Ioana-Alexandra SBÎRCEA, Elena Fleacă, Dr. Habil. "Theoretical Research into Sustainability Impact on Organizations" International Research Journal of Economics and Management Studies, Vol. 3, No. 5, pp. 240-246, 2024.
The role of sustainability in the value-creation process has attracted considerable attention, both in the development of sustainable products and the impact on the KPIs of commercial organizations. Sustainable Development Goals (SDGs) to protect our planet have highlighted the fundamental role of sustainability issues. Businesses all throughout the world must include environmental, social, and economic factors into their plans in this context. However, it is common for sustainability concerns to be unrelated to business plans, and establishing a suitable set of key performance indicators (KPIs) has made sustainability measurement more challenging. The problem is that the research does not seem to achieve long-term sustainability goals. For instance, companies continue to struggle to maintain supplies while natural resources are still being used unsustainably. In order to help build metrics that measure how organizations are doing in their effort to fulfill their sustainability goals, this research tries to define the term “sustainability.” Consequently, the aim of this study is as follows: (1) to identify appropriate KPIs that affect company performance based on literature and management practices, and (2) to propose a new perspective on a way to integrate sustainability issues into company strategies. The proposed model suggests that incorporating sustainability dimensions into the corporate strategy framework would enable strategic alignment to gain a competitive advantage, create sustainability value, and maximize the KPIs.
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Sustainability, KPI, Organization, Sustainable Development Goals, Sustainability Performance.