Money-Maker or World Saviour? : Compromising Logics to Manage Sustainability in Banking

Abstract: With the increasing demands of engaging in sustainability, the financial industry’s dominating market logic is currently being challenged. Banks are therefore experiencing demands to manage and legitimize sustainability, identified as containing both a market- and social logic, into a profit driven context. The aim of this study was thus to explore, at a micro level, how multiple logics of sustainability can be managed and legitimized in an organization where the dominant logic is being challenged. This was done by conducting a case study where the primary data was collected through semi-structured interviews with employees from Group Sustainable Finance (GSF) who are responsible for driving the sustainability agenda at Nordea. The results demonstrate that sustainability has been managed through a compromising strategy where elements of both the market- and social logic has been altered to appropriately suit the context characterized by profit maximization. During the process, an interesting finding evolved concerning how the micro perspective exposed the existence of conflicts within a single logic, defined as intra-logic conflicts. The results also contributed to identify stakeholder triggers as well as how normative-, instrumental-, and value rhetorical strategies are applied to legitimize Nordea’s sustainability practices.