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Paradoxical tensions and corporate sustainability: A focus on circular economy business cases

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  • Tiberio Daddi
  • Domenico Ceglia
  • Guia Bianchi
  • Marcia Dutra de Barcellos

Abstract

The paradoxical tensions in corporate sustainability is hotly debated in the literature. Some authors have underlined the need for empirical works in this field, and the circular economy could help to bridge this gap. The circular economy creates contrasting challenges for companies, which lead to paradoxical tensions. On the one hand, companies pursue circular economy goals—such as the use of recycled raw materials—thus highlighting their environmental commitment. On the other hand, such usage may affect the quality and consequently the competitiveness of products. Our study investigates the acknowledgement of these tensions and the strategies adopted by companies to manage them. Using a multiple case study approach, we focus on an Italian sample of three manufacturing sectors: paper production, textile/clothing, and leather. The results show the different defensive and proactive strategies adopted by firms highlighting, in one case, a relevant opportunity exploited by a company considered in the sample. Our paper contributes to the existing knowledge on paradoxical tensions management in companies involved in corporate sustainability inviting scholars towards new research avenues focused on circular economy.

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  • Tiberio Daddi & Domenico Ceglia & Guia Bianchi & Marcia Dutra de Barcellos, 2019. "Paradoxical tensions and corporate sustainability: A focus on circular economy business cases," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(4), pages 770-780, July.
    • Handle: RePEc:wly:corsem:v:26:y:2019:i:4:p:770-780
    DOI: 10.1002/csr.1719
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    5. Lis, Anna Maria & Mackiewicz, Marta, 2023. "The implementation of green transformation through clusters," Ecological Economics, Elsevier, vol. 209(C).
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    7. Simone Carmine & Valentina De Marchi, 2023. "Reviewing Paradox Theory in Corporate Sustainability Toward a Systems Perspective," Journal of Business Ethics, Springer, vol. 184(1), pages 139-158, April.
    8. Owais Khan & Tiberio Daddi & Fabio Iraldo, 2020. "Microfoundations of dynamic capabilities: Insights from circular economy business cases," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1479-1493, March.
    9. M. G. E. Velter & V. Bitzer & N. M. P. Bocken, 2022. "A Boundary Tool for Multi-stakeholder Sustainable Business Model Innovation," Circular Economy and Sustainability, Springer, vol. 2(2), pages 401-431, June.
    10. Patricia Martínez & Ángel Herrero & Raquel Gómez‐López, 2019. "Corporate images and customer behavioral intentions in an environmentally certified context: Promoting environmental sustainability in the hospitality industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1382-1391, November.
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    13. Alberto Huerta Morales, 2020. "Exploring Paradoxical Tensions in Circular Business Models—Cases from North Europe," Sustainability, MDPI, vol. 12(18), pages 1-21, September.
    14. Nathalia Suchek & João J. Ferreira & Paula O. Fernandes, 2022. "A review of entrepreneurship and circular economy research: State of the art and future directions," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2256-2283, July.
    15. Aleksandra Zaleśna & Agnieszka Predygier, 2021. "CSR in Clusters: Cluster Social Responsibility," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 25-46.
    16. Bharath Ramkumar & Hongjoo Woo & Naeun (Lauren) Kim, 2021. "The cross‐cultural effects of brand status and social facilitation on enhancing consumer perception toward circular fashion services," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(4), pages 1254-1269, July.
    17. Timo Busch & Marcel Richert & Matthew Johnson & Sven Lundie, 2020. "Climate inaction and managerial sensemaking: The case of renewable energy," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2502-2514, November.
    18. Chung‐Wha (Chloe) Ki & Sze Man Chong & Jung E. Ha‐Brookshire, 2020. "How fashion can achieve sustainable development through a circular economy and stakeholder engagement: A systematic literature review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2401-2424, November.
    19. Luca Marrucci & Tiberio Daddi, 2022. "The contribution of the Eco‐Management and Audit Scheme to the environmental performance of manufacturing organisations," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1347-1357, May.
    20. Sabina Scarpellini, 2022. "Social impacts of a circular business model: An approach from a sustainability accounting and reporting perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(3), pages 646-656, May.
    21. Amna Farrukh & Aymen Sajjad, 2024. "Investigating sustainability tensions and resolution strategies in the plastic food packaging industry—A paradox theory approach," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 2868-2889, May.
    22. Hinrika Droege & Andrea Raggi & Tomás B. Ramos, 2021. "Co‐development of a framework for circular economy assessment in organisations: Learnings from the public sector," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1715-1729, November.
    23. Fabiana Liar Agudo & Barbara Stolte Bezerra & José Alcides Gobbo & Luis Alberto Bertolucci Paes, 2022. "Unfolding research themes for industrial symbiosis and underlying theories," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1682-1702, December.
    24. Marit Moe Bjørnbet & Sigurd Sagen Vildåsen, 2021. "Life Cycle Assessment to Ensure Sustainability of Circular Business Models in Manufacturing," Sustainability, MDPI, vol. 13(19), pages 1-13, October.

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