ABSTRACT
This chapter addresses the issue by offering an evidence-based framework of how the leaders of small and medium-sized enterprises (SMEs) can create a virtuous cycle of sustainability. It provides a description of the definitional, theoretical and empirical foundations of the framework. The virtuous cycle of sustainability is a multi-level model providing a blueprint for the leaders of entrepreneurial organisations who are attempting to build a culture of sustainability within their organisations. Employee participation in firm direction-setting creates more ideas enhances employee buy-in to firm initiatives and improves implementation. The human resources (HR) value chain needs to be designed to attract, retain and engage a workforce who possess values and talents that are aligned with the firm's strategic direction. The macro-level organisational practices that make up the HR value chain provide an important dimension to high-performing SMEs. These practices provide the context in which an engaged workforce can develop and they have been associated with organisational success in sustainability efforts.
