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Dear SIM friends,

The December 2014 O&E regular issue is now available (vol 27, 4). Please, see below the titles and abstracts. We hope that you will enjoy with these excellent papers. Ecolabels, stakeholder theory in sustainability management, sustainable behavior of wealthy private investors, indigenous people and socially responsible investment, and business-government partnership are some of the main topics in this issue.

Best wishes (and happy holidays!),

* Prof. Dr. Mark Starik (San Francisco State University)

* Prof. Dr. J. Alberto Aragon-Correa (University of Surrey)

Co-Editors in Chair, Organization & Environment

Organization & Environment (O&E), December 2014, Vol. 27, 4.

Table of Contents

Guest Collaborative Editorial:

*** Nicole Darnall and J. Alberto Aragón-Correa:

Can Ecolabels Influence Firms' Sustainability Strategy and Stakeholder Behavior?

Organization & Environment, December 2014, 27: 319-327.

Abstract: Ecolabels are policies andprograms that are designed to signal information to stakeholders about a product's attributes and reduce stakeholder uncertainty about the validity of green product claims. However, for ecolabels to be successful at addressinginformation asymmetries external stakeholders must perceive them as being credible. We assess the prospects of different sorts of ecolabels to influence firms' sustainability strategies and stakeholder behavior based on the credibility of their institutional construction. We then describe importantareas for future ecolabel research, and analyze connections between these future research areas and the articles that form this issue. Finally, we emphasize the importance of collaborative stakeholder initiatives in advancing sustainability strategy and how accurate information is vital to the success of these initiatives.

http://oae.sagepub.com/content/27/4/319.abstract

Articles:

*** Jacob Hörisch, R. Edward Freeman, and Stefan Schaltegger:

Applying Stakeholder Theory inSustainability Management: Links, Similarities, Dissimilarities, and aConceptual Framework

Organization & Environment, December 2014, 27: 328-346.

Abstract: This essay examines links, similarities, and dissimilarities between stakeholdertheory and sustainability management. Based on the analysis a conceptual framework is developed to increase the applicability and the application ofstakeholder theory in sustainability management. Concluding from the analysis, we identify three challenges of managing stakeholder relationships for sustainability: strengthening the particular sustainability interests of stakeholders, creating mutual sustainability interests based on these particular interest, and empowering stakeholders to act as intermediaries for nature and sustainable development. To address these challenges three interrelatedmechanisms are suggested: education, regulation, and sustainability-based value creation for stakeholders.

http://oae.sagepub.com/content/27/4/328.abstract

*** Falko Paetzold, and Timo Busch:

Unleashing the Powerful Few: Sustainable Investing Behaviour of Wealthy Private Investors

Organization & Environment December 2014 27: 347-367.

Abstract: Despite their apparent interest, private investors are surprisingly disengaged from sustainable investing, an observation that has received limited scholarly attention. This theory building study draws on the theory of planned behaviour to conceptualize the decision-making process of private investors towards sustainable investing. Findings from literature provide some insights but do not yield a comprehensive answer as to why private investors refrain from sustainable investing. Interviews with wealthy private investors led us to identify a generally high interest in sustainable investing and dominant barriers that prevent actualengagement. Barriers are the perception of high volatility within sustainable investments in combination with, first, a short investment time horizon and, second, recent financial losses. Third, we find that investment advisors withhold required information from their clients. We suggest a decision-making framework that facilitates a better understanding of the engagement of private investors in sustainable investing and outline avenues for future research and implications for practitioners.

http://oae.sagepub.com/content/27/4/347.abstract

*** William Nikolakis, Harry W. Nelson, and David H. Cohen:

Who Pays Attention to Indigenous Peoples in Sustainable Development and Why? Evidence From Socially Responsible Investment Mutual Funds in North America

Organization & Environment, December 2014 27: 368-382

Abstract: Resource extraction and development have had significant impacts on Indigenous Peoples (IPs), and states have been slow to respond. The need for better engagement practices with IPs has been recognized internationally and in the academic literature. We examine the extent to which IPs and their rights are being recognized by non–state market–driven governance mechanisms meant to promote more sustainable business practices, in this case North American socially responsible investment (SRI) mutual funds. These funds are influential in defining SRI principles, and through shareholder activism they influencebroader standards on corporate social responsibility and firm sustainability. Using a survey and a review of secondary internal documentation, we find that while some SRI funds do address IPs, recognition remains low. We find SRI funds that do pay attention have both more capabilities and a different investment orientation than those that do not, which we hypothesize limits broader uptake at this time.

http://oae.sagepub.com/content/27/4/368.abstract

*** Haiying Lin:

Government–Business Partnership Formation for Environmental Improvements

Organization & Environment, December 2014, 27: 383-398.

Abstract: This article extends resource dependence theory to systematically explain what types of firms are likely to partner with governments through government–business partnerships (GBPs) to address environmental challenges. Using data from 377 environmental alliances formed between 1985 and 2013, this article empirically assesses firms' likelihood of choosing GBPs for environmental improvements rather than selection of other cross-sector and interfirm partnership(s). The results suggest that GBPs are likely to form when firms are in vulnerable strategicpositions, for example, where their survival substantively relies on receiving government support. GBPs are also likely to form when firms have strong resource or social positions that allow them to leverage governmental power in the development of strategic opportunities related to environmental improvements.

http://oae.sagepub.com/content/27/4/383.abstract