CSR and Sustainable Development
The concepts of sustainable development and corporate responsibility are closely related. Very often, the terms “corporate sustainability” and “corporate responsibility” are used interchangeably.
The concepts of sustainable development and corporate responsibility are closely related. Very often, the terms “corporate sustainability” and “corporate responsibility” are used interchangeably.
When approaching and practicing social responsibility, the overarching objective for an organization is to maximize its contribution to sustainable development
ISO 26000, The Standard on Social Responsibility
The term “sustainability” implies to continuity, constancy, permanent restoration.
Creation of the term is attributed to Hans Carl von Carlowitz, an inspector of mines in Saxony, who first used this term in 1713 in his book "Sylvicultura Oeconomica”.
Back then, Saxony (Germany) and Europe in general were facing acute forestry shortages, creating serious problems to silver mining and metallurgy industry.
In his book, Hans Carl von Carlowitz addresses the issue of sustainable and thoughtful usage of the forest, in other words, he talks about the planned forest cutting, when the rate of cutting is adequate to the restoration rate, enabling the forest to be permanently renewed and sustained.
Germany forestry of the 18th and 19th centuries was based on and developing in line with the sustainability concept.
At present, sustainable development is a far more complex and wider concept embracing several topics and issues.
Modern definition of the sustainable development concept was formulated in 1987 in the report by World Commission on Environment and Development - „Our Common Future“ , AKA “Brundtland Report” after the Commission Chairwoman Ms. Gro Harlem Brundtland. By the definition of the Commission, sustainability does not imply to only economic and social development, but also implies to meeting the needs of the poor and to acknowledging that Earth’s physical resources are limited and exhaustible. It is based on the holistic perception of the world where everything is inter-related. The internationally accepted definition of sustainable development is following:
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Sustainable Development is Development that Meets the Needs of the Present Without Compromising the Ability of Future Generations to Meet their Own Needs.
Sustainable development has three main dimensions – economic, social and environemtal, and they are highly correlated. For instance, the elimination of poverty requires the promotion of social justice and economic development and the protection of the environment.
The definition of the concept of sustainable development has been re-adopted and re-affirmed at numerous international forums that have been held since 1987.
Corporate social responsibility is tightly related with the concept of sustainable development.
Every organization, be that a large multi-national company, a small business, a government agency or an NGO, impacts the surrounding natural or social environments. Thus, it is important that, along with trying to achieve their direct goals, all organizations take into consideration their impacts on environmental and social-economic systems.
Because sustainable development embraces economic, social and environmental objectives recognized by the humanity, its concept reflects the public’s expectation and demand that responsible companies should take into their account. Thus, the ultimate objective of corporate social responsibility is to promote and make contribution to achieving the goals of sustainable development.
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In the flat world, the balance of power between global companies and the individual communities in which they operate is tilting more and more in favor of the companies. These companies command as much if not more power than many governments, not only to create value but also to transmit values.
In 2000, State leaders attending the UN Millennium Summit adopted the so called “Millennium Declaration”, setting forth 8 global goals to be achieved by 2015, known as „Millennium Development Goals“ (MDGs). These eight goals addressed a number of different issues - from elimination of extreme poverty, to disease control and healthcare provision (e.g. fighting HIV/AIDS, reduction of child mortality rates and improvement of mothers’ health), as well as ecological sustainability, provision of education, and gender equality issues.
goals for the next 15 years’ period, known as Sustainable Development Goals, or Global Goals. At the UN Summit in New York in September 2015, leaders of 193 States unanimously passed 2030 Agenda For Sustainable Development, identifying 17 global goals with core focus on “humans, the planet and well-being”.
17 goals of sustainable development, with 169 targets and 232 indicators cover all three dimensions of sustainable development – social, economic and environmental.
These goals offer the States and separate organizations a commonly recognized strategy to tackle the most acute world problems by 2030 on such issues as: poverty eliminations, establishment of peace and equality, environment protection, and ensuring sustainable economic development and well-being.
Sustainable Development Goals cannot be accomplished without the participation of all sectors, including the private sector. Even though it is the Governments that are mainly responsible for accomplishing the Global Goals, the role of the business is still decisive in achieving Sustainable Development Goals, because the private sector is seen as:
SDG need business involvement. Likewise, consideration of and contribution to the Sustainable Development Goals is important to the business itself.
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According to The Business & Sustainable Development Commission study, accomplishment of the Sustainable Development Goals by 2030 will create annually 12 trillion US Dollars’ worth market opportunities for the business.
World Business Council for Sustainable Development (WBCSD) has set 4 main points of why the companies should promote the accomplishment of SDGs:
Inactivity is risky and ultimately costs a lot
Increasing numbers of stakeholders – employees, customers, investors – demand and expect from businesses to contribute to the accomplishment of SDGs
Access to opportunities related to the accomplishment of SDGs
The volume of market stimulus plans for the companies that consider Sustainable Development Goals is steadily increasing
The need for cooperation
No individual sector or organization can accomplish the Global Goals independently
The need to integrate SDG objectives into the management and the strategy
Being informed = better decisions
The CEO Guide to the SDGs. the World Business Council for Sustainable Development (WBCSD), page. 11
Companies that understand the challenges and opportunities related to Sustainable Development Goals and effectively integrate them into their business strategies have a real competitive advantage and, in the long run, improve their financial results. On many international platforms, the business is stated to be a leader in achieving the Sustainable Development Goals.
Sustainable Development Goals have become some type of a roadmap for the companies on how to plan their CSR strategies to meet public expectations.
There are many publications, handbooks, studies, online platforms and resource web-sites on why and how organizations should make their contribution to the accomplishment of Sustainable Development Goals.
Below is a short listing of the main platforms and web-sites that will assist the companies to effectively integrate SDGs into their Corporate Responsibility strategies:
SDG Compass
An online tool for companies, created jointly by Global Reporting Initiative (GRI), UN Global Compact, and the World Business Council for Sustainable Development (WBCSD). The goal of the web-site is to provide the companies with guidance and instructions on how to harmonize their strategies and programs with Sustainable Development Goals and make contribution into their accomplishment.
The web-site provides access to SDG Compass: The guide for business action on the SDGs
The web-site also offers several useful and flexible tools, such as:
There are many publications, handbooks, studies, online platforms and resource web-sites on why and how organizations should make their contribution to the accomplishment of Sustainable Development Goals.
Below is a short listing of the main platforms and web-sites that will assist the companies to effectively integrate SDGs into their Corporate Responsibility strategies:
SDG Compass
SDG Knowledge Hub
UN Knowledge Platform on SDGs
SDG Industry Matrix
SDG Business Hub of The World Business Council on Sustainable Development
UN Global Compact Information Platform - The SDGs Explained for Business
UN Global Compact (UNGC) and Global Reporting Initiative (GRI) Joint Platform: ‘Business Reporting on The SDGs’ – an Action Platform
SDG Compass
An online tool for companies, created jointly by Global Reporting Initiative (GRI), UN Global Compact, and the World Business Council for Sustainable Development (WBCSD). The goal of the web-site is to provide the companies with guidance and instructions on how to harmonize their strategies and programs with Sustainable Development Goals and make contribution into their accomplishment.
The web-site provides access to SDG Compass: The guide for business action on the SDGs
The web-site also offers several useful and flexible tools, such as:
SDG Knowledge Hub
Created by the International Institute for Sustainable Development, the SDG Knowledge Hub (an information resource site on the Sustainable Development Goals) offers vast information on Sustainable Development issues and the accomplishment of SDGs:
The web-site has a convenient search system – information is categorized and search is possible by various sustainable development goals, topics and issues (for example: bio-diversity, gender, poverty, etc.), as well as by regions, implementing sector/agency (e.g. National Governments, International institutions, UN programs and agencies, stakeholder groups, inter-Governmental organizations, etc.) and so forth.
UN Knowledge platform on SDGs
UN Knowledge platform on SDGs provides diverse information on each of:
The same platform also hosts a unique database on SDG good practices, presenting over 5000 cases that can be grouped into and searched by individual goals, countries and regions.
SDG Industry matrix
UN Global Compact and KPMG jointly developed six sectoral handbooks - SDG Industry matrix – for the following sectors:
The handbook designed specifically for each sector provides reviews on how a company operating in the respective area can contribute to the accomplishment of each goal and presents best practice examples and overviews of potential initiatives and programs.
SDG Business Hub of The World Business Council on Sustainable Development
An interesting and valuable platform with different types of information and resources. Focused on relevant aspects of the business with regards to SDGs, the goal of the platform is to assist the companies and provide them necessary resources and information to better understand sustainable development goals and consider them in their policies and operations.
The platform offers many SDG related resources
and many more useful information.
UN Global Compact Information Platform - The SDGs Explained for Business
The platform is actually one section the UN Global Compact web-site. It provides important initiatives and resources for each Goal, useful information on how the business should support the goals, as well as the types of initiatives and programs that could be implemented.
UN Global Compact (UNGC) and Global Reporting Initiative (GRI) Joint Platform: ‘Business Reporting on The SDGs’ – an Action Platform
Aimed at the promotion of corporate reporting on the global goals, “Business Reporting on the SDGs” is a platform created jointly by cooperation of two largest initiatives supporting responsible business - Global Reporting Initiative/GRI and UNGlobal Compact. It is meant to be complimentary to GRI Sustainable Development Reporting format and UNGlobal Compact CoP reporting format, and should help in the assessment of and reporting on the companies’ contribution into the accomplishment of the global goals.
Within the platform, three tools have been developed to facilitate in the SDG reporting: