Navigating the COVID-19 Crisis and its Effects on Private Firms’ Levels of Engagement with Sustainable Development Goals

Private companies play a crucial role in advancing the Sustainable Development Goals (SDGs), yet their commitment to SDG initiatives can be significantly challenged during major crises such as the COVID-19 pandemic. While some firms may reduce investments in socially responsible activities to preserve financial stability, others may intensify efforts to address the crisis in alignment with their existing SDG objectives. Drawing on 2021 survey data from Flemish companies, this study examines the extent to which the pandemic influenced private sector engagement with the SDGs and explores how organizational characteristics—such as sector, size, maturity, and multinational status—shaped firms’ responses. The findings reveal heterogeneous effects: COVID-19 slowed SDG progress for many firms, particularly in integration and priority-setting stages, yet it also catalyzed targeted innovation in areas such as health (SDG 3), employment and economic growth (SDG 8), and industrial innovation (SDG 9) for a subset of firms. The study underscores the strategic importance of embedding SDGs into core business operations to enhance resilience during crises and highlights the role of company heterogeneity in shaping sustainable development (SD) outcomes.