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Original Article | Volume 2 Issue 4 (ACR, 2025) | Pages 2948 - 2955
Sustainability-Driven Business Models: Rethinking Strategic Management
1
Professor, Institute of Management Studies, Banaras Hindu University, Varanasi
Under a Creative Commons license
Open Access
Abstract

The increased pressure of environmental issues, social gaps, and changing demands of the stakeholders have altered the purpose of businesses within the global economy. Typical strategic management models, approximately built around maximization of shareholder value, can no longer effectively respond to the level of complexity required by a productivity based marketplace where sustainability is a value driven force. This piece of work will look at how the themes of business models are redefining the strategic management through the interjection of economic contribution and environmental responsibility and societal responsibility. Based on the current case studies and cross-industry investigations, the paper provides insight as to how organizations can apply values of sustainability with the core business processes, governance system, supply chain, and value chain. Among the major factors of sustainable transformation explained in the study is regulatory requirements, consumer awareness that promotes cleaner work ethics, investor interest in Environmental, Social, and Governance (ESG) factors, and the technological advancements which increase the possibility of going green in operations. The results indicate that when firms pursue business models informed by sustainability, the resultant long-term resiliency and competitive advantage is complemented by increased trust and legitimacy of firms by stakeholders. Also, the international scientific work provides the answers to the challenges that organizations are accustomed to achieving, in part transitioning, including the need to balance short-term profitability goals with long-term sustainability perspectives, the struggle to make sense of regulatory environments that remain disjoined and fragmented, and the organizational cultural resistances that need to be overcome. By re-contextualizing strategic management by re-using the sustainability lens, the paper postulates that businesses are able to broaden the customary profit-focused mindsets and instead embrace a comprehensive developmental mentality to the benefit of the shareholders and the society at large. The research will add to the current debate on sustainable-strategy with regard to its ideas on how organizations can implement sustainability as a key business engine toward innovation, distinction and long-term wealth generation in the 21st century.

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