What is corporate sustainability and why is it important?

RUNNING HEAD: CORPORATE SUSTAINABILITY
0
Corporate
Sustainability
Student’s Details-
3-20-2020

CORPORATE SUSTAINABILITY 1
Importance of Corporate Sustainability
Corporate sustainability is an important aspect of organization which aims to make the
sustainable practices through fulfilling the responsibilities towards the stakeholders for business
purpose (Muttakin, et al., 2015). All the individuals, organizations and government are
prioritizing the sustainable practices through the policies that support the corporate sustainability
for attaining competitive advantage and increasing reputation (Carroll, 2015). People are
becoming more and more aware of the sustainable practices; the organizations somehow create
major step towards the sustainable future. Here, the essay is based on the importance of
corporate sustainability and the role stakeholders in the maintenance of sustainable practices.
Also, the essay has highlighted the importance of stakeholder partnership which is the crucial
part of maintaining the corporate sustainability.
Altogether, sustainability refers to meeting the needs of present scenarios without compromising
the needs of the future generations. Moreover, corporate sustainability is the broader terms which
is related with the satisfaction of the needs of the social, environmental concerns which makes
the business sustainable (Ávila, et al., 2017). Through maintaining the combination of people,
profit and planet, the organization can embrace sustainability which is beneficial for the
efficiency, sustainable growth and increasing the sustainable (Grayson & Hodges, 2017).
Sustainability can be achieved through taking care of three pillars of corporate sustainability
which are economic, social and environmental. Meeting the economic sustainability is the major
goal of the organization in which the organization strive to earn the sustainable profits through
keeping the financial rates stable and undertaking the sustainability approaches which can lead to
the corporate growth and reputation. For example, Nike which is the popular shoe brand that has
made innovations to get the profits and has improved the financial and operational performance
(Newell, 2015).
Further, organizations make efforts for the fulfillment of their duties towards the social pillars
which comprise of stakeholders such as employees, customers, government and community
groups. The organization account for the work ethics and making engagements with the
communities through the social initiatives and striving for innovation which can improve the
customer experiences (Crane, et al., 2019). This can be seen from the example of Bank which

CORPORATE SUSTAINABILITY 2
has made efforts for the staff engagement and is committed to do right thing and is dedicated to
make the company responsible for acting in a right way by meeting the ethical and moral
standards. Third pillar of corporate sustainability is the environmental factors which persuades
the business to undertake the business without causing negative impact on the environment. The
organizations account for greener and better alternatives and raise the concerns of the
environment. For example, Tesla has maintained environmental responsibility through making
reductions in the CO2 emissions and has addressed the issue through the power and
transportation eco-system which is created through energy storage to all electric vehicles (Tesla,
2019).
Moreover, there is huge importance of corporate sustainability within the organization as it is
seen as a competitive strategy which is adopted by the company to maintain an image into the
market. This is seen as long-term approach of the company to maintain sustainability which
certainly increases the transparency and make recognition of the fact that the company needs to
act sustainable (Macassa, et al., 2017). The three pillars of corporate sustainability can drive
for the sustainable practices which can make the organization mutually dependent and maintain
eco-innovation. The pillars are people, planet and profit which makes the company sustainable.
This can be explained from the example of Apple which has maintained the corporate social
responsibility through undertaking the CSR programs and has provided the Environmental
Responsibility Report in which the company has stated that the company has lower carbon
footprints in which the company has made progress towards the mining-free future (Apple,
2019).
Further, corporate sustainability is important as it can lead to the improved brand image, reduced
cost and increased productivity. Although organizations make the sustainability as their strategy
which is being adopted by the company as the business model for getting competitive
advantages. Corporate sustainability is also seen as the priority for the organizations as it avails
the company to get the strategic competitive advantage (Baland, et al., 2018). This has led the
organizations to move towards the sustainable future through the using of the energy efficient
things which has led to the competitive advantage and addressing the compliances which are
based on the efficient business practices (Lawania & Kapoor, 2018). Also, corporate
sustainability is important for the organization to maintain the transparency towards the