The word “corporate sustainability” branches out from the concept of “sustainable development.” Sustainable development is defined as the “fulfilling the needs of the present generation without putting the needs of the future generation at risk”.
The motive of a business contributing to sustainable development should be to create wealth to reduce poverty, without putting natural environment at risk. Through this, businesses can ensure the future generations’ welfare, and help contribute in our world today.
In reality, the business must keep in mind a few key points in their routine operation:
- Rights of people and social justice. Sustainability requires businesses to create and impact on their employs, which is by committing to fair wages, ethical treatment, and a sanitary and protected environment.
For example: During Covid-19, many corporates had to let go of their employees and had to cut down their wages. Contradicting to that many businesses paid their employees owing to the rise of unpaid bills piling up.
- Extraction of natural resources and trash. Businesses depend on natural resources such as land, water and energy. The process of extraction takes a lot, and for the extracted resources to recover, regenerate or renew might take several years. Businesses should abide by these cycles, and reduce the speed at which they use up natural resources.
For example: Corporates should decrease their extraction practices and invest in recycling or repurposing products which might make their operations more efficient. In doing so, they would reduce waste, and contribute to ‘circular economy’.
- Short- and long-term plans: the pressure faced by businesses to gain immediate profits, and make quick decision is a lot. Anyhow, sustainability requires the investment to be done in technology for the people in the near future, no matter the elongation of profits. The companies are used to long-term thinking for capital investment. However, an investment expected to be oriented towards sustainability, for the people and society.
For example: Major companies have switched or are switching towards renewable energy rather than non-renewable energies. Knowing the profitable margin of these companies would be less in the longer run. They understand the need for climate change and require them to create new opportunities and sources of energy.
Difference between ‘Corporate Responsibility’ and ‘Corporate Social Responsibility’
Several terms are used to describe companies’ social and environment initiatives.
- Corporate social responsibility (CSR)
- Environment, social and governance (ESG)
- Shared value
- Triple bottom line, and managing environmental impacts.
Sustainability is seen as the most complete and powerful of these terms. It is because sustainability requires a “system view”. An outlook system that recognizes that companies a part of social and environmental organization. The system change accordingly considering the future.
CSR elaborates a company and their ethical responsibility. However, the definition of what is ethical and what is not differs from one to another. For instance, some might see minimum wage as responsible, while others look at it as an ethical choice. Corporate sustainability elaborates scientific principles for its actions. A corporate sustainability might filter out and set a minimum wage, which they expect would meet people’s need, and will vary from post to pillar.
Further, CSR is more concerned with the present events rather than advocating for the future generations.
Not to get confused in the technicality of definitions. Ultimately, all these terms expects businesses to focus on the broader concept of the operations in this world, and not just their short-term profiting strategies.
The Importance of Corporate Sustainability
Business is the most powerful field and the absolute risk factor of all time. Several businesses are larger than the GDP of a country’s government. For example, Amazon’s revenues in 2021 were $US469.82 billion, and Tesla’s revenue in 2021 were $US53.82 billion. A business has much power to overthrow an entire regiment, and can independently choose to turn the present and future of life.
Additionally, companies can profit in the long term by bring green and healthy. Evidence shows that monetary gains come in various forms. For example:
- Reducing waste and trash, e.g. through efficient energy investments, often improves savings.
- Investors are always on the lookout for companies with higher “ESG”(environmental, social, and governance) ratings, to reduce risks and invest seeking a long-term vision
- Conscious and creative employers are always on the lookout for the same employees willing to take lower salaries, owing to the sincere commitment.
Do factor in, sustainability I just not about making money. It is to create a vision of how powerful executives run their sustainable business world they created. They dream of a world where the masses flourish, a planet which is fruitful and packed with blissful biodiversity. They despise a world where a few enjoy luxuries while others rot with diseases and perish in poverty and waste.
To Build a Corporate Sustainability Strategy
Companies move step by step towards sustainability, rapidly rising and expanding their plans. Many a time companies begin by putting their personal space aka homes orderly, looking at proper decisions, operations, customs and other aspects. They further move on to partnering with other delegate companies, which can help organization and share best practices. Eventually, the companies need to engage with society, from community to NGOs.
Finally, no individual or company can create sustainable development in the world. It has to be a unified effort. It is because the issues like, poverty, climate change; pollution is fairly huge and requires each and every citizen to be an active participant in the solution.
And for companies to be free of carbon emission, extraction of natural resources, and etc. it requires suppliers to create new innovative products or strategies, to attract regulators, suppliers and customers. Sustainability needs creative forms and aspects to merge with the fresh thinking economy.
Corporate sustainability is definitely a harder part of the problem, which requires more and lengthy time. However, it is absolutely necessary to immediately take action. The companies which absorb the wholeness of sustainability and its ideas will no later contribute to a better world. These companies are in for a long-term profiting market, with time.
Why wouldn’t someone want to contribute towards a future which we will surely be a part of? After all, we will be the ones to enjoy the fruit of our hard-work and ethic.
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