sustainability. It seems to have caused a “buzz”. what is all of this?
The first thing to be clear is that when politicians talk about sustainability, they generally focus on ecological or ecological sustainability as environmental footprint And Climate change. Although these are very important considerations, when applied to businesses, sustainability takes on a larger and more challenging context.
Sustainability is so far-reaching that it will change the fundamental way business is conducted. This can be very good spirit That capitalism has been lacking since the days of Adam Smith!
What is sustainability?
Sustainability is an approach or framework for managing an organization that measures and balances economic, environmental and social Impacts on stakeholders and society. Organizations will produce plans and reports against each of these areas. In the sense that the organization is improving this balance, it has been called the triple bottom line.
What are the assets?
Initially, sustainability emerged from the environmental concerns of sustainable development. Sustainable development is defined as:
“Development that meets the needs of present generations without compromising the ability of future generations to meet their own needs.” Brundtland Commission (United Nations)
Think Bhopal, Exxon Valdez, smog, oil sands, trucking of garbage into Michigan, depleted fish stocks, work-related accidents, and the unethical or illegal behavior of corporate executives and politicians. These flashpoints have changed our attitudes, prompting NGOs, citizens and shareholders to force change. Sustainable development is, fundamentally, grassroots-driven, because once we understand that it affects all of us, we will demand certain behavior and outcomes.
At the same time, there has been a significant increase in consumers and shareholders, particularly pension funds, demanding that organizations take responsibility for their behavior and demonstrate their commitment to sustainable development through corporate social responsibility. This is described as:
“Continued commitment by companies to act ethically and contribute to economic development while improving the quality of life for the workforce and their families, as well as the local community and society at large.” World Business Council for Sustainable Development
Consumers are interested in the origin of the products and the conditions of their manufacture. Child labourers, unsafe working conditions and poor labor practices are on the consciences of consumers. In response, smart companies are working to ensure that specific standards are maintained throughout their sphere of influence, including in their supply chains.
Every organization exists within and is composed of its own society. Societies, in turn, develop higher expectations for their organisations, as well as for employees and shareholders. Thus, organizations must create balanced scorecards that will take into account a variety of dimensions.
taken together:
“CSR is the overall relationship of an organization with all stakeholders: customers, employees, communities, owners/investors, government, suppliers, and competitors. CSR includes investments in community outreach, employee relations, job creation and preservation, environmental stewardship, and financial performance.” Canadian Congress Council
A different perspective might suggest that the current developments are the response of multinational corporations to the fear that independent jurisdictions will develop a myriad of piecemeal reporting requirements, thus creating cumbersome administrative burdens.
Whatever the motivation, the International Organization for Standardization (ISO) coordinated the development of a voluntary guidance standard (ISO 26000 Social Responsibility) on how to implement and maintain a corporate social responsibility process that contributes to sustainable economic, environmental and social development. The standard was released in November 2011.
Sustainability will be the company’s new motto as it is being embraced globally by all types of organizations.
How it works?
There are systems and protocols that will guide and support the organization in implementing and maintaining the sustainability system. They are specified in the Tool Kit below. Organizations will identify and engage stakeholders in considering the impacts that are or could have on them, and measure and report on their performance in meeting stakeholder expectations.
At its core, however, is a very direct and powerful component. Organizations need to establish a robust and transparent process for stakeholder engagement. Stakeholders are defined as follows:
“An individual or group of individuals who are affected or could influence the organization.”
In inclusive stakeholder engagement, all voices must be heard and considered. The result will be more transparency and accountability.
This is deep and comprehensive
Simply put, once an organization begins to consult with its stakeholders (consumers, employees, shareholders, government, suppliers, competitors, and society at large), it must listen to them, be influenced by them, measure performance, and report back to them.
This open and dynamic interaction will ultimately have a more pervasive and lasting impact on the organization than any legislative requirement. It will create healthy tension and balance – vitality leading to a crystal clear and accountable triple bottom line.
Organizations considering implementing sustainability must ensure that it is included as a core value and that it acts as a consistent filter for all of their decisions and activities. As such, it will become the new methodology for calibrating companies and their performance. The Dow Jones Sustainability Index and the London Times Sustainability Index already provide an assessment of corporate sustainability.
Elements
Sustainability includes:
• the environment
• human rights
• Work practices
• Organizational governance
• Fair business practices
• Social interaction
Consumer issues
• Financial performance
Toolkit
To manage sustainability, organizations need to create an integrated framework, so that it is not seen as additional reporting, but understood as the constituent foundation of the business. This includes creating an integrated management system that fits the protocols and reporting requirements found in the ISO 26000 Social Responsibility Directive. This management system will include:
• ISO 9001 quality management system
• ISO 14001 Environmental Management System
• OHSAS 18001 Health and Safety Management System
• SA 8000 Social Accountability Management System
• AA 1000
• Global Reporting Initiative
• Financial reporting and disclosure requirements
the benefits
It is said that ‘what gets measured matters’. By focusing attention on the elements identified above, organizations will acknowledge their importance and allocate appropriate resources. Continuous stakeholder engagement will keep the process honest and accountable to ever higher standards.
As organizations deepen their commitment to sustainability, they will satisfy a broader audience, fulfill a greater mandate and contribute to wealth generation in new and better ways. Sustainability heralds a new balance.
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