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Corporate sustainability

December 15, 2023

Corporate sustainability is an approach aiming to create long-term stakeholder value through the implementation of a business strategy that focuses on the ethical, social, environmental, cultural, and economic dimensions of doing business.[1] The strategies created are intended to foster longevity, transparency, and proper employee development within business organizations.[2] Firms will often express their commitment to corporate sustainability through a statement of Corporate Sustainability Standards (CSS), which are usually policies and measures that aim to meet, or exceed, minimum regulatory requirements.[3]

A 2014 session by the United Nations Conference on Trade and Development promoting corporate responsibility and sustainable development.

Corporate sustainability is often confused with corporate social responsibility (CSR), though the two are not the same.[4][5] Bansal and DesJardine (2014) state that the notion of 'time' discriminates sustainability from CSR and other similar concepts. Whereas ethics, morality, and norms permeate CSR, sustainability only obliges businesses to make intertemporal trade-offs to safeguard intergenerational equity. Short-termism is the bane of sustainability.[6]

Origin edit

The phrase is derived from the concept of "sustainable development" and Elkington's (1997) "triple bottom line." The Brundtland Commission's Report, Our Common Future, defined sustainable development as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It contains within it two key concpets:

  1. "the concept of 'needs', in particular the essential needs of the world's poor, to which overriding priority should be given; and
  2. "the idea of limitations imposed by the state of technology and social organization on the environment's ability to meet present and future needs."[7]

The idea of meeting present economic needs without reducing the ability of future generations to meet their own economic needs became a popular approach in the business world's implementation of sustainable development, referred to as "corporate sustainable development."[8]

"Triple bottom line" proposes that business goals were inseparable from the societies and environments within which they operate. While short-term economic gains could be pursued, failure to account the social and environmental impacts of these pursuits is believed to make those business practices unsustainable.

Whether corporate sustainability can be measured remains contested. There are composite measures that include measures of environmental, social, corporate governance, and economic performance, such as the Complex Performance Indicator (CPI).[9] And there are many different definitions of sustainability applied to and used by companies.[10] It remains difficult to say whether a company or other actor is operating sustainably or not because "there is no generally accepted set of indicators that could clearly delineate a status of sustainability from one of unsustainability. Therefore, the global status of sustainability, as well as the exact status of different actors, such as countries, companies, or individuals, is almost impossible to measure."[11]

Scope edit

The most broadly accepted criterion for corporate sustainability constitutes a firm's efficient use of natural capital.[citation needed] This eco-efficiency is usually calculated as the economic value added by a firm in relation to its aggregated ecological impact.[12]

Similar to the eco-efficiency concept but so far less explored is the second criterion for corporate sustainability. Socio-efficiency[13] describes the relation between a firm's value added and its social impact. Whereas, it can be assumed that most corporate impacts on the environment are negative[citation needed] (apart from rare exceptions such as the planting of trees) this is not true for social impacts. These can be either positive (e.g. corporate giving, creation of employment) or negative (e.g. work accidents, human rights abuses).

Both eco-efficiency and socio-efficiency are concerned primarily with increasing economic sustainability. In this process they instrumentalise both natural and social capital aiming to benefit from win-win situations. Some point towards eco-effectiveness, socio-effectiveness, sufficiency, and eco-equity as four criteria that need to be met if sustainable development is to be reached.[14]

Theorists agree that respect for issues other than economics is an important matter. The Business Case for Sustainability (BCS) has had many different approaches for ways to approve or disapprove the economic rationale for corporate sustainability management.[15]

Principles for corporate sustainability edit

Transparency
proposes that by having an engaging environment within a company and within the community it operates will improve performance and increase profits. This can be attained through open communications with stakeholders characterized by high levels of information disclosure, clarity, and accuracy.[16]
Stakeholder engagement
is attained when a company educates its employees and outside stakeholders (customers, suppliers, and the entire community) and move them to act on matters such as waste reduction or energy efficiency.
Thinking ahead
Envisioning the future enables companies to generate fresh ideas for implementation. These ideas can either reduce productions costs, increase profits, or provide a better image for the organization.
Diveristy, Equity and Inclusion
A a 2012 study by the University of California Berkeley's Haas School of Business found that companies with a high number of female board members were more likely to reduce their environmental impact and improve energy efficiency.[17][18]

See also edit

References edit

  1. ^ Ashrafi, Mehrnaz; Acciaro, Michele; Walker, Tony R.; Magnan, Gregory M.; Adams, Michelle (20 May 2019). "Corporate sustainability in Canadian and US maritime ports". Journal of Cleaner Production. 220: 386–397. doi:10.1016/j.jclepro.2019.02.098. S2CID 159125203.
  2. ^ Purkayastha, Debapratim (1 February 2019). In Search of the Triple Bottom line – Case Studies in Corporate Sustainability. IBS Case Research Center. ISBN 978-81-314-2847-4.
  3. ^ Grimm, Jörg H.; Hofstetter, Joerg S.; Sarkis, Joseph (20 January 2016). "Exploring sub-suppliers' compliance with corporate sustainability standards". Journal of Cleaner Production. 112: 1971–1984. doi:10.1016/j.jclepro.2014.11.036.
  4. ^ Ashrafi, M.; Adams, M.; Walker, T. R.; Magnan, G. (17 November 2018). "How corporate social responsibility can be integrated into corporate sustainability: a theoretical review of their relationships". International Journal of Sustainable Development & World Ecology. 25 (8): 672–682. doi:10.1080/13504509.2018.1471628. S2CID 158792026.
  5. ^ Hirst, Scott (2016). "Social Responsibility Resolutions". The Harvard Law School Program on Corporate Governance Discussion Paper. No. 2016-06: 8.
  6. ^ Bansal, Pratima; DesJardine, Mark R. (February 2014). "Business sustainability: It is about time". Strategic Organization. 12 (1): 70–78. doi:10.1177/1476127013520265. S2CID 154779480.
  7. ^ World Commission on Environment and Development (1991) [1987]. Our common future. Oxford University Press. ISBN 0-19-282080-X. OCLC 15489268.
  8. ^ Bansal, Pratima (2005). "Evolving Sustainably: A Longitudinal Study of Corporate Sustainable Development". Strategic Management Journal. 26 (3): 197–218. doi:10.1002/smj.441. ISSN 0143-2095. JSTOR 20142218.
  9. ^ Dočekalová, M. P.; Kocmanová, A. (2016). "Composite indicator for measuring corporate sustainability". Ecological Indicators. 61: 612–623. doi:10.1016/j.ecolind.2015.10.012.
  10. ^ Montiel, Ivan; Delgado-Ceballos, Javier (June 2014). "Defining and Measuring Corporate Sustainability: Are We There Yet?". Organization & Environment. 27 (2): 113–139. doi:10.1177/1086026614526413. ISSN 1086-0266. S2CID 145688373.
  11. ^ Hahn, Rüdiger (2022). Sustainability management: global perspectives on concepts, instruments, and stakeholders. Fellbach. ISBN 978-3-9823211-0-3. OCLC 1302310975.{{cite book}}: CS1 maint: location missing publisher (link)
  12. ^ Schaltegger, Stefan; Sturm, Andreas (1998). Eco-Efficiency by Eco-Controlling: On the Implementation of Emas and ISO 14001. vdf, Hochschulverlag AG an der ETH Zürich. ISBN 978-3-7281-2415-9.[page needed]
  13. ^ Dyllick, T.; Hockerts, K. (2002). "Beyond the business case for corporate sustainability". Business Strategy and the Environment. 11 (2): 130–141. doi:10.1002/bse.323.
  14. ^ Young, William; Tilley, Fiona (November 2006). "Can businesses move beyond efficiency? The shift toward effectiveness and equity in the corporate sustainability debate" (PDF). Business Strategy and the Environment. 15 (6): 402–415. doi:10.1002/bse.510.
  15. ^ Salzmann, Oliver; Ionescu-somers, Aileen; Steger, Ulrich (1 February 2005). "The Business Case for Corporate Sustainability:: Literature Review and Research Options". European Management Journal. 23 (1): 27–36. doi:10.1016/j.emj.2004.12.007.
  16. ^ Schnackenberg, A.; Tomlinson, E. (2014). "Organizational Transparency: A New Perspective on Managing Trust in Organization-Stakeholder Relationships". Journal of Management. 42 (7): 1784–1810. doi:10.1177/0149206314525202. S2CID 144442748.
  17. ^ "Development Solutions: How to fight climate change with gender equality". European Investment Bank. Retrieved 17 September 2020.
  18. ^ Tom, Pamela (15 November 2012). "More Female Board Directors Add Up to Improved Sustainability Performance". Haas News. Berkeley Haas.

Sources edit

  • Atkinson, Giles (March 2000). "Measuring Corporate Sustainability". Journal of Environmental Planning and Management. 43 (2): 235–252. doi:10.1080/09640560010694. S2CID 154282221.
  • Dyllick, Thomas; Hockerts, Kai (March 2002). "Beyond the business case for corporate sustainability". Business Strategy and the Environment. 11 (2): 130–141. doi:10.1002/bse.323.
  • van Marrewijk, Marcel (1 May 2003). "Concepts and Definitions of CSR and Corporate Sustainability: Between Agency and Communion". Journal of Business Ethics. 44 (2): 95–105. doi:10.1023/A:1023331212247. S2CID 189900614.
  • Dunphy, Dexter Colboyd; Griffiths, Andrew; Benn, Suzanne (2003). Organizational Change for Corporate Sustainability: A Guide for Leaders and Change Agents of the Future. Psychology Press. ISBN 978-0-415-28740-1.
  • Werbach, Adam. Strategy for Sustainability: a Business Manifesto. Boston, Mass.: Harvard Business, 2009. Print.
  • "Strengthen Your Business by Developing Your Employees", by Leslie Levine—Business Resources, Advice and Forms for Large and Small Businesses, 2010
  • "Walmart Sustainability Report 2010 – Environment – Waste." Walmartstores.com. Web. 1 July 2010.
  • "Handbook on Corporate Social Responsibility in India", Sachin Shukla et al – PwC India, 2013.

External links edit

  • International Society of Sustainability Professionals – Non-profit association supporting sustainability professionals

December 15, 2023
corporate, sustainability, approach, aiming, create, long, term, stakeholder, value, through, implementation, business, strategy, that, focuses, ethical, social, environmental, cultural, economic, dimensions, doing, business, strategies, created, intended, fos. Corporate sustainability is an approach aiming to create long term stakeholder value through the implementation of a business strategy that focuses on the ethical social environmental cultural and economic dimensions of doing business 1 The strategies created are intended to foster longevity transparency and proper employee development within business organizations 2 Firms will often express their commitment to corporate sustainability through a statement of Corporate Sustainability Standards CSS which are usually policies and measures that aim to meet or exceed minimum regulatory requirements 3 A 2014 session by the United Nations Conference on Trade and Development promoting corporate responsibility and sustainable development Corporate sustainability is often confused with corporate social responsibility CSR though the two are not the same 4 5 Bansal and DesJardine 2014 state that the notion of time discriminates sustainability from CSR and other similar concepts Whereas ethics morality and norms permeate CSR sustainability only obliges businesses to make intertemporal trade offs to safeguard intergenerational equity Short termism is the bane of sustainability 6 Contents 1 Origin 2 Scope 3 Principles for corporate sustainability 4 See also 5 References 6 Sources 7 External linksOrigin editThe phrase is derived from the concept of sustainable development and Elkington s 1997 triple bottom line The Brundtland Commission s Report Our Common Future defined sustainable development as development that meets the needs of the present without compromising the ability of future generations to meet their own needs It contains within it two key concpets the concept of needs in particular the essential needs of the world s poor to which overriding priority should be given and the idea of limitations imposed by the state of technology and social organization on the environment s ability to meet present and future needs 7 The idea of meeting present economic needs without reducing the ability of future generations to meet their own economic needs became a popular approach in the business world s implementation of sustainable development referred to as corporate sustainable development 8 Triple bottom line proposes that business goals were inseparable from the societies and environments within which they operate While short term economic gains could be pursued failure to account the social and environmental impacts of these pursuits is believed to make those business practices unsustainable Whether corporate sustainability can be measured remains contested There are composite measures that include measures of environmental social corporate governance and economic performance such as the Complex Performance Indicator CPI 9 And there are many different definitions of sustainability applied to and used by companies 10 It remains difficult to say whether a company or other actor is operating sustainably or not because there is no generally accepted set of indicators that could clearly delineate a status of sustainability from one of unsustainability Therefore the global status of sustainability as well as the exact status of different actors such as countries companies or individuals is almost impossible to measure 11 Scope editThe most broadly accepted criterion for corporate sustainability constitutes a firm s efficient use of natural capital citation needed This eco efficiency is usually calculated as the economic value added by a firm in relation to its aggregated ecological impact 12 Similar to the eco efficiency concept but so far less explored is the second criterion for corporate sustainability Socio efficiency 13 describes the relation between a firm s value added and its social impact Whereas it can be assumed that most corporate impacts on the environment are negative citation needed apart from rare exceptions such as the planting of trees this is not true for social impacts These can be either positive e g corporate giving creation of employment or negative e g work accidents human rights abuses Both eco efficiency and socio efficiency are concerned primarily with increasing economic sustainability In this process they instrumentalise both natural and social capital aiming to benefit from win win situations Some point towards eco effectiveness socio effectiveness sufficiency and eco equity as four criteria that need to be met if sustainable development is to be reached 14 Theorists agree that respect for issues other than economics is an important matter The Business Case for Sustainability BCS has had many different approaches for ways to approve or disapprove the economic rationale for corporate sustainability management 15 Principles for corporate sustainability editTransparency proposes that by having an engaging environment within a company and within the community it operates will improve performance and increase profits This can be attained through open communications with stakeholders characterized by high levels of information disclosure clarity and accuracy 16 Stakeholder engagement is attained when a company educates its employees and outside stakeholders customers suppliers and the entire community and move them to act on matters such as waste reduction or energy efficiency Thinking ahead Envisioning the future enables companies to generate fresh ideas for implementation These ideas can either reduce productions costs increase profits or provide a better image for the organization Diveristy Equity and Inclusion A a 2012 study by the University of California Berkeley s Haas School of Business found that companies with a high number of female board members were more likely to reduce their environmental impact and improve energy efficiency 17 18 See also editSustainable business Sustainable finance Project finance EthicalQuote CEQ Environmental social and corporate governance Index of sustainability articlesReferences edit Ashrafi Mehrnaz Acciaro Michele Walker Tony R Magnan Gregory M Adams Michelle 20 May 2019 Corporate sustainability in Canadian and US maritime ports Journal of Cleaner Production 220 386 397 doi 10 1016 j jclepro 2019 02 098 S2CID 159125203 Purkayastha Debapratim 1 February 2019 In Search of the Triple Bottom line Case Studies in Corporate Sustainability IBS Case Research Center ISBN 978 81 314 2847 4 Grimm Jorg H Hofstetter Joerg S Sarkis Joseph 20 January 2016 Exploring sub suppliers compliance with corporate sustainability standards Journal of Cleaner Production 112 1971 1984 doi 10 1016 j jclepro 2014 11 036 Ashrafi M Adams M Walker T R Magnan G 17 November 2018 How corporate social responsibility can be integrated into corporate sustainability a theoretical review of their relationships International Journal of Sustainable Development amp World Ecology 25 8 672 682 doi 10 1080 13504509 2018 1471628 S2CID 158792026 Hirst Scott 2016 Social Responsibility Resolutions The Harvard Law School Program on Corporate Governance Discussion Paper No 2016 06 8 Bansal Pratima DesJardine Mark R February 2014 Business sustainability It is about time Strategic Organization 12 1 70 78 doi 10 1177 1476127013520265 S2CID 154779480 World Commission on Environment and Development 1991 1987 Our common future Oxford University Press ISBN 0 19 282080 X OCLC 15489268 Bansal Pratima 2005 Evolving Sustainably A Longitudinal Study of Corporate Sustainable Development Strategic Management Journal 26 3 197 218 doi 10 1002 smj 441 ISSN 0143 2095 JSTOR 20142218 Docekalova M P Kocmanova A 2016 Composite indicator for measuring corporate sustainability Ecological Indicators 61 612 623 doi 10 1016 j ecolind 2015 10 012 Montiel Ivan Delgado Ceballos Javier June 2014 Defining and Measuring Corporate Sustainability Are We There Yet Organization amp Environment 27 2 113 139 doi 10 1177 1086026614526413 ISSN 1086 0266 S2CID 145688373 Hahn Rudiger 2022 Sustainability management global perspectives on concepts instruments and stakeholders Fellbach ISBN 978 3 9823211 0 3 OCLC 1302310975 a href Template Cite book html title Template Cite book cite book a CS1 maint location missing publisher link Schaltegger Stefan Sturm Andreas 1998 Eco Efficiency by Eco Controlling On the Implementation of Emas and ISO 14001 vdf Hochschulverlag AG an der ETH Zurich ISBN 978 3 7281 2415 9 page needed Dyllick T Hockerts K 2002 Beyond the business case for corporate sustainability Business Strategy and the Environment 11 2 130 141 doi 10 1002 bse 323 Young William Tilley Fiona November 2006 Can businesses move beyond efficiency The shift toward effectiveness and equity in the corporate sustainability debate PDF Business Strategy and the Environment 15 6 402 415 doi 10 1002 bse 510 Salzmann Oliver Ionescu somers Aileen Steger Ulrich 1 February 2005 The Business Case for Corporate Sustainability Literature Review and Research Options European Management Journal 23 1 27 36 doi 10 1016 j emj 2004 12 007 Schnackenberg A Tomlinson E 2014 Organizational Transparency A New Perspective on Managing Trust in Organization Stakeholder Relationships Journal of Management 42 7 1784 1810 doi 10 1177 0149206314525202 S2CID 144442748 Development Solutions How to fight climate change with gender equality European Investment Bank Retrieved 17 September 2020 Tom Pamela 15 November 2012 More Female Board Directors Add Up to Improved Sustainability Performance Haas News Berkeley Haas Sources editAtkinson Giles March 2000 Measuring Corporate Sustainability Journal of Environmental Planning and Management 43 2 235 252 doi 10 1080 09640560010694 S2CID 154282221 Dyllick Thomas Hockerts Kai March 2002 Beyond the business case for corporate sustainability Business Strategy and the Environment 11 2 130 141 doi 10 1002 bse 323 van Marrewijk Marcel 1 May 2003 Concepts and Definitions of CSR and Corporate Sustainability Between Agency and Communion Journal of Business Ethics 44 2 95 105 doi 10 1023 A 1023331212247 S2CID 189900614 Dunphy Dexter Colboyd Griffiths Andrew Benn Suzanne 2003 Organizational Change for Corporate Sustainability A Guide for Leaders and Change Agents of the Future Psychology Press ISBN 978 0 415 28740 1 Werbach Adam Strategy for Sustainability a Business Manifesto Boston Mass Harvard Business 2009 Print Strengthen Your Business by Developing Your Employees by Leslie Levine Business Resources Advice and Forms for Large and Small Businesses 2010 Walmart Sustainability Report 2010 Environment Waste Walmartstores com Web 1 July 2010 Handbook on Corporate Social Responsibility in India Sachin Shukla et al PwC India 2013 External links editInternational Society of Sustainability Professionals Non profit association supporting sustainability professionals Portal nbsp Companies Retrieved from https en wikipedia org w index php title Corporate sustainability amp oldid 1176215894, wikipedia, wiki, book, books, library,

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