Sie sind auf Seite 1von 10

Modernized Version of Sustainable Development Shreekaracharya.P MBA, NITK E-mail: srkracharya@gmail.com Guided by: Prof. Dr.

Aloysius Henry Sequeira Department of HSM E-mail: aloysiushs@gmail.com Abstract: Today all the companies are interested in the area of Sustainable Development as they have to concentrate on the areas of social, economic and environmental issues for the future generations. The companies have started planning for the long run issues that they would face from the public, planet and plant. Sustainable development means attaining a balance between the environmental protection and human economic development between the present and future needs. Some of the companies have a framework which matches the need for Sustainable development such as Global reporting Initiative, Carbon foot printing etc. This paper is mainly targeted towards the concept of Sustainable Development and a reframed structure model associated with it. This paper also concentrates and correlates issues of Sustainability with the three Ps of Sustainability development i.e. Profit, People and Planet. Addressing to the various areas such as inequities that usually dependent on international recognition that makes projects intolerable and makes a commitment of change and set standards to monitor the progress. The viability of the business is measured in terms of resources of healthy ecosystems-fresh water, clean air, robust diversity, productive land and stability of societies. Keywords: Corporate Sustainability, Eco-Efficiency, Sustainable Vision.

Introduction: The concept of sustainable development means the transfer or maintaining the development in terms with regard to economic, environment and social issues for future generations. Development is a fundamental concept that happens that involves transformation of a whole society. Sustainable development means attaining a balance between the environmental protection and human economic development between the present and future needs. Sustainable Development is also associated with the Urban Sustainable Development (USD) which is a trade off between development of urban areas and protection of environment issues with an eye on basic human needs (Shelter, Employment, Food, and Clothing) in the urban areas. This paper is mainly targeted towards the concept of Sustainable Development and a reframed structure model associated with it. It also relates with inter dependence and inter correlation between the three areas of Sustainability visa economic, social and environmental issues. This paper also has an area on 3Ps included in the model which are Profit, People and Planet. Usually the concept of Sustainability is associated with the main three pillars of Sustainable Development. They are: Economic Issues Environmental Issues Societal Issues

The idea of Sustainable Development has to be a conglomeration of all the above areas and it should be balanced and thus has been recognized by human society since 1960s. Literature Review: There is no unitary definition given to the term Sustainable Development. Some of the great authors have worked on the area of Sustainable Development and have proposed their definitions on sustainable development. It might include: On June 1972 there was an US General Assembly that conveyed a concept called Human Environment at Stockholm that came up with guiding principles and fundamental right responsibility towards protecting environment for current and future generations. It has also been guided for the maintenance of natural resources for current and future generations. About a decade later in 1983 the World Commission for Environment and Development (WECD) popularly known as Brundtland Commission (1983), it described sustainable development as development that meets the needs of the present without compromising the ability of future generations to meet their own needs. In the context of Rio Conference, Grubb (1993) has identified a parallel note on the above point: The development is a radical concept and usually resource intensive pattern in case of industrialized nations. The consumption pattern, cleaner technology, clear vision of alternatives and their evaluation are required for development purpose.

But few of the limitations of Rio studies are found to be: It has a little or minor impact on the state and environmental strategies Living conditions of the worlds population State of the environment is found to be declining Social Justice and other indicators are found to be in wrong direction

The concept of sustainable development is open to many interpretations of being anything from almost meaningless to of extreme importance to humanity (Bill Hopwood 2005). While planning for Sustainable Development the implications from Inter Governmental Panel for Climate Change notes Sustainable development represents a balance between the goals of environmental protection and human economic development and between the present and future needs. It implies equity in meeting the needs of people and integration of sectoral actions across space and time (Cruz et al. 2007).

In the research work of Energy, environment and sustainable development by Abdeen Mustafa Omer states that: Clear environmental and social objectives for energy market liberalisation, including a commitment to energy efficiency and renewable.
Economic, institutional and regulatory frameworks, which encourage the transition to total energy services.

Planning for sensitive development and public acceptability for renewable energy.

The 1980 World Conservation Strategy is one of the key documents, which for the first time explicitly deals with environment and development (Voigt September 2006). The World Conservation Strategy emphasizes three objectives: To maintain essential ecological processes and life support systems To preserve genetic diversity, and To preserve the sustainable utilization of species and ecosystems (World Conservation Strategy).
Nearly three decades ago environmentalists such as Paul Ehrlich and Barry Commoner made a keen observation on Sustainable development and have revealed a new strategy i.e. Total Environmental burden (EB) created by human activity is a function of three factors. They are Population (P), Affluence (A) or consumption pattern of living, Technology (T). It can be expressed as a formula: EB = P*A*T In the words of Stuart.L.Hart Sustainable Vision involves three stages of environmental strategy which are guide for companies and which are more external and focussed to its vision. They include: Stage one: Pollution Prevention (Distinguish between pollution control and Pollution prevention) Stage two: Product Stewardship (Concentrating about environmental impacts associated with Product life cycle) Stage three: Clean Technology (Companies investing on tomorrows technologies which are sustainable)

A clear and integrated environmental strategy is guided for competency development and it also shapes the customers and stake holders. Companies should try to become educators rather than marketers. Thus building a sustainable business strategy as it involves the integration of three economies such as Market economy, Nature Economy and Survival Economy which are purely related to developing economies, reduced pollution barriers and foster village based business relationships respectively. The essence of sustainability lies in the treatment of the present and thinking about the future that places a positive emphasis on the very long run, recognition of all the ways in which environmental assets or natural capital contribute to economic well-being, and recognition and implementation of any constraints on economic activity implied by the dynamics of environmental assets. (Heal 1998) Triple Bottom line of Sustainability concept was coined by Prof. John Elkington (USA) in 1995 which reconciles the concepts of equity, environment and economy with people, plant and profit concepts of Sustainable Development. It could be defined as the three types of capital visa-via Human, Economic and Social also. Cost benefit analysis related to competitiveness in terms of environmental sustainability is to be made for the economic criteria for the strategy of the organization. Whenever companies pursue sustainability, it usually demonstrates that they are socially responsible. Policy makers and activists argue that it will take tougher regulations and educated, organized consumers force businesses to adopt sustainable practises. By equating the sustainability with innovation enterprises can lay down the ground work that will lead when the recession ends. A research has found that the companies have to follow these stages of change for sustainability. They are: Viewing compliance as opportunity Making value chains sustainable Designing Sustainable products and services Developing new business models Creating next-practice platforms In recent years the companies have started to treat Sustainability as an integral part of development. Government policies, legal standards, Product Environmental Assessment tool (PEAT) used as an indicator for assessing the sustainability factors of industry and governmental agencies in the case of the world scenario. Usually companies focuses on the material technology and its processes and tries to experiments with them as Hewlett Packard did in 2006. Companies are found to postpone the regulation authority and then try to innovate in terms of new technology and new product and thus finally lead to benefit of reduction in costs, optimize supply chain management operations and maintain economies of scale. Thus finally encashment of operations is easier. In case to maintain a sustainable vision company starts to work on an idea and it leads to enhancing reputation and create a new business opportunity and finally lead to an innovation. Companies develop sustainable operations by analyzing the each link between the value chain and its operations zone. Some of the indicators of Sustainable operations are energy efficient vehicles, optimized schedules, solar energy systems, energy saving expertise, waste reduction. Some of the companies which are environmental friendly maintain their value chains in a sustainable operations zone and concentrate more on profit centre rather than a bottom line zone and finally lead to waste reduction and energy efficient.

Some of the simple rules followed by Smart Corporations in their effort to become sustainable are: Dont start from the present. Ensure that Learning precedes Investment. Stay wedded to the Goal while constantly adjusting tactics. Build Collaborative Capacity. Use a Global Presence to Experiment. In a recent IBM survey it was found that two-thirds of executives see sustainability as a revenue driver and half of them expect green initiatives to confer competitive advantage. This dramatic shift indicates that the awareness of environmental responsibility is a platform for growth and differentiation. Some of the authors say that the framework for embarking on the green product development process, introducing three broad strategies that companies can use to align their green goals and capabilities. They are: Path 1: Accentuate It is a strategy which involves evaluating products in the companys current portfolio and playing up or extending latent or existing green attributes. Path 2: Acquire It involves buying some elses green brand- an approach used effectively by LOreal, Colgate-Palmolive. Path 3: Architect It is a strategy where companies with innovation build green products from scratch as Clorox did when it developed Green Works line. Green Growth strategy is the main agenda of the current business and all the stake holders, customers and share holders seek for the same in the society. Transparency in claims and authenticity in execution are important elements in the long term success of the green growth strategy. In the acquisition strategy of the green product development there should be a strategic fit between culture and companys social mission. Thus this strategy has a little impact on the bottom line but has a drastic effect on the companys green effort. In order of cost analysis the order followed for the company to follow the strategies are Architect, Acquisition and Accentuating. The green growth strategy can be implied when these considerations are taken care which include feasibility, desirability and implementation of the strategy is concerned. Green growth strategy is an enterprise sustainable strategy to reframe operations and make a change in culture and finally reposition the organization for future generations. While analyzing growth options, stake holders, share holders and customers do not look at the green initiatives but they look out at the activities and offerings. Corporate wide effort and an overall approach towards sustainability would be distinguished as well as performance of a green product. Corporate Sustainability Management shall be defined as a strategic and profit driven corporate response to environmental and social issues caused through the organizations primary and secondary activities Corporate Sustainability is a complex concept based on technology, regime, visibility and other parameters such as they vary between countries and industries at different points in time. The economic value of more sustainable business strategies is a lot more elusive since it only materializes in the long term.

Survival and competition are the key indicators that influence Sustainable Development. The companies have to craft their strategies that would gain competitive advantage through innovation and quality improvement. The companies have to integrate execution and capabilities in five key areas: Leadership Assessment Strategy Development Management Integration Reporting The main causes for Sustainable Development are technological innovation, different ways of doing business, magnify the process of change, conflict over resources and accelerated in financial crisis. Innovations happen through quality revolution and movement which are the core set of tools and an element of strategy. Investors usually are interested in details of carbon-di-oxide emissions and water usage criterias in the current world and ask the companies to share the info and thus the concept of Carbon foot print in the annual reports has been found. The primary consideration to be done by the companies is to set up a right vision and follow a multi stage approach to achieve it. Companies excel in sustainability make shifts in five key areas: Moving from tactical, adhoc, and siloed approaches to strategic, systematic and integrated ones. Resource efficiency and risk management has to be spread across the values chain to redesign the whole systems process. The core business has to be transformed to become one of the sources of new revenues and growth. Companies when they outperform their competitors they consider factors of environmental cost of risk management. The key indicators for out beating competitors and upgrading accordingly are the eco-efficiency and innovation. The companies which pioneer in sustainability develop value creation, intangibles such as brand and culture in the four ways of value creation. They are: Step1: Do old things in new ways. Step2: Do new things in new ways. Step3: Transform Core business. Step4: New business model creation and differentiation. Few companies establish their explicit goals to have a renewable energy and reduction in green house effect and gas emissions and it also drives to new quality tools such as Six Sigma, Lean Manufacturing System etc. In IBM, the companys environmental system as the foundation for policy deployment, practice management, goal setting, decision making and data capture. There are some strategic issues related to packaging, facilities, and logistics which are to develop new ways of doing business that support the companys sustainability aspects and goals. Managing sustainability strategy requires systems support as well in the case of services sector. Thus we could some companies invested a lot of money in environmental events and technology. The value creation with evolving capabilities and thus firms develop sustainability performance system. Depending on the companys sophistication in both the realms, and their desire to use sustainability as competitive weapon. They are classified as:

Dreamers

Winners

Losers

Defenders

Source: Lubin David.A, Daniel.C.Esty, Harvard Business Review, The Sustainability Imperative, May 2010; 8 Companies try to track cost and reduce the risk and evaluate value creation activities and try to analyze the firms position to deliver an eco-premium product and thus make sustainability imperative. In this new world, the sustainability imperative will be systematized and integrated into the day to day practises of firms of all sizes in all industries.

Model of Sustainable Development: Sustainable Development as discussed in the earlier represents three zones of economic, environmental and social aspects of business organization. Thus these zones of Sustainability are represented by three Ps i.e. Profit, Plant and People. Thus proposing a new model which is the extend version of Triple bottom line of sustainability by Prof. John Elkington(USA).

Economic capital is used for measuring and reporting market and operational risks across a financial organization. Economic progress is evaluated in terms of welfare (or utility) measured
as willingness to pay for goods and services consumed. The modern concept underlying economic sustainability seeks to maximize the flow of income that could be generated while at least maintaining the stock of assets (or capital) which yields this income. Economic efficiency plays a key role in ensuring optimal consumption and production. Modern economies have only recently acknowledged the need to manage scarce natural resources in a prudent manner because human welfare ultimately depends on ecological services. Ignoring safe ecological limits will increase the risk of undermining long-run prospects for development. Thus scarcity of resources is complied with the Plant. As a plant is needed for a tree to survive in the same way Sustainability is needed for survive of a company. Many companies are coming up with resource efficient ways of producing the product and reducing the waste and the carbon emissions related with the product and its accounting related areas. The companies have a clear cut vision and will to conduct a new way of innovation and get excelled to drive through a way of Sustainable Value Chain in the company. Social Development refers to the improvements in the individual well being and overall social welfare that has been resulted from social capital. A society is a group of people who are related to each other and are subject to same authority and cultural expectations. Enhancing the human capital and strengthening social values to improve governance structure. The factors that contribute for social development could be poverty, population and behavioural norms (social conduct).

Usually developing countries uses legal rules and regulations to control the reduction in natural resources and contribute to sustainable development. But in the case of developed countries it is not the prerequisite and there has been found all the top companies such as IBM, 3M, HP, Clorox, P&G, LOreal and Wal-Mart following the green initiatives in their economy. In case of India there is a lot of rapid deforestation has led to various problems. At the macro level initial stage of floods and droughts has led uncertainties in the agricultural production. To provide better knowledge about the basic necessities in forest such as fuel, fodder etc the rural people have been educated with several social programmes that has been launched by different state governments in India.

An in-depth look at the different religious teach medieval philosophies, and traditional beliefs as the major repositories of human knowledge besides modern science reveals that, aside from the variation in semantics, most of them contain a strong component of living. The company has to check on the urban sustainability concentrating on the areas of management of water supply, management of waste and management of energy, reduction in inequality and land polices.

Environment Plant, Biodiversity, Resources, Pollution

Economic Poverty, Productivity, Profit, Stability

Social Poeple, Community development, Governance

Source: Adams, W.M. (2006). "The Future of Sustainability: Re-thinking Environment and Development in the Twenty-first Century." Report of the IUCN Renowned Thinkers Meeting, 2931 January 2006. Retrieved on: 2009-02-16.

Thus, society is a group of people who contribute to the human capital; environment is that encompasses the interaction of all living species surrounding the society which is natural
resources like water and plant; economics consists of labour capital and land resources which are mainly used for trading activities that re indirectly related to profit of the company. Thus considering all these factors the companies have to frame their sustainable vision try to work on the best interests of the planet, people and profit which are the long term goals of the company.

References: Adams, W.M. (2006). "The Future of Sustainability: Re-thinking Environment and Development in the Twenty-first Century." Report of the IUCN Renowned Thinkers Meeting, 2931 January 2006. Retrieved on: 2009-02-16. Bill Hopwood, M. M., Geoff O'Brien (2005). "Sustainable Development: Mapping Different Approaches " Sustainable Development 13(1): 38-52. Energy, environment and sustainable development by Abdeen Mustafa Omer (17 Juniper Court, Forest Road West, Nottingham NG7 4EU, UK) Received 16 April 2007; accepted 30 May 2007 Pg No 2294. Harvard Business Review on Corporate Strategy Beyond Greening Strategies Stauart.L.Hart, January-February 1997: 131-133 Harvard Business Review on Strategy Why Sustainability is now the key driver of innovation, Ram Nidumolu, C.K.Prahlad and M.R.Rangaswami, September 2009: 1-21 Harvard Business Review on Corporate Strategy Beyond Greening Strategies Stauart.L.Hart, January-February 1997: 131-133 Harvard Business Review on Strategy Why Sustainability is now the key driver of innovation, Ram Nidumolu, C.K.Prahlad and M.R.Rangaswami, September 2009: 1-21 Harvard Business Review on Strategy Growing Green, Gregory Unruh, Richard Ettenson, June 2010:23-39 Harvard Business Review The Big Idea, The Sustainability Imperative, David A.Lubin and Daniel C.Esty, May 2010;1-9 Olivier Salzmann, Aileen Ionescu Somers, Ulrich Steger, The Business case for Corporate Sustainability : Literature review and research options, European Management Journal, Vol.1, pp.27-36, 2005 Salzmann, forth coming Corporate Sustainability Management in the Energy Sectors, Technische University, Berlin. Solow, R. 1986. On the intergenerational allocation of natural resources, Scandinavian Journal of Economics, Vol. 88, No. 1, pp.1419. Sustainability and sustainable development: historical and conceptual review, Desta Mebratu, 1998; 517 Sustainable urban development in India: some issues, Dr. Basudha Chattopadhyay, 1999 Vandana Shiva, Ecology and the politics of Survival (New Delhi: United Nations university Press, 1991)

World Commission on Environment and Development (WCED) known by the name of its Chair Gro Harlem Brundtland was convened by the United Nations in 1983. For detailed discussion on climate change see the report of Intergovernmental Panel on Climate Change, the source can be found under Cruz et al. (2007) in the reference.

Das könnte Ihnen auch gefallen