Master’s Thesis 7th June, 2017 MSc International Marketing Aalborg University Towards Consciousness in MNCs: Understanding Conscious Business Concept, Being and Becoming Conscious Multiple Case Study in Singapore Total Page No (Excluding Appendix): 87 Words (Excluding Appendix): 29,461 Author: Rolandas Salciunas Supervisor: Mohammad Bakhtiar Rana 2 Master’s Thesis. “Towards Consciousness in MNCs: Understanding Conscious Business Concept, Being and Becoming Conscious”. Multiple Case Study in Singapore Executive Summary This thesis is oriented to analyzing concept of conscious business in‐depth with help of literature and real world empirical data form multinational companies and business consulting companies in Singapore. Initially there is a rigorous review of conscious business literature itself, followed by conscious business concept review within frame of literature of business ethics, CSR, legitimation and capability‐based view towards business model innovation. Conceptual framework was developed subsequently where literature review served as basis for isolating relevant concept to construct a framework. During the empirical data collection sample units were exposed to conscious business concept as empirical data collection aims to discover the perceptions, motivations and practices of MNCs towards the concept of conscious business. Analysis of empirical data provided with corroborative findings that helped to see the conscious business concept in a real world in a non‐role model perspective. Totality of literature data and empirical data allowed to systematically reach the synergy in theoretical discussion resulting in strategic recommendations. Strategic framework appears in a four dimensional perspective structured from internal pressures, external pressures, strategic benefits and capabilities of company, which results in a comprehensive narrative designed specifically for MNCs as a four stage strategic framework of consciousness process within a company providing with a conceivable narrative for non‐role model MNCs of how to understand, become, be and challenge consciousness within company and outside. June 2017 3 Master’s Thesis. “Towards Consciousness in MNCs: Understanding Conscious Business Concept, Being and Becoming Conscious”. Multiple Case Study in Singapore Table of Contents Executive Summary ....................................................................................................................................... 2 Introduction .................................................................................................................................................. 7 Problem Statement ................................................................................................................................... 7 Global Rise of Consciousness ................................................................................................................ 7 Conscious Capitalism as Dominant Business Paradigm ........................................................................ 9 Critique of Conscious Capitalism Theory .............................................................................................. 9 Research Questions (Problem Formulation) ........................................................................................... 10 Project Outline ........................................................................................................................................ 11 Chapter 1: Philosophy of Science ................................................................................................................ 13 1.1. Paradigms ......................................................................................................................................... 13 1.2. Choice of Paradigm: Interpretivism ................................................................................................. 14 1.3. Methodological Approach ............................................................................................................... 15 1.4. Data Collection Methods ................................................................................................................. 17 1.5. Analytical Methods and Framework ................................................................................................ 22 1.6. Reliability and Validity ...................................................................................................................... 23 1.7. Limitations and Challenges .............................................................................................................. 25 Chapter 2: Literature Review and Conceptual Framework ........................................................................ 27 2.1. Understanding Conscious Capitalism ............................................................................................... 27 2.1.1. Four Tenets of Conscious Business ........................................................................................... 28 2.1.2. Practices of Conscious Business in Firms Perspective .............................................................. 30 2.1.3. Efficiencies of Conscious Business ............................................................................................ 31 2.1.4. Corporate Social Responsibility versus Conscious Business ..................................................... 35 2.1.5. Motives and Influencers of Ethical Practices ............................................................................ 37 Relevance of Understanding of Conscious Business Chapter ............................................................. 37 2.2. Internal and External Pressures ....................................................................................................... 39 2.2.1. Legitimacy and Business Ethics ................................................................................................. 39 2.2.2. Moral Legitimacy ....................................................................................................................... 41 2.2.3. Cognitive Legitimacy ................................................................................................................. 42 2.2.4. Codes of Ethics in Firms Perspective ......................................................................................... 43 June 2017 4 Master’s Thesis. “Towards Consciousness in MNCs: Understanding Conscious Business Concept, Being and Becoming Conscious”. Multiple Case Study in Singapore 2.2.5. Internationally Varying Ethical Codes ....................................................................................... 44 2.2.6. Relevance of Internal and External Pressures Chapter ............................................................. 45 2.3. Strategic Intentions .......................................................................................................................... 46 2.3.1. Strategic Legitimacy .................................................................................................................. 46 2.3.2. Legitimacy through Symbolic Business Ethics ........................................................................... 47 2.3.3. Legitimacy, Reputation, Identity and Firms Performance ........................................................ 47 2.3.4. Financial Performance and Ethical Codes ................................................................................. 49 2.3.5. Influence on Supply Chain ......................................................................................................... 49 2.3.6. Influence on Business Systems ................................................................................................. 50 2.3.7. Relevance of Strategic Intentions Chapter ............................................................................... 50 2.4. Capability Perspective on Business Model Innovation .................................................................... 51 2.4.1. Sensing Capability ..................................................................................................................... 52 2.4.2. Seizing Capability ...................................................................................................................... 52 2.4.3. Reconfiguring Capability ........................................................................................................... 53 2.4.4. Business Model Innovation Capability ...................................................................................... 53 2.4.5. Relevance of Capabilities Chapter ............................................................................................ 54 2.5. Conceptual Framework .................................................................................................................... 55 2.5.1. Four Concepts as Influential Factors ......................................................................................... 56 2.5.2. Internal Pressures ..................................................................................................................... 58 2.5.3. External Pressures ..................................................................................................................... 58 2.5.4. Strategic Intentions ................................................................................................................... 58 2.5.5. Capabilities ...............................................................................................................................