Global challenges, sustainable development, and their implications for organizational performance
Abstract
Purpose
This paper aims to propose an effective response by business organizations to the impact of global challenges and sustainable development (SD). It also presents an overview model of organizational performance employing such an approach.
Design/methodology/approach
This paper is a conceptual work based upon a review of theories, research findings and reports gathered from relevant literature. The review yielded the following research framework: many countries are facing global challenges; these global challenges are affecting business organizations as external factors; SD is a concept employed to address these challenges; SD can be applied in business organizations through corporate social responsibility (CSR), corporate governance (CG) and sustainability policy and practices; and embedding CSR, CG and sustainability concepts at a strategic level is an effective response to global challenges.
Findings
Global challenges are impacting on business organizations and will continue to do so into the future. CSR, CG and sustainability concepts are increasingly being adopted by leading business organizations throughout the world. Embedding CSR, CG and sustainability concepts at a strategic level can sustain long-term organizational performance, as they help businesses face global challenges in a positive manner and maintain their position in societies on good terms with all stakeholders.
Research limitations/implications
Different cultural or socio-economic environments may limit the interpretation and application of the findings or propositions in this research.
Practical implications
How CSR, CG and sustainability concepts can be holistically implemented in business practices.
Social implications
The role of business in lessening the effect of global challenges and supporting SD is illustrated in the proposed model.
Originality/value
This paper demonstrates connections among the following critical influences on organizational performance: global challenges; SD; and CSR, CG and sustainability.
Keywords
Acknowledgements
This article is supported by School of Human Resource Development (HRD), National Institute of Development Administration (NIDA), Bangkok, Thailand.
Citation
Virakul, B. (2015), "Global challenges, sustainable development, and their implications for organizational performance", European Business Review, Vol. 27 No. 4, pp. 430-446. https://doi.org/10.1108/EBR-02-2014-0018
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited