Master's Degree Thesis Organizations as Functioning Social Systems - A Review of Social Sustainability in Management and Organizational Research Lisa Apelman Raik Klawitter Simone Wenzel 'HSDUWPHQWRI6WUDWHJLF6XVWDLQDEOH'HYHORSPHQW %OHNLQJH,QVWLWXWHRI7HFKQRORJ\ .DUOVNURQD6ZHGHQ Examiner: Henrik Ny, PhD. Supervisor: Professor Karl-Henrik Robèrt Primary advisor: Elane Daly, MSc Secondary advisor: Professor Edith Callaghan Organizations as Functioning Social Systems ± A Review of Social Sustainability in Management and Organisational Research Lisa Apelman, Raik Klawitter, Simone Wenzel Department of Strategic Sustainable Development Blekinge Institute of Technology Karlskrona, Sweden 2014 Thesis submitted for completion of Master of Strategic Leadership towards Sustainability, Blekinge Institute of Technology, Karlskrona, Sweden. Abstract: One of the reasons, why it is difficult to implement the concept of social sustainability into organizations, is its inherent complexity and vagueness. The new Social Sustainability Principles (SSPs) within the Framework for Strategic Sustainable Development (FSSD) offer a clear definition of success for the social system. This study aims to put the new SSPs into an organizational context. It investigates how people-related issues within organizations, discussed in six organizational and management journals, published between 2009 and 2014, are related to the SSPs. One fourth of the 3305 reviewed articles were found to relate to social sustainability. Most of the articles focused on improving performance through aspects related to social sustainability. The articles mainly discussed aspects related to barriers to the SSPs as problems, solutions or positive aspects that could remove barriers to the SSPs. The results show that for organizational research to be able to support organizations moving towards social sustainability, there is a need for a clear definition of success as well as a frame that takes the whole social system into consideration. The FSSD and the SSPs could help to structure the diverse topics, put research problems in a bigger context and discern relevant problems and solutions. Keywords: Social Sustainability Principles, Framework for Strategic Sustainable development, Organization, Systems Approach, Human Resources 6WDWHPHQWRI&RQWULEXWLRQ Writing our thesis together can be best described by the metaphor of a little boat in the wide ocean. We started our journey together deciding, that we as a team bring in the best abilities to actually make this adventure paddling together in this small rowboat. Discovering very soon that we actually bring in three different, complementary views and background, we started the quest for the right direction. Merging Philosophy, Business and Health we realized that this is a perfect combination to reach our goal, which was in the direction of the island of socially sustainable organizations. At the same time, it was also challenging, since there was no map that showed the location of this island yet and our compass was changing directions constantly. Furthermore, the ocean around us was very rough and a few thunderstorms threatened our little boat. After our boat almost capsized, we decided on a new direction, which was a little island a lot closer that could be actually found in the literature. A new structure was set up that worked like a sail and the winds were in favour of us, allowing us to EULQJLQRXUEHVWZLWKLQRXUERDWJRLQJVWUDLJKWLQWKHGLUHFWLRQRIRXU³0DVWHU´LVODQG Overall it can be said that we brought in our very best and our biggest learning during the thesis process was this successfully mastered team process in which we could learn to really discover and use the strengths of each individual, growing together as one team that had a lot RIIXQWRJHWKHUUHVSHFWHGHDFKRWKHU¶VOLPLWVDQGZDVFDULQJIRURQHDQRWKHU:HPDQDJHGWR create a space together full of attention, focus, listening and understanding. Within this space, each research team member contributed equally to all activities in this thesis research process. Additionally, we structured our tasks and responsibilities according to special talents and favours: Lisa contributed significantly with her background knowledge in social and health science to the content of the result section and together with Raik PDVWHUHGRXULWHUDWLYHPHWKRGVFKDOOHQJHV5DLN¶VDELOLW\DQGSDVVLRQIRUGHVLJQDQd structure gave the report its beauty and his critical thinking helped to achieve robustness and clarity. Simone was particularly skilled at having the overview of the project management and insuring a high standard writing flow. We are deeply grateful for the opportunity to learn and grow together, going together through these enormous challenges a thesis can bring with, through the waves and storms - never giving in ± but sailing our boat successfully into the safe and richly deserved harbour. Lisa Apelman Raik Klawitter Simone Wenzel ii $FNQRZOHGJHPHQWV We would like to express our deep gratitude to all the people and circumstances that surrounded us, supported us, challenged us and made our thesis what it is today. Specifically, we would like to acknowledge and thank following individuals and groups: x Our advisors, Edith Callaghan and Elaine Daly, for your support and patience during our long search, critical and logical thinking, willingness and flexibility in finding new ways together with us and challenging us in order to make the thesis even more robust, clear and logical. x Tracy Meisterheim, for being an angel in a moment, where it was necessary x Our thesis cluster, for keeping our meetings regularly, helping each other out, when necessary and being of invaluable support with their commitment, feedback and presence x The group of seven engaged SSP experts, for spending a fun hour with us brainstorming and therefore contributing to further developing the SSPs x Merlina Missimer and Patricia Lagun Mesquita, for their time and passion sitting together with us developing our topic further x Dr. Karl-Henrik Robért and Göran Broman, for their inspiration and engagement, and for making this course possible for so many future sustainability leaders x Our family and friends in the background and far away, for their great ability to build us up and strengthen us when times got tough And finally, the whole MSLS class, for going with us on this incredible journey, bringing so much joy, depth and passion and making a development possible, that goes far beyond the accomplishment of this thesis iii ([HFXWLYH6XPPDU\ ,QWURGXFWLRQ The social tensions in the world are increasing. Since the financial crisis in 2008, a majority of countries are at risk for increased social unrest. Employment, income levels, as well as the quality of work seem to have a greater impact on social tension than economic growth (International Labour Organization 2013). Many employees refer to work as a significant source of stress (American Psychological Association 2009). Stress, depression and taxing work conditions have huge costs for organizations and society (Rosch 2001). A weakening of the social system goes hand in hand with a growing environmental degradation and undermine the capacities for people to meet their physical, emotional and social needs (Rogers et al. 2012). A sustainable society is a prerequisite for human beings to live together and to be able to meet their needs. Sustainability has been on the global agenda for some decades. The Brundtland Report GHILQHGVXVWDLQDEOHGHYHORSPHQWDV³GHYHORSPHQWWKDWPHHWVWKHQHHGVRIWKHSUHVHQWZLWKRXW FRPSURPLVLQJWKHDELOLW\RIIXWXUHJHQHUDWLRQVWRPHHWWKHLUQHHGV´ :&(' $OWKRXJK the Brundtland Commission clearly emphasized the human dimension of sustainability, social sustainability in general received less attention (Boström 2012; Cuthill 2010; Faber et al. 2010; Vallance et al. 2011). Over the past ten years, there has been a growing interest in the concept of social sustainability with a number of different definitions and concepts (Vallance et al. 2011; Ehnert 2009). Nevertheless, there is still a relatively limited literature and a lack of clear practical and theoretical understanding (Boström 2012). It is difficult to navigate towards social sustainability without comprehending its complexity, interrelatedness, and systematic nature (Baumgartner and Korhonen 2010; Hjorth and Bagheri 2006; Hopwood et al. 2005). The global socio-ecological system is a complex, interconnected set of smaller systems and organizations are one crucial sub-system. Organizations play a major role for a sustainable society because of their economic power, their influence on global governance, but also their crucial impact on their own workforce (Utting 2000, Fuchs 2007, Senge et al. 2008, Eurostat 2014b). However, organizations are facing a crisis with staff turn-over and work-related illnesses increasing, loyalty decline, stress levels rising (Ehnert 2009, Wilkinson 2005), as well as a growing demand for work to be more than just a pay check (Haigh and Hoffman 2012). In recent years, notable efforts have been made to integrate social aspects of sustainability into organizations (Boström 2012; Vifell and Soneryd 2012; Ehnert 2009). However, no general definition of social sustainability in an organizational context exists and there seems to be a need for a better understanding, especially since key social sustainability aspects differ within a range of organizations (Bebbington and Dillard 2009; Weingaertner and Moberg 2014). One of the reasons, why it is difficult to implement the concept of social sustainability into organizations,