INTERNATIONAL BUSINESS SUSTAINABILITY

International Business Sustainability

Table of Contents

Introduction2

Discussion & Analysis2

Trends facing International Corporations in developing corporate sustainability strategy4

IKEA & Corporate Sustainability6

Benefits Corporation: FT.com8

Ethics and Corporate Sustainability: Challenges and Opportunities8

Opportunities relating to Corporate sustainability10

Sustainability impacts on implementations10

Conclusion12

References13

International Business Sustainability

Introduction

The purpose of this study is to expand the boundaries of our knowledge by exploring some relevant facts related to International Business Sustainability. Corporate sustainability refers to the activities adapted by different companies to ensure long term survival of the organization. This phenomenon not only helps the organization to focus on its profit, but it also facilitates the organization to work towards the betterment of the society and the environment in which the company operates. With a rising interest of making profit in today's competitive environment, it is also critical for the organization to think out of the box, i.e. they should also adapt strategies and practices by means of which organization strive to protect the natural resources (ecosystem), socitey and people's general interest and the economies. Corporate sustainability is a business approach which is used by the organizations to gain competitive edge, some companies might also decide to make this business approach, their core competency. Corporate sustainability leaders achieve long-term shareholder value by gearing their strategies and management to harness the market's potential for sustainability products and services while at the same time successfully reducing and avoiding sustainability costs and risks (Raiborn, 2011, pp. 963-972). As a newly appointed Research Manager in Goodbody Stockbrokers, we will carry out a detailed assessment report on the trends, opportunities and challenges facing International Corporations in developing a corporate sustainability strategy.

Discussion & Analysis

Commitment to corporate sustainability is considered a business strategy that aims at creating long-term shareholder value while managing risks not only in the economic dimension, but also in the environmental and social dimensions (Clarkson, 2010, pp. 76-82).

Incorporation of non-economic factors into decision-making has gained popularity in recent years. A recent survey shows 94% of the Global 1000 companies believe corporate sustainability investment can deliver real business benefits. The attention to corporate sustainability grows in the investment community as well. Since year 2002, financial institutions in 19 countries have launched a variety of corporate sustainability oriented products (such as ETFs, active and passive funds, equity baskets, and warrants). As of January 11, 2011, assets in mese products stand at over 8 billion U.S. dollars. Currently, about 12% of U.S. assets are managed based on socially responsible investing criteria (Porter, 2011, pp. 1-14).

Despite the growing interest, some companies and investors remain skeptical of the economic merit of sustainability commitment. The hefty cost of addressing social and environmental issues raises the question whether such practice is consistent with the goal of maximizing shareholder value. The "moral" aspect of sustainability commitment refrains businesses from taking projects that are of large social and environmental risks. Some people are worried that businesses will be less competitive because of the bypassed profitable business and investment opportunities (Lee, 2011, pp. 198-205).

Advocates of sustainability however, believe that sustainability commitment boosts firm value in the ...