The PEARL Model: Gaining Competitive Advantage Through Sustainable Development
- 571 Downloads
This article formulates institutional virtues according to sustainable development (SD) criteria to come up with a paradigmatic set of corporate principles. It aims to answer how a corporation might obtain competitive advantage by combining “going ethical” with “going green.” On the one hand, it brings out facts that indicate a forthcoming trend inclined to force relevant actors to comply with SD requirements. On the other hand, it suggests that SD may be implemented as a strategy to gain competitive advantage by the help of the PEARL model through its five fundaments: (1) perception friendliness, (2) environment friendliness, (3) action, (4) relationship, and (5) locality. This article finally shows that although a number of companies (e.g., Bosch, BP, and GE) implement SD as a tool of differentiation, they lack a holistic model that is fully responsive to current dynamics. The PEARL may be implemented as a proactive positioning to gain competitive advantage because transformation of this model into corporate strategy does not only respond to “stakeholder” claims, but also meets the changing characteristic of “societal demands.”
Keywordscompetitive advantage corporate social responsibility environment governance locality perception strategy sustainable development
The author thanks the organizers, secretariat, and participants of the International Sustainability Conference, Basel, 2005, as well as two anonymous referees and special issue editors for their comments and suggestions on an earlier draft of this article.
- Archetypediscoveriesworldwide: 2005, http://www.archetypediscoveriesworldwide.com/index.htm. Accessed 04 Feb 2005.
- Bilgin, M.: 2006a, ‹Modeling Strategic Sustainable Development: Conceptualization & Assessment’, in E. Carrera, J. J. de Felipe, B. Sureda and N. Tollin (eds.), Sustainability Measurement and Modelling (CIMNE, Barcelona), pp. 1-9.Google Scholar
- Bosch: 2006, A voyage through the history of advertising, http://www.bosch.de/start/content/language2/news/news_3311.htm. Accessed 17 Jan 2006.
- BP: 2006a, BP and the Environment, http://www.bp.co.nz/about/environment.html. Accessed 18 Jan 2006.
- BP: 2006b, It’s Time to Go on a Low-Carbon Diet, http://www.bp.com/sectiongenericarticle.do?categoryId=4533&contentId=7015199. Accessed 18 Jan 2006.
- Brundtland, G. H.: 2005, Sustainable Development and Its Global Significance, Speech made at the International Sustainability Conference 2005, Under Theme ‹Strategies for a Sustainable Society’, 13–14 October 2005, Basel, Switzerland, http://www.isc2005.ch/materials/Speech-Brundtland.pdf. Accessed 08 Dec 2006.
- GE: 2006, Africa Project Expansion: Ghana, http://www.ge.com/en/citizenship/community/donate/africa.htm. Accessed 05 Dec 2006.
- George, D.: 2001, Preference Pollution, How Markets Create the Desires We Dislike (The University of Michigan Press, MI Ann Arbor).Google Scholar
- Globescan: 2004, International Environmental Monitor 2004, http://www.globescan.com. Accessed 10 Dec 2005.
- Globescan: 2005, Corporate Social Responsibility Monitor 2005, http://www.globescan.com. Accessed 10 Dec 2005.
- GNA: 2006, US Based Company Supports Hospitals in Ghana, http://www.ghana.gov.gh/living/article.php?id=0000015953. Accessed 05 Dec 2006.
- Jagland, T.: 2001, ‹Everything Connects’, Our Planet: Poverty Health and the Environment, http://www.ourplanet.com. Accessed 20 Dec 2006.
- Kramer, M., K. John and M. B. Michael: 2006, ‹Game Changing CSR’, Corporate Social Responsibility Initiative Working Paper, No. 18, John F. Kennedy School of Government, Harvard University, Cambridge, MA, http://www.ksg.harvard.edu/cbg/CSRI/publications/workingpaper_18_krameretal.pdf. Accessed 14 July 2007.
- Porter, M.: 1980, Competitive Strategy (Free Press, New York).Google Scholar
- Rapaille, G. C.: 2004, 7 Secrets of Marketing in a Multi-Cultural World (Florida, Tuxedo).Google Scholar
- UNDP: 1997, Human Development Report: Human Development to Eradicate Poverty (Oxford University Press, Oxford), http://hdr.undp.org. Accessed 03 May 2006.
- UNDP: 2004, Human Development Report: Cultural Liberty in Today’s Diverse World (UNDP Publications, New York), http://hdr.undp.org/. Accessed 03 May 2006.
- UNWCED: 1987, Our Common Future (Brundtland Commission Report) (Oxford University Press, Oxford).Google Scholar
- WBCSD: 2005a, Driving Success: Marketing and sustainable development, http://www.wbcsd.ch/web/publications/marketing.pdf. Accessed 06 May 2006.
- WBCSD: 2005b, Business For Development: Business solutions in support of the Millennium Development Goals, http://www.wbcsd.ch/web/publications/biz4dev.pdf. Accessed 08 May 2006.
- Wheeler, K. A. and A. P. Bijur (eds.): 2001, Education for a Sustainable Future: a Paradigm of Hope for the 21st Century (Kluwer Academic: New York).Google Scholar
- Xu, Y.: 2005, Cultural and Social-Structural Causes of Perceived Personal Control: A Comparative Look at Americans and Chinese. Paper Presented at American Sociological Association 2005 Annual Meeting, Philadelphia, pp. 1–19.Google Scholar