U7 Flashcards
The history of sustainability traces back to the Industrial Revolution, where workers fought for?
decent work conditions.
The increasing industrialization led to?
a growth of national wealth and public consumption.
While this growth was positive in economic terms, society realized that too much consumption also creates problems, e.g.,?
related to the depletion of resources, environmental pollution, and negative effects on health due to bad working conditions.
Society realized that actions to save the planet were needed :
=“Consumption and production drive the global economy,
=but also wreak havoc on planetary health through the unsustainable use of natural resources.
The global material footprint is increasing faster than?
population growth and economic output”
Every year, many corporations, governments, families, and individual consumers spend large sums of money on both necessary and unnecessary items. Traditional marketers build relationships with consumers to?
generate loyal customers who continue to consume without regard for the environment.
Businesses have now realized that they cannot continue like this and that they need to?
address the issue of sustainability.
Sustainability
According to Audi (2009), “a business or business activity (indeed any activity) may be called sustainable if, functioning roughly as it does, it can continue indefinitely”
This unit provides a brief overview of the role sustainability plays in the business context, starting with?
an introduction into the triple bottom line and continuing with an investigation of obligations and opportunities.
Many sources cite the ————-United Nations Conference in ————–as the birth of sustainability, along with the United Nations World Commission on Environment and Development (also known as the ————————————-) established in ———–.
1972
Sweden
Brundtland Commission
1987
The Brundtland Commission published Our Common Future, where they laid out three interconnected variables that must be?
balanced to avoid conflicts:
“the natural environment, human social wellbeing, and economic activity”
The Brundtland Commission reported the following key findings:
1-Economics, environment, and society are inextricably linked.
2-Damage to the environment also damages the economy and society.
3-Resources are finite, and the environment is not infinitely repairable.
These three criteria have been known as ?
the pillars of sustainable development.
They form the foundation of the concept eventually termed the—————————— (TBL) by————————————–:
triple bottom line
John Elkington
The three primary elements of sustainability are:
an organization’s environmental,
social,
and net economic impact
In ——————————————– proposed a triple goal, the 3Ps toward true sustainability.
1997, Elkington
The 3Ps stand for?
people, planet, and profit,
developing their strategies since they are all equally important, beyond financial rewards
as shown in the figure below.
Zero waste engineering
This is a concept which theoretically increases productivity to infinity because every product or component could be re-used or recycled and no waste would result
According to this concept, firms should consider the three categories when?
developing their strategies since they are all equally important, beyond financial rewards.
Engineers also focused on ?
The environment was considered to be indefinitely repairable and self-healing; if it wasn’t, technology would provide a solution
the economic aspect of infrastructure projects in the “old days,”
i.e., whether the project was technically and commercially viable.
The application of the TBL encourages a holistic view of ?
sustainable development.
The idea of sustainable development was a paradigm shift in?
thinking.
Before ———————–, many people, including engineers, viewed natural resources as though they were ————————— for all practical purposes. When one resource was depleted, one simply moved on to another.
Brundtland
inexhaustible
Twenty-five years after the introduction of the TBL, the concept is still relevant but?
there are doubts about its adaptation.
Elkinson himself proposed that?
the framework had failed because it has not always been applied correctly.
Many firms have only looked at:
the economic
and either the environmental or social aspects
Loviscek (2021) suggests that the dimensions should be?
specified so that the application of the three categories of sustainability becomes easier for firms.
The environmental component of the TBL is concerned with?
the preservation of natural resources and the natural environment’s long-term well-being.
After Brundtland, people began to understand that?
natural resources and carrying capacity were limited.
However, in many regions of the world, including most North American cities, where citizens can see plenty of land, bright sky, and pure water, the idea of limited carrying capacity was difficult to?
understand in real, physical terms.
According to Kelly et al. the researchers Wackernagel and Rees created the term?
“ecological footprint” in 1996 to bring the issue closer to home.
Ecological footprint
This is the “demand of the population on nature”
They discovered that the average individual in North America consumes —————times their —————————-” of the planet’s natural resources, implying that present consumption levels are unsustainable.
four to six
“fair share
The ecological footprint can be divided into?
the demand for natural resources for the production of goods and the demand on natural resources for the consumption of products.
In this context, we must recognize the needs of the earth and be mindful that?
the resources are not abused because they are limited.
No matter how much technology is available, the human species cannot live for long without sufficient clean air and water. This serves as a stark reminder of the interconnections between?
the environment, economy, and quality of life.
One major challenge is managing resources ?
fairly across nations and across generations.
At the firm level, environmental protection is a?
morally appealing goal that also benefits most firmsʼ long-term economic interests.
The social dimension encompasses broad societal concerns, such as:
social fairness,
ethics,
community connections,
and individual well-being.
Society cannot continue to think that humankind will exist eternally, with technological advancements eventually compensating for?
depleting resources.
An intergenerational justice principle should be?
the guideline:
“Businesses and other users of natural resources have an obligation to gauge their uses so that, ?
given reasonably expected changes in technology and population, future generations can live as well as the current generation”
Sustainability relates to internal and external managerial responsibilities that affect ?
the environment and a company’s management.
The specific way and extent to which companies connect with their stakeholders—————————————————————————————) will vary depending on the context.
(shareholders, workers, and community members
For the firm, sustainability can be critical to leaving a lasting legacy, such as?
contributing to humanity’s needs throughout time.
For employees, sustainability can make employment —————–. Employees spend a lot of their life at work and should be confident that these companies will ——————————.
meaningful
exist for a long time
In addition, it is essential that employees who work for a firm long-term have the impression of doing
?
important, fulfilling work .
People’s jobs in business will not be perceived as significant and useful unless they are perceived as?
serving a valuable purpose
The economic component is concerned with?
society’s economic well-being.
Most renowned firms’ mission statements show
———–of long-term sustainability. Businesses often strive to have a clear ——————————worth supporting. The question investors ask themselves is whether they would—————money in the firm or whether the bank would
———such a company money.
a goal to
purpose and objectives
invest
lend
Management should strive for?
numerous investors may have long-term interests that span a half-century or more. In addition, investors with children are typically dissatisfied with a firm they invest in unless they believe it has a future, because stock is passed down from the buyer to the next generation in the family (Audi, 2009, p. 46). Thus, firms have an interest in displaying their sustainability initiatives to attract investors.
long-term sustainability that extends well beyond its own time.
For example,?
numerous investors may have long-term interests that span a half-century or more.
In addition, investors with children are typically dissatisfied with a firm they invest in unless they believe it has a future, because stock is passed down from the buyer to the next generation in the family.
Thus, firms have an interest in displaying their sustainability initiatives to attract investors.
Today, many businesses use the Global Reporting Initiative (GRI) guidance, called ———————to?
GRI 2016,
disclose their triple bottom line performance
The GRI Standards are updated regularly to ensure that?
they represent worldwide best practices for sustainability reporting and to assist companies in responding to new information requests from stakeholders and authorities.
The GRI provides its standards for?
anyone for free on the internet
Besides the GRI, other platforms and indexes were also introduced to?
confusion and an excuse for inaction for firms and investors.
facilitate sustainable investment, like Dow Jones Sustainability Indexes or Full Cost Accounting.
Because these are so heterogeneous, however, they have resulted in?
confusion and an excuse for inaction for firms and investors.
Before discussing a firm’s obligations and opportunities in terms of corporate sustainability, it is necessary to delineate the concept of ?
corporate sustainability from the concept called corporate social responsibility (CSR).
The terms are often used interchangeably in the literature, leading to ?
confusion.
The definition of CSR differs greatly depending on?
the source consulted.
In the ————, it was closely linked to corporate philanthropy, the idea of ———————————-, but was often closely linked to the philanthropy of the —————————————– and not of the company as a whole.
1960s
giving back to society
corporate founder
In the literature, there is no uniform definition of ?
the term CSR
there are two types of interpretations:
-If the term “social” is interpreted as meaning social, then only the social responsibility of a company applies at this point.
-If the term “social” is interpreted to mean societal, then ecological and economic responsibility are included in addition to social responsibility
