Integrating Sustainability Into Strategic Decision-Making ✓ Solved

Integrating sustainability into strategic decision making A

Integrating sustainability into strategic decision-making: A

The core focus of this study is to explore the integration of sustainability into strategic decision-making processes. It involves analyzing various methodologies, particularly the fuzzy Analytic Hierarchy Process (AHP), as a means to identify and prioritize relevant sustainability issues that can foster shared value for both businesses and societies. The study also examines related economic evaluations in health investments, the role of CEO vision in international business expansion, and the implications of corporate ethics and employee engagement in decision-making.

The Role of Sustainability in Strategic Decision-Making

Integrating sustainability into strategic decision-making is crucial for organizations seeking to maintain competitive advantages while promoting societal benefits. Calabrese et al. (2019) highlight that this integration requires a holistic approach, whereby organizations view sustainability not merely as a compliance issue, but as a fundamental aspect of their strategic framework. The fuzzy AHP method assists organizations in selecting which sustainability issues are most pertinent, thus enabling firms to align their business strategies with broader societal goals (Calabrese et al., 2019).

Economic Evaluation Methods for Health Investments

Culyer and Chalkidou (2019) conducted a comparative analysis of cost-benefit analysis (CBA) and cost-effectiveness analysis (CEA) methods in economic evaluations for health investments. Their research revealed a prevalent preference for CEA in many countries, although they argue that CBA may offer a more comprehensive framework for evaluating investments in health, especially in low and middle-income countries transitioning towards Universal Health Coverage. Adopting the appropriate evaluation method is vital in optimizing health investment strategies and ensuring improved outcomes.

Impact of CEO Vision on Internationalization

The role of CEO vision in a firm's internationalization process underscores a significant managerial influence in strategic decision-making. Gentile-Lüdecke et al. (2019) explored this through an examination of major African banks' cross-border expansion from 1988 to 2014. Their findings indicate that the CEO's vision can significantly shape investment decisions and internationalization strategies. This accentuates the need for firms, particularly in emerging markets, to recognize leadership vision in their strategic planning and international commitments.

Corporate Ethics and Organizational Culture

Corporate ethics play a vital role in shaping the overall management and performance of companies. Greene et al. (2018) and Munro & Thanem (2018) discuss the necessity of strong ethical foundations within organizational culture to prevent crises stemming from unethical behaviors. Organizations, especially in service-oriented sectors like insurance, must prioritize ethical training and embed ethical values within their core operational strategies. This fosters a positive work environment and encourages employee engagement, also enhancing overall performance (Markovic et al., 2018).

Employee Engagement and Organizational Performance

Utilizing attitude theory as a framework, the relationship between employee engagement, productivity, and profitability is further investigated. This theory posits that employee attitudes significantly drive their behaviors and outcomes (Witemeyer, 2013; Schleicher et al., 2015). By enhancing employee engagement strategies, organizations can improve overall productivity and profitability, demonstrating the interconnectedness of human resource practices and organizational success.

Strategic Models for Investment Decisions

The strategic investment decision-making models discussed are particularly relevant for investment professionals seeking to improve returns in a challenging market. These models provide a framework for understanding how strategic decision-making processes can optimize investment performance. With insights from Jensen and Maheu (2018), it becomes evident that embracing comprehensive decision-making strategies is essential for sustaining investment industry performance.

Conclusion

The integration of sustainability in strategic decision-making, the evaluation of health investments, the influential role of CEO vision, the enduring importance of corporate ethics, and fostering employee engagement form critical areas for contemporary organizations. By addressing these interconnected themes, companies can enhance their strategic frameworks, aligning both business imperatives and societal responsibilities to create enduring value.

References

  • Calabrese, A., Costa, R., Levialdi, N., & Menichini, T. (2019). Integrating sustainability into strategic decision-making: A fuzzy AHP method for the selection of relevant sustainability issues. Technological Forecasting and Social Change, 139, 145-155. doi:10.1016/j.techfore.2018.11.005
  • Culyer, A. J., & Chalkidou, K. (2019). Economic Evaluation for Health Investments En Route to Universal Health Coverage: Cost-Benefit Analysis or Cost-Effectiveness Analysis? Value in Health, 22(1), 99-103. doi:10.1016/j.jval.2018.06.005
  • Gentile-Lüdecke, S., Halaszovich, T., & Lundan, S. (2019). What role does CEO vision play in the internationalization process of firms? Evidence from the banking sector in Africa. Thunderbird International Business Review, 61(1), 13-27. doi:10.1002/tie.21958
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  • Jensen, M., & Maheu, J. (2018). Risk, Return and Volatility Feedback: A Bayesian Nonparametric Analysis. Journal of Risk and Financial Management, 11(3), 52. doi:10.3390/jrfm11030052
  • Markovic, S., Iglesias, O., Singh, J. J., & Sierra, V. (2018). How does the perceived ethicality of corporate services brands influence loyalty and positive word-of-mouth? Journal of Business Ethics, 148(4), 721–740.
  • Munro, I., & Thanem, T. (2018). The ethics of affective leadership: Organizing good encounters without leaders. Business Ethics Quarterly, 28(1), 51–69.
  • Schleicher, D. J., Smith, T. A., Casper, W. J., Watt, J. D., & Greguras, G. J. (2015). It’s all in the attitude: The role of job attitude strength in job attitude–outcome relationships. Journal of Applied Psychology, 100(4), 1259–1274. doi:10.1037/a0032526
  • Witemeyer, H. A. (2013). Employee engagement construct and instrument validation [doctoral dissertation]. Georgia State University. Retrieved from

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