Business Sustainability, Corporate Governance, and Organizational Ethics

CHAPTER 4Business Sustainability

1. Introduction

The topic of business sustainability has gained considerable attention from policymakers, regulators, investors, and business organizations. In today’s global business environment, public companies face increasing scrutiny and profound pressure from lawmakers, regulators, the investment community, and their various stakeholders to focus on their multiple bottom lines (MBLs) of economic, governance, social, ethical, and environmental (EGSEE) performance. Global organizations recognize the importance of all five EGSEE dimensions of sustainability performance in creating shared value for all their stakeholders from shareholders to creditors, customers, suppliers, employees, government, society, and the environment. Business sustainability has transformed from branding and greenwashing to a strategic imperative of integrating goals into corporate culture, business environment, managerial plans, and investment decisions. Business organizations worldwide are now facing the challenges of adopting proper management strategies and practices to effectively respond to social, ethical, environmental, and governance issues while creating sustainable financial performance.

Traditionally, business organizations have reported their financial economic performance in a set of financial statements. In the era of technological advances and the move toward consideration of social and environmental impacts, these financial reports are no longer considered ...