IJCOPE Journal

UGC Logo DOI / ISO Logo

International Journal of Creative and Open Research in Engineering and Management

A Peer-Reviewed, Open-Access International Journal Supporting Multidisciplinary Research, Digital Publishing Standards, DOI Registration, and Academic Indexing.
Journal Information
ISSN: 3108-1754 (Online)
Crossref DOI: Available
ISO Certification: 9001:2015
Publication Fee: 599/- INR
Compliance: UGC Journal Norms
License: CC BY 4.0
Peer Review: Double Blind
Volume 02, Issue 04

Published on: April 2026

IMPACT OF SUSTAINABLE BUSINESS PRACTICES ON ORGANIZATIONAL PERFORMANCE

Subhash Kr Sharma

Dr. Priyadarshani Singh

School of Business Management Noida International University

Article Status

Plagiarism Passed Peer Reviewed Open Access

Available Documents

Abstract

This research investigates the multifaceted relationship between sustainable business practices and organizational performance across diverse industries and geographic contexts. Drawing on an extensive review of empirical literature, theoretical frameworks, and primary data collected from 847 organizations spanning 34 countries over a five-year longitudinal period (2019-2024), the study rigorously examines how Environmental, Social, and Governance (ESG) initiatives influence financial outcomes, operational efficiency, employee engagement, innovation capacity, and long-term competitive advantage.

Key findings demonstrate that organizations embedding sustainability into their core strategic frameworks achieve, on average, a 14.7% improvement in return on equity (ROE), a 23.4% reduction in operational costs over five years, and a 31.2% enhancement in brand equity scores compared to industry peers with lower sustainability commitment levels. Companies in the top sustainability quartile exhibit 18.9% lower employee turnover rates and 27.6% higher innovation output measured by patents and new product development cycles.

The study identifies seven critical success factors that mediate the sustainability-performance nexus and introduces the Sustainable Performance Architecture (SPA) model and Sustainability-Performance Virtuous Cycle (SPVC) framework. Policy implications are discussed in relation to the UN SDGs, Paris Climate Agreement, and TCFD guidelines.

Keywords: Sustainable business practices, organizational performance, ESG integration, corporate sustainability strategy, stakeholder theory, green innovation, circular economy, structural equation modeling, resource-based view, dynamic capabilities.

How to Cite this Paper

Sharma, S. K. (2026). Impact of Sustainable Business Practices on Organizational Performance. International Journal of Creative and Open Research in Engineering and Management, <i>02</i>(04). https://doi.org/10.55041/ijcope.v2i4.849

Sharma, Subhash. "Impact of Sustainable Business Practices on Organizational Performance." International Journal of Creative and Open Research in Engineering and Management, vol. 02, no. 04, 2026, pp. . doi:https://doi.org/10.55041/ijcope.v2i4.849.

Sharma, Subhash. "Impact of Sustainable Business Practices on Organizational Performance." International Journal of Creative and Open Research in Engineering and Management 02, no. 04 (2026). https://doi.org/https://doi.org/10.55041/ijcope.v2i4.849.

Search & Index

References

Albertini, E. (2013). Does environmental management improve financial performance? A meta-analytical review. Organization & Environment, 26(4), 431-457.

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. Brundtland Commission. (1987). Our Common Future. Oxford University Press.

Dhaliwal, D. S., et al. (2011). Voluntary nonfinancial disclosure and the cost of equity capital. The Accounting Review, 86(1), 59-100.

DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited. American Sociological Review, 48(2), 147-160. Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), 2835-2857.

El Ghoul, S., et al. (2011). Does corporate social responsibility affect the cost of capital? Journal of Banking & Finance, 35(9), 2388-2406.

Flammer, C., & Luo, J. (2017). Corporate social responsibility as an employee governance tool. Strategic Management Journal, 38(2), 163-183.

Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Pitman.

Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: Aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, 5(4), 210-233.

Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), 986-1014. Margolis, J. D., Elfenbein, H. A., & Walsh, J. P. (2009). Does it pay to be good...and does it matter? SSRN

Ethical Compliance & Review Process

  • All submissions are screened under plagiarism detection.
  • Review follows editorial policy.
  • Authors retain copyright.
  • Peer Review Type: Double-Blind Peer Review
  • Published on: Apr 28 2026
CCBYNC

This article is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. You are free to share and adapt this work for non-commercial purposes with proper attribution.

View License
Scroll to Top