The Delicate Quest for Corporate Environmental Sustainability

Abstract: Greenheart, a multinational food producer headquartered in the Netherlands, has long sought environmental sustainability. Greenheart initially made great strides: it embraced sustainability as a core value, rethought its business activities, was open to a variety of (external) stakeholders, and allocated ample means to reduce its environmental impact. The initiative, however, lost momentum following a change of ownership and the advent of economic difficulties. Sustainability was interpreted in a more restricted sense and became of secondary importance. Environmental activities now had to fit within the existing business framework and a more restricted number of predominantly internal stakeholders had to be considered. Finally, the environmental budget largely evaporated. At the same time, the company’s environmental activities were undertaken on a more structured, integrative, and “realistic” basis. Were the changes in Greenheart’s environmental practices positive or negative from the viewpoint of sustainable business development? What were the critical factors accounting for the changes in corporate environmental performance?