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Adopting the Materiality Principle in Sustainable Operations Management

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  • Michel Leseure

    (School of Mechanical and Design Engineering, University of Portsmouth, Portsmouth PO1 3DJ, UK)

  • David Bennett

    (Aston Business School, Aston University, Birmingham B4 7ET, UK
    Department of Technology Management and Economics, Chalmers University of Technology, 41258 Gothenburg, Sweden)

Abstract

This paper argues that operations management needs a commonly understood materiality principle to truly contribute to sustainability. A framework initially developed in international finance is generalized and used to model firms as borrowing resources from a common creditor, the environment, and to establish when a sustainable initiative is material in terms of impact. Our framework also solves the long-standing challenge of measuring impact at the level of an operations unit of analysis.

Suggested Citation

  • Michel Leseure & David Bennett, 2024. "Adopting the Materiality Principle in Sustainable Operations Management," Sustainability, MDPI, vol. 16(15), pages 1-18, July.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:15:p:6572-:d:1447340
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    References listed on IDEAS

    as
    1. Ifeoluwa Elemure & Hom Nath Dhakal & Michel Leseure & Jovana Radulovic, 2023. "Integration of Lean Green and Sustainability in Manufacturing: A Review on Current State and Future Perspectives," Sustainability, MDPI, vol. 15(13), pages 1-25, June.
    2. Caramazza, Francesco & Ricci, Luca & Salgado, Ranil, 2004. "International financial contagion in currency crises," Journal of International Money and Finance, Elsevier, vol. 23(1), pages 51-70, February.
    3. Yue Wu & Kaifu Zhang & Jinhong Xie, 2020. "Bad Greenwashing, Good Greenwashing: Corporate Social Responsibility and Information Transparency," Management Science, INFORMS, vol. 66(7), pages 3095-3112, July.
    4. Eva Sterner, 2002. "'Green procurement' of buildings: a study of Swedish clients' considerations," Construction Management and Economics, Taylor & Francis Journals, vol. 20(1), pages 21-30.
    5. Tas Thamo & David J. Pannell, 2016. "Challenges in developing effective policy for soil carbon sequestration: perspectives on additionality, leakage, and permanence," Climate Policy, Taylor & Francis Journals, vol. 16(8), pages 973-992, November.
    6. Charles J. Corbett & Robert D. Klassen, 2006. "Extending the Horizons: Environmental Excellence as Key to Improving Operations," Manufacturing & Service Operations Management, INFORMS, vol. 8(1), pages 5-22, March.
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