ABSTRACT

The Corporate Sustainability Model describes the antecedents (drivers of success) and consequences (payoffs and measures of success) of investments in sustainability, and a way to analyze the social, environmental, and economic impacts of corporate products, services, processes, and other activities. This model is used to improve decision-making related to both targeted sustainability expenditures and other more general capital and operational investment decisions. The model shows the cause-and-effect relationship between managerial actions and improvements in sustainability and financial performance. The major sets of impacts relate to the direct and specific financial costs and benefits of corporate actions. Corporations should consider sustainability performance as a variable in the evaluation of total corporate performance and provide incentives for employees to suggest social, environmental, and economic improvements. Managers need to think broadly and consider both current and future impacts, as well as impacts on both the company and society.