Corporate accountability in the context of sustainability – a conceptual framework

Abstract

Purpose – The purpose of this paper is to integrate the context of sustainability in a framework for greater corporate accountability. Design/methodology/approach – Applied conceptual research. Findings – This literature review shows that current corporate accountability frameworks forces companies to focus on a narrow source for value creation based on imperfect economic theories inadequate response to societal issues and misleading measurement systems. The current conceptual accountability frameworks are dramatically inadequate in the context of escalating sustainability issues and needs of both society and business. The business responses, through corporate social responsibility (CSR) initiatives, voluntary sustainability reports and industry standards are only a poor attempt to address the fundamental sustainable development challenges. Economic theory has defined externalities as residual to the market and as market failure requiring government intervention. Practical implications – This paper propos...