A sustainable organization integrates production, organizational, and marketing processes with the principles of sustainable development, focusing on eco-friendly technologies, waste reduction, energy efficiency, and resource management across social, ecological, and economic dimensions. While existing literature often emphasizes the process approach to organizational transformation, there is a noticeable lack of focus on the functional perspective. This study addresses that gap through a literature review of 1,641 scientific articles from Scopus and Web of Science, highlighting key differences between process-oriented and function-oriented transformations. The findings reveal that external factors may have greater influence than internal ones in shaping sustainable transformation. Moreover, successful transformation requires specific organizational competencies and the adoption of innovative business models. A lack of employee alignment and shared vision is identified as a critical barrier to progress. The study also emphasizes that involving a wide range of stakeholders and integrating their perspectives into the value chain can significantly improve the effectiveness of organizational change efforts toward sustainability. This functional lens offers a valuable complement to existing process-focused frameworks and provides practical insight for companies seeking to develop more sustainable business practices.