Corporate Sustainability

Knowledge Center

   

Description of Corporate Sustainability. Explanation.

Contents

Premium

 

Definition Corporate Sustainability. Description.


Corporate Sustainability refers to the business approach by companies to consider not only economical needs in their strategies and practices, but also environmental and social needs. It is the opportunity for businesses to improve their profitability, competitiveness, and market share without compromising resources for future generations. Compare also Porter's Shared Value concept which goes one step further in this respect.


Public criticism, enabled by powerful mass media, has made some level of care for the environment and refraining from dubious accounting practices and from operating "sweatshops" in developing countries part of the strategy of even the most die-hard financially oriented firms.


Leading sustainability companies show high levels of competence in addressing global and industry challenges in a variety of areas:

  • Strategy. Integrating long-term economic, environmental and social aspects in their business strategies while maintaining global competitiveness and brand reputation.

  • Financial. Meeting shareholders' demands for sound financial returns, long-term economic growth, open communication and transparent financial accounting.

  • Customer & Product. Fostering loyalty by investing in customer relationship management and product and service innovation that focuses on technologies and systems, which use financial, natural and social resources in an efficient, effective and economic manner over the long-term.

  • Governance and Stakeholder. Setting the highest standards of corporate governance and stakeholder engagement, including corporate codes of conduct and public reporting.

  • Human Resources. Managing human resources to maintain workforce capabilities and employee satisfaction through best-in-class organizational learning and knowledge management practices and remuneration and benefit programs.

Donald A. Lubin and Daniel C. Esty recommend in HBR May 2010 to do 2 things simultaneously  to gain an advantage from the sustainability megatrend:

  1. Get the vision right
    • Stage 1: Do old things in new ways
    • Stage 2: Do new things in new ways
    • Stage 3: Transform core business
    • Stage 4: new business model creation and differentiation
  2. Get the execution right
    1. Elevate sustainability leadership  from departmental to C-level
    2. Update methods and models (Scenario Planning, business case analysis, trend spotting) to encompass environmental sustainability.
    3. Include green stakeholders (NGO representatives, academics, government officials) in strategy development
    4. Integrate management (integrate sustainability objectives into compensation models, performance reviews, etc)
    5. Change reporting and communication from ad hoc into sustainability scorecards that enable benchmarking, best practice comparisons

Corporate sustainability performance is an investable concept. This is crucial in driving interest and investments in sustainability to the mutual benefit of companies and investors. As this benefit circle strengthens, it will have a positive effect on the societies and economies of both the developed and developing world.
 

One of the critically important issues in sustainability is that of human overpopulation combined with human lifestyle. A number of studies have suggested that the current population of the Earth, already over six billion, is too many people for our planet to support sustainably at current material consumption levels. This challenge for sustainability is distributed unevenly. The ecological pressure of a US resident is said to be 13 times that of a resident of India and 52 times that of a Somalian resident.


Corporate Sustainability Special Interest Group


Special Interest Group (246 members)


Corporate Sustainability Forum  

Recent topics

  Why Does CSR Attract Customers?
Hughes (2017) mentions several reasons why focusing on sustainability and tackling social issues will expand your customer base:
  1. RATIO...
     
 
  Transitioning Grant-Funded Research to a Sustainable Business
What steps do you believe are necessary to successfully transition grant-funded research projects into a sustainable business entity?
What materi...
     
 
  Sustainability is a Pipe Dream
There is no such thing as sustainable. Maintenance of something always requires energy input whether it's actual energy like electricity, management e...
     
 

Best Practices - Corporate Sustainability
  Why Should Firms Invest Strategically in Sustainability?
Businesses are increasingly implementing sustainability in their operations. However, executives often remain reluctant to put sustainability at the h...
     
 
  How to Improve Popularity of Remanufactured Products?
DEFINITION
Remanufacturing refers to the process of disassembling, cleaning, inspecting, repairing, replacing, and reassembling the co...
     
 
  Reasons for Sustainability Innovation
A lot of attention has been paid to sustainability over the last decade. In an article, Schaltegger and M. Wagner try to clarify when sustainable entr...
     
 
  Reasons for Omitting Sustainability Reporting
Higgins et al. (2012) have researched Sustainability Reporting (SR) in organizations. The authors elaborate on five reasons why companies do not re...
     
 
  Overcoming Barriers to Corporate Sustainability (CS)
     
 
  PROs and CONs of Sustainable Development: Which One Wins?
Sustainable Development (SD) is often seen as something that can be harmful for an organization at first sight. There are several reasons for this (
     
 



All you need to know about management


  Investigate the PROCESS Impact on Sustainability: not Just the MATERIALS Used!
Often the impact on ENERGY far outweighs the Materials selected when it comes to sustainability.
Use a simple example: in our everyday lives we c...
     
 
  Sustainability of Corporations, Industries and Nations
Meaning of Sustainability: an entity's ability to grow and maintain accelerated growth.
Growing means one step at a time. Accelerated growth m...
     
 
  10 Ways to Become a Socially Responsible Organization
Newlands (2017) sums up ten points helping firms to become more socially responsible, leading to longer-term relationships with increasingly re...
     
 
  Waste-Free Production: Cradle to Cradle
In order to combat climate change, saving production resources and returning old products to a useful life sound like very good ideas. But they are to...
     
 
  Corporate Sustainability Frameworks?
Can anyone please help me with a corporate sustainability model or framework being adopted in organizations? I am trying to implement this aspect in m...
     
 
  The Effect the Increasing Rate of Change is Having on Corporate Sustainability
The problem is corporate sustainability is becoming harder and harder - if not impossible. Rita Gunther McGrath has just written a great book titled, ...
     
 
  Sustainability Goals Needs to Be Articulated in Financial Terms
The success of any program depends upon proper articulation of its long-term objective(s), meticulous planning to achieve the same, establishing a cap...
     
 
  The Impacts of Environmental Regulations on Competitive Advantage
The study of environmental regulations and its impact on competitive advantage has in the past literature led to inconclusive results. There are two m...
     
 
  How to Invest in Sustainable Portfolios
Investments are more and more trying to align their investments with their values. They have begun to think differently about potential investments po...
     
 
  Why is Business / Corporate Sustainability Important?
Managing businesses in a sustainable way is playing a major role in:
1. SOCIETY - to address the social conditions that affect us all, including ...
     
 
  Causes of the Gap Between Good Intentions and Actual Results of Corporate Sustainability Practices
Companies are increasingly addressing sustainability by incorporating CSR programs in their business models. The result is an increase in reported imp...
     
 
  Hotel Sustainability: Put Humans in Focus
It always saddens me to see how often sustainability in the hotel industry is actually led by engineers, projects are being considered mechanical, lik...
     
 
  Supply Chain Sustainability
Most companies have now realised that sustainability can result in streamlined processes and long-term business success, even on a financial level. Wh...
     
 
  Interconnection between CSR and Innovation
Hello! I'm working on a Master's thesis within which now planning a research guidelines on the interconnection between CSR and Innovation.
I woul...
     
 
  Fair Trade Labels: A Good Step?
Efforts to produce fair products have started long ago. In the late 18th century, attempts to boycott sugar from the West Indies were already made to ...
     
 
  Every Cent of Earning is not the Holy Grail
A facet of sustainability, in my understanding, is the wisdom to recognize and the energy to enforce superior interests which are not directly related...
     
 
  Issues with Creating Sustainable Workplaces
Business are increasingly focused on creating a more sustainable workplace for their workforce. A comfortable work environment is related to happier, ...
     
 
  Sustainability Reporting Should Be Made Mandatory
If CS has to happen, sustainability reporting has to be made mandatory like Corporate Social Responsibility in India for those companies earning a net...
     
 
  The Role of Stock Markets in Corporate Sustainability
For any organization to succeed in this market situation, short term goals like donation for community or reducing emissions will not help.
Susta...
     
 
  Tools and Techniques that Result in Sustainability Outcomes
In order to be able to support the transition to sustainable operations of small to medium sized businesses, I would like to first identify and collec...
     
 
  Factors in Implementation of Environmental Management
Some companies decide to implement Environmental Management (EM) while other companies don't. Oberhofer and Furst (2013) looked at the implementation ...
     
 
  Sustainability and the Engineering Function
How does sustainability as a corporate goal influence the role of engineers in a manufacturing company? Do they have different criteria for their deci...
     
 
  Sustainability Management in Development Projects in Africa?
Dear Members,
I am currently undertaking research on sustainability in development projects in Africa Region.
Could you kindly share with me...
     
 
  Sustainability and Quality Management System Go Hand in Hand
Reducing consumption both of raw-material and energy or increasing efficiency will help in improving sustainability. The essence of any quality manage...
     
 
  Challenges of Sustainability Certification
Sustainability certification is being used globally as a method by which a third party assesses norms and standards with regard to environmental, soci...
     
 
  Substantive Corporate Sustainability versus Symbolic Corporate Sustainability
Due to increased awareness that people nowadays have about environmental issues, many companies have started sustainability programs.
- Truly rea...
     
 
  Corporate Sustainability in India
Corporations in India are under growing pressure from internal and external stakeholders to achieve corporate sustainability and consider the economic...
     
 
  Three Main Weaknesses in Corporate Sustainability Governance
Although leadership is critical in the design and implementation of Corporate Sustainability (CS) programs, many companies still lack knowledge on how...
     
 

Expert Tips - Corporate Sustainability
 

3 Main Views to Achieve Sustainable Development

 
 
 

3 Types of Pro-environmental Behaviour

 
 
 

Corporate Sustainability Committee

 
 



Advance yourself in business administration and management



Resources - Corporate Sustainability

Sustainable Leadership: Leading in Sustainability

 

Exceptional Speech by then 13 year-old Severn Suzuki at the UN, 2008 on Environmental and Social Responsibility

 

Planetary Boundaries: The Need for Sustainability

 

How to Design and Build Sustainable Supply Chains

 

Packaging and Sustainable Packaging (In-depth)

 

Materialism. Causes, Consequences and Remedies

 

Outsourcing to Global Business Service Providers and Sustainable Development

 

Pursuing Corporate Sustainability Through Fair Trade

 

Sustainable Manufacturing

 

Paperless Workplaces: Reasons, Practices and Difficulties

 

Creating Triple Bottom Line Awareness: An Introduction

 

Sustainability Reporting

 

Supply Chain Sustainability

 

Climate Change and Fossil Fuels: Introduction Into Divest Invest

 

Sustainability and CSR as Business Case

 

Sustainability and Tourism: Geotourism

 

Dealing with Climate Change and Resource Scarcity: a Pivot Strategy

 

Creating Inclusive Business Models

 
 

News about Corporate Sustainability


     
 

Videos about Corporate Sustainability


     
 

Presentations about Corporate Sustainability


     
 

Books about Corporate Sustainability


     
 

More about Corporate Sustainability


     



Accelerate your management career



Compare with: Corporate Transparency  |   Corporate Accountability  |  Corporate Responsibility  |  Intrinsic Stakeholder Commitment  |  Strategic Stakeholder Management  |  Triple Bottom Line  |  Shareholder Value Perspective  |  Stakeholder Value Perspective  |  Bottom of the Pyramid  |  Public Relations  |  Environmental Insurance  |  Whistle Blower  |  Cultural Dimensions  |  Strategic Intent  |  Ashridge Mission Model  |  Clarkson Principles  |  Moral Purpose  |  Seven Surprises  |  Spiral Dynamics

Special Interest Group Leader

 
 

Return to Management Hub: Communication & Skills  |  Decision-making & Valuation  |  Ethics & Responsibility  |  Finance & Investing  |  Leadership  |  Strategy


More on Management  |  Return to Management Dictionary  | 

 

This ends our Corporate Sustainability summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2018 12manage - The Executive Fast Track. V15.0 - Last updated: 18-12-2018. All names of their owners.