Abstract
In the face of advancing globalization, societies have undergone a significant transformation over the last decades. The resulting environmental, social, economic and institutional challenges have made the issue of sustainability more relevant than ever, touching every aspect of our lives. To respond to these challenges, institutions and companies must jointly pursue the common goal of sustainable development. However, to integrate sustainability in strategic decision-making, academics and managers require a clear view of the advantages, key value drivers and potential solutions. Accordingly, we focus on two questions: What are the advantages of integrating sustainability initiatives in strategic decision-making? How can sustainability be integrated in the corporate strategy with a view to sustainable development? Based on semi-structured interviews with 85 managers specialized in sustainable governance, we provide a clear picture of the role of sustainability in the value creation process. Our proposed conceptual model suggests a positive correlation between implementing sustainability initiatives and corporate performance. Moreover, our findings show that firms that effectively implement sustainability improve the conditions of their surrounding communities. Indeed, a sustainable corporate strategy can lead not only to superior performance, but also to improving the wellbeing of all stakeholders.
Highlights
The effects of climate change and the degradation of the environment have become critical issues, and experts state that in just a few years, these effects will be irreversible
From the question “What are the main advantages of integrating sustainability in the corporate strategy?” (Question 2, Appendix), we conclude that implementing sustainability at the strategic level has positive effects on financial performance, mainly in terms of cost reduction and revenue growth
A third performance outcome linked to the integration of sustainability in the corporate strategy suggested by 62 managers is stakeholder perceptions
Summary
The effects of climate change and the degradation of the environment have become critical issues, and experts state that in just a few years, these effects will be irreversible. Sustainability has a positive impact on firm performance given the mixed results and the absence of managers’ perceptions or insights on this relevant topic (Geng et al, 2017; Michelon & Parbonetti, 2010; Zhu et al, 2012) To address this gap in the literature and advance the field, the present study focuses on managers’ perceptions and managerial practices related to sustainability. Given these premises and the need to clearly identify the impact on performance of integrating sustainability in the corporate strategy, this study has a twofold purpose:.
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