From Profit to Purpose: How Electric Utility Multinationals Visualize Systemic Change and Adaptation of Organizational Ethical Culture through Scenarios for 2040

Rodrigo Dal Borgo,Pedro Sasia

doi:10.3390/su132112045

Abstract

This article explores how top executives from two electric utility multinationals visualize systemic change and adaptation of their ethical cultures in the future. Allaire and Firsirotu’s framework for organizational culture was incorporated with scenario planning which focused on the influence that the contextual environment exerts on building an organizational ethical culture. The study relied on a holistic and a systems thinking approach to cluster and evaluate six key themes perceived to lead to disruptions in ethical culture. Consequently arriving at the aim to conceive four possible scenarios for 2040 on the future of organizational dynamics and ethical culture in the private electric utility sector. The attributions of relevance for organizational ethical culture and the interrelationships among six key themes demonstrated the greater significance of two themes: From profit to purpose and Environment and Sustainability. As the main driving forces, these two themes guided the development of the scenarios and provided further insights into the flow of power relations, agency, and leverage points for an organizational ethical system.

Highlights

Gómez-Suárez, Victoria Labajo andThere are ongoing discussions concerning the transformation that companies may need to undergo in order to meet the needs of its constituents by placing greater value on purpose over profit [1,2,3,4]
Thereby, we address the implications of the scenarios for both companies and their strategies for sustainability, i.e., Sustainable Development Goals (SDGs), and ethical positioning
Each executive was interviewed with reference to a specific theme related to their expertise and knowledge with the theme e.g., the theme Environment and Sustainability was conducted with the heads of sustainability in the organizations or with executives who had dedicated work to this field

Summary

Introduction

Gómez-Suárez, Victoria Labajo andThere are ongoing discussions concerning the transformation that companies may need to undergo in order to meet the needs of its constituents by placing greater value on purpose over profit [1,2,3,4]. Loss of legitimacy and damaged reputations are among the reasons given for this movement for change away from a profit only oriented model to one that society calls for. On this specific issue, Piketty [5] has already argued against the concentration of wealth by the owners of capital, which exacerbates inequality. Some multinationals concentrate wealth with the ultimate purpose, being to maximize profit solely to gratify shareholders These actions by corporations contribute to corroborate Piketty’s thesis on the correlation of long-term and persistent inequality creating social injustice and fomenting civil unrest. There were attempts made by CEOs of major corporations to change their profit-centered rhetoric to a purpose-centered rhetoric, as the letter from

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Conclusion