Companies taking action to contribute to the SDGs

Companies play an important role to achieve sustainable development. To better understand their work, it is necessary to visualize the way in which they operate: organizations must address and implement multiple and varied ESG initiatives to contribute to the 17 SDGs (divided, in turn, into numerous sub-targets). With such a clear vision, what excuses do companies have for not doing it?

But… does being sustainable simply consist of incorporating ESG initiatives to contribute to the SDGs? We firmly believe that talking about sustainable organizational performance means also talking about ethical commitment, global well-being and shared responsibility; in other words, talking about collaboration, integration or inclusion. Undoubtedly, this consideration represents a paradigm shift, a new way of doing business that integrates ethical commitment and sustainability. With this in mind, the question that needs to be answered is: what initiatives should companies undertake to, while contributing to sustainable development, contribute to improving people’s lives? And considering that only a limited number of ESG initiatives can be implemented, which ones should be prioritized within the corporate strategy? The decision is far from simple.

This dilemma is precisely the starting point of our research. Given that clear and operational frameworks are needed to achieve the SDGs, this research specifically examines what combinations of ESG strategies lead to the SDGs.

How to find the right path?

Considering the research’s goal, we developed a database of 137 companies belonging to the EUROSTOXX and S&P 500 indexes with the aim of considering two perfectly comparable but radically different economic scenarios. We applied a fuzzy set qualitative comparative analysis (fsQCA) to the data included in the study sample. Using this methodology, which combines a qualitative and quantitative approach based on specific conditions, we have aimed to identify the various possible combinations of ESG-related strategies that lead to the achievement of the SDGs. In other words, we have tried to find truly effective pathways that lead to sustainable development.

Five different ESG strategies (one for each category of the ‘Sustainability Accounting Standards Board (SASB)’ materiality framework) were considered: Ecological impacts’ belonging to ‘Environment’ dimension; ‘Access and affordability’ belonging to ‘Social capital’ dimension; ‘Labour practices’ belonging to ‘Human capital’ dimension; ‘Product design & lifecycle management’ belonging to ‘Business model & innovation’ dimension, and ‘Business ethics’ belonging to ‘Leadership & governance’ dimension. These five initiatives were classified as: i) internal or external, considering if the ESG factors produce impacts within or outside the company; and ii) human or non-human, considering if the ESG related-factors have or not human connotations. This novel classification allowed us to comprehensively understand how ethical governance can act not only as a corporate social responsibility strategy, but also as a catalyst for addressing global development challenges.

What paths do the results point?

The results revealed that all five ESG strategies are important for achieving the SDGs. This confirms that progress towards more sustainable and responsible performance cannot be achieved through isolated and specific ESG initiatives.

More specifically, and although there are slight differences between the companies belonging to the EUROSTOXX and the S&P 500 indexes, the results have concluded that ‘ethical governance’ (with internal and human connotations) is the most relevant ESG strategy. This result confirms that organizations' sensitivity towards ethical conduct and business standards is the major driver to lead to sustainable outcomes. Therefore, the ethical and responsible business practices should be prioritized when designing strategies to achieve the SDGs. ‘Labour practices’ (with internal and human connotations) and ‘environmental initiatives’ (with external and non-human connotations) have also been concluded as core conditions. The results have also confirmed the secondary role of processes related to ‘product design and lifecycle management’ (with internal and non-human connotations), as well as ESG initiatives to ensure the ‘accessibility and affordability of products and services’ (with external and non-human connotations).

In sum, ethical considerations must be present in business strategies to achieve sustainable development, while coping appropriately with ecological impacts and designing fair labor practices are also important conditions to achieve the SDGs.

The path to a sustainable future is underway

By determining which specific combinations of ESG-related variables drive to the SDGs, this research can help companies and policymakers identify the ethical approaches that should be considered when designing strategies that lead to the SDGs. The results highlight the value of corporate responsibility and business ethics, demonstrating that corporate governance is not just about designing strategies, but about ensuring that companies’ performance benefits the entire society.

The complex initial scenario we started from has become clearer: we have a 'GPS' to achieve a more sustainable future. If we set the right course, the path to a sustainable future seems clear.

Last call

So, the journey has begun. Now, the challenge lies in transforming ethical and responsible behavior into a tangible reality. This is not an easy task. Given that the SDGs are based on shared responsibility, governments, businesses, researchers, and society should continually explore all possible pathways toward a more sustainable future.

Read the full research:

López-Cabarcos, M. Á., Ziane, Y., López-Pérez, M. L., & Piñeiro-Chousa, J. (2025). The Ethical Commitment of Business Strategy: ESG-Related Factors as Drivers of the SDGs. Journal Of Business Ethics, 202(4), 805-821. https://doi.org/10.1007/s10551-025-06002-z