Structuring Private Sustainability Governance

Combining Rule-Based and Goal-Based Mechanisms

Bibliographic Data

ID21465123
AuthorsDaniel Wörner (0009-0001-3828-3486, University of St.Gallen, corresponding author), Niklas Letmathe (Karlsruhe Institute of Technology), Marin Jovanovic (0000-0001-8542-1848, Copenhagen Business School), Thomas Friedli (0000-0002-9021-3506, University of St.Gallen)
Year2026
Volume203
Issue3
Pages631-648
Publication date2026-01-01
Open AccessYes
TypeARTICLE
VenueJournal of Business Ethics (JOURNAL)
Journal identifiersISSN: 0167-4544 • E-ISSN: 1573-0697
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1007/s10551-025-06024-7
OpenAlexW4410480508
LanguageEN
Citations received1
References cited52

This study investigates the structuring of private sustainability governance as a critical mechanism for facilitating sustainability transitions. Drawing on 33 semi-structured interviews with manufacturing firms, regulatory bodies, policy associations, auditing firms, and management consultancies, the study examines how firms navigate increasing external governance pressures, including regulatory ambiguity, compliance demands, market expectations, and stakeholder accountability, while simultaneously managing internal governance through organizational restructuring, sustainable performance measurement, data management, human resources, and incentive structures. The findings highlight the importance of integrating rule-based and goal-based private sustainability governance through two key mechanisms: shaping external governance by aligning with and influencing regulatory standards, and adapting internal governance to embed sustainability into core business operations. This study develops a hybrid governance framework that demonstrates how firms leverage both mechanisms in parallel, revealing the tensions inherent in balancing regulatory compliance with strategic sustainability ambitions. We make a further contribution by underscoring the role of ethical change management in fostering transparency, accountability, and proactive sustainability commitments. By examining governance structures in combination with ethical considerations, the study advances the discourse on private sustainability governance, offering both theoretical insights and practical implications for firms navigating the transition toward sustainable systems

Business · Business ethics · Corporate governance · Political science · Process management · Public relations · Quality of Life Research · Structuring · Sustainability · Environmental Sustainability in Business · Public Procurement and Policy · Sustainable Supply Chain Management · Finance

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