Corporate strategies oriented towards sustainability: a conceptual framework

In view of the increasingly pressing environmental, social, economic and institutional challenges that afflict humanity, the issue of sustainability is more relevant than ever, since it concerns every aspect of our lives. In the last decades, society is going through an important transformation moment, being called to face the challenges that the advanced globalization process imposes on it. To respond to these challenges, institutions and companies must jointly pursue common goals of sustainable development. However, sustainability dimensions are often not considered useful to increase the financial performance and this not allow to completely integrate these aspects in the strategy in order to achieve sustainable development. Accordingly, in this context we devote our attention to two research questions: (1) What are the benefits connected to the integration between sustainability and companies’ strategy? and (2) How to integrate sustainability into strategy with a view of long-term economic profits? Based on the literature review (taking 66 papers published from 2009 to 2019 into account.), survey and questionnaires conducted to the 85 managers specialized in sustainable strategy we provided a clear picture on the role of sustainability in the value creation process. The proposed conceptual model, called performance SEGES, suggests that an actual positive correlation between the implementation of sustainably behaviours and financial performance exists, as exists an effective improvement of the conditions of the communities surrounding the companies that deal with sustainability. Sustainable strategy can be used to reached simultaneously, financial performance and well-being of all stakeholders. Further, it discusses specific features of sustainability related to the PMS as well as limitations of existing research; this should stimulate further research.