Sustainable Business offers a rigorous yet accessible guide to the role and responsibilities of business in an age of climate crisis, inequality, and stakeholder capitalism. Moving beyond the idea of firms as mere 'efficiency machines', it argues that businesses are problem-solving organizations that must balance effectiveness, efficiency, and ethics if they are to create value for investors, society, and the planet.

Across ten chapters, the book traces the evolution of business goals, introduces a pluralistic theory of the firm, and shows how purpose, stakeholder engagement, organizational structure, leadership, and culture shape sustainable performance in practice. It synthesizes classic and contemporary thinkers – from Coase, Friedman, and Penrose to Freeman, Sen, and Serafeim – and brings these debates to life through detailed case studies of Unilever, Danone, and other global firms grappling with Environmental, Social, and Governance trade-offs.

Later chapters explore how to measure and report impact, implement organizational change, and harness innovation and entrepreneurship for inclusive, low‑carbon growth. The book concludes with a discussion of future directions in AI, quantum technologies, new ownership forms, and cross‑sector collaboration. Designed as a textbook for students in business and management studies at both the undergraduate and Masters level, this book will also appeal to managers and policymakers looking for a coherent framework for reimagining business as a vehicle for shared prosperity in the twenty-first century.

Jaideep Prabhu is Professor of Marketing and Jawaharlal Nehru Professor of Indian Business and Enterprise at the Judge Business School, University of Cambridge.