The organizational structure of Holacracy has been gaining popularity in recent years,

but a lack of academic research on Holacracy called for a systematic approach to assessing its

merits and shortcomings. The need Holacracy fills, is that of organizations dealing with a

complex world and rapidly evolving technology. While Holacracy is not tailored to address

sustainability issues, there are many components that made it a candidate for the researchers to

examine it through a social sustainability lens.

This study examines the effect of specific components of Holacracy with elements of adaptive

capacity – a theory from which the research definition of social sustainability was built. With

the goal of determining the effect of Holacracy on social sustainability, a questionnaire directed

at employees and practitioners of holacratic organizations was utilized.

The findings implied that Holacracy does positively influence the experience of the elements

of adaptive capacity; with the relationship to the adaptive capacity element of self-organization

being a standout. The importance of trust is also identified. The link to the Framework for

Strategic Sustainable Development can be elucidated through adaptive capacity’s influence to

the social sustainability principles. Because of the importance of social sustainability and social

capital to organizational performance and longevity, this research is of value to any business

using, or considering using Holacracy.