Journal of Business Ethics

, Volume 118, Issue 3, pp 655–665 | Cite as

Towards a More ‘Ethically Correct’ Governance for Economic Sustainability

  • Christos N. Pitelis


In this paper, we propose that economic sustainability is seen in terms of (inter-temporal and inter-national) value creation. We claim that value appropriation (or capture), can become a constraint to economic sustainability. We propose that for sustainable value creation to be fostered, corporate governance needs to be aligned to public and supra-national governance. In order to achieve this, a hierarchically layered set of ‘agencies’, needs to be diagnosed and the issue of incentive alignment addressed. Enlightened self-interest, pluralism and diversity, as well as a representative supra-national organisation for world-wide economic sustainability can serve as a new, more ‘ethically correct’ governance for economic sustainability, but not a panacea.


Governance Economic sustainability Agency Value creation and capture 



For comments and suggestions on earlier drafts we are grateful to the Section Editor and two anonymous reviewers of this journal, and to Peter Klein, Jim Love, Joe Mahoney, Anita McGahan, and participants at numerous conferences, notably the Annual Meeting of the Academy of Management on ‘Knowledge, Action and the Public Concern’.


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Copyright information

© Springer Science+Business Media Dordrecht 2013

Authors and Affiliations

  1. 1.Judge Business School and Queens’ CollegeUniversity of CambridgeCambridgeUK

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