Advancing Sustainability: A Conceptual Review for 21st Century Corporates
Purpose: The research is an initiative to suggest a pathway for sustainable businesses in today’s modern era. Design/Methodology/Approach: The research intakes a review of the academic and business literature covering the relationship between financial performance and the core sustainability for practising sustainable business. Findings: The research by taking on Sustainable Business’s review of the business and academic literature found positive financial and strategic benefits for companies taking a comprehensive approach to managing for sustainability and embedding it in their core business strategy. It further defines sustainable practices as those that: 1) at minimum do not harm people or the planet and at best create value for stakeholders and 2) focus on improving environmental, social, and governance (ESG) performance in the areas in which the company and/or brand has a material environmental or social impact (in their own operations, value chain, or to their customers or society). Practical Implications: Existing empirical research has built a strong case for sustainability particularly in the areas of risk management, efficiency, and innovation, however further research should explore the benefits of stakeholder engagement, “sticky” corporate ecosystems, media coverage, HR, consumers’ purchasing decisions, and how transparency influences environmental and financial performance. Most importantly, academics, civil society and business need to cometogether to design better firm level measurements of the financial impact (direct and indirect) of making sustainability core to the business strategy. The CFO’s office is not currently set up to measure these relationships, with the exception of operational efficiencies. If what is measured matters, then we need to address this shortcoming so business leaders and investors have the tools they need to make better decisions and deliver results to all stakeholders. Originality/Value: The research is a unique contribution to the current academic literature for sustainable business practices in today’s era.