Abstract
From just another buzzword a few decades ago, sustainability has become a hot topic on strategists’ agenda—and it is here to stay. The growing pressures on businesses to address the ever-complex sustainability challenges and to (consequently) assess their performance against a variety of sustainability-related goals are imperatively asking for a new paradigm—grounded on a global business ethics perspective and able to support a fundamental change in the traditional ways of doing business; placed at the heart of any company’s way of doing business, business models are instrumental in these transformative changes, both as triggers (in the short run) and backbones (in the medium to long run). Building on existing literature and capitalizing on the opportunities provided by inter- and trans-disciplinary research, this theoretical analysis aims to (re)frame the (research in) search of the most appropriate business models to address sustainability challenges. Thus, the purpose of the study is: (1) To advocate for a complex yet contingent approach at the business level—able to capture the bigger picture (the sustainability imperative) without missing its idiosyncrasies (the best fitted to the business model context)—when searching for strategic performance; (2) to propose an integrative, multi-level conceptual framework (able to provide widespread synergies for companies and their broader environment) as guidance for this kind of approach, and to suggest specific directions with respect to its implementation.
Highlights
A business model depicts a company’s way of doing business and making money [1], as money, and profits, represent prerequisites for any company’s survival and future existence
As “recent evidence has shown that companies have increased the management commitment and investments they are dedicating to sustainability” [68], “the question of whether or not to embrace sustainability is being replaced by another question: How do we do it?” [32], causing the raising of awareness about the sustainability megatrend and its ever-complex challenges to gradually become dominant and global
Considering the “business model as a key initiating component of corporate sustainability”, Schaltegger et al argued that “the business model perspective is interesting in the context of sustainability because it highlights the value creation logic of an organization and its effects, and potentially allows for new governance forms, such as cooperatives, public private partnerships, or social businesses, helping transcend narrow for-profit and profit-maximizing models” [72]
Summary
A business model depicts a company’s way of doing business and making money [1], as money, and profits, represent prerequisites for any company’s survival and future existence. This makes business models critical determinants of organizational success, while reflecting the managerial performance against the challenges of the (broad) business environment. The deterioration of sustainability parameters—which largely occurred as an externality of ethically questionable business decisions and practices [5,6]—has led to a global awareness on the ripple effects that this phenomenon may have, while placing businesses under high scrutiny.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
