ENVIRONMENT

Environment

Environment

The concept of sustainable development has received growing recognition, but it is a new idea for many business executives. For most, the concept remains abstract and theoretical. Protecting an organization's capital base is a well-accepted business principle. Yet organisations do not generally recognize the possibility of extending this notion to the world's natural and human resources.

If sustainable development is to achieve its potential, it must be integrated into the planning and measurement systems of business enterprises. And for that to happen, the concept must be articulated in terms that are familiar to business leaders.

The following definition of business sustainable development gives a clear understanding of this approach. 'For the business enterprise, sustainable development means adopting business strategies and activities that meet the needs of the enterprise and its stakeholders today while protecting, sustaining and enhancing the human and natural resources that will be needed in the future.' (Business Council for Sustainable Development, 1996)

Sustainable development may now be in the spotlight, but switched-on business people will know that the term has been around for over 20 years. It first broke into the consciousness of many international policy-makers and multinational corporations in 1987, with the publication of Our Common Future, the report of the World Commission on Environment and Development. The Commission's definition, since widely adopted, was: "Development which meets the needs of the present without compromising the ability of future generations to meet their own needs."

 

 

Sustainable development strategies uncover business opportunities in issues which, in earlier stages of this transformation, might be regarded as costs to be borne or risks to be mitigated. Results include new business processes with reduced external impacts, improved financial performance, and an enhanced reputation among communities and stakeholders.

For the business enterprise, sustainable development means adopting strategies and activities that meet the needs of the enterprise and its stakeholders today while protecting, sustaining and enhancing the human and natural resources that will be needed in the future. Sustainable development is good business in itself. It creates opportunities for suppliers of 'Green consumers', developers of environmentally safer materials and processes, firms that invest in eco-efficiency and those that engage themselves in social well-being. These enterprises will generally have a competitive advantage. They will earn their local community's goodwill and see their efforts reflected in the bottom line. (Mitlin, 1992)

William Mulligan, environmental affairs manager at Chevron Corporation, reflects the view of many in the business community who believe that the environment is now a major issue - one which presents both challenges and opportunities.'Over the last decade, we have seen many polls confirming the importance of the environment to Americans,' he says. 'Only an irresponsible company would dismiss this trend as a passing fad or fail to recognize the need to integrate environmental considerations into every aspect of its business. Environmental excellence has to become part of strategic thinking. It is in our best economic interests to do so. In fact, whenever we are forced to change, we often find opportunities.'

 

Many executives have demonstrated that pursuing sustainable development strategies makes ...