Challenges in Practising Sustainable Leadership and Their Implications for Strategic People Management
This qualitative study identifies key challenges in practising sustainable leadership—such as short-term performance pressures and misaligned HR systems—and examines their significant implications for strategic people management decisions across diverse organizational sectors.
Original paper licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). This is an AI-generated explanation of the paper below. It is not written or endorsed by the authors. For technical accuracy, refer to the original paper. Read full disclaimer
In the modern business world, a quiet but profound shift is taking place. For decades, the primary goal of a company was often seen simply as making money for its owners. Today, that view is expanding. Leaders are increasingly expected to care about the environment, treat people fairly, and make ethical choices that last beyond the next quarter. This broader approach is known as sustainable leadership. It is not just about planting trees or recycling paper; it is about making decisions that balance immediate profits with the long-term health of the company, its workers, and the planet. To make this happen, companies rely on strategic people management. This is the practice of hiring, training, and keeping employees in a way that supports the company's big-picture goals. When these two ideas meet, the hope is that a company becomes more resilient and successful. However, turning these high ideals into daily reality is far from simple. Leaders often find themselves stuck between the pressure to deliver quick results and the need to invest in a future that might not pay off for years.
A new study by researchers Shye Hui Yau and Sharmila Devi Ramachandaran from INTI International University explores exactly where this friction happens. The researchers wanted to understand the real-world hurdles leaders face when trying to practice sustainable leadership and how those hurdles change the way they manage their people. To find the answers, they did not rely on spreadsheets or broad surveys. Instead, they sat down for in-depth conversations with senior leaders and human resource professionals from various organizations. They asked these individuals to share their experiences, their struggles, and the specific moments where their plans for a better, more ethical workplace ran into the hard wall of daily business operations. The study reveals that while the desire to be sustainable is strong, the path to achieving it is blocked by several persistent challenges that shape how companies treat their workforce.
The most common obstacle the leaders described is the constant tug-of-war between short-term performance and long-term goals. In the heat of the moment, when a company needs to meet a quarterly target or cut costs, investments in sustainability often get pushed aside. One leader in the study noted that sometimes they must prioritize immediate operational goals over sustainability initiatives, even when they know the long-term benefits are at stake. This creates a difficult situation for strategic people management. When a company is under pressure to perform right now, it may delay training programs, skip employee development opportunities, or hesitate to invest in ethical practices because those things cost money and time. The researchers found that this pressure forces leaders to make trade-offs that can weaken the very workforce they need to succeed in the future. It suggests that without a way to balance these competing demands, the promise of sustainable leadership remains just an idea rather than a daily practice.
Another major challenge is getting everyone on the same page. A company does not operate in a vacuum; it interacts with employees, customers, regulators, and partners, all of whom have different priorities. The study found that aligning these diverse groups is a continuous struggle. One participant explained that getting everyone from ground staff to external partners to agree on sustainability objectives requires constant engagement and follow-up. When these groups pull in different directions, it becomes difficult for leaders to implement a unified strategy. For example, a leader might want to invest in better working conditions, but if a key partner demands lower prices, the leader may have to compromise. This misalignment can confuse employees and dilute the effectiveness of human resource strategies, making it hard to build a workforce that is truly committed to the company's long-term vision.
The culture of the organization itself also plays a critical role. The researchers discovered that deeply ingrained habits and a focus on short-term targets can act as a barrier to change. In some organizations, decision-making is informal, and the mindset is fixed on hitting immediate numbers rather than planning for the future. One leader remarked that employees often resist change, especially when the culture is used to short-term targets and informal decision-making. This resistance makes it incredibly difficult to introduce new, sustainable practices. If the company culture does not value ethical behavior or long-term thinking, then even the best training programs or new policies will likely fail. The study suggests that changing this culture requires deliberate effort, clear structures, and consistent reinforcement, but it is a slow and often frustrating process for leaders trying to steer their organizations in a new direction.
The ability to attract and keep talented people is another area where these challenges become very visible. The study highlights that leaders struggle to recruit skilled employees and keep them motivated, particularly when competing with larger organizations that offer higher pay. This is especially true for younger generations of workers, who often look for companies with a clear purpose and ethical values. However, the reality of the market often makes it hard to provide those things. One respondent noted that maintaining commitment from younger employees is difficult, as many see smaller companies as temporary career stops. When a company cannot offer competitive compensation or a clear path for growth, it risks losing its best people. This turnover disrupts the continuity needed for sustainable strategies to work. If a company is constantly hiring and training new people just to replace those who leave, it cannot build the deep, experienced workforce required to drive long-term sustainability goals.
Finally, the researchers found that building the necessary skills and knowledge within the workforce is a significant hurdle. Sustainable leadership requires employees to understand new concepts and adapt to changing needs, but doing so takes time and money. Leaders expressed that continuous training is essential to keep the workforce aligned with sustainability goals, but it can be expensive and time-consuming. In a busy business environment, finding the time to teach employees about ethical practices or new sustainable methods is often seen as a luxury rather than a necessity. The study suggests that without ongoing investment in learning and development, leaders lack the tools to implement sustainable practices effectively, and employees remain unprepared to support the organization's long-term objectives.
The findings of this study paint a clear picture: sustainable leadership is not just a matter of having a good policy or a nice mission statement. It is a complex, ongoing effort that requires leaders to navigate a minefield of competing pressures. The researchers suggest that for sustainable leadership to truly work, it must be woven into the fabric of everyday people management. This means finding ways to balance short-term needs with long-term investments, communicating clearly with all stakeholders, and actively working to change the organizational culture. It also means recognizing that keeping and developing talent is not just a human resources task but a strategic necessity for survival. While the path is difficult, the study indicates that leaders who can manage these tensions are better positioned to build organizations that are not only profitable but also resilient, ethical, and ready for the future. The work is far from finished, but understanding these specific challenges is the first step toward solving them.
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