eight board members representing various characteristics regarding age and experience. The collected data was analysed through a six-phase framework including but not limited to inductive coding, theme development and constructing the narratives.
The research yielded four distinct narratives. The storylines express how board members contribute to the sustainability transition through integrated organizational advancement, governance dynamics and business model innovation. Additionally, they indicate that board members embrace sustainability and perceive the sustainability transition largely through external factors among which are industry norms.
The findings highlight the role of boards and corporate governance in the sustainability transition, as the study found that boards continuously assume a more strategic role in organizations, compared with a supervising one. However, there is evidence that the call for the business case for corporate sustainability remains unanswered, as boards are grappling to find equilibrium among excellence in sustainability and economic viability. Thus, based on the findings it could be concluded that the current stage of the sustainability transition would lay between the take-off and acceleration phases of transition.
When looking into the future, board members underscore the importance of diversity within boards as the key element of sustainable board work. According to the findings, board members bring their personal values and experience to board work which then translates into organizational mission, vision and values. This, in turn, leads strategy creation.