Integrating Environmental Sustainability Into Strategic Management: Achieving The Profit–Planet Equilibrium

Abstract

Organizations have been responding to escalating environmental issues, resource scarcity, and rising stakeholder demands by embracing sustainability into strategic agendas. This research investigates how strategic management can harmoniously balance business profitability and environmental sustainability through the impact of core sustainability practices on organizational performance. Using a mixed-method design, this research combines the survey results of mid-to-large Indian companies from various industries with qualitative results from sustainability experts. It emphasizes four areas of strategic focus: embedding sustainability into corporate strategy, green innovation, and commitment by top management, and sustainable supply chain management. Organizational performance is measured as a combination of financial and environmental performance. 210 responses were obtained by purposive sampling to ensure representation of firms with ongoing sustainability practices. In addition to the survey findings, qualitative data were collected from 12 sustainability officers via semi-structured interviews to provide contextual richness to organizational practice The results of the research reveal that every one of the four strategic practices contributes positively to performance but with strongest effect on leadership commitment Statistical testing verifies the validity and strength of these correlations and testifies to the overall model. The research focuses on the fact that integrating sustainability into business strategy is not only an ethical imperative but also a pragmatic path to sustainable competitive success. It provides worthwhile recommendations to business executives, policymakers, and scholars who are keen to balance sustainable development goals and company success. The study, although conducted with a narrow national setting and research design, provides a stimulus for further research in other economies and time periods. Finally, the findings validate that sustainability, when well-managed, boosts purpose and performance.