IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v34y2025i3p3635-3655.html

What Is a Sustainable Company?

Author

Listed:
  • Chonlawan Thammaraksa
  • Michael Zwicky Hauschild
  • Caroline Aggestam Pontoppidan
  • Alexis Laurent

Abstract

Defining a sustainable company presents challenges due to evolving sustainability contexts, diverse theoretical perspectives, and conflicting definitions. This often results in overlooking broader, macrolevel sustainability constructs, leading to a fragmented understanding of what a sustainable company really is. To overcome these issues, this study synthesizes insights from multiple disciplines to form a holistic understanding of sustainability in business. A six‐dimensional framework for defining corporate sustainability is proposed, categorized into fundamental and managerial dimensions. Five fundamental dimensions are used to characterize and outline a “sustainability continuum” in a business context with respect to sustainable development principles. A conceptual methodology is outlined to address sustainability management, defined as the sixth dimension. Using the proposed framework, company challenges to reach the sustainability goals are discussed. In particular, the developed “sustainability continuum” offers clarity to the concept of business sustainability, enabling companies to evaluate their compliance with sustainability criteria and comprehend their sustainability status.

Suggested Citation

  • Chonlawan Thammaraksa & Michael Zwicky Hauschild & Caroline Aggestam Pontoppidan & Alexis Laurent, 2025. "What Is a Sustainable Company?," Business Strategy and the Environment, Wiley Blackwell, vol. 34(3), pages 3635-3655, March.
  • Handle: RePEc:bla:bstrat:v:34:y:2025:i:3:p:3635-3655
    DOI: 10.1002/bse.4138
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.4138
    Download Restriction: no

    File URL: https://libkey.io/10.1002/bse.4138?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Saumitra N. Bhaduri & Ekta Selarka, 2016. "Corporate Governance and Corporate Social Responsibility—Introduction," CSR, Sustainability, Ethics & Governance, in: Corporate Governance and Corporate Social Responsibility of Indian Companies, chapter 0, pages 1-10, Springer.
    2. Roberto Hernández-Chea & Akriti Jain & Nancy M. P. Bocken & Anjula Gurtoo, 2021. "The Business Model in Sustainability Transitions: A Conceptualization," Sustainability, MDPI, vol. 13(11), pages 1-25, May.
    3. Markus Milne & Rob Gray, 2013. "W(h)ither Ecology? The Triple Bottom Line, the Global Reporting Initiative, and Corporate Sustainability Reporting," Journal of Business Ethics, Springer, vol. 118(1), pages 13-29, November.
    4. Helen Kopnina, 2017. "Sustainability: new strategic thinking for business," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(1), pages 27-43, February.
    5. Saumitra N. Bhaduri & Ekta Selarka, 2016. "Corporate Governance and Corporate Social Responsibility of Indian Companies," CSR, Sustainability, Ethics & Governance, Springer, number 978-981-10-0925-9.
    6. Gail Whiteman & Brian Walker & Paolo Perego, 2013. "Planetary Boundaries: Ecological Foundations for Corporate Sustainability," Journal of Management Studies, Wiley Blackwell, vol. 50(2), pages 307-336, March.
    7. Tobias Hahn & Jonatan Pinkse & Lutz Preuss & Frank Figge, 2015. "Tensions in Corporate Sustainability: Towards an Integrative Framework," Journal of Business Ethics, Springer, vol. 127(2), pages 297-316, March.
    8. United Nations UN, 2015. "Transforming our World: the 2030 Agenda for Sustainable Development," Working Papers id:7559, eSocialSciences.
    9. Saumitra N. Bhaduri & Ekta Selarka, 2016. "Impact of Corporate Governance on Corporate Social Responsibility in India—Empirical Analysis," CSR, Sustainability, Ethics & Governance, in: Corporate Governance and Corporate Social Responsibility of Indian Companies, chapter 0, pages 87-113, Springer.
    10. Simone Carmine & Valentina De Marchi, 2023. "Reviewing Paradox Theory in Corporate Sustainability Toward a Systems Perspective," Journal of Business Ethics, Springer, vol. 184(1), pages 139-158, April.
    11. Sergiy D. Dmytriyev & R. Edward Freeman & Jacob Hörisch, 2021. "The Relationship between Stakeholder Theory and Corporate Social Responsibility: Differences, Similarities, and Implications for Social Issues in Management," Journal of Management Studies, Wiley Blackwell, vol. 58(6), pages 1441-1470, September.
    12. Beate Littig & Erich Griessler, 2005. "Social sustainability: a catchword between political pragmatism and social theory," International Journal of Sustainable Development, Inderscience Enterprises Ltd, vol. 8(1/2), pages 65-79.
    13. Kai Hockerts, 2015. "A Cognitive Perspective on the Business Case for Corporate Sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 24(2), pages 102-122, February.
    14. Anders Bjørn & Katherine Richardson & Michael Zwicky Hauschild, 2019. "A Framework for Development and Communication of Absolute Environmental Sustainability Assessment Methods," Journal of Industrial Ecology, Yale University, vol. 23(4), pages 838-854, August.
    15. Rupert J. Baumgartner & Daniela Ebner, 2010. "Corporate sustainability strategies: sustainability profiles and maturity levels," Sustainable Development, John Wiley & Sons, Ltd., vol. 18(2), pages 76-89.
    16. Mariapia Pazienza & Martin de Jong & Dirk Schoenmaker, 2022. "Clarifying the Concept of Corporate Sustainability and Providing Convergence for Its Definition," Sustainability, MDPI, vol. 14(13), pages 1-21, June.
    17. Andrzej Janowski, 2020. "Philanthropy and the Contribution of Andrew Carnegie to Corporate Social Responsibility," Sustainability, MDPI, vol. 13(1), pages 1-26, December.
    18. González-Rodríguez, M. Rosario & Díaz-Fernández, M. Carmen & Simonetti, Biagio, 2015. "The social, economic and environmental dimensions of corporate social responsibility: The role played by consumers and potential entrepreneurs," International Business Review, Elsevier, vol. 24(5), pages 836-848.
    19. Frank Figge & Tobias Hahn, 2005. "The Cost of Sustainability Capital and the Creation of Sustainable Value by Companies," Journal of Industrial Ecology, Yale University, vol. 9(4), pages 47-58, October.
    20. Hans B. Christensen & Luzi Hail & Christian Leuz, 2021. "Mandatory CSR and sustainability reporting: economic analysis and literature review," Review of Accounting Studies, Springer, vol. 26(3), pages 1176-1248, September.
    21. Wendy L. Tate & Lydia Bals, 2018. "Achieving Shared Triple Bottom Line (TBL) Value Creation: Toward a Social Resource-Based View (SRBV) of the Firm," Journal of Business Ethics, Springer, vol. 152(3), pages 803-826, October.
    22. Tahniyath Fatima & Said Elbanna, 2023. "Corporate Social Responsibility (CSR) Implementation: A Review and a Research Agenda Towards an Integrative Framework," Journal of Business Ethics, Springer, vol. 183(1), pages 105-121, February.
    23. Mojtaba Vaismoradi & Hannele Turunen & Terese Bondas, 2013. "Content analysis and thematic analysis: Implications for conducting a qualitative descriptive study," Nursing & Health Sciences, John Wiley & Sons, vol. 15(3), pages 398-405, September.
    24. Regina F. Bento & Lasse Mertins & Lourdes F. White, 2017. "Ideology and the Balanced Scorecard: An Empirical Exploration of the Tension Between Shareholder Value Maximization and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 142(4), pages 769-789, June.
    25. Thomas Thijssens & Laury Bollen & Harold Hassink, 2015. "Secondary Stakeholder Influence on CSR Disclosure: An Application of Stakeholder Salience Theory," Journal of Business Ethics, Springer, vol. 132(4), pages 873-891, December.
    26. Alexander Dahlsrud, 2008. "How corporate social responsibility is defined: an analysis of 37 definitions," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 15(1), pages 1-13, January.
    27. Alan Murray & Keith Skene & Kathryn Haynes, 2017. "The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context," Journal of Business Ethics, Springer, vol. 140(3), pages 369-380, February.
    28. Tonia Warnecke, 2023. "Operationalizing the Doughnut Economy: An Institutional Perspective," Journal of Economic Issues, Taylor & Francis Journals, vol. 57(2), pages 643-653, April.
    29. Anjila Wegge Hjalsted & Alexis Laurent & Martin Marchman Andersen & Karen Holm Olsen & Morten Ryberg & Michael Hauschild, 2021. "Sharing the safe operating space: Exploring ethical allocation principles to operationalize the planetary boundaries and assess absolute sustainability at individual and industrial sector levels," Journal of Industrial Ecology, Yale University, vol. 25(1), pages 6-19, February.
    30. Dorothée Baumann-Pauly & Christopher Wickert & Laura Spence & Andreas Scherer, 2013. "Organizing Corporate Social Responsibility in Small and Large Firms: Size Matters," Journal of Business Ethics, Springer, vol. 115(4), pages 693-705, July.
    31. Sabrina Neugebauer & Silvia Forin & Matthias Finkbeiner, 2016. "From Life Cycle Costing to Economic Life Cycle Assessment—Introducing an Economic Impact Pathway," Sustainability, MDPI, vol. 8(5), pages 1-23, April.
    32. Rosaria Ferlito & Rosario Faraci, 2022. "Business model innovation for sustainability: a new framework," Innovation & Management Review, Emerald Group Publishing Limited, vol. 19(3), pages 222-236, March.
    33. Xuemei Bai & Syezlin Hasan & Lauren Seaby Andersen & Anders Bjørn & Şiir Kilkiş & Daniel Ospina & Jianguo Liu & Sarah E. Cornell & Oscar Sabag Muñoz & Ariane Bremond & Beatrice Crona & Fabrice DeClerc, 2024. "Translating Earth system boundaries for cities and businesses," Nature Sustainability, Nature, vol. 7(2), pages 108-119, February.
    34. Rodrigo Lozano, 2018. "Sustainable business models: Providing a more holistic perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1159-1166, December.
    35. Carlo Alberto Magni, 2010. "Average internal rate of return and investment decisions: A new perspective," Proyecciones Financieras y Valoración 6653, Master Consultores.
    36. Aaron K. Chatterji & Rodolphe Durand & David I. Levine & Samuel Touboul, 2016. "Do ratings of firms converge? Implications for managers, investors and strategy researchers," Strategic Management Journal, Wiley Blackwell, vol. 37(8), pages 1597-1614, August.
    37. Iñaki Heras‐Saizarbitoria & Laida Urbieta & Olivier Boiral, 2022. "Organizations' engagement with sustainable development goals: From cherry‐picking to SDG‐washing?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(2), pages 316-328, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robin Hogrefe & Sabine Bohnet-Joschko, 2023. "The Social Dimension of Corporate Sustainability: Review of an Evolving Research Field," Sustainability, MDPI, vol. 15(4), pages 1-22, February.
    2. Thaís Vieira Nunhes & Enzo Viviani Garcia & Maximilian Espuny & Vitor Homem de Mello Santos & Raine Isaksson & Otávio José de Oliveira, 2021. "Where to Go with Corporate Sustainability? Opening Paths for Sustainable Businesses through the Collaboration between Universities, Governments, and Organizations," Sustainability, MDPI, vol. 13(3), pages 1-31, January.
    3. Thaís Vieira Nunhes & Merce Bernardo & Otávio José de Oliveira, 2020. "Rethinking the Way of Doing Business: A Reframe of Management Structures for Developing Corporate Sustainability," Sustainability, MDPI, vol. 12(3), pages 1-32, February.
    4. Hanna Ahlström & Amanda Williams & Emmy Wassénius & Andrea S. Downing, 2025. "Deepening the Conversation on Systemic Sustainability Risks: A Social-Ecological Systems Approach," Journal of Business Ethics, Springer, vol. 199(3), pages 495-506, July.
    5. Ologeanu-Taddei, Roxana & Hönigsberg, Sarah & Weritz, Pauline & Wache, Hendrik & Mittermeier, Ferdinand & Tana, Silviana & Dang, Duong & Hautala-Kankaanpää, Tuire & Pekkola, Samuli, 2025. "The relationship of digital transformation and corporate sustainability: Synergies and tensions," Technological Forecasting and Social Change, Elsevier, vol. 210(C).
    6. María Luisa Pajuelo Moreno & Teresa Duarte-Atoche, 2019. "Relationship between Sustainable Disclosure and Performance—An Extension of Ullmann’s Model," Sustainability, MDPI, vol. 11(16), pages 1-33, August.
    7. Anna M. Hansson & Eja Pedersen & Niklas P. E. Karlsson & Stefan E. B. Weisner, 2023. "Barriers and drivers for sustainable business model innovation based on a radical farmland change scenario," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 8083-8106, August.
    8. Ozgur Isil & Michael T. Hernke, 2017. "The Triple Bottom Line: A Critical Review from a Transdisciplinary Perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1235-1251, December.
    9. Mehrnaz Ashrafi & Gregory M. Magnan & Michelle Adams & Tony R. Walker, 2020. "Understanding the Conceptual Evolutionary Path and Theoretical Underpinnings of Corporate Social Responsibility and Corporate Sustainability," Sustainability, MDPI, vol. 12(3), pages 1-17, January.
    10. Nancy E. Landrum & Brian Ohsowski, 2018. "Identifying Worldviews on Corporate Sustainability: A Content Analysis of Corporate Sustainability Reports," Business Strategy and the Environment, Wiley Blackwell, vol. 27(1), pages 128-151, January.
    11. Jay Joseph & Marc Orlitzky & Bruce Gurd & Helen Borland & Adam Lindgreen, 2019. "Can business‐oriented managers be effective leaders for corporate sustainability? A study of integrative and instrumental logics," Business Strategy and the Environment, Wiley Blackwell, vol. 28(2), pages 339-352, February.
    12. Edilson Bacinello & Gérson Tontini & Anete Alberton, 2020. "Influence of maturity on corporate social responsibility and sustainable innovation in business performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 749-759, March.
    13. Lutz Preuss & Isabel Fischer & Bimal Arora, 2024. "How do stakeholder groups make sense of sustainability: Analysing differences in the complexity of their cognitive frames," Business Strategy and the Environment, Wiley Blackwell, vol. 33(3), pages 2367-2383, March.
    14. Suparak Suriyankietkaew & Phallapa Petison, 2019. "A Retrospective and Foresight: Bibliometric Review of International Research on Strategic Management for Sustainability, 1991–2019," Sustainability, MDPI, vol. 12(1), pages 1-27, December.
    15. Alzayed, Noora & Batiz-Lazo, Bernardo & Eskandari, Rasol, 2024. "Does board diversity mitigate risk? The effect of homophily and social ties on risk-taking in financial institutions," Research in International Business and Finance, Elsevier, vol. 70(PA).
    16. Abdulaziz Alhumud, Abdullah & Leonidou, Leonidas C. & Alarfaj, Weam & Ioannidis, Alexis, 2025. "The impact of digital CSR disclosure on customer trust and Engagement: The moderating role of consumer deontology and law obedience," Journal of Business Research, Elsevier, vol. 186(C).
    17. Laura I. Acevedo & Daniela C. A. Pigosso & Tim C. McAloone, 2024. "Exploring the Landscape of Contemporary Sustainability Philosophies: Origins, Synergies and Corporate Applications," Circular Economy and Sustainability, Springer, vol. 4(4), pages 2675-2711, December.
    18. Enes Ünal & Vikash Kumar Sinha, 2023. "Sustainability trade‐offs in the circular economy: A maturity‐based framework," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4662-4682, November.
    19. Rongbing Huang & Yuxue Zhang, 2025. "The Dimensions and Evaluation of Audit Firms' Social Responsibility: An Analysis of 40 Audit Firms in China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(5), pages 6528-6545, September.
    20. François A. Carrillat & Carolin Plewa & Ljubomir Pupovac & Chloé Vanasse & Taylor Willmott & Renaud Legoux & Ekaterina Napolova, 2025. "Can Consumers’ Altruistic Inferences Solve the CSR Initiative Puzzle? A Meta-analytic Investigation," Journal of Business Ethics, Springer, vol. 196(3), pages 639-658, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:34:y:2025:i:3:p:3635-3655. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.