This is the accepted version of the following article: Rodriguez-Melo, A. and Mansouri, S. A. (2011), Stakeholder Engagement: Defining Strategic Advantage for Sustainable Construction. Bus. Strat. Env., 20: 539–552, which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1002/bse.715/abstract.Although sustainable development is increasingly becoming a part of business plans, it is unclear what makes the economic, social and environmental dynamics strategically compatible. This research examines which of the following in sustainable development – government policy, managerial attitude and stakeholder engagement – is the most influential on the profitability of companies in the UK construction sector. Quantitative and qualitative analyses were rendered through a survey and semi-structured interviews. Patterns of ambiguity in legislation were discovered as an obstacle for changing the sector's mind-set. Stakeholder engagement was identified as the defining factor increasing managers' awareness, helping legislation to be effectively implemented and making sustainability highly appealing to clients. These findings indicate that to gain competitive advantage, companies should embark on long-term strategic alliances which adopt the proposals of environmental non-governmental organisations and closely follow public opinion. This, strengthens brand equity, allows for premium pricing, increases market share and maximizes profit
