Organization & Environment
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DOI: 10.1177/1086026616645381
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Article
How Sustainability Is Reflected in
the S&P 500 Companies’ Strategic
Documents
Nabin Baral
1
and Mohan P. Pokharel
2
Abstract
This study’s goal was to analyze the contents of the S&P 500 companies’ mission, vision, and
values statements to measure the extent to which they reflect the concept of sustainability.
Data were collected from public domains (reports and websites) between April and June, 2013.
Using inductive methods, we assessed corporations to reflect sustainability when their stated
goal was not only to generate profits but also to care about people and the planet. The theme
“generating the profit” emerged in 69.2% of the companies, while other themes of “caring for
the people” and “safeguarding the planet” appeared respectively in 34.0% and 14.8% of the
companies. About 12.0% of the companies had the triple bottom line (profit, people, and planet
themes) in their strategic documents. Logistic regressions showed a sectoral difference in the
emergence of profit, people, and planet themes. These findings are expected to instigate a
healthy debate on sustainability.
Keywords
corporate sustainability, mission statement, natural environment, S&P 500, triple bottom line
Introduction
Conventional wisdom dictates business firms maximize profits, but how can they thrive without
addressing social and environmental issues in the 21st century? Milton Friedman (1970) argued
that the one and only social responsibility of a business is to increase its profits by engaging in the
competitive free market within the scope of law and regulations. In this neoclassical economic
model of firms, even if environmental or social issues are addressed, the purpose of doing so is to
further business self-interests such as complying with regulations, incorporating stakeholders’
pressure, or retaining organizational legitimacy (Bansal & Roth, 2000; J. W. Meyer & Rowan,
1977; Mirvis, Bradley, & Kinnicutt, 2010; Molnar & Mulvihill, 2003). In the past, business sur-
vival strategy was almost entirely focused on the creation of economic value (Porter, 1980; Porter
& Kramer, 2006). This strategy is inadequate if customers also demand quality and value in addi-
tion to competitive prices, if employees are not motivated only by a paycheck, and if communities
demand firms to be good corporate citizens (Turban & Greening, 1997). In such a context, firms’
1
University of Washington, Seattle, WA, USA
2
Concord University, Athens, WV, USA
Corresponding Author:
Mohan P. Pokharel, The Division of Business, Concord University, 1000 Vermilion St, Athens, WV 24712, USA.
Email: mpokharel@concord.edu
645381OAE XX X 10.1177/1086026616645381Organization & EnvironmentBaral and Pokharel
research-article 2016