Understanding the Four Influences in Corporate Sustainability : A Framework for Francis and Friedman

There has been a rapid increase in corporate sustainability initiatives in recent years, along with an energetic discussion around how to understand that trend. It has been particularly challenging to reconcile academic theory with practical experience in a unified conceptual framework with consistent vocabulary. To that end, this article presents the four influences framework, which identifies a set of forces - market efficiency, government intervention, corporate constituent values, and civil society pressure - that push firms toward sustainability. The new framework blends economics concepts from market theory and government theory with the myriad concepts associated with sustainability practice to facilitate an integrated, wholistic approach to corporate sustainability. The framework sheds light on the role and limitations of each influence and how they interact. This new framework leads to a more constructive public discussion about corporate motivations while also providing guidance for practitioners operating in an increasingly complex business environment