ABSTRACT
This chapter provides a systematic overview of options for creating sustainability-oriented incentive systems and gives guidance to practitioners as to how to translate them into practice. It presents options for creating sustainability-oriented incentive systems, and discusses how to incorporate such systems into business practice. In corporate management, incentive systems are important tools that can be used to influence the behaviour of current and future managers in such a way that their behaviour complies with company targets. When creating incentive systems, it is necessary to determine which incentives to use to reward manager behaviour and when these incentives are paid. They are designed to encourage managers to develop behavioural patterns that are long-term oriented. The chapter also presents the most important regulations in Germany, complemented by recent initiatives from the US and UK. In order to strengthen corporate sustainability, companies can also use environmental and social incentives, which should be integrated into traditional financial incentives.
