How to Create a Sustainable Business Model for Lasting Success

If a business model is a business’s plan for making a profit, then a sustainable business model is a business’s plan for making a profit over the long term -- sustainably. It elevates the importance of sustainability from an optional secondary concern to a primary component of all business decisions.

An organization may choose to develop a sustainable business model for various reasons. It may be a matter of satisfying government regulations, pursuing specific economic incentives, creating competitive advantage, or developing a better brand reputation. Regardless of the motive, there are several basic principles required for a business model to be considered “sustainable.”

In this article, we’ll discuss key factors for developing and implementing a sustainable business model. We’ll start with a review of sustainable business model archetypes. Next, we’ll highlight important considerations for business model design. Finally, we’ll cover some of the common challenges businesses face when implementing a more sustainable business model, and strategies for overcoming them.

Generally, sustainability in business is thought of as focusing on the "triple bottom line," which is frequently characterized as "profit, people, and planet."¹ There are several approaches to structuring and defining a sustainable business model, including:

• The Eight-Step Sustainable Business Model²
• The Eight Sustainable Business Model Archetypes³
• The Triple-Layered Business Model Canvas⁴

While each approach is distinct in its proposed methodology, they all share two key elements.

First, a sustainable business model must be profitable, just like any other type of business model. It must deliver economic value through business activities. This requires the implementation of sound practices such as long-term planning, engaging stakeholders, and developing scalable solutions.

Second, a sustainable business model should be holistic in its approach to mitigating harm and creating environmental or social value. This means it should create a value proposition that accounts for the business’s economic, environmental, and social impact equally.

If profitability and holistic sustainability are the intrinsic factors of a sustainable business plan, then how does a business pursue those factors? You’ll find some specific strategies below, but let’s start by touching on an underlying factor that drives success: business innovation.

Innovation is an evergreen topic in the study of business models. It refers to how an organization will change and adapt over time.³ In other words, every business plan, whether it has a sustainability focus or not, uses innovation to some degree. Even the most set-in-its-ways mom-and-pop operation must make continuous changes in response to market shifts, technological advancements, and cultural changes. Failing to do so is to accept an inevitable drift toward obsolescence.

Beyond this basic need to keep up with the times, sustainable business model innovation requires something more. It specifically demands innovation around mitigating major social ills such as climate change, poverty, waste, inefficiency, injustice, and inequality.² In the best-case scenario, sustainability innovation can even help effect a significant social change.³

Of course, no business can single-handedly address every challenge the global community faces. Instead of setting pie-in-the-sky goals that seem impossible to achieve, business models for sustainability are most effective when developed with the same rigor and focus on corporate performance and value creation as for a traditional business model.

Before an existing business can start implementing changes, it must identify what needs to be changed first and prioritize those changes. This process usually involves assembling a team to review all corporate policies, structures, and business operations, summarize the status quo, and recommend improvements.

After reviewing your current business practices, you can use the information you’ve gathered to develop sustainability objectives and set key performance indicators (KPIs) that address both sustainable value and strategic importance for your company. The UN Global Compact recommends focusing your objectives where your company can have the greatest impact and where key business opportunities exist.⁵

Implementing corporate change almost always requires buy-in from internal and external stakeholders, including people at all levels of the organization. This holds true when you’re implementing sustainable business models as well. The U.K.-based Association for Project Management emphasizes communication, consultation, consideration, and compromise as key methods for effectively engaging stakeholders.⁶

“Operations” is a blanket term covering the daily activities and processes that enable a business to generate revenue. To implement sustainable operations, consider each of these elements separately to identify actionable opportunities for sustainable innovation.

As mentioned earlier, a sustainable business model must innovate in response to external changes. However, it must also innovate based on internal results and feedback. After implementing a plan, monitoring progress relative to KPIs and using the results to address flaws or missed opportunities is central to successfully adopting a corporate sustainability focus.

Change, in general, tends to be a difficult thing for corporations to implement. However, some of the challenges sustainability initiatives face are unique and fairly predictable. Keeping these challenges in mind (along with strategies for their resolution) can be useful for addressing future problems head-on.

If the reasons for a change aren’t well understood, then the discomfort that the change causes can breed resentment and resistance. Redoubling engagement and education efforts in response to this resistance may be needed to improve stakeholder buy-in and drive the adoption of sustainable practices.

Finding suppliers with proven sustainability practices can be difficult, particularly as standards can vary between jurisdictions. Look for suppliers that provide detailed information about staffing, manufacturing, recycling, and sourcing raw materials. If you can confirm their information via in-person meetings and site visits, or through respected third-party certifications, all the better.

Complying with formal standards is important for certifications and government incentives. However, these standards may shift over time. Hiring or internally developing regulatory expertise will help ensure your business stays in compliance and continues to receive all of the available benefits for your sustainability efforts.

Embracing corporate sustainability isn't just about compliance or branding—it's about forging a path to lasting success. Beyond profit, business sustainability rests on fostering a business culture that supports economic, environmental, and social growth alongside innovative responses to global challenges.

Companies preparing to meet evolving sustainability expectations must prioritize strategic innovation and inclusivity in their business practices. Sustainable innovation begins with evaluating current operations, establishing clear sustainability objectives, and engaging deeply with all stakeholders. Continuous monitoring and adaptation to feedback and shifts in the business context help to institutionalize these changes.

Interested in leading the charge toward a sustainable future? Explore Seattle University's Online MBA program. The ethics-infused curriculum is designed to equip you with the knowledge to innovate and lead sustainably. Ready to take the next step? Review the admissions process or schedule an appointment with an admissions outreach advisor to get started on your journey.