Corporate Sustainability Management: A Shift from Green-Washing to Proactive Strategies

Abstract

Corporate sustainability strategies integrate social and environmental issues, caused by the organization's activities into the strategic management process. The commitment of companies to corporate sustainability requires a strategic approach to incorporate sustainability practices into business strategy and operations rather than demonstrating rhetoric and green-washing behaviors as demonstrated by most companies. This paper explains the drive for corporate suitability, how managers integrate sustainability practices into their business strategies, and the factors that hinder the integration of sustainability into strategic management. The paper reveals the drivers for integrating corporate sustainability into strategic management: regulatory compliance, legitimacy, corporate reputation, and external pressures. It also reveals balance scorecard and sustainability reporting as sustainability management tools. This research finds the use of appropriate management tools and systems, stakeholder engagement, transparency and communication, management control, organizational culture, and appropriate investment as factors that can facilitate or hamper successful integration and implementation of corporate sustainability strategies.