Gaining a Competitive Advantage through Sustainability Strategy: Managerial Applications for the Mining Sector

¹ Kyiv National Economic University named after Vadym Hetman, Management Department, 03057, 54/1 Pr. Peremogy, Kyiv, Ukraine
² Chernihiv Polytechnic National University, Department of Theoretical and Applied Economics, 14035, Chernihiv, Shevchenko str., 95, Ukraine
³ T.F. Gorbachev Kuzbass State Technical University, 650000 28 Vesennya st., Kemerovo, Russia

^* Corresponding author: yuliia.lazarenko@kneu.ua

Abstract

In today’s business environment, sustainability is becoming an increasing issue for decision-makers, because it is concerned with sustainable development in terms of environmental, economic, and social dimensions. In view of this, mining companies worldwide understand the significance of the strategic approach to sustainability management. However, the formulation and implementation of the appropriate sustainability strategy in order to gain a competitive advantage of sustainability initiatives may be a challenging task for organizations. The paper aims to clarify the concept of sustainable competitiveness in the context of the mining industry and define the main focus areas of strategic sustainability management at the firm level. Based on a literature review a conceptual framework for strategic sustainability management of mining companies is presented, which includes key drivers and organizational factors that should be taken into account to embed efficiently the sustainability strategies into the business practice. From a management viewpoint, the presented framework can be conceptualized at the firm level as a business model which is oriented towards the achievement of competitive advantage, long-term value creation, and enhancing corporate sustainability performance of the mining operators.