Corporate sustainability

Corporate sustainability is a business approach that creates long-term consumer and employee value by not only creating a "green" strategy aimed towards the natural environment, but taking into consideration every dimension of how a business operates in the social, cultural, and economic environment. Also formulating strategies to build a company that fosters longevity through transparency and proper employee development.

Corporate sustainability is an evolution on more traditional phrases describing ethical corporate practice. Phrases such as corporate social responsibility (CSR) or corporate citizenship continue to be used but are increasingly superseded by the broader term, corporate sustainability. Unlike the other phrases that focus on "added-on" policies, corporate sustainability describes business practices built around social and environmental considerations.

The phrase is derived from two keys sources. The Brundtland Commission's Report – Our Common Future which described sustainable development as, "development that meets the needs of the present without compromising the ability of future generations to meet their own needs". This desire to grow without damaging future generations' prospects is becoming more and more central to business philosophies.

Within more academic management circles Elkington (1999) developed the concept of the Triple Bottom Line which proposed that business goals were inseparable from the societies and environments within which they operate. Whilst short-term economic gain could be chased, a failure to account for social and environmental impacts would make those business practices unsustainable.

Strategic Principles For Corporate Sustainable Development

Transparency

Deals with the idea that by having an engaging and open environment within the company as well as the community will improve performance and increase profits. It is an open culture that promotes employee involvement in regards to the innovation and creative processes. Reaching out to the community creates a much bigger team, is extremely cheap, and provides evaluation from all angles. Companies are looking inward and realizing changes must be made to fulfill environment needs such as energy efficiency, limiting product waste and toxicity, and designing innovative products.

Employee Development

People are the most important renewable resource and therefore, are the strongest asset to any organization. A strong development program could be the underlying factor for a company's success or failure. Employees are the concrete foundation for the company and must be thoroughly analyzed and evaluated to tap into their true motivations and desires. For a company that wants to reach its greatest potential, employees must work towards improvement rather than perfection. Programs should be implemented that rewards star performers, fosters the creative learning process, and provides comprehensive training and evaluating.

Resource Efficiency

Companies must adapt to this rapidly changing environment by being prepared to change and implement new creative ideas related to sustainability. Companies should not throw away old products and materials, but rather be prepared with upgraded technology that can transform the product. New solutions that improve recycling and waste redirecting can ultimately reduce costs and increase profits. For example, Wal-Mart Stores Inc. has redirected more than 64 percent of the waste generated by stores and Sam’s Club facilities. In 2009 alone, they recycled more than 1.3 million pounds of aluminum, 120 million pounds of plastics, 11.6 million pounds of mixed paper and 4.6 billion pounds of cardboard. On an annual basis, they expect to save around $20 million and prevent 38 million pounds of waste being sent to landfills.

Companies focused on sustainability are appointing a Chief Sustainability Officer leading a department with a mandate to proactively develop and implement a corporate sustainability strategy.

General references

• [1]"Measuring corporate sustainability", by G Atkinson, Journal of Environmental Planning and Management, 2000.
• [2] "Beyond the business case for corporate sustainability", by T Dyllick, K Hockerts, in Business Strategy and the Environment, 2002.
• [3]"Concepts and definitions of CSR and corporate sustainability", M Van Marrewijk - Journal of Business Ethics, 2003.
• [4]"Organizational change for corporate sustainability", by DC Dunphy, A Griffiths, S Benn, London: Routledge Publishing, 2003.
• Werbach, Adam. Strategy for Sustainability: a Business Manifesto. Boston, Mass.: Harvard Business, 2009. Print.
• [5] "Strengthen Your Business by Developing Your Employees", by Leslie Levine—Business Resources, Advice and Forms for Large and Small Businesses, 2010
• [6] "Walmart Sustainability Report 2010 - Environment - Waste." Walmartstores.com. Web. 1 July 2010.

See also

• Sustainable Value - Approach that allows to measure and manage corporate sustainability.

External links

• International Society of Sustainability Professionals - Non-profit association supporting sustainability professionals
• SustainAbility - UK based sustainability think tank
• Phronesis Consulting - A consultancy that assists firms with the design, implementation and reporting of sustainability initiatives.
• Environmental Performance Group - A US based consulting firm that helps organizations develop environmentally and socially responsible business practices.
• open-sustainability - Developing an open sustainability standard for organizations based on information management principles.
• EHS Data - Example of a structured approach to managing corporate sustainability data