The purpose of this paper is to make business the centrepiece of its inquiry into responses to the sustainable development challenge.
This paper uses the individual firm as its lens for viewing the sustainability challenge. It explores and synthesises the new strategic capabilities that business will require to meet this challenge and how these can contribute to sustainable competitive advantage. It argues that to focus management attention and understanding, these capabilities must be rooted in existing strategy paradigms. It cites India, a developing economy exemplar, to posit the compelling rationale for making corporate sustainability an integral part of business strategy for the developing world as well. It sounds an important cautionary note that – notwithstanding corporate acceptance of the urgent need – building sustainability, as a strategic business capability will still require significant management attention and efforts.
The prevailing social and environmental challenge that are an intractable negative outcome of development underscore the equal and vital significance of integrating corporate sustainability into business strategy in both developing and developed countries.
Inducting the conclusion that society needs to be a key consideration in a business's strategy, this paper underscores the essential business logic that can make it so – a causative flow from key sustainability‐related resources to strategic capabilities and thence to potential sustainable competitive advantages for the firm.
