Corporate strategies oriented towards sustainable governance: advantages, managerial practices and main challenges

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.