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Abstract
Incorporating sustainability into leadership is necessary since it is establishing a new business
framework for firms. Leaders in the field of sustainability are those who are eager to make a
difference and who have worked to learn more about themselves and their place in the world. In
this context, this research study was conducted with the aim to investigate the effectiveness of
sustainability leadership strategies followed by McDonald's restaurants in the UK to grow
profitability.
The goal of the study was achieved via the use of a qualitative research technique based on an
inductive approach. The data has also been analysed using a descriptive, thematic analysis
approach. Both primary and secondary data were utilised to produce these findings. There were
10 McDonald's workers interviewed for this research to collect primary data. Secondary data,
such as those found in published articles, newspapers, books, and the like, have also been
collected for this research.
The study revealed that McDonald's cares about its local communities and offers superior service
to its patrons. Building trust, support, and caring among its constituents are all outcomes of the
company's eco-friendly policies and procedures. The company was discovered to be founded on
principles of equality, diversity, and acceptance. The company provides its employees with
excellent learning and growth opportunities. A sustainability and corporate responsibility
committee monitors the company's actions to ensure they are resilient and sustainable.
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Table of Contents
Abstract............................................................................................................................................2
Chapter 1: Introduction....................................................................................................................6
Introduction................................................................................................................................11
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3.1 Introduction..........................................................................................................................21
3.10 Limitations.........................................................................................................................25
Chapter 4: Findings........................................................................................................................26
Introduction................................................................................................................................26
Chapter 5: Discussion....................................................................................................................34
5.1 Introduction..........................................................................................................................34
5.4 Summary..............................................................................................................................37
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6.1. Conclusion..........................................................................................................................38
6.2. Recommendations...............................................................................................................40
Bibliography..................................................................................................................................42
Appendix........................................................................................................................................49
Interview questions....................................................................................................................49
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Chapter 1: Introduction
1.1 Research Background
For a long time, organizational interest in sustainability drive has enhanced to ensure profitability
(Morris, 2012). Sustainability in this context is regarded as a business framework where leaders
consider all three aspects of business, which are people, profit and planet while developing a
long-range outlook for the company. Throughout the forthcoming decade, business frameworks
will possibly comprise sustainable strategies as a portion of mission, vision and regular activities.
Sustainability is creating a new business framework for companies and therefore requires to be
incorporated into leadership also. Sustainability leaders are people who are driven to change the
world by increasing their understanding of who they are and how they fit into it. They achieve
this by embracing new ways of seeing, thinking, and engaging, which leads to creative, long-
lasting solutions. A sustainability leader is a person who motivates and encourages others to take
action for a better future. For sustainability leaders, it is essential to understand how the system
as a whole is interrelated and interdependent at all levels, as well as how changes to one area of
the system influence the entire system. Leaders in sustainability aggressively seek out fresh
information and opposing viewpoints, challenging conventional thinking, and being open to
having their own beliefs contested (Visser and Courtice, 2011). Based on this, the objective of
the research is to explore efficient sustainability leadership approaches by studying a
multinational organization namely McDonald’s in the UK.
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not concerned about which sustainable strategies are required to implement in the company for
long run success (Crosby, 2016). Therefore, the research intends to deal with this problem of
organizations and to understand how sustainable leadership can be implemented, by considering
the case of McDonald’s.
To fulfill the aim of this study, the key objectives of the research are:
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1.5. Research Questions
The key questions that the research is going to answer is
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1.8. Research Rationale
The first rationale for choosing the topic is that sustainable business approaches can enhance
possibility for increasing revenue for organizations. However, most of the organizational leaders
unable to implement them in their companies and very few of them have developed sustainable
action for developing competitive benefits (Kiron, 2014).Certain business leaders unable to
understand how to address the ever fluctuating international environment through sustainability.
Therefore, the research intends to solve this problem of sustainability leadership. Furthermore,
the second rationale is that there are limited researches that are conducted to understand the
connection between sustainability leadership and organizational profit, which this research is
going to fulfil. This research will contribute to the business practices as limited information
exists regarding leadership abilities essential in order to guide leaders to initiate sustainable
activities. Leaders recognize the requirement for sustainable abilities, but most of them do not
know about the practical inferences (Illia, 2015). Sustainable activities can give a business
framework that certifies a secure and valuable ecosystem and preserves the wellbeing of society.
Sustainable procedures influence the environmental situation of societies without compromising
the business. While companies once regarded corporate social responsibility strategies to be
accompaniments to organizational strategy, in present days, they are critical to corporate
significance and sustainability (Mitra & Borza, 2016). The third rationale is that the research is
going to explore how sustainability leadership can be integrated into organizations to enhance
profit, by using the case of McDonald’s. Sustainability leadership approaches remains
convoluted owing to intricacies of this concept and complex characteristics of leadership
(Metcalf & Benn, 2015). Furthermore, the aspects of sustainable organization is difficult to
measure, since they are nonlinear type. Nevertheless, organizational leaders consider sustainable
strategies as a method to enhance business status, whereas unable to obey such principles can
have adverse influence on brand reputation (Lourenço, 2016). Organizations can use the outcome
of the research to develop training frameworks and commands to guide companies as they
incorporate sustainable business practices in the organizational culture.
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research, organizations can understand the importance of using sustainable practices to increase
revenue in the long run. The study can also provide information regarding how an organization
can obtain a competitive advantage in the market by applying sustainability leadership activities.
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Chapter 2: Literature Review
Introduction
As revealed by Jamieson & et al., (2021) sustainability along with the concept associated with
the triple bottom line of profit, the planet as well as people has led to a paradigm shift in
corporate viewpoints. In the year 2015, it has been found that the leaders of the globe at the
United Nations Development Summit decided to implement sustainable development agenda for
2030. Nonetheless, it has been noted that for attaining Sustainable Development Goals all over
the globe, there is a requirement for multi-prolonged and integrated methods along with
collaborative work from business leaders.
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stewardship needs tends to assist organisations in making significant enhancements in their
bottom lines that assist the organisation in ensuring the sustainability of their organisation.
When companies embrace the concepts of sustainability leadership, it is noted that they are
capable of attaining competitive advantages and thus enhancing performance. ULSF (2009)
stated sustainability is the paradigm that tends to evolve constantly and tends to be utilised by the
organisation to plan and make decisions. It can be considered a dynamic concept demanding an
understanding of the association among distinct social, economic along with ecological systems.
On the flip side, Savitz (2006) stated that business sustainability is one of the powerful as well as
defining ideas. Sustainable organisations tend to develop profits for the shareholders and shield
the environment and enhance the lives of the stakeholders. As per the views of Kiewiet & Vos
(2007), the triple bottom line views can be considered as prevailing views over organisational
sustainability. Rodriguez & et al. (2002) states the fact that the chief objective of an organisation
needs to be to develop a value for the shareholders utilizing shareholders' satisfaction when the
organisation perform the right thing for the right reason so that it can attain sustainable
competitive advantages.
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costly conflicts. It can be revealed that at the core of open innovation tends to be comprehension
of the fact that knowledge is distributed equally among the stakeholders in the business
environment.
As revealed by Olafenwa (2021) the leaders of the company should make use of the external
stakeholders and internal knowledge base. This kind of novel paradigm associated with
innovation tends to challenge conventionally closed as well as vertical modes of innovation by
revealing the fact that raised mobility of the skilled workers and less control associated with the
unwanted spill overs to other related firms are found to shrink the margin of the firm from
investment over internal resources such as R&D. Nonetheless, it can be revealed that the
differences between forms that are open or not open tend to attain criticisms from scholars
arguing the fact that closed modes of innovation do not take place in reality. It is accepted by
Orlitzky & et al. (2021) that distinct degrees of openness prevail and firms might be positioned
on a continuum from closed to open innovators. Firms might execute three distinct methods of
open innovation. One of them has been associated with elevating the internal knowledge base by
utilizing exploration and attainment of knowledge from external sources. The other one has been
linked with making use of the external pathways so that the abandoned ideas can be exploited
and thus use of the unutilised internal knowledge can be done. As per the views of Madonsela
(2016), the third one has been linked with joint knowledge development along with
commercialisation by coordinating with complementary innovation partners. Though all such
processes tend to demonstrate open innovation strategy, they might not prove to be significant
for all kinds of firms and in all kinds of business situations, the firms belonging to mature
industries tend to pay attention towards the outside-in domains of open innovation for
complementing internally developed knowledge. In light of such contributions, it can be revealed
that open innovation tends to be focused upon outside-in and coupled methods, as it tends to
comprise the flow of knowledge in the firm.
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use, encouragement of minimal and no capacity worsening, proper resource management,
avoiding overconsumption of resources, changing the behaviour of usage and waste tend to
denote sustainability leadership. It is well known fact that sustainability tends to implement
business practices that proves to be social and environmentally responsible. Most of the business
leaders noted the requirement to differentiate sustainability leadership from leadership in general
might be significant, but a temporary phenomenon. Comprehending sustainability leader
demands that a person appreciate their traits, skills, styles and knowledge. It is the combination
of all these qualities making the individual leader quite unique. It can be stated by Boiler & et al.
(2015) that businesses in the present times are found to face immediate impacts of climate risks
physically as well as financially. Most industries are found to be impacted in a certain manner
because of climate risks. The rising temperatures along with climate disasters have led to drought
as well as food insecurity in the agricultural sector in most parts of the globe. Furthermore,
climate change tends to disturb the global supply chains. While the companies note the short-
term as well as long-term impacts of climate change, they also determine that sustainability
strategies help in attaining higher financial values. It has been noted that sustainability leads to
financial performance thereby leading to overall enhanced profitability in the value chain.
According to the views of Ferdig, (2017) financial benefits tend to be because of the desire of the
customer for sustainable products and companies. Customers want to spend money with
sustainable responsible companies. It has been indicated that sustainable products possess huge
growth rates in comparison to non-sustainable products and consumers are found to prefer the
products that are labelled as sustainable. According to the views of Robinson (2011), the other
reason behind sustainable leadership's growing significance has been its capability to lure
purpose-driven talent. There is a huge shortage of high-quality talent around the globe. People
tend to possess different choices and thus choose organisations sharing their priorities along with
sustainable leadership. The advantages of a lower carbon footprint for the company tend to be
numerous. It tends to benefit the company to be viewed as an environmentally conscious brands.
Most consumers are aware of the environmental impact of the globe. Thus they look at the
companies that are performing their part in trying to minimise such impacts.
As stated by Amoako (2019) by promotion of sustainability, it has been noted that employers
tend to urge for a conscious workforce thereby taking into account their actions. In the
organisation, it is noted that the employees would be more tactful with one another and thus
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minimise wastefulness in case it is possible. A sustainable workforce tends to possess advantages
for the employees in a distinct manner that can benefit the company itself. A study noted that
companies with sustainability initiatives possess involved and loyal employees.
Learning Challenge
It can be revealed that too much collection of the facts might lead to paralysis from analysis. On
the flip side, moving quickly without proper reflection might lead to a wastage of resources and
time.
Impact Challenge
Out of many hours in a day, sustainability leaders are supposed to make tough calls.
Sustainability leaders are supposed to constantly balance between paying attention towards the
task and also focusing on the people.
Reconciliation challenge
In pursuing sustainability, it is important to break the old behaviours, prevent old habits from
taking place and thus instil new practices. Such deep-rooted changes lead to conflicts in the
workplace. How the sustainability leaders handle the conflict determines if the sustainability
issues are resolved and if the relationship can be redeveloped.
As mentioned by Avery & Bergsteiner (2022) it is significant for sustainability leaders to involve
and empower the employees. Sustainability leaders need to pay attention towards encouraging
the employees and thus develop skills so that they can perform what needs to be performed.
Lack of resources
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As revealed by Makipere & Yip (2018) certain business does not contemplate the fact that they
possess the required materials such as time and money to implement sustainability strategies. A
person does not need to become a green business at all at once. Solar panels, sustainability-
sourced materials as well as LEED certification are not the required measures that a business
might pursue. A person can make small and affordable changes that prove to be better than doing
nothing else.
As revealed by Gibson (2019) it becomes impossible to comprehend if the efforts made by the
company are worthwhile in case the company is not able to measure the results. Instead of
worrying about what other businesses are performing, it is significant to take strides to perform
what makes sense for the organisation. It becomes significant to gather data on cost and sales and
thus compare it with the outcomes after having implemented the sustainability initiatives. In case
the sales of the company don't improve, then the company might have undermarketed their value
as a sustainable business to the consumer.
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thus expanding their business. Leaders regularly tend to face different challenges of distinct
varieties that might be the outcome of the ones who came before them. In the context of the
global climate crisis, it can be considered as a lack of actions made by the previous leaders that
led to the current level of pollution, burning of fossil fuels as well as generation of waste. As per
the views of Morsing & Oswald, (2019) it becomes imperative to lead by example and thus
practice sustainable leadership. Leaders at all levels might make a difference by setting an
example and thus becoming mindful when sustainable practices are being taken into
consideration. As mentioned by Szekely & Knirsch (2015) it is significant to be a sustainable
expert to initiate sustainable practices. It might start from the smallest actions such as showing
up to the event and keeping waste and recycling in proper bins. It can be revealed by Tideman,
Arts & Zandee (2019) that these kinds of action might prove to be monotonous, however, it
proves to be noticeable and might become instinctive. After creating a proper understanding of
the impact on the environment, it can be taken to the next level. It also becomes significant to
minimise the carbon footprint on the planet. As per the views of Maryville University (2021)
leadership tends to be regarding constant learning as well as the creation of skills for the people
around. Though most people are sustainably aware and take into account the negative impact on
the environment, some people might be at a distinct level. Leaders might not lead to engrave
their beliefs as well as practices over others, instead, they might assist others to discover their
strengths and offer scope to enhance them.
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the long-term survival of the firm. Sustainability has turned out to be a mega trend in the
business and thus changed the demands that have been placed on leadership thereby developing
the requirement of new kinds of leadership such as sustainability leadership. According to the
perception of Chiu (2021), sustainability leadership tends to demand taking into consideration
long-term viewpoints in the decision-making methods, fostering innovation through which value
can be raised, creating a skilled and loyal workforce and offering quality products, and services
along with solutions. As stated by Arnocky, Milfont & Nicol (2014) through the use of
sustainability as the driving force basically for new technologies, and business methods that try
to enhance the operation of the business, organisations are capable of attaining competitive
advantages and also ensure the fact those constant enhancements of performance takes place. It
has been noted by Jonah (2015) that whilst low power distance, high individualism and low
uncertainty avoidance hamper the capability of the organisation to state radical innovations, they
might as well assist in the implementation of incremental innovations. According to the opinion
of Amabile & et al. (2019) high uncertainty avoidance might positively impact the performance
of technological innovation in industries where there is a need for clear instructions and controls.
High collectivism would lead to a communication context that might lead to the recognition of
technological innovation.
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Developing sustainability leadership to incorporate revenues
It can be revealed by Park & Kim (2018) that balancing of the corporate profits with that of
social along with environmental proposals tends to be a challenging task for business.
Incorporating sustainable activity in daily activities tends to challenge the organisations that
wants to advance the corporate CSR efforts. In order to become sustainable entity, there is need
of company efforts and also regarding the users and supply chain. Employee involvement tends
to be intangible results of the sustainable efforts. Nonetheless, it is quite hard to assess these
kinds of activity. For inculcating the sustainable practices into organisational culture there is
need of involved leaders, employee commitment as well as buy-in by all stakeholders. In case
the managers are found to integrate the sustainable behaviours, they would be realising lower
expenses in case of difficult economic times and thus helps in attaining competitive advantages.
Leaders tends to associate sustainable practices with that of the brand strategies both internally as
well as externally. Nonetheless, the two main triggers are considered to be organisational value
as well as market needs. It can be revealed that coordination of sustainable practices would assist
in boosting the brand equity of the organisation without experiencing any kinds of substantial
advertising as well as promotional costs.
According to Choi, Ullah & Kwak (2015) leaders belonging to larger organisation tends to be
under huge scrutiny and tends to be faced with scope to comply with CSR initiatives provided
their visibility. It is noted that small business leaders possess a favourable organisational
structure so that they can implement sustainable business and thus incorporate it into corporate
culture. It becomes quite easy in order to embed sustainable tactics in small business because of
the fact that entrepreneurs leads to corporate culture and also possess the scope to convert the
goals into strategy. Leaders who belong to the bigger organisations are capable of possessing the
infrastructure in order to promote their sustainable activities external to organisation thereby
leading to positive perceptions. It can be revealed by Naudé (2012) that profitability might be
assessed by examining the short term or long-term time frame of corporate revenues.
Sustainability practices that prevails in business and have paid due attention towards the long
term profitability have grown in acceptance for properly using resources, organisational design
and also for attaining competitive advantage. The rise of the sustainable leadership as method in
order to evolve with increasing business changes have raised questions in relation to priorities of
business as well as profitability. The leaders who are in financial industry tends to be under huge
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pressure for balancing constant demand for increased quarterly earnings along with long term
sustainability from the shareholders.
As per Bateh, J. & et al., (2016) sustainability leadership can be considered as holistic approach
for guiding organisation that tends to pay attention towards balance of people, planet and profits
by means of strategies that are evidence based. Collective research tends to agree on the fact that
sustainable leaders tries to execute strongest business management strategies in parallel with the
sustainable practices for ensuring present financial success as well as longevity of the company.
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Chapter 3: Research Methodology
3.1 Introduction
Research methodology is means through which studies are taken place. It leads to process of
dealing with things that possess collection of methods, participant’s observations and also
statistical analysis. It helps in research study conduction that assist in emphasising upon
techniques and tools so as to perform the findings of the research (Braun & Clarke, 2019). The
aim of this study is to investigate long term leadership methods which McDonald’s executive use
to boost the corporate income.
Since, The aim of this study is to investigate long term leadership methods which McDonald’s
executive use to boost the corporate income so this study have used interpretivism philosophy
(Singh, 2021). The application of this philosophy have assisted in giving focus to acknowledge
process and also assisted in interpreting social meaning. The use of interpretivism philosophy
have made it appropriate for qualitative methods and assisted researcher in performing interview
(Crotty, 2013). The use of interpretivism philosophy have also helped researcher in attain
contextual observation and also collect interview data.
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qualitative research and acknowledge phenomena through seeking newer insights and ask
questions (Maher & et al., 2018). Descriptive design is a design that explains about events that
are analysed through various perspectives. Explanatory research design is design which helps in
building cause-effect linkage and is applied in quantitative methods.
Since, aim of this study is to investigate long term leadership methods which McDonald’s
executive use to boost the corporate income so this study have applied exploratory research. It
assist in evaluating issues and also to conduct focus group interviews in subjects. This research
design have assisted in attaining background data and assisted in meeting research question.
Since, The aim of this study is to investigate long term leadership methods which McDonald’s
executive use to boost the corporate income so this study have made the usage of inductive
approaches (Rahi, 2017). This approach helps in providing explanations regarding situational
occurrence and also give emphasis on patterns and review conclusion. It have also assisted in
building assumption and systematic analysis by acknowledging regularities so as to meet
conclusion. The use of inductive approach also helps in giving support to new theory and are
flexible (Scotland, 2012). However, inductive research also possess certain limitation as it does
not prove conclusion wherein it is also time consuming.
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might be a product of research strategy. It is that method which possess interviews, observations,
etc so as to attain subjective outcomes. On the other hand, quantitative methods are those that
give focus on quantification of data and monitor empirical variables (Rahi, 2017). This method
need larger size of samples and make use of statistical process so as to examine meaning and
variations. The quantitative research helps researcher in acknowledging problems which needs to
be studied and develop hypotheses.
Since, The aim of this study is to investigate long term leadership methods which McDonald’s
executive use to boost the corporate income so this study have made the usage of qualitative
methods. The researcher have made application of qualitative methods as it helps in getting
detailed description regarding the study and also assist in data analysis. This research methods
have also been used in this study as it executes in limited budget and assist in fast result
(Dammak, 2015). This methods will even be helping in getting detail knowledge to boost the
corporate income and investigate long term leadership methods. However, there is higher
chances of qualitative research getting subjective and inaccurate and thus, there is higher chance
of ineffective results.
Since, The aim of this study is to investigate long term leadership methods which McDonald’s
executive use to boost the corporate income so this study have made the usage of both primary
and secondary data. This study had gathered primary data by the means of interview wherein 10
employees of McDonalds have been recruited. The interview had been chosen as it is flexible
and helps in attaining accurate data by paying attention to each questions. This data sources are
highly valid and also accurate and even assist in gaining updated data. The data collected from
interview had been stored as a transcript in a word file which is kept securely in researcher
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laptop. Password have been used so as to keep the data secured. Apart from that, this study have
also collected secondary data by the means of articles, news, books, etc. Each of the data
collected from the secondary sources have assisted researcher in saving time and also efforts
wherein also helps in understanding issues.
This study have made the usage of non-probability sampling techniques wherein purposive
sampling have been selected. It is a type of non-random sampling technique wherein researcher
deliberately choose sample which gives data that answer questions of the research. 10 employees
of McDonalds have been selected by the means of purposive sampling. Researcher had made the
selection of the employees of McDonalds through asking permission from the McDonalds
Company. A consent form had been provided to each of the participants wherein participants
were free to take part in the interview. None of the participants were forced to be part of the
interview. This sampling have assisted in getting connected with only target population and is
easy to utilise.
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3.9 Ethical consideration
This study had given focus on ethics wherein researcher had provided informed consent to its
participants prior to taking part in this study. Each of the data which are linked with this study
were effectively stored so as to maintain security of data and safeguard unauthorised users. This
study have gathered only authentic and academic data sources in which only peer-reviewed
journals had been included in this study through authentic sources. There were very lesser
chances of plagiarism in this study as each of the work are analysed effectively.
3.10 Limitations
Researcher had faced plenty of issues at the time of execution of the research in which time was
major factor that had impacted the study findings. As, time limitation was provided so researcher
got less time in order to execute chapters effectively. Researcher even faced problems in order to
find samples as there were larger rejection rates in research study. Moreover, online methods of
collection of data have even impacted the credibility of study. If the researcher would have used
face-to-face interview methods instead of online methods than there would have been a
possibility to enhance the data quality.
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Chapter 4: Findings
Introduction
In order to understand sustainability leadership strategies in organizations, an interview is
conducted with 5 interviewees comprising executives and managers in McDonalds’s. The
objective is to understand the suitability leadership methods used by the organization and how it
help to support profitability. It also intends to reveal the sustainability leadership factors in the
organization.
“sustainability is a part of our organizational culture. It help to define our brand and our company”.
Another interviewee stated that it uses sustainability in business practices through various ways
like packaging. According to him
“our company mostly uses recycled and certified sources while packaging materials and is intending to
increase its percentage as 100% in future”.
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The company also reduces the use of plastics in developing the toys as a part of sustainability
practices. One interviewee mentioned that
“our company carried out water efficiency projects and it has helped to minimize water usage for
business practices. In this way we are able to save millions of gallons of water for business purposes.”
The company also found to support biodiversity and involve with the societies and farmers to
protect the natural ecosystem. The organization also found to concentrate on minimizing
emission from its restaurant activities. It also involve the suppliers to minimize the emission and
in this way strengthen the resilience of the business (McDonald’s, 2022). The leaders use their
voice to promote collective transformation in the organizational business practices towards
sustainability. The organization also supports renewable energy projects and in this way intends
to reduce the dependence on nonrenewable sources and reduce the GHG emission.
The interviewees also stated that the organization concentrates on improving the life of the
employees and the surrounding societies. In accordance with an interviewee,
“our company always try to evolve in the changing world. We give flexibility in working to support the
personal and professional life.”
Furthermore, the organization also found to take care of the communities and provide better
services to the customers. Through its sustainability practices, the organization is able to create
trust, support and care for the people. The research of Rahardjo & et al., (2013) observed that
companies with commitments towards sustainability practices has strong culture and their
leaders recognize the social and environmental factors as opportunities to improve performance.
The employees, suppliers and communities preserve sustainable culture through sharing core
values with other important stakeholders. Kantabutra & Avery (2013) stated that companies with
strong sustainability leaders encourage a culture of mutual vision and values. These mutual
visions and values are also recognized by an interviewee who stated that
“our company has particular principles that outlines our values and vision. We have sustainability
priorities in our business practices. Apart from making profit, we want to create a positive influence on
the environment. We also give priority to people by education and training.”
The organization found to be guided by values of diversity, equity and inclusion. The
organization gives bets employee experience where they are provided the prospect to learn and to
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develop. The organization is committed towards enthusiastically encouraging an inclusive
culture, which is an important element of regular practices.
The interviewees are asked about the key practices employed while incorporating sustainability
in regular business functions. From the interviewee various practices has been observed. For
example in its business functions, the company intends to reduce the level of GHG emission.
With regard to packaging the recycled products are used and plastics are avoided (McDonald’s,
2022). The company has sustainability and corporate responsibility committee that observes
organizational efforts towards sustainability and resiliency. The organization also involves in its
environmental and people performance reporting practices. For example, the organization is
observed to use responsible sourcing. It also involves in nutrition practices. The organization
involves in responsible marketing practices so that the customers make more informed nutrition
choices while buying products. While conducting business, the organization also ensures
animal’s health and welfare. McDonald’s also support deforestation and support the renewable
energy projects that reduce GHG emission. The organization involves in youth opportunity
program, which help to minimize the barriers of employment for young employees. The
organization gives pre-employment job readiness training and organize workplace development
programs for enhancing the career prospects of employees. The organization has created a
culture of integrity and provide respect to all employees.
The interviewees are asked how the organization adjust the sustainability leadership practices
with organizational profitability and value for stakeholders. On the basis of interview, it can be
stated that sustainability leadership help to develop positive relationships with people and in this
way enhances the way the organization sense the values and requirements of various
stakeholders. One interviewee stated that sustainability improve the collective intelligence
through developing the decision making procedure by concentrating it on important stakeholders.
In this way, sustainability leadership help to generate responsibility at every level. When
employees are responsible they demonstrate good performance and that transform into
organizational profitability. The literature review also supports the fact that sustainability
leadership practices has strong positive connections with long run financial performance.
Organizations, which are only concentrated on developing the markets, rather than on
sustainability, tend to focus less on other aspects like team leadership, which negatively
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influences the organization in the long run. Organizations that involve in sustainability
leadership practices help to develop strong working culture that inspire innovation, knowledge
sharing, long run perspective, high skilled employees and extensive stakeholder focus
(Suriyankietkaew & Avery, 2016). All these factors enhances the performance on financial and
environmental aspects.
The interviewees are asked how the organization can maintain both ethics and profit. On the
basis of interview, it is observed that ethics can support profitability through minimizing the
expenses of business transaction. Ethical organization help to generate a feeling of trust among
the stakeholders. It contribute to the development of a positive inner working environment,
which makes team successful. Strong ethics help to maintain social capital, which support a good
brand image and that inspire the investors to invest more in the company and also attract the
customers to associate themselves with the ethical brand. Therefore, they are willing to purchase
from the organization which involves in ethical practices, which in turn enhances profitability.
According to an interviewee,
“when a customer perceive that the organization is ethical, a positive value is generated and it creates
certain level of positive image. Customers try to relate their purchasing decision according to the
perceived value that help to increase the sales of the organization.”
These customers have high degree of satisfaction and loyalty and can also inspire others.
“we try to perform with as many stakeholders as we can, such as local farms, NGOs and other associates.
We only obtain products from certified suppliers.”
The interviewees also mentioned the importance of stakeholders in regular business functions.
According to an interviewee,
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“we obtain inputs from our key stakeholders like customers, which help us to improve our business. We
also include the feedback from other stakeholders like employees and suppliers in our business.”
Thus, from the findings, it is clear that the stakeholder inclusion plays important role in
sustainability leadership. The research of Crosby (2016) also observed that companies that give
importance to sustainability leadership value the interests of stakeholders. Incorporating the
stakeholders in the business framework permits for increased transparency for the companies and
help to develop an inclusive culture. It is also vital element for generating value. Additionally,
Dincer and Dincer (2013) also discovered that organizational business frameworks require to
integrate stakeholder components in decision making. The interviewees have clarified that
stakeholder integration is a method of creating inclusive organization.
The interviewees are further asked how the organization balance various aspects like brand
equity, customer satisfaction, and long run value and short run financial performance. On this
question, one interviewee stated that
“while developing strategy, we always try to make sure that we understand sustainability and integrate it
in every business practice. For example we want to generate brand awareness through our
advertisement. We create brand association through various marketing practices and developing good
relationship with the customers. Our company always try to maintain quality in our products and
services, which creates strong brand equity and satisfies the customers”.
“through integrating sustainability in business practices, our company is able to deliver long run value in
terms of better social responsibility. This creates a positive brand image and equity and in turn also
inspire customers to purchase products. With sustainability practices like reducing energy usage, water
usage and sensible use of resources our company is also able to improve short run financial
performance.”
“our company invests in people like employees and community, who intern provides greater services to
customers, resulting in greater brand equity and loyalty. When customers are happy, eventually this
results in increased sales and increase financial performance.”
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4.4 Benefits of Sustainability Leadership
The interviewees are also asked about the benefits the company obtains while practicing
sustainability leadership. From the interview, various benefits of using sustainability leadership
has been observed. The first important benefit mentioned by interviewees is increased financial
performance. Since many customers in present day’s desire for sustainable products, they spent
on sustainably responsible companies. This help to drive sales. In this way, it can create
advantage for the organization in terms of greater financial performance. Another important
benefit observed from the interviewee is attracting talented employees. Sustainability leadership
practices help to attract purpose oriented employees. Employees like to join in those
organizations which are socially responsible and involve in sustainability practices. This is
specifically true for the current generation people who are much passionate regarding
sustainability.
Apart from that, another benefit that has been observed from the interview for practicing
sustainability leadership is investment. Sustainability activities found to attract many investors as
they are concerned about how sustainable the company is performing. Most investors desire to
know if the organization is performing according to sustainability principles. Sustainability
practices help to reduce the risks of business, with respect to environment, financial issues and
social issues and therefore increases the viability of the organization in the long run. Most
investors desire to understand the long run viability of their investments before investing.
Therefore, when the organization uses sustainability leadership practices it demonstrates the
viability of the organization in the long run and make investors to take decisions on investing in
the company.
The interviewees also mentioned that sustainability leadership provide solutions to financial
problems. By obtaining sustainability leadership the organization can obtain long run growth in
business. Sustainability practices help the organization to flourish and expand in the long run. It
is an investment, which eventually provides competitive advantage for the organization.
Sustainability leaders help to create new methods of working that support the consistent
arrangement of business, humanity and environment.
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4.5 Problems of Sustainability Leadership
The interviewees are asked about the problems of sustainability leadership in their organization.
From the responses, the most obvious problem observed is balancing the three key aspects of
sustainability, which are profit, people and planet. It is particularly challenging for any
sustainability leaders to ensure that the organization earn sufficient profit in order to continue its
business operations and at the same time care for the employees and care for the environment.
One interviewee stated that sustainability practices require investment in people in order to make
them satisfied and committed towards the organization so that they perform better and satisfy the
customers. Besides, robust investment is also required for embracing environment friendly
practices like use of energy efficient technologies, use of quality raw materials, reduction of
GHG emission, waste management and reduction of natural resource usage among others. These
aspects comes with significant cost for organizations and makes it hard to increase profitability.
According to an interviewee,
“sustainability leadership require implementing new ideas, which is quite hard to achieve. We need
strong supporters who can observe the bigger picture, intentionally take the big step and properly
understand the goals.”
“in order to pursue sustainability, we need to embrace new behaviors and new culture. We need to stop
the old thinking of doing business only to earn profit by disregarding other aspects. We need to break the
old habits and instill new activities. Such kind of deep rooted transformation in behavior inevitably is
challenging because it creates conflicts and the outcome of such practices cannot be realized overnight. It
requires time to obtain the benefits of sustainability practices. The short term profit mindset is a key
challenge towards sustainability practices.”
One interviewee stated that there is requirement to continuously balance between concentrating
on task and concentrating on people. According to him,
“sustainability leaders make to take tough decisions. They need to decide whether we should invest in
developing good relationships with employees or concentrate on getting the task done with excellence.
This is very hard thing to achieve.”
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4.6 Sustainability Leadership and Competitive Advantage
Finally, the interviewees are asked how sustainability leadership results in competitive advantage
for the organization. In accordance with an interviewee, sustainability leadership help to bring
opportunity to develop performance not only from financial viewpoint, but also from
environmental and employees’ viewpoint. In this way, such leadership practices help to shape
innovation and also ensure continuous improvement, which is important for competitive
advantage and also brings about long term success. Another interviewee stated that sustainability
leadership generate a comprehensive vision by positive cultural changes. It creates strong
networking with various stakeholders and help the organization to cope up with financial,
environmental and community problems. Therefore, it enhances organizational performance at
all level. Sustainability leadership practices help to observe the external environment
continuously, which help to develop unrelenting connection with various key stakeholders and to
develop strategies for sustained competitive advantages.
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Chapter 5: Discussion
5.1 Introduction
This study of primary data, which was carried out by means of an interview and which is
presented in this chapter, yielded these most noteworthy conclusions. Also, the data was gathered
via the process of secondary research as well. In the meanwhile, the primary objective of this
study is to assess the efficacy of sustainability leadership techniques used by McDonald's
restaurants in the United Kingdom to increase profitability. This chapter is broken up into two
sections according to the research topic that was first posed. In the first part of this chapter, an
investigation of the perspective of sustainable leadership in the corporate world is presented. In
the second section, further specifics on the advantages of assuming a leadership role in
sustainability are discussed. In addition, a summary of the most important areas of disagreement
that were discussed during the presentation may be found in this chapter.
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Leadership that prioritizes sustainability welcomes change and transformation within the
business and offers answers to problems that arise in the context of sustainability. According to
the findings of the research, there are a number of different ways in which corporate strategy
may be combined with leadership in sustainable practices. In this context, according to the
primary study of McDonald's, it has been established that the corporation decreases the
utilization of plastics in the development of the toys as part of their sustainability policies. This
was found to be the case in this context. Also, the business discovered that it could promote
biodiversity and actively participate with local communities and farmers in the protection of
natural ecosystems. The firm also discovered that it should focus on reducing the amount of
emissions produced by its restaurant activity. It also requires the participation of the suppliers in
order to reduce emissions to their absolute minimum and, as a result, improve the robustness of
the company. Also, the group provides financial assistance to projects that use renewable energy.
By doing so, they want to lessen their reliance on non-renewable sources of energy and cut their
contribution to greenhouse gas emissions. In addition to this, it was discovered that the company
showed concern for the local communities and offered improved services to its clientele. The
company is able to earn the people's confidence, support, and caring as a result of the sustainable
measures it has implemented.
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from that, leadership that prioritizes sustainability works to increase both the organization's
current and its long-term revenues. In this context, developing a sustainable leadership style
requires the leaders to become sources of innovation, which will allow them to establish
competences while also paying consideration to the long-term sustainability of the business. For
this reason, the leadership of sustainability has a significant part to play in the framework of the
company as it exists today.
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with advertising or marketing (Park & Kim, 2018). Nevertheless, the literature review conducted
by Naudé (2012) has provided a perspective that is in contrast to this by noting that the growth of
sustainable leadership as a way in order to adapt with rising business changes has generated
problems in regard to the priorities of company as well as revenue. This viewpoint was presented
in the form of a statement. The executives of companies in the financial sector often face
enormous amounts of pressure to strike a balance between the continual need for increasing
quarterly profits and the long term sustainability that is expected from the company by its
shareholders.
5.4 Summary
The above discussion suggests that responsible business leaders should think about more than
simply the environmental impact of their organisation when it comes to sustainability. They
should also think about the social concerns that emerge, such as the treatment of employees and
the effectiveness of management. In regards to the research, McDonald's sustainability policies
involve reducing the amount of plastics used in the creation of the toys. In a similar vein, an
organization's ability to feel the values and requirements of its many stakeholder groups is
enhanced when its leaders have established strong links with those groups. Meanwhile, experts
and journalists from many other professions have spoken out in favour of this view. In addition
to boosting the company's long-term profitability, sustainable business practices reduce the risks
inherent in operating a business, especially those related to the environment, financial problems,
and social issues. The emergence of sustainable leadership as a response to increasing business
changes has been discussed; however it has been shown to create difficulties in terms of firm
priorities and income. So, the results of the primary and secondary research suggest that many
studies conducted in different fields of study might be utilized to produce fundamentally
comparable and opposing outcomes.
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Chapter 6: Conclusion and Recommendations
6.1. Conclusion
The primary aim of this study is to investigate the effectiveness of sustainability leadership
strategies followed by McDonald's restaurants in the UK to grow profitability. In this light, the
research has developed a number of objectives to be attained in order to achieve its primary aim.
Thus, the secondary analysis based on the literature research has showed that sustainable
leadership can be characterized as a way of effect that tends to give guidance, alignment, and
commitment, and strives to solve social, economic, and environmental concerns in order to
create an improved world. It has been shown that businesses may save costs and improve
customer service by implementing robust sustainability strategies. Similarly, the findings chapter
based on primary data has shown that sustainable leaders take into account more than just
financial gain when exercising their leadership. Moreover, sustainable leaders appreciate the
significance of the long term when formulating plans. In this context, based on the primary
investigation of McDonald’s, it has been determined that the corporation decreases the use of
plastics in producing the toys as a part of sustainable measures. Aside from that, sustainable
leadership enable to establish good connections with people and in this approach increases the
way the company feel the values and needs of diverse stakeholders. In addition, executives that
priorities sustainability work to increase the company's earnings both now and in the future. To
ensure the long-term viability of their organizations, executives in this setting must transform
into "innovation agents" by developing new skillsets and expertise.
Correspondingly, sustainable leadership has emerged as an effective leadership style for dealing
with sustainable difficulties, as shown by the literature review via secondary data, which is the
focus of the following aim. Integral to this concept is the practice of pausing to consider the
broader societal and global effects of a company's actions and then incorporating such
considerations into the company's management practices. Leadership that focuses on
sustainability strives to increase the company's earnings both now and in the future. The goal of
sustainable leadership is to improve the quality of life for all parties involved by increasing the
company's earnings both now and in the future. In addition, leaders need to become innovation
agents and establish competences to ensure the long-term sustainability of the organisation while
adopting a sustainable leadership style. Additionally, sustainability leadership typically
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necessitates incorporating long-term perspectives into decision-making processes, encouraging
innovation as a means to increase value, developing a talented and dedicated workforce, and
providing high-quality goods, services, and solutions to customers. Here, the findings chapter
based on primary data has shown that executives raise their profiles to encourage a company-
wide shift towards more sustainable business practices. The group's goal is to lessen its reliance
on non-renewable energy sources and cut down on greenhouse gas emissions, hence it actively
backs initiatives that use renewable energy. Companies with great sustainability leaders also
foster a shared sense of mission and values among employees. Consequently, the next objective
of the research is based on the literature review, which found that the cooperation of sustainable
practices will help improve the brand equity of the organisation without incurring any form of
considerable advertising and promotional expenses. In addition, the revenue of a company over a
short or long period of time may be analyzed to determine its profitability.
Using resources efficiently, designing effective organizations, and gaining a competitive edge
are all areas in which businesses are increasingly adopting sustainability strategies. However the
secondary data in the literature chapter has also shown that the growing popularity of sustainable
leadership as a strategy for keeping up with the rapid pace of modern business has led to some
interesting concerns about the objectives and profitability of modern corporations. Leaders in the
financial sector under intense pressure to satisfy both short-term investors and long-term
shareholders by increasing profits each quarter. Similarly, the primary data presented in the
findings chapter shows that many modern consumers value sustainable goods and are willing to
spend more on sustainably responsible businesses. As a result, sales are boosted. This might be
beneficial to the company since it can lead to improved financial results. Sustainability
leadership approaches can aid in luring individuals with a strong sense of mission. Workers are
more interested in joining businesses that care about the community and the environment.
Outside of that, many investors were drawn in by the company's sustainability operations
because they cared about the company's long-term viability. Many financiers want to know
whether the company is acting sustainably. Environmental, financial, and social risks to a
company may all be mitigated via adopting sustainable practices, which in turn boosts the
company's long-term success. Moreover, a company's long-term success may be ensured by its
top executives' commitment to sustainability. Long-term success and growth are fostered by
adopting sustainability measures. Moreover, sustainability leader’s aid in the development of
Page 39
innovative ways of operation that promotes the harmonious coexistence of business, people, and
the natural world.
6.2. Recommendations
According to the findings of the complete research project, it has been recommended that in
order to be successful as an organizational leader at McDonald's, one must effectively steer one's
entities through periods of uncertain economic conditions while also doing so in a sustainable
way. It is very necessary for management to measure sustainable leadership via the assessment
of the views of the workforce. This new problem has turned into an increasingly difficult burden
for organizational leadership, and as a result, it is increasingly important for all stages of an
organisation to have a solid knowledge of the concepts of sustainable leadership and
sustainability (Fable et al., 2005). An organization's attempts to generate a competitive edge and
develop strategies that consistently enhance overall performance may be helped by conducting
an assessment of the degree of sustainable leadership that exists inside the organisation (Boyatzis
et al., 2006). In the end, the perceptions of people working within an organizational context
regarding sustainable leadership will be measured and monitored through time. It is necessary to
provide specialized training and seminars to strengthen the abilities and habits of managers so
that they can engage in more environmentally responsible activities. In addition, since
sustainable leaders foster an environment conducive to learning inside their companies by
encouraging the free exchange of ideas and maintaining an open line of communication, it is
essential to track the effectiveness of top management in terms of its contribution to the
achievement of sustainable development objectives (SDGs).
Page 40
management should be monitoring the various demands of various stakeholders who are
claiming low levels of empowerment in order to hone in on the connection between
organizational learning and sustainability development. In addition, leaders who are committed
to sustainability should provide a good example for their staff by acting in a manner that is
consistent with the principles of sustainability. Since sustainable leaders are already familiar with
the difficulties posed by climate change and the requirements of their workforce, it is imperative
that learning environments include such linkages. As a result, the implementation of sustainable
leadership practices will result in an increase in performance that is both effective and efficient
across all levels (Iqbal et. al. 2020). Employees that have a sense of empowerment within their
workplace are more likely to encourage learning techniques in an efficient and effective manner,
eventually leading to an improvement in the organization's ability to maintain sustainable
competence.
Page 41
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Appendix
Interview questions
1. What is your understanding of sustainability leadership?
2. How is sustainability leadership incorporated into the business strategy in your company?
3. How does the company support sustainability leadership with different stakeholders?
4. With regard to sustainability, how does the company balance, brand equity, customer
satisfaction, long run value and short run financial performance?
5. What benefits does your company obtains while practicing sustainability leadership?
6. What are the problems that the company faces while involving in sustainability
leadership?
7. What are the key practices required to incorporate sustainability in regular business
functions?
8. How does the company adjust sustainability leadership practices with organizational
profitability and value for stakeholders?
9. How can the company maintain both ethics and profits?
10. How to what extent sustainability leadership resulted in competitive advantage for your
company?
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