Organizational Engagement in Sustainability Practices and its Contribution to Sustainable Development: A Case from Sri Lanka

Abstract

The aim of this paper is to explore why organizations engage in sustainability practices and how those practices contribute to sustainable development in a diversified manufacturing and service organization where sustainability reporting has been practiced over a number of years. This paper adopts the qualitative methodology and single case study approach. Data has been gathered through interviews and relevant reports. This study suggests that the purpose of long term survival and other institutional factors such as coercive and mimetic pressures have affected organizations to engage in sustainability practices. Organizations contribute to sustainable development using policies, actions, performance measurement tools which integrate with aspects of sustainability. Cost difficulty is a factor that has a negative impact when organizations try to achieve maximum sustainable performance. This study provides new theoretical merits such as the reasons for implementing sustainability practices other than the institutional reasons, how management accounting practices have become congruent with sustainability criteria in order to contribute to sustainable development.