Corporate sustainability is a commitment to operating under principles that result in good corporate citizenship, including environmental, social, and economic issues. Sustainable actions can include offering health insurance to employees, donating money to causes, or buying from suppliers that also use sustainable practices. It is ranked by several organizations and is used by investors in deciding whether to invest in a company.
Corporate sustainability is a theory of conducting business that takes a holistic view of the business world to create long-term growth for the company in a way that benefits the environment in which the company operates. In general, corporate sustainability means a commitment to operating under principles that result in good corporate citizenship. Things that can influence a company’s perceived corporate sustainability include environmental, social and economic issues. For companies, sustainable actions can include offering health insurance to employees, donating money to causes, or buying from suppliers that also use sustainable practices.
Essentially, corporate citizenship is a measure of a company’s reputation as part of society and largely depends on an organization operating with good corporate sustainability. Parts of corporate sustainability can include adopting business strategies that deliver long-term rather than short-term profits to a company. A truly sustainable corporate business strategy would include consideration of the environmental and social impacts of the business, so that the company can ensure that the strategy is sustainable for society and the world, as well as for the business.
Efforts to achieve corporate sustainability involve environmental efforts and efforts to conduct business in a socially positive manner. A company working to improve environmental sustainability may invest efforts in environmentally sound technology or undertake cleanup efforts to correct a negative environmental impact caused by the organization. Energy company BP is grappling with its reputation for environmental sustainability as it navigates the cleanup of the Deepwater Horizon oil spill in 2010.
Social sustainability can include advanced packaging labeling to inform the consumer, or the use of socially conscious production processes such as fair trade purchasing. Purchasing supplies from companies that use sustainable practices helps promote good corporate practices across the industry and around the world. Hiring diversity can also contribute to a reputation for good corporate sustainability. Other ways to promote good social sustainability include donating to charitable organizations or funding improvements in nearby communities.
Corporate sustainability is ranked by several organizations, and some award companies with high sustainability achievements. These ratings are used by investors in deciding whether to invest in a company. Types of investors that use sustainability ratings include stock market investors and venture capitalists. Company attributes that contribute to a positive sustainability rating include transparency of records and open disclosure of sustainability efforts, moves toward sustainable progress going forward, and evidence of past sustainable results.
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