Corporate Sustainability | Report

RUNNING HEAD: CORPORTAE SUSTAINABILITY
Corporate Sustainability
Name of student
Name of University
Author Note:

1CORPORATE SUSTAINABILITY
Introduction:
Corporate sustainability is a comparatively new and evolving business paradigm that is
placed in opposition with the concepts of the traditional goals and profit maximisation
propensities. The corporate sustainability theory views that the growth of a business along with
its growth in profit is indeed necessary for the organisation, but along with those, it is also
required for the organisation to pursue the societal goals particularly those related to the
environment protection, social justice protection and economic development (Krechovská and
Procházková 2014). The main approach of the idea of corporate sustainability is creating a long-
term value of the stakeholders through the implementation of certain business strategies that
aims at the attainment of environmental, social, ethical, legal and economic dimensions (Bowen
and Aragon-Correa 2014.). The idea of corporate sustainability is grounded on the ethical ground
of the well being of not just the contemporary population, but also aims at the creation of
opportunities and enhanced lifestyle of the future generation. In this respect, the scientific and
the technological advancement have a crucial role to play since the technologies designed and
employed by the organisations have immense effect on the nature, economy as well as the
empowerment of the human nature.
It is thus, viewed by most of the scholars that the proper application of the corporate
sustainability will give the farm an added competitive advantage since they will be more focused
on the sustenance of the firm and the stakeholders and the reputations earned in turn will
positively impact the business. However, still it is considered by most of the business that too
much focus on the social and ethical issues will ultimately bring in a curbing down of profit.

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The essay will thus discuss the impacts of the corporate sustainability on the financial
performance of the firm and will also analyse the role of stakeholders in the corporate
sustainability.
Discussion:
Corporate sustainability has in present era of business been a well-known and commonly
accepted framework that guides an organization in a wide variety of choices. According to the
understanding of sustainability, in their process of decision making for the societies that have a
high standard of living the organizations must analyse the future impacts of solving energy
problems, developing green spaces, addressing to the issues of waste disposal, boosting the local
economy and planning for urban areas. at present the societies are becoming more conscious
about the environmental and social impacts of the functioning of the organization. Thus
companies at present are using the concept of sustainability for expanding their measures of
success from only the financial aspect to a triple bottom line achievement that aims at the social,
ethical and legal performance.
According to the Brundtland report sustainability can be defined as “meeting the needs of
the present without compromising the ability of future generation to meet their needs” within this
definition is inherent the proposed importance of sustainability which assures to give the
contemporary society a quality life and the preservation of resources for the future population.
One of the main reasons that business recognizes the importance of sustainability because of its
emphasis on the maintenance of the growing population that causes various global problems
(Goyal, Rahman and Kazmi 2015). The rapid growth of population on the relatively scarce land,
food, water and material resources are impacting even the wealthiest countries of the world. The

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per capita consumption of the key resources is becoming a burning issue. Sustainability thus is a
key to deal with the population and consumption.
In present situation of business, there has been an increased demand from various ranges
of stakeholder groups for adopting and implementing the various responsible management
practices by the organizations. This concern has risen mainly because of the stakeholder’s
demand of strong economic performance in addition with the social and environmental
sustainability of the firm (Dong, urritt. and Qian 2014.). This has led to the unsurprising
integration of corporate responsibility sustainable management and ethics as integral parts of
organizational strategy.
Researchers have also pointed out to the fact that the integrating sustainability
eventually helps a company in preparing themselves for the future risk and gaining access to
capital. According to the Prince’s accounting for sustainability project report “embedding
sustainability into an organization strategy and decision making process helps to reduce future
regulatory resource and price risks and provides a vision of how business may be impacted by
short and long term environmental and social changes.” Adopting themselves to the sustainable
practices a firm thus not only helps the environment it leads an enhanced brand image, reduction
of cost, happier shareholders and such other benefits. According to Carrol and Shabana 2013 the
economic legal and ethical sustainability of an organization helps in creating a value to society
that is reflected by a proactive and mutual understanding attitude towards different stakeholders.
Karmer on the other hand argues that the sustainability is an approach of constructing and
achieving social benefits that has been urged from the business themselves rather than by
reacting to the outside pressures.