This paper explores the interplay between self-interest and altruism in corporate sustainability, employing agent-based modeling and evolutionary biology principles. It highlights the limitations of the business case for sustainability, which prioritizes profitability, and the altruistic case, which focuses on societal welfare. Findings reveal that while altruistic behaviors improve collective outcomes, they are often undermined by free-riding dynamics, leading to market failures. However, inter-group competition fosters cooperation, as groups with higher internal altruism outperform rivals. For managers, this study underscores the importance of fostering collaboration within firms and leveraging inter-group competition to enhance sustainability. By aligning organizational strategy with systemic dynamics, managers can navigate the tension between short-term competitiveness and long-term collective contributions to sustainability. This research also offers policy insights, suggesting that structuring markets to enhance inter-group competition can drive systemic change and align corporate strategies with sustainability goals.
