Social Sustainability in Startups: Implementation Pathways and Their Effects on Performance

ABSTRACT Social sustainability remains underexplored in the context of startups. While much attention is given to economic and environmental performance, the social dimensions are frequently overlooked. This gap is particularly significant for startups, as their early‐stage decisions can shape long‐term cultural and social impacts both within their organizations and in the broader ecosystems they influence. This study investigates how emerging ventures implement social sustainability through ethical practices, inclusive business models, and responsible supply chain management, moving beyond traditional economic performance metrics. Adopting a mixed‐methods design, the research combines qualitative insights from structured interviews with quantitative validation. Based on a sample of 56 startups from Italy and the United States, the study examines: (1) the drivers shaping the adoption of social sustainability, (2) the types of activities and policies implemented and (3) the relationship between sustainability practices and startup performance. Findings reveal that concrete sustainability actions, rather than mere awareness or formal statements, are the strongest predictors of positive economic impact. The study contributes empirical evidence that highlights social sustainability as a strategic lever for entrepreneurial resilience and innovation, offering insights for founders, investors, and policymakers.