IIM-I Study Reveals Key Traits Driving Sustainability In Global Business

Indore (Madhya Pradesh): A study by Indian Institute of Management Indore has revealed five key enablers that shape pro-sustainability behaviour among global business leaders, offering both theoretical depth and practical guidance for organisations navigating the evolving demands of environmental and social responsibility.

At a time when sustainability has shifted from a peripheral goal to a business imperative, the study co-authored by IIM Indore faculty member Prof Bipul Kumar provides a behavioural roadmap rooted in Upper Echelon Theory — which posits that the values and cognitive styles of top executives profoundly shape organisational strategy.

Through a netnographic analysis of online dialogues among business leaders, sustainability experts and industry practitioners — covering blogs, forums, and social media — the researchers analysed 97 pages of content to develop a rich, global understanding of what motivates executives to lead sustainable change.

According to Prof Bipul Kumar, “Sustainability begins at the top. This study shows that leadership attributes like empathy, inclusivity and moral vision are not soft skills — they are strategic necessities in today’s complex business environment.”

As companies worldwide grapple with climate risks, shifting consumer expectations and regulatory pressures, this research from IIM Indore offers a timely and actionable blueprint. It underscores that real change begins not with policies alone, but with leaders who see sustainability as a shared human mission — not a compliance task.

“In an era where profit and purpose must go hand in hand, this study may well become a reference point for global boardrooms striving to lead responsibly and reshape the future of business,” the researchers say.

Five enablers of sustainability leadership

Emotional Engagement with Environmental and Cultural Values

Leaders who demonstrate a deep emotional connection to ecological and cultural issues are more likely to champion sustainability, making it a strategic, not symbolic, priority.

Techno-Cultural Orientation

Executives adept at integrating technological innovation with cultural sensitivity are better equipped to develop sustainable solutions that resonate across diverse markets.

Eco-Spirituality

A growing belief system among leaders views business through an ecological and moral lens — emphasising purpose, responsibility, and harmony with nature, beyond pure profit.

Inclusive Mindsets

Leaders who value collaboration, diversity, and broad stakeholder inclusion are more agile in aligning with sustainability goals and fostering innovation.

Responsiveness to Societal Expectations

In a world where public accountability is paramount, leaders are increasingly aware of the need to meet the ethical and social demands of communities, not just shareholders.

From insight to action: Implications for business leaders

Leadership Development: Programmes should cultivate emotional intelligence, cultural awareness, and ethical reasoning as core competencies.

Strategic Integration: Sustainability should be led from the top — embedded in board agendas, performance metrics, and strategic planning, not delegated to CSR departments.

Stakeholder Engagement: Firms must open continuous dialogue with diverse stakeholders to co-create solutions and anticipate evolving societal needs.

Community Involvement: Proactive action on education, health, and environmental restoration enhances trust and strengthens brand equity.

Published on: Monday, June 23, 2025, 04:10 AM IST