Sustainable Leadership as a Governance Mechanism in the ESG Era: A Systematic Review of Organizational Transformation in the Hospitality Sector

Abstract

In the ESG era, the hospitality sector faces an urgent need to transform its governance models. However, a conceptual gap exists regarding the specific mechanisms that drive this transformation. This study addresses this gap through a systematic literature review to propose a novel integrative framework. Unlike previous reviews that analyze sustainable leadership and ESG governance in isolation, this paper positions sustainable leadership as the central mechanism that catalyzes the systemic integration of ESG criteria into the sector’s organizational culture and strategy. The proposed framework articulates how this leadership style facilitates a cultural, strategic, and operational transformation by balancing economic performance with social well-being and environmental protection. Specifically, within the hospitality context, sustainable leadership is shown to be key in fostering organizational resilience, responsible innovation, and participatory governance. The analysis also identifies critical barriers to implementation, such as cultural resistance, the lack of clear metrics, and the need for specialized leadership training. The unique contribution of this article is to offer a conceptual model that articulates the causal relationship between leadership and applied ESG governance, presenting sustainable leadership not merely as a management style, but as the fundamental component for building resilient and legitimate hospitality organizations in the long term.