Sustainable Leadership as a Governance Mechanism in the ESG Era: A Systematic Review of Organizational Transformation in the Hospitality Sector
Abstract
1. Introduction
2. Theoretical Framework
2.1. Sustainable Leadership: Definition and Characteristics
2.1.1. Conceptual Definition
2.1.2. Distinctive Characteristics of Sustainable Leadership
- Long-term vision: Sustainable leaders adopt a strategic perspective that transcends immediate goals and focuses on extended time horizons. They design plans and policies that ensure the future viability and well-being of the organization, its stakeholders, and the natural environment [3] (p. 9). This prolonged temporal orientation is key to coordinating efforts that protect valuable resources and solidify relationships based on trust and stable commitment.
- Ethical responsibility: Sustainable leaders assume an active commitment to organizational ethics, establishing and promoting fair, equitable, and transparent practices that strengthen trust and legitimize the organization in the eyes of its stakeholders [5] (p. 470). This implies consistency and authenticity in managerial conduct, where discourse and action align to form a reliable and exemplary model.
- Inclusive participation: Sustainable leadership fosters inclusion and open dialog among the organization’s diverse internal and external actors, valuing diversity and recognizing that collaboration and co-creation are essential drivers of innovation and sustainable development [8]. Active stakeholder participation is thereby transformed into a strategic resource that enriches decision-making and strengthens institutional legitimacy [9] (p. 22).
- Adaptability and resilience: In the face of the growing volatility, uncertainty, and complexity of the current environment, sustainable leaders prepare and guide their organizations to confront crises, disruptive changes, and emerging challenges. They promote a flexible, resilient, and learning-oriented organizational culture focused on continuous improvement and renewal [3] (p. 13). Consequently, organizational resilience becomes a strategic capability for ensuring continuity and relevance in dynamic environments.
- Commitment to responsible innovation: These leaders drive innovation processes that rigorously consider their social and environmental impacts, avoiding negative externalities or unforeseen consequences that could harm the community or the environment. This responsible approach to innovation seeks to generate creative and viable solutions that balance economic development with social justice and environmental sustainability [1] (p. 231).
- Transparent and authentic communication: From a practical standpoint, sustainable leadership entails a communication style characterized by clarity, honesty, openness, and consistency in interactions with teams and stakeholders. Leaders function as role models and sources of inspiration, motivating individuals to adopt practices aligned with sustainability and thereby reinforcing collective commitment [5] (p. 467).
2.1.3. Foundations and Theories Underpinning Sustainable Leadership
- Ethical leadership: Based on the premise that leadership should be guided by moral principles and universal ethical values, it promotes justice, honesty, and care for others. It also emphasizes the importance of the leader’s character and integrity as a foundational pillar [5].
- Responsible leadership: this expands the focus to the leader’s responsibility towards multiple stakeholders and society at large, promoting practices that acknowledge and balance economic, social, and environmental expectations [11].
- Systems perspective and the triple bottom line: Sustainable leadership incorporates a holistic view that understands the organization as an open and dynamic system. Its activities must simultaneously contribute to economic, social, and environmental well-being as an indispensable condition for its legitimacy and enduring success [3].
2.1.4. Practical Relevance of Sustainable Leadership
2.2. Governance and ESG Criteria
2.2.1. The Evolution of Corporate Governance Towards Sustainability
2.2.2. The Pillars of the ESG Framework
- Environmental: This pillar refers to the practices, policies, and actions aimed at minimizing the negative environmental impact generated by the organization. This includes the efficient management of natural resources, the reduction in polluting and greenhouse gas emissions, biodiversity conservation, proper waste management, and the promotion of a circular economy, among others [14]. In the hospitality sector, this involves adopting measures for the rational use of water and energy, the sustainable management of solid waste, the reduction in the carbon footprint, and the implementation of environmentally friendly technologies and processes to ensure the protection of local ecosystems, which are often sensitive to tourist destinations [2] (p. 2837) and [1] (p. 229).
- Social: This dimension focuses on the management of relationships with employees, local communities, customers, and other stakeholders [15]. It involves promoting fair labor conditions, occupational health and safety, respect for human rights, inclusion and diversity, support for community development, and the creation of an inclusive and equitable work environment [16]. In the hospitality sector, the social dimension is particularly important due to the industry’s significant impact on local communities, where harmonious relationships must be fostered, decent employment promoted, and local cultures and traditions respected. Furthermore, employee satisfaction and well-being, as well as ethical and respectable customer experience, are critical factors for the success and reputation of hotel establishments [9] (p. 35).
- Governance: Encompassing the internal systems, structures, and processes that ensure the organization operates with integrity, transparency, and accountability, this dimension includes the composition and diversity of the board of directors, accountability systems, anti-corruption policies, regulatory compliance, risk management, and effective stakeholder participation in decision-making [16]. Good governance is therefore fundamental for building trust in the organization and for promoting a corporate culture that respects ethical principles and ESG objectives. In hotels and hotel chains, robust governance ensures that internal policies translate into tangible practices that meet social and environmental expectations, thereby mitigating reputational and legal risks [2] (p. 2837) and [9].
2.2.3. The Impact of Integrating ESG Criteria in the Hospitality Sector
2.2.4. ESG Governance: Structures, Processes, and Challenges
2.2.5. Corporate Social Responsibility (CSR) and Creating Shared Value
2.3. The Relationship Between Sustainable Leadership and ESG Governance in the Hospitality Sector
2.3.1. Sustainable Leadership as a Strategic Enabler of ESG
2.3.2. ESG Governance as a Structural Framework: The Role of Leadership
2.3.3. Sustainable Leadership, Responsible Innovation, and Creating Shared Value
2.3.4. Organizational Resilience and ESG Risk Management Under Sustainable Leadership
2.3.5. Stakeholder Engagement: A Linchpin Between Leadership and Governance
3. Materials and Methods
3.1. Approach and Design
3.2. Search Strategy
3.3. Inclusion and Exclusion Criteria
- Studies published in indexed, peer-reviewed scientific journals, ensuring academic quality and methodological rigor.
- Works with an explicit focus on sustainable leadership, ESG governance, and organizational transformation processes.
- Articles written in English or Spanish to ensure comprehensive understanding and analysis. The selection of articles in English and Spanish was based on a dual strategy to maximize both global reach and regional relevance. English was included as the lingua franca of scientific research, ensuring the inclusion of most of the international literature. Spanish was added to incorporate significant academic contributions from Spain and Latin America, regions of great importance to the global hospitality sector. Crucially, the exclusion of other languages, such as French or Mandarin, was a deliberate methodological decision based on the linguistic competencies of the research team. This delimitation was necessary to ensure that all selected articles could be analyzed in-depth, guaranteeing consistency in evaluation and minimizing the potential inaccuracies and bias arising from relying on external translation or partial comprehension: this approach prioritizes the rigor of the qualitative analysis over global linguistic breadth.
- The period of 2011–2024 was established as the primary period for the systematic search to analyze contemporary developments in the field. Additionally, seminal works published prior to 2011 were selectively included based on an explicit theoretical necessity: these works are the foundational pillars that established the core conceptual constructs essential for the analysis. Specifically, the inclusion criterion required that they define the origins of the three main conceptual streams underpinning the study: Stakeholder Theory (foundational to ‘S’ and ‘G’ components), the Triple Bottom Line/CSR Evolution (core to the integrative view), or Ecological Sustainability (core to the ‘E’ component). This selection process ensures the theoretical framework is fully grounded in its conceptual origins, avoiding methodological ‘cherry-picking’ by adhering to explicit, traceable criteria.
3.4. Selection and Analysis Process
- Inclusion of seminal works (pre-2011): It was determined to be methodologically indispensable to include a select number of publications from before 2011. This includes articles such as those by Shrivastava [13] on ecological sustainability, Carroll [18] on the evolution of CSR, and Freeman et al. [9] on stakeholder management. These works are the theoretical pillars upon which the entire contemporary discussion of sustainable leadership is based, and their omission would result in an incomplete theoretical framework lacking due to acknowledgment of its conceptual origins.
- Focus on the consolidation of the field (2011–2019): The literature analysis reveals that the period between 2011 and 2019 was particularly fertile for the consolidation of robust theoretical models explicitly connecting leadership with sustainability and ESG criteria. During these years, key authors such as Avery & Bergsteiner [3], Eccles et al. [2] and Maak et al. [5] published their integrative frameworks; thus, the concentration of articles in this period reflects the maturation and definition of the field of study.
- Criterion of theoretical saturation (post-2019): The absence of articles published after 2019 in the final selection does not imply a lack of relevant research. On the contrary, post-2019 literature is abundant but tends to consist of empirical studies, application cases, or reviews that validate and utilize the conceptual models already established by the twenty-four selected works. Given that the goal is to construct an integrative conceptual model, priority was given to the works that propose such models, reaching a point of theoretical saturation where new articles no longer contribute new fundamental frameworks but rather apply existing ones.
3.5. Methodological Limitations
3.6. Ethical Considerations
4. Results. Conceptual Proposal: Sustainable Leadership as a Mechanism of ESG Governance in the Hospitality Sector
4.1. Sustainable Leadership and ESG Corporate Strategy
4.2. The Sustainable Leader as an Agent of Cultural Change
4.3. Participatory and Transparent Governance
4.4. Organizational Resilience and the Capacity for Responsible Innovation
5. Discussion
5.1. Strategic Integration of Sustainable Leadership in Hotels
5.2. Cultural Change and Leadership as an Engine of Social Transformation
5.3. Participatory Governance and Transparency in Hotel Management
5.4. Resilience and Responsible Innovation in Dynamic Environments
5.5. Challenges for Sustainable Leadership in the Hospitality Sector
5.6. Proposals for Future Research into Hotels
5.7. Implications for Theory
5.8. Limitations of the Study
6. Conclusions
6.1. Sustainable Leadership as an Integrating Axis of ESG Governance in Hotels
6.2. Deepening the Cultural and Participatory Transformation
6.3. Participatory Governance: Building Legitimacy and Trust
6.4. Resilience and Responsible Innovation as Sustainable Competitive Advantages
6.5. Challenges and Pathways for Effective Implementation
6.6. Practical Recommendations for Hospitality Managers
6.7. Contributions for Future Research
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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| Language | Full Boolean Search String (Applied to Title/Abstract/Keywords) |
|---|---|
| English | ((“sustainable leadership” OR “responsible leadership”) AND (“ESG governance” OR “corporate sustainability” OR “environmental, social and governance” OR “ESG”) AND (“hotel sector” OR “hospitality”)) |
| Spanish | ((“liderazgo sostenible” OR “liderazgo responsable”) AND (“gobernanza ESG” OR “sostenibilidad corporativa” OR “ESG”) AND (“sector hotelero” OR “hostelería”)) |
| Title | Authors | Year | Methodology | Main Findings/Contributions |
|---|---|---|---|---|
| What we know and don’t know about corporate social responsibility: A review and research agenda | Aguinis, H., & Glavas, A. | 2012 | Literature review | Analyses 588 journal articles and 102 books to provide a multilevel and multidisciplinary overview of Corporate Social Responsibility (CSR) research |
| Authentic leadership development: getting to the root of positive forms of leadership | Avolio, B. J., & Gardner, W. L. | 2005 | Conceptual model development | Proposes a model on how authentic leaders foster the development of authentic followers through increased self-awareness and self-regulation |
| Sustainable leadership practices for enhancing business resilience and performance | Avery, G. C., & Bergsteiner, H. | 2011 | Conceptual paper | Presents an alternative leadership model based on 23 practices that enhance business performance and resilience, contrasting sustainable (“honeybee”) practices with shareholder-focused (“locust”) ones. |
| Similar but not the same: differentiating corporate sustainability from corporate responsibility | Bansal, P., & Song, H. C. | 2017 | Conceptual and historical analysis | Differentiates corporate sustainability (systems-focused) from corporate responsibility (normative-focused), arguing that although they have converged, their origins and approaches are distinct. |
| Organizational resilience: development of a conceptual framework for organizational responses | Burnard, K., & Bhamra, R. | 2011 | Conceptual framework development | Conceptualizes resilience as an organizational meta-capability and proposes a framework with three stages (anticipation, coping, and adaptation) to guide future empirical research. |
| Corporate social responsibility: evolution of a definitional construct | Carroll, A. B. | 1999 | Historical and conceptual review | Traces the evolution of the CSR concept since the post-World War II period, highlighting its institutionalization and expansion to include various stakeholders. |
| Leading change toward sustainability: a change-management guide for business, government and civil society | Doppelt, B. | 2010 | Theoretical and methodological framework | Provides a framework and methodology for managers to transform their organizations towards sustainability, using examples from companies like Nike, Starbucks, and IKEA. |
| The impact of corporate sustainability on organizational processes and performance | Eccles, R. G., Ioannou, I., & Serafeim, G. | 2014 | Empirical study with a matched sample | Companies that voluntarily adopted sustainability policies in the early 1990s show superior performance in both the stock market and accounting results compared to those that did not. |
| The investor revolution | Eccles, R. G., & Klimenko, S. | 2019 | Interview analysis | Based on interviews with 70 executives, it concludes that institutional investors are prioritizing environmental, social, and governance (ESG) factors, which will force companies to be accountable for their ESG performance. |
| Cannibals with forks: the triple bottom line of 21st-century business | Elkington, J. | 1997 | Conceptual and practical essay | Introduces the “triple bottom line” concept, arguing that future business success will depend on the ability to simultaneously satisfy profitability, environmental quality, and social justice. |
| A stakeholder approach to strategic management | Freeman, R. E. & McVea, J. | 2001 | Theory development | A foundational work in stakeholder theory, which understands the company as a value-creation system for all its stakeholders, thus connecting capitalism with ethics. |
| Managing for stakeholders: survival, reputation, and success | Freeman, R. E., Harrison, J. S., & Wicks, A. C. | 2007 | Theory development | Promotes stakeholder theory as a practical, efficient, and ethical way to manage organizations in complex environments, leading to greater strategic flexibility. |
| ESG and financial performance: aggregated evidence from more than 2000 empirical studies | Friede, G., Busch, T., & Bassen, A. | 2015 | Meta-analysis | Reviews over 2000 studies and finds a positive relationship between ESG performance and financial performance in most cases, at both the corporate and investment levels. |
| Leadership that gets results | Goleman, D. | 2000 | Empirical and conceptual research | Argues that emotional intelligence is a more significant factor for leadership success than any single leadership style, and that the best leaders adapt their style to the situation. |
| Tensions in corporate sustainability: towards an integrative framework | Hahn, T., Pinkse, J., Preuss, L., & Figge, F. | 2015 | Conceptual framework development | Proposes a framework for analyzing tensions in corporate sustainability, arguing that companies must simultaneously integrate economic, environmental, and social dimensions. |
| Corporate social responsibility in developing countries as an emerging field of study | Jamali, D., & Karam, C. | 2018 | Literature review | Highlights that CSR research in developing countries is limited and often consists of case studies, and notes that CSR frameworks developed in the West may need adaptation. |
| Responsible leadership in a stakeholder society—a relational perspective | Maak, T., & Pless, N. M. | 2006 | Conceptual paper | Defines responsible leadership as a relational and moral phenomenon that contributes to the creation of social capital and, ultimately, to the common good and a sustainable business. |
| Business statesman or shareholder advocate? CEO responsible leadership styles and the micro-foundations of political CSR | Maak, T., Pless, N. M., & Voegtlin, C. | 2016 | Conceptual paper | Distinguishes between an instrumental and an integrative responsible leadership style, concluding that the integrative style is more effective for addressing the challenges of political CSR in complex global environments. |
| Leadership: theory and practice | Northouse, P. G. | 2018 | Theoretical synthesis and textbook | Offers an academically sound compendium of major leadership theories, approaches, and models, including case studies and practical exercises for application. |
| Responsible leadership: pathways to the future | Pless, N. M., & Maak, T. | 2011 | Conceptual mapping and editorial | Outlines the emerging field of responsible leadership, specifying a definition and comparing it with other related leadership theories to map out future research avenues. |
| A safe operating space for humanity | Rockström, J., Steffen, W., Noone, K., Persson, Å., Chapin, F. S., Lambin, E., ... & Schellnhuber, H. J. | 2009 | Conceptual framework and quantification | Proposes a “planetary boundaries” framework, identifying nine biophysical processes that regulate Earth’s stability and quantifying the thresholds humanity should not cross. |
| The role of corporations in achieving ecological sustainability | Shrivastava, P. | 1995 | Conceptual paper | Explores how corporations can transition toward ecological sustainability, addressing concepts like strategic environmental management and the need for a shift in business paradigms. |
| Responsible innovation and the innovation of responsibility: governing sustainable development in a globalized world | Voegtlin, C., & Scherer, A. G. | 2017 | Theoretical development | Develops a theory of responsible innovation that links it to political CSR, arguing that companies have a role in the governance of global sustainable development. |
| Components of CEO transformational leadership and corporate social responsibility | Waldman, D. A., Siegel, D., & Javidan, M. | 2006 | Empirical study | Investigates the relationship between CEO transformational leadership and CSR, finding that certain components of this leadership style are associated with the strategic and social dimensions of CSR. |
| Section | Item | Checklist Item | Page |
|---|---|---|---|
| TITLE | Title (1) | “Sustainable leadership as a governance mechanism in the ESG era: a systematic review of organizational transformation in the hospitality sector” The article is explicitly identified as a systematic review of the role of sustainable leadership for the integration of ESG criteria in organizational governance, focusing on the hospitality sector. | 1 |
| ABSTRACT | Abstract (2) | Abstract examining sustainable leadership as an essential mechanism for integrating ESG criteria into organizational transformation in the hospitality sector, highlighting its strategic impact and associated challenges. | 1 |
| INTRODUCTION | Rationale (3) | Describes the context of accelerated globalization and environmental and social challenges, triggering the need to rethink hospitality management towards a holistic ESG-based approach. | 1–3 |
| Objectives (4) | States the objective to critically analyze sustainable leadership as a key structural process in ESG governance in the hospitality sector, through a systematic review of the scientific literature. | 1–2 | |
| METHODS | Eligibility criteria (5) | Inclusion criteria for studies in indexed journals, focused on sustainable leadership, ESG governance, and organizational transformation, in English and Spanish from 2011 to 2024, including relevant prior seminal works. | 12–13 |
| Information sources (6) | Search conducted in reputable databases such as Scopus and Web of Science, using key terms on sustainable leadership, ESG, corporate sustainability, and tourism. | 11–14 | |
| Search strategy (7) | Application of Boolean combinations and keywords in titles, abstracts, and keywords to maximize relevance. | 10–12 | |
| Selection process (8) | After de-duplication and relevance screening, selection of 24 key studies from an initial 749 records, explained in detail with exclusion criteria. | 13–14 | |
| Data collection process (9) | Systematic extraction of data on conceptualization of sustainable leadership, ESG, and transformation, ensuring transparency and reproducibility. | 19–27 | |
| Data items (10a, 10b) | Definition and listing of variables of interest: leadership dimensions, ESG criteria, transformation processes, and tourism sector characteristics. | 19–27 | |
| Study risk of bias (11) | Qualitative assessment of study quality and methodological rigor, prioritizing solid conceptual frameworks and excluding superficial descriptions. | 7, 11, 21 , 27 | |
| Effect measures (12) | No quantitative measures or meta-analysis applied due to qualitative focus; synthesis is thematic and conceptual. | 3–9 | |
| Synthesis methods (13a–13f) | Thematic review to identify conceptual patterns, tensions, and contributions, with graphical models supporting conceptual integration. | 14 | |
| Reporting bias (14) | Acknowledgement of publication biases due to exclusion of grey and technical literature, mitigated by rigorous selection of peer-reviewed academic sources. | 3, 10, 11 | |
| Certainty assessment (15) | Consideration of consistency and theoretical saturation contributed by selected studies, noting needed for future empirical validation. | 14, 17, 27 | |
| RESULTS | Study selection (16a,16b) | Detailed in Figure 1 (PRISMA Diagram): from 749 initial records, 24 key studies included after a three-stage process. | 10 |
| Study characteristics (17) | The 24 studies offer a diverse but convergent theoretical/empirical basis on sustainable leadership and ESG, emphasizing integrative and multidimensional models. | 14–16 | |
| Risk of bias in studies (18) | Evaluation of conceptual and methodological quality, prioritizing works with robust foundations and avoiding non-generalizable cases. | 13–14 | |
| Results of individual studies (19) | Not applied in this research. | -- | |
| Results of syntheses (20a–20d) | Not applied in this research | -- | |
| Reporting biases (21) | Not applied in this research. | -- | |
| Certainty of evidence (22) | Not applied in this research. | -- | |
| DISCUSSION | Discussion (23a–23d) | Interpretation emphasizing sustainable leadership as key for ESG success, highlighting transversal integration, deep cultural transformations, and shared value creation; discussing limitations and pathways for future research. | 23–27 |
| OTHER INFORMATION | Registration & protocol (24a–24c) | No formal protocol registered; explains adoption of PRISMA 2020 model to ensure rigor and transparency, with no subsequent amendments. | 3, 10, 17 |
| Support (25) | Declares no external funding received. | 30 | |
| Competing interests (26) | Authors declare no conflicts of interest. | 30 | |
| Availability of data, code (27) | All data and contributions are included in the article; contact offered for further information; no additional external code or materials mentioned. | 30 |
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© 2025 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).
Share and Cite
López, S.M.C.; Guerra, I.R.; Pernas, J.B. Sustainable Leadership as a Governance Mechanism in the ESG Era: A Systematic Review of Organizational Transformation in the Hospitality Sector. Merits 2025, 5, 22. https://doi.org/10.3390/merits5040022
López SMC, Guerra IR, Pernas JB. Sustainable Leadership as a Governance Mechanism in the ESG Era: A Systematic Review of Organizational Transformation in the Hospitality Sector. Merits. 2025; 5(4):22. https://doi.org/10.3390/merits5040022
Chicago/Turabian StyleLópez, Santos Manuel Cavero, Ignacio Ruiz Guerra, and Jesús Barreal Pernas. 2025. "Sustainable Leadership as a Governance Mechanism in the ESG Era: A Systematic Review of Organizational Transformation in the Hospitality Sector" Merits 5, no. 4: 22. https://doi.org/10.3390/merits5040022
APA StyleLópez, S. M. C., Guerra, I. R., & Pernas, J. B. (2025). Sustainable Leadership as a Governance Mechanism in the ESG Era: A Systematic Review of Organizational Transformation in the Hospitality Sector. Merits, 5(4), 22. https://doi.org/10.3390/merits5040022

