Scribd
Upload
3 views

CGE Updated Project

Uploaded by

Tanay Nale
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
3 views

CGE Updated Project

Uploaded by

Tanay Nale
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 5

Sustainability and Sustainable Development

Sustainability

Sustainability is using resources in a way that meets current needs without depleting them
for future generations. It involves balancing economic growth, environmental protection,
and social responsibility to ensure long-term well-being. In the context of business ethics,
sustainability requires organizations to make ethical decisions that consider their long-term
impact on the environment, society, and stakeholders.

Example: Unilever’s Sustainable Living Plan focuses on reducing the company’s carbon
footprint, using sustainable raw materials, and improving social conditions in its supply
chain.

Sustainable Development

Sustainable development is the process of achieving sustainability by integrating


environmental, social, and economic considerations into decision-making. The United
Nations Brundtland Commission (1987) defines sustainable development as:
"Development that meets the needs of the present without compromising the
ability of future generations to meet their own needs."
Key Dimensions of Sustainability and Sustainable Development

1. Environmental Sustainability – Protecting ecosystems and reducing pollution.


🔹 Example: IKEA sources wood from sustainable forests and has committed to
becoming "climate positive" by 2030.

2. Social Sustainability – Ensuring fair labour practices, diversity, and community well-
being.
🔹 Example: Starbucks supports ethical sourcing of coffee through its “Coffee and
Farmer Equity (C.A.F.E.) Practices.”

3. Economic Sustainability – Ensuring long-term profitability without harming people


or the planet.
🔹 Example: Patagonia, the outdoor apparel brand, prioritizes sustainable materials
while maintaining strong financial performance.
Sustainability, Social Responsibility, Ethical Decision-Making, and Ethical Awareness

1. Sustainability:

 Definition: Meeting present needs without compromising future generations.

 Focuses on environmental impact, resource conservation, and long-term success.

Example: Tesla promotes electric vehicles to reduce carbon emissions.

2. Social Responsibility:

 The duty of businesses to contribute to society beyond profits.

 Involves employee well-being, community support, consumer protection, and


ethical practices.

Example: Infosys

 Infosys Foundation, which supports initiatives in education, healthcare, rural


development, and arts and culture. They also work on skill development programs
to enhance employability in rural and underserved areas.

3. Ethical Decision-Making:

 Making choices that reflect ethical values, considering the impact on stakeholders
(employees, customers, environment).

Example: Mahindra Group

 The Mahindra Group focuses on ethical decision-making with their “Rise for Good”
philosophy, emphasizing sustainability, community development, and inclusive
growth. For example, they have launched initiatives to improve rural healthcare
and education.

4. Ethical Awareness:

 Recognizing ethical issues that may affect stakeholders or business operations.

 Triggers decisions aligned with social responsibility and ethics.

Example: Apple

 Apple became aware of ethical issues in its supply chain, particularly concerning
working conditions in factories. After recognizing these concerns, they
implemented transparency reports and improved their supplier code of conduct to
ensure better labour practices.
Why Social Responsibility Has Become an Issue for Organizations:
1. Consumer Expectations

 Ethical Consumption: Today’s consumers are more conscious of the social and
environmental impact of the companies they support. Many prefer brands that
demonstrate a commitment to social responsibility, such as sustainability, fair labor
practices, and community involvement.

 Example: Tata Group focuses on ethical business practices, sustainability, and


community development, gaining consumer trust through initiatives like the Tata
Water Mission.

2. Globalization and Interconnectedness

 As businesses expand globally, they are exposed to a wider range of cultures, laws,
and ethical norms. Social responsibility becomes crucial because companies must
navigate complex issues such as human rights, labor standards, and environmental
protections in different regions.

 Example: Infosys emphasizes environmental sustainability and diversity through


global initiatives like "Zero Waste to Landfill" and energy-efficient data centers.

3. Environmental Challenges

 Climate Change and Sustainability: Environmental degradation, climate change,


and resource scarcity have led many to question the practices of businesses that
contribute to pollution and overexploitation. Companies are now expected to
adopt more sustainable practices, such as reducing carbon emissions, waste, and
energy consumption.

 Example: Mahindra Group promotes electric vehicles and sustainability with their
"Rise for Good" initiative to combat climate change and reduce pollution.

4. Talent Attraction and Retention

 Employee Expectations: Millennials and Gen Z employees are particularly


motivated by purpose-driven work. They are more likely to work for companies
that prioritize social responsibility, such as those promoting diversity, equity, and
environmental sustainability.
 Example: Flipkart attracts top talent by prioritizing diversity, inclusion, and social
impact, with initiatives like improving education and supporting women
entrepreneurs.
Diagram Explanation:

The diagram shows how ethical issues are recognized, how social responsibility is
considered, and how decisions are made in a business.

1. Step 1: Ethical Issue Awareness

o This is the first step where a company realizes there is an ethical problem or
concern.

o Example: A company might realize that its suppliers are using harmful
environmental practices.

2. Step 2: Social Responsibility and Ethical Issues

o After recognizing the ethical issue, the company needs to think about other
important factors:

 Social Responsibility: How the decision will affect society,


employees, and the environment.

 Issues like sustainability, legal responsibilities, consumer protection,


and more.

o Example: The company thinks about the environmental impact of its


supplier and its responsibility to society.

3. Step 3: Decision-Making

o After thinking about the ethical issue and the social responsibility involved,
the company makes a decision.

o The decision should be ethical, legal, and benefit society in the long term.

o Example: The company decides to switch to eco-friendly suppliers to reduce


its environmental impact.

You might also like