Abstract: This research investigates the intricate relationship between sustainable business practices, employee engagement, and organizational performance, examining these factors through a comprehensive social, environmental, and economic lens. In an increasingly interconnected and environmentally conscious world, sustainability has transcended its status as a mere corporate social responsibility initiative and become a critical driver of long-term value creation. This study explores how organizations can effectively integrate sustainable principles into their core operations, culture, and strategic decision-making to not only minimize their environmental footprint but also cultivate a more engaged and motivated workforce. The central premise of this research is that a strong commitment to sustainability can significantly influence employee engagement. Employees are increasingly seeking purpose-driven work and are more likely to be engaged with organizations that demonstrate a genuine commitment to social and environmental responsibility. This study will delve into the specific ways in which sustainable initiatives, such as waste reduction programs, renewable energy adoption, ethical sourcing, and community engagement, can impact employee morale, job satisfaction, and overall engagement levels. It will explore whether employees perceive these initiatives as genuine efforts to contribute to a better future, and how this perception translates into increased commitment to the organization's goals and values. Furthermore, this research will examine the multifaceted impact of this interplay between sustainability and engagement on organizational performance. From a social perspective, the study will analyse how sustainable practices contribute to improved community relations, enhanced brand reputation, and a stronger social license to operate. It will investigate the extent to which employee engagement mediates the relationship between sustainability initiatives and positive social outcomes. From an environmental perspective, the research will assess the direct impact of sustainable practices on reducing the organization's environmental footprint, including measures such as carbon emissions, resource consumption, and waste generation. It will also explore how employee engagement can contribute to the success of environmental initiatives by fostering a culture of environmental awareness and responsibility within the organization.

Keywords: sustainable business practices, employee engagement, organizational performance, environmental sustainability, social responsibility, economic impact, corporate culture, strategic decision-making, workforce motivation, renewable energy, ethical sourcing, community engagement, waste reduction, carbon emissions.

| DOI: 10.17148/IARJSET.2025.12514