Structuring Private Sustainability Governance: Combining Rule-Based and Goal-Based Mechanisms
Name
10551_2025_Article_6024.pdf
Size
1.25 MB
Format
Adobe PDF
Checksum (MD5)
ddfae8931f845131afaacae4fd837d90
Author(s)
Wörner, Daniel
Letmathe, Niklas
Jovanovic, Marin
Friedli, Thomas
Date Issued
May 19, 2025
Journal
Journal of Business Ethics
Publisher
Springer Netherlands
Citation
Wörner, D., Letmathe, N., Jovanovic, M. et al. Structuring Private Sustainability Governance: Combining Rule-Based and Goal-Based Mechanisms. J Bus Ethics (2025).
Version
Final published version
Abstract
This study investigates the structuring of private sustainability governance as a critical mechanism for facilitating sustainability transitions. Drawing on 33 semi-structured interviews with manufacturing firms, regulatory bodies, policy associations, auditing firms, and management consultancies, the study examines how firms navigate increasing external governance pressures, including regulatory ambiguity, compliance demands, market expectations, and stakeholder accountability, while simultaneously managing internal governance through organizational restructuring, sustainable performance measurement, data management, human resources, and incentive structures. The findings highlight the importance of integrating rule-based and goal-based private sustainability governance through two key mechanisms: shaping external governance by aligning with and influencing regulatory standards, and adapting internal governance to embed sustainability into core business operations. This study develops a hybrid governance framework that demonstrates how firms leverage both mechanisms in parallel, revealing the tensions inherent in balancing regulatory compliance with strategic sustainability ambitions. We make a further contribution by underscoring the role of ethical change management in fostering transparency, accountability, and proactive sustainability commitments. By examining governance structures in combination with ethical considerations, the study advances the discourse on private sustainability governance, offering both theoretical insights and practical implications for firms navigating the transition toward sustainable systems.
MIT Department
Sloan School of Management
Terms of Use
Creative Commons Attribution
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1007/s10551-025-06024-7
