Social Sustainability Practices: A Balancing Act of Economic, Environmental, and Social Considerations

Abstract

Social sustainability, one of the three pillars of sustainable development (SD) alongside environmental and economic dimensions, remains underexplored in international business (IB) research. While corporate sustainability efforts often emphasize environmental and economic outcomes, the social pillar, encompassing equity, justice, inclusivity, and community well-being, has received comparatively little attention. This chapter addresses this gap by investigating the following research questions: (i) How do MNEs’ corporate sustainability practices balance social with economic and environmental goals in the countries where they operate? and (ii) What do these practices reveal about advancing or undermining social sustainability?. Drawing on sustainability and IB literature, two cases positioned at opposite ends of the social sustainability spectrum are explored, that is one case in the healthcare industry and the other case in the mining industry. By using secondary data and a thematic analysis approach, this chapter illustrates that the three pillars of sustainability are more dynamically interdependent and tightly coupled than typically portrayed, where instability in one area can create a chain of events throughout the entire sustainability agenda. Failures in the social domain can set of a chain reaction across economic and environmental achievements, undermining corporate legitimacy. This study contributes to a more integrated understanding of social sustainability in global value chains and offers practical implications for multinational enterprises (MNEs) under evolving regulatory frameworks, such as the European Union’s Corporate Sustainability Due Diligence Directive. The findings support a holistic sustainability paradigm that recognizes the dynamic interdependence of the three pillars and promotes business strategies aligned with long-term societal well-being.