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Overview
The last 20 years have seen growing concerns about economic systems and business models that foster economic disparity and environmental imbalances, despite technological advances and improved standards of living. These concerns have inspired intense discussions about sustainability.
Businesses across the world are therefore recognising the need to address the environmental and social impacts of their activities which, together with profits are popularly known as the 'triple bottom line' issues of sustainable development. Thus, the sustainable business debate is shifting from public relations to questions of competitive advantage and corporate governance. New and emerging definitions of business opportunity and financial risks are forcing Corporate Boards to address issues such as environmental quality, social justice and economic efficiency. Indian business is growing rapidly in size, scope and global reach. However, growth and continuance of business in the long-term, when the nation is targeting higher levels of economic leap-frog, cannot be achieved at the cost of our already fragile environment and weak social fabric. Businesses today face pressures which are different from their predecessors and their roles and responsibilities are being dramatically redefined in the face of changing expectations. Conventional businesses would view these pressures and expectations as threats to business growth and shareholder value creation. Today, businesses need to identify strategies and practices that can turn the threats into opportunities and contribute to a more sustainable world while simultaneously driving shareholder value; which can be defined as the creation of sustainable value. Real development will not come about because of some government decrees or some changes in the ways businesses operate. To produce the necessary changes and to initiate a postindustrial renaissance, new ideas, connections, and social networks are needed. This will only happen when a diverse and diffused critical mass of people and businesses decide to live and act differently. Leading organizations have now started to operate with a high sensitivity to social, environmental and economical issues and are embracing new forms of collaborations, partnerships and entrepreneurships. They are coping with challenges to develop and implement strategies which meet the needs and expectations of a complex range of stakeholders that include employees, governments, communities and civil society. The result is that many leaders are fundamentally questioning and changing the way they manage their organizations, prompting an assessment of the understanding needed by those who lead and shape the organization. A key issue for businesses that want to respond to the challenge posed by sustainable development is how to take effective action. The CII Centre of Excellence for Sustainable Development is pioneering Corporate Sustainability Management (CSM) for Indian industry in the belief that future competitiveness requires internalization of sustainability management through a clear, practical, integrated framework. CSM is a systematic and integrated approach to optimize management of the key economic, environmental and social impacts of a company's products/ services and processes. Benefits of CSM include enhanced decision-making, reduced risks, reduced costs, increased options and innovation, and increased number and loyalty of clients. These benefits position a company as partner of choice, attract talent and financial resources, and ultimately enhance competitiveness and profitability. Above all, CSM provides the prospect of being architects of a better future for businesses, for others and for generations to come. Business Case for Corporate Sustainability Management In direct contrast to the traditional management approaches of companies, businesses need to embrace environmental, social and economic drivers of society so as to achieve any level of stability in the global commons.
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