Corporate Sustainability: Analyzing Stakeholder Roles and Partnerships

This essay delves into the concept of corporate sustainability, emphasizing its significance in balancing ethics and profits for long-term viability. It explores how businesses can integrate economic, social, ethical, and environmental dimensions into their core operations. The essay highlights the crucial role of stakeholders, including employees, shareholders, and communities, in achieving corporate sustainability. It examines how stakeholder partnerships contribute to ethical practices, transparency, and the overall success of a business. Furthermore, the essay provides real-world examples, such as the cases of NAB and BHP Billiton, to illustrate the impact of both ethical and unethical corporate behaviors on sustainability. It concludes by underscoring the importance of corporate governance and stakeholder engagement in fostering a sustainable and responsible business environment, highlighting the need for compliance with laws and regulations to achieve sustainability goals. This essay provides a comprehensive analysis of corporate sustainability, stakeholder relationships, and the importance of ethical practices in the business world.

CORPORATE SUSTAINABILITY

Contents
Introduction...........................................................................................................................................2
Importance of corporate sustainability...................................................................................................2
Role of stakeholders in corporate sustainability....................................................................................4
Importance of stakeholder partnership in corporate sustainability.........................................................7
Conclusion.............................................................................................................................................8
References...........................................................................................................................................10

Introduction
Corporate sustainability is proactive approach, which can ensure long-term viability and
integration with the optimising in reduction in environmental effect. With the implementation
of business strategy, an organisation can focus on social, economic, ethical, cultural, and
environmental dimensions of conducting business operations. The main principle is to
maximise the opportunity in the global market and minimise the negative effect of core
operations on economy (Jones, Comfort, and Hillier, 2016).
This essay is an analytical structure. The central issue related to corporate sustainability
directly hit some of the subject matters such as value based corporate culture, situations
relating to transparency with its disclosures regarding financial statements, issues in
innovation, and non-compliance of judicial reformation. The thesis statement is “corporate
sustainability contributes to greater social value by creating organisational brand.” The
argumentative essay brings out discussion on significance of corporate sustainability by
explaining appropriate illustrations of companies. Furthermore, there is use of appropriate
contrasting argument to explain the role of stakeholders in the corporate sustainability.
Consequently, it is important to note that stakeholders play an important role in meeting
corporate sustainability (Freund, & Schaltegger, 2018).
Importance of corporate sustainability
The first component come up with the significance of corporate sustainability, which drives
to balance between ethics and profits. Alternatively, several amendment in the supply chain
can bring short-term profits where it can be seen with extreme doubt that there is a greater
risk related to damage on company`s brand (Hepler, 2015). On the other hand, economic
factor avails to measure sustainability by pressuring the companies to comply and implement
abandoning of fossil fuels or rather government would impose severe penalties on non-

compliance. Most importantly, organisational policies can be neither self-defeating nor
dangerous for the long-term growth. Consequently, the significance is extended to social and
environmental pillars where it is about having support of community, stakeholders, and
employees. Treating the employees ethically respect supply chain procedure leading to
increasing creativity, engagement, strong retention, and productivity (Hepler, 2015).
Consequently, above ethical actions are the standards to comply with the corporate
sustainability but still development of business economic conditions have been leading to
compromising of product quality, environmental problems, and reducing the social
responsibility (Chan, and Parhankangas, 2017). More corporates have been still facing
environmental crisis that affect business activities where unethical behaviour brings side
effects towards the business development (Taxmann, 2018). For example- Royal commission
finds out that failure of governance activities through mismanagement, accounting issues and
breaches regarding the director`s obligations. The collapse of bank credits and the
commercial international forced the British accounting bodies and London exchange in
establishing several corporate governance committees so that they can apply governance
rules. Furthermore, these unethical actions have been affecting the sustainability of the
business by hampering the society and interest of the shareholders. In 2004, NAB (National
Australian bank) has disclosed the situation where it was suffering from unauthorised trading
in foreign currency of 360 million. Regular issues relate to failure of banking operations
leading to more scandals such as 1.4 billion loss from Home loans. Because of inefficient
auditor`s report, the uncertainties related to US securities and other exchange commission has
monitored the failure of management performance while handling banking services
(Taxmann, 2018).
Another example related to society and environmental effect especially for mining
companies, BHP Billiton. With the rapid increase in number of companies, organisations

have become aware of standards, which will definitely bring accomplishment of long-term
profits by protecting the nature and availing appropriate health services to the employees who
are working in mines. Subsequently, BHP Billiton and Fortescue Group are exposed to
several changes and risks in terms of tools, financial risks, human rights, tax transparency
when it comes to sustainability reporting (Chan, and Parhankangas, 2017). For example-
evolution of several frameworks, standards, and reporting has changed so far. Alternatively,
companies often prioritise profitability and it has ignored sustainability reporting that are
directly against to rules and regulations. New processes are complex as it not only engages
stakeholders and but it faces direct interaction to independent verification too, which
highlights displacement, solid waste, corporate governance, and collaboration. At the same
time, the company faces lack of support through the management and understanding in
creating fear of misinterpretation. As an outcome, these sustainability reports have been
emphasising stock price at its competitive disadvantage. Consequently, it is seen that the
companies have not taken prioritised sustainability reports as the parties are supposed to laws
and policies. The disclosure of reporting and law compliance can make abstract issues as the
assistance in grasping the sustainability development with integration of the reports as an
intrinsic value (Nivette, 2014).
Furthermore, GRI sustainability of every organisation can create transparency among
stakeholders as the organisation can serve safety, targets, courage, humility, and
determination. Main key stakeholders are attracted to the company such as shareholders,
government companies, contractors, local communities, and suppliers. An appropriate
approach has been used through stakeholder approach, it can assure quality, trust, that can
create transparency in its financial positioning. While creating standards, organisation can
report contribution with integration and obligation amongst the promotional activities
(Nivette, 2014).

Role of stakeholders in corporate sustainability
It is difficult to maintain positivity in environmental impact, which creates impact on
stakeholders. As far as the stakeholders are concerned, the view states that this is a group of
people who are linked with company`s operations directly or indirectly. This group have their
stake in company such as impact on operating business, implementation, and the strategy
formulation. Some of the important stakeholders for companies are given below-
(Source: Gualandris, Klassen, Vachon, and Kalchschmidt, 2015)
The level of enforcement on corporate sustainability depends on the level of interest and
power possessed by the stakeholder in the company. The framework for principle-based
approaches of corporate governance in Australia has been extended to compliance and strict
regulatory needs such as to protect the environment; the government has introduced EPA
(Environmental Protection Act). On the part of serious compliance of legislations, the
government has applied Corporation Act, 2001 that specify duties for board of directors and

organisational internal managers. Furthermore, the internal stakeholders must make code of
conduct, which defines ethics and social responsibility of the company so that company can
maintain a good company culture (Braddon, and Hooper, 2018). The company must comply
with CSR (corporate social responsibilities) and other attributes such as legitimacy, and
power. Primary stakeholders are considered as the organisation decides to engage in CSR
project and benefit secondary stakeholders. In today`s era, businesses are under heavy
pressure to integrate main financial operations with engaging social and environmental
concerns to benefit the stakeholders. The role of stakeholders in corporate sustainability is
quite visible as businesses are the part of communities where they operate (Baumgartner, and
Rauter, 2017). Good management will come up with maintenance of wide range of good
relations as well as the stakeholders because organisations cannot succeed in society, which
are failing because of environmental challenges. It is important to engage in activities that is
described in CSR (Jones, Comfort, and Hillier, 2016). It is the organisation`s social
responsibility to give a picture and take charge of organisational procedure, which produces
overall positive impact to society. Organisational success has been increasingly affected
through the stakeholder relationship that cover a wide range of interests as most vital work of
how the company works with environmental and social issues (Bickford, Smith, Bickford,
and Bice, 2017). In a comprised form, CSR disclosure has been becoming as important
analytical in maintaining the positivity relations with the stakeholders. Satisfaction of
stakeholders enhance the reputation of company improving the financial performance
(Grewatsch, and Kleindienst, 2018). Speaking on the basis of organisation, it can flourish as
CSR program can implement effectively as CSR is important source for the organisation to
enhance the stakeholder relationships. Stakeholder in companies and the objectives and
expectations relate management to the governance, strategies, performance, and corporate
culture (Villiers, Rouse, and Kerr, 2016). Expectations of shareholder theory include

profitability, and value in the stock market. Furthermore, the expectations of customers,
government, and community include features and quality of product, environmental, social
effects, security, respect for the laws, fairly representation, payment system of banks, and
information regarding the liquidity and the viability of payment (ICAEW, 2018).
Importance of stakeholder partnership in corporate sustainability
Stakeholder`s partnerships play an important role in maintaining the corporate sustainability.
The role of transnational partnership in the contemporary world can raised several questions
on effective and accountability of the network governance because while fulfilling the
interest of one stakeholder, aspect of other stakeholder may get hurt (Villiers, Rouse, and
Kerr, 2016). However, this theory is quite different from government and civil society as the
two tales of stakeholders (Dean, Gamez, Punjaisri, and Pich, 2016). The level of influence in
enforcing corporate sustainability depends on types of multi- stakeholder partnerships. Due to
their extensive approach, stakeholder can easily deal with narrow set of issues with the help
of new projects. In long term, organisation cannot sustain and enhance if they are not at all
profitable (Sundström, and Ahmadi, 2019). On the other hand, long-term basis, the business
is fulfilling ethical responsibilities towards work towards the positive impact on environment
and society and also it has to remain profitable. Here are some of the actions opted by the
stakeholder partnership, through which government has accomplished sustainable
development goals (Dean, Gamez, Punjaisri, and Pich, 2016). It facilitates the inter-
stakeholder dialogues on the sustainability issues, and combining resources, institutional, and
labour capacities from private and public sector (Yoo, and Lee, 2018). It is significant
because it has paved the way to introduce innovative approaches in accomplishing
sustainable development goals and facilitate inter sectoral knowledge transfer. Stakeholder
will deal with complex and other long-term issues, which already need entire program
(Szőcs, and Schlegelmilch, 2020). For example- Tesla was suffering from regulatory

decisions regarding technological risks of items with high cost in market. While complying
with this theory, it is seen that owner of Tesla follow blue ocean (effective marketing)
strategies and other innovative at higher competence so that it can have large market (Tesla
Motors, 2017). Subsequently, CEO of Tesla decided to benefit the company when it started
producing electric cars as it will not emit harmful gases and reduce co2 emissions in the
environment (Szőcs, and Schlegelmilch, 2020). This decision has affected all the stakeholders
such as government has shared miscellaneous tasks while creating electric cars. It is analysed
that integration and partnership while battery production (Yoo, and Lee, 2018). SEC has
entered in between when it actually found Tesla`s CEO with $20 million dollars when it
considered series of tweets by claiming that the company would buyback equity shares while
misleading and conducting fraud just to maximise the profits and produce Model S and
Model X (Tesla Motors, 2017).
This case clearly signify that there is no ethical action towards shareholders as Musk declared
it without conducting any team meeting. On the other hand, it was beneficial to the internal
stakeholders especially product managers, line managers, VP manager, HR managers and
software engineers (Braddon, and Hooper, 2018). For instance- every manager has agreed
with vision of entrepreneur of company. There are several disagreements when line manager
faced increasing cost of hiring employees (Sundström, and Ahmadi, 2019). Therefore, it is
important to comply with the governmental laws and regulations so that each partnership on
the part of stakeholder is accomplished then the compliance to archive sustainability in the
global market can be achieved (ICAEW, 2018).
Conclusion
From the discussion given above, it is seen that awareness of the corporate governance can
protect and create wealth for shareholders. For the last few years, it is seen that corporate
collapsing leads to failure of high profile governance, which has been increasing rapidly.

Continuous raising issues related to frauds, rules enforcing corporate governance, and
incompetent to accomplish judicial rules. Moreover, the formulation of corporate governance
have increased the relationships especially between financial claims stakeholders such as debt
holders and equity holders. The practise of corporate governance has incorporated because of
several practises in Australia. Principle based approaches and corporate practises act as an
important tool to improve the management accountability and transparency to the
stakeholders. Moreover, the enforcement of corporate governance in Australia has been
extending to compliance of the strict regulatory needs. The above essays have supported in
the favour of the motion where explanation of how corporate sustainability contributes to the
social value of the organisation has been defined in an appropriate way. An appropriate
theory for the accomplishment of CSR activities has been applied named as Stakeholder
approach where the definition of role of stakeholders have been clearly defined. Multi-
partnership stakeholder engagement.

References
Baumgartner, R.J. and Rauter, R., 2017. Strategic perspectives of corporate sustainability
management to develop a sustainable organization. Journal of Cleaner Production, 140,
pp.81-92.
Bickford, N., Smith, L., Bickford, S. and Bice, M.R., 2017. Evaluating the role of CSR and
SLO in ecotourism: Collaboration for economic and environmental sustainability of arctic
resources. Resources, 6(2), p.21.
Braddon, A., and Hooper, N. (2018) We Need to Talk About the Royal Commission. [online]
Available at: https://aicd.companydirectors.com.au/membership/company-director-
magazine/2018-back-editions/june/royal-commission [Accessed 07/08/18]
Chan, C.R. and Parhankangas, A., 2017. Crowdfunding innovative ideas: How incremental
and radical innovativeness influence funding outcomes. Entrepreneurship Theory and
Practice, 41(2), pp.237-263.
De Villiers, C., Rouse, P. and Kerr, J., 2016. A new conceptual model of influences driving
sustainability based on case evidence of the integration of corporate sustainability
management control and reporting. Journal of Cleaner Production, 136, pp.78-85.
Dean, D., Arroyo-Gamez, R.E., Punjaisri, K. and Pich, C., (2016) Internal brand co-creation:
The experiential brand meaning cycle in higher education. Journal of business
research, 69(8), pp.3041-3048.
Farooq, O., Rupp, D.E. and Farooq, M., (2017) The multiple pathways through which
internal and external corporate social responsibility influence organizational identification
and multifoci outcomes: The moderating role of cultural and social orientations. Academy of
Management Journal, 60(3), pp.954-985.

Grewatsch, S. and Kleindienst, I., 2018. How organizational cognitive frames affect
organizational capabilities: The context of corporate sustainability. Long Range
Planning, 51(4), pp.607-624.
Gualandris, J., Klassen, R.D., Vachon, S. and Kalchschmidt, M., 2015. Sustainable
evaluation and verification in supply chains: Aligning and leveraging accountability to
stakeholders. Journal of Operations Management, 38, pp.1-13.
Hepler, L. (2015). Volkswagen and the dark side of corporate sustainability. Available on:
https://www.greenbiz.com/article/volkswagen-and-dark-side-corporate-sustainability
ICAEW, (2018). Environmental issues and UK annual eporting SUSTAINABLE BUSINESS
INITIATIVE TURNING QUESTIONS INTO ANSWERS. Available on:
https://www.icaew.com/-/media/corporate/files/technical/sustainability/tecpln12453-eiafr-
annual-report-2nd-edition-final.ashx?la=en [Accessed on: 28/04/19]
Jones, P., Comfort, D. and Hillier, D., 2016. Materiality in corporate sustainability reporting
within UK retailing. Journal of Public Affairs, 16(1), pp.81-90.
Lüdeke-Freund, F., & Schaltegger, S. (2018) The sustainability balanced scorecard: An
introduction to the SBSC and its links to accounting and reporting. In Measuring and
Controlling Sustainability (pp. 33-53). Routledge.
Nivette, A. (2014) Legitimacy and crime: Theorizing the role of the state in cross-national
criminological theory. Theoretical Criminology, 18(1), pp. 93-111.
Sundström, A. and Ahmadi, Z., 2019. The Mediating Role of CSR on the Market Orientation
and Strategic Performance Relationship—A Study of the Public Housing Companies in
Sweden. Sustainability, 11(6), p.1537.

Szőcs, I. and Schlegelmilch, B.B., 2020. The Role of CSR in International Policy Agendas.
In Rethinking Business Responsibility in a Global Context (pp. 21-31). Springer, Cham.
Taxmann, (2018) Major Corporate Governance Failures. [online] Available at:
https://www.taxmann.com/bookstore/bookshop/bookfiles/Auditing%20and%20Corporate
%20Governance%20chapter11.pdf [Accessed 07/08/18]
Tesla Motors, (2017) Annual report. Available on:
http://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_TSLA_2017.pdf
[Accessed on: 28/04/19]
Yoo, D. and Lee, J., 2018. The effects of corporate social responsibility (CSR) fit and CSR
consistency on company evaluation: The role of CSR support. Sustainability, 10(8), p.2956.