Social Sustainability Practice: The Interplay between State and Community Logics

Abstract This study contributes to business ethics by theorising how relational ethics, rooted in community-based values, shape the role of state intervention in driving corporate sustainability behaviour. We introduce the concept of functional compensation to explain how organisations navigate institutional complexity by shifting between state and community logics. Drawing on the African ethic of Ubuntu—which emphasises solidarity, mutual respect, and human dignity—we suggest that community logic reflects a relational ethic rooted in culturally embedded forms of moral agency. Using survey data from 276 firms in Zimbabwe, we find that state logic, centred on regulatory enforcement, drives sustainability compliance when community logic is weak. However, as Ubuntu-based community logic strengthens, it functionally substitutes for state logic, sustaining or even enhancing ethical performance in the absence of formal regulation. By integrating Ubuntu into institutional logics theory, this paper offers a context-sensitive approach to corporate ethics and social sustainability, advancing both theoretical insight and policy relevance in diverse governance environments.