The global debate on sustainability underscores the urgency for contemporary businesses to integrate Environmental, Social, and Governance (ESG) considerations into their operational models. This discussion is driven by escalating ecological concerns and societal demands for ethical business conduct, prompting a reevaluation of traditional business practices. However, a significant gap remains in how businesses can practically apply theoretical sustainability frameworks to meet these challenges. This study addresses this issue by uniquely adapting Integral Development Theory (IDT) with an innovative integration of both sustainability and financial metrics, a novel approach that significantly enhances its applicability and relevance for modern business management. We utilized the theory adaptation methodology, which involved extensive and critical analysis of literature and case studies to ensure the theoretical robustness and practical applicability of our adaptation. Through this mixed-method research approach, we combined existing and new sustainability models and metrics into IDT’s framework, making it a pragmatic tool for comprehensive sustainable development. Our key findings show that companies implementing these integrated metrics enhance corporate responsibility and sustainability performance. Specifically, businesses that align their operations with the adapted IDT framework can better address sustainability challenges and improve long-term profitability and stakeholder trust. Our research also explores the role of leadership in facilitating the transition toward integrated sustainability practices, highlighting that transformative leadership is crucial for driving change and achieving significant impact. The unique contribution of our study lies in operationalizing IDT with actionable sustainability indicators. This provides businesses a robust framework to align their strategic goals with societal and environmental responsibilities. By filling a theoretical gap and offering a methodologically sound approach to integrating sustainability and financial metrics, our study provides a practical model that can serve as a reference for future adaptations of other theoretical frameworks in sustainability studies. Overall, our research enriches the theoretical understanding of IDT and offers valuable insights for academics, practitioners, and policymakers engaged in sustainable business practices. The findings emphasize the importance of aligning economic activities with broader societal values and highlight the practical benefits of integrating sustainability into core business strategies.
KEYWORDS: sustainability, performance, ESG metrics, corporate social responsibility, theory adaptation
