Course: BUSS6171

Effective Period: 2021

Introduction

Session 01
 Learning Outcome

• Explain the principles of Sustainability Business

• Describe the development from MDG to SDG
• Describe the sustainability in Development Sector
• Review and analyze the differences between sustainability and
Corporate Social Responsibility
Principles of Sustainability Business

What is Sustainability?

• Sustainability from its roots of “sustain” and “ability,” the term seems to
have come to generally mean “the capacity to maintain,”
• Sustainability might also mean the capacity to endure and adapt,
prompting the question of what existing conditions need to and should
be maintained.
• Sustainable development has been interpreted to mean “meeting the
(human) needs of the present without compromising the ability of
future (human) generations to meet their own (human) needs”
(Brundtland Commission, 1987).
• Sustainability management is the formulation, implementation, and
evaluation of both environmental and socioeconomic sustainability-related
decisions and actions (Bell & Morse, 2008; Dunphy, Benveniste, Griffiths, &
Sutton, 2000; Elkington, 1998; Laszlo, 2003; Stead & Stead, 2004)
Principles of Sustainability Business

Why Sustainability?

• Industrialization has bought many benefits to society – however the approach is

more short term gains than long term
• Facts:
– Humanity uses ~ 1,6 planets to provide resources used and to absorb the waste
produced
– 1 Billion People living in extreme poverty (< US$2 per day)
– If no action taken seriously by the end of this century temperature will increase
by 4,5 degree and the world damage will be serious and often irreversible.
– According to the scientific journal Environmental Sustainability, an island of plastic
twice the size of Texas
– Environmental Sustainability, we’re on pace to produce 27 billion tons of solid
waste by 2050 due to a business environment that prioritizes rapid production
and turnover of products for maximum profits
– Over 140 million people will be displaced from their homes by 2050 if business
continues as usual.
Principles of Sustainable Business

From Less Harm to Do Good

• Business will need to do more than merely minimize harm or eliminate

negative externalities and should proactively maximize their positive impacts
on society and environment
• However… it is usually at the expense of short term profitability
• Business needs to move away from Business Case for Sustainability to
Sustainable Business Model
• Sustainable Enterprise is an organization that pursue a viable, profitable
business model to maximize social and environment wellbeing
Sustainable in Development

From MDG to SDG

• The Millennium Development Goals (MDGs) were eight international

development goals for year 2015that had been established following
the Milllenium Summit of the United Nations in 2000
• These were based on the OECD DAC International Development Goals
agreed by Development Ministers in the "Shaping the 21st Century
Strategy".
• All 191 UN member states and at least 22 international organizations
and at least 22 international organizations, committed to help achieve
the following Millennium Development Goals by 2015.
• MDG has eight goals which were measured by 21 targets.
Millenium Development Goals (MDG)
2000 - 2015
Sustainable in Development

From MDG to SDG

• The Sustainable Development Goals (SDGs) or Global Goals are a

collection of 17 interlinked global goals designed to be a "blueprint to
achieve a better and more sustainable  future for all".
• The SDGs were set up in 2015 by United Nations General Assembly
and are intended to be achieved by the year 2030.
• The SDGs were developed in thePost-2015 Development Agendas the
future global development framework to succeed the MDG which
ended in 2015.
Sustainable Development Goals (SDG)
2015 - 2030
 MDG to SDG

Source: BAKU 2017

MDG and SDG

The Differences

There are seven major differences in MDGs and SDGs;

• MDGs were drawn up by a group of experts whereas SDGs have
evolved after a long and extensive consultative process including 70
Open Working Groups, Civil Society Organizations, thematic
consultations, country consultations, participation of general public
through face-to-face meetings and online mechanisms and door to
door survey;
• While MDGs were focused with only 8 goals, 21 targets and 63
indicators, SDGs include 17 goals with 169 targets.
• MDGs had a focus on developing countries with funding came from rich
countries. All countries, developed or developing, are expected to work
towards achieving SDGs;
MDG and SDG

The Differences

• The pillars of human development, human rights and equity are deeply
rooted in SDGs and several targets seven explicitly refer to people with
disabilities, six to people in vulnerable situations, and two to non-
discrimination. These were not even mentioned in the MDGs; (iv) MDGs
had 3 direct health goals, 4 targets and 15 indicators with emphasis on
child, maternal mortality and communicable diseases. SDGs have one
comprehensive goal emphasizing well-being and healthy living including
NCDs;
• MDGs had a time span of 25 years though adopted in 2002 baseline data
for the year 1990 was used and some of the baselines were revised
subsequently which shifted ‘the goal post’. For the SDGs, the baseline is
from 2015 estimates. It may be revised as more recent data becomes
available;
MDG and SDG

The Differences

• SDGs include a vision of building vibrant and systematic partnerships

with private sector to achieve sustainable development. It builds on, UN
Compact which was launched in year 2000 and IMPACT 2030;
• MDGs had no concrete role for the Civil Society Organizations (CSOs),
whereas SDGs have paid attention to this right from the framing stage
itself with significant engagement of civil society actors.
Sustainability in Development Sectors
Gender Equality –
SDG 5: Achieve gender equality and empower all women and girls

• The widespread consensus is that progress on all of the SDGs will be

stalled if women's empowerment and gender equality are not
prioritized, and treated holistically.
• The SDGs look to policy makers as well as private sector executives and
board members to work toward gender equality.
• Women have a critical role to play in all of the SDGs
Sustainability in Development Sectors
Gender Equality –
SDG 5: Achieve gender equality and empower all women and girls

• Deep legal and legislative changes are needed to ensure women’s rights
around the world.
• While a record 143 countries guaranteed equality between men and
women in their Constitutions by 2014, another 52 had not taken this
step.
• In many nations, gender discrimination is still woven through legal and
social norms.
• On average women in the labour market still earn 24 per cent less than
men globally.
• As of August 2015, only 22 per cent of all national parliamentarians
were female, a slow rise from 11.3 per cent in 1995.
Sustainability in Development Sectors
Gender Equality –
SDG 5: Achieve gender equality and empower all women and girls

• to empower women and girls in all of its programmes.

• Advancing women’s political participation and leadership and economic
empowerment are two of the entity’s central goals.
– more women to get on ballots, attain political office and go to polls to
vote. to secure decent jobs, accumulate assets,
– promote women’s role and leadership
– advocate for ending violence, raise awareness of its causes and
consequences and boost efforts to prevent and respond
– to ensure that governments reflect the needs of women and girls in
their planning and budgeting
– To engage men and boys, urging them to become champions of
gender equality
Sustainability in Development Sectors
Poverty Reduction –
SDG 1: End poverty in all its forms everywhere

• Globally, the number of people living in extreme poverty declined from 36

per cent in 1990 to 10 per cent in 2015. But the pace of change is
decelerating and the COVID-19 crisis risks reversing decades of progre
ss in the fight against poverty. 
• New research published by the UNU World Institute for Development
Economics Research warns that the economic fallout from 
the global pandemic could increase global poverty by as much as half a bi
llion people
, or 8% of the total human population. This would be the first time that
poverty has increased globally in thirty years, since 1990.
• More than 700 million people, or 10 per cent of the world population, still
live in extreme poverty today, struggling to fulfil the most basic needs like
health, education, and access to water and sanitation, to name a few.
Sustainability in Development Sectors
Poverty Reduction –
SDG 1: End poverty in all its forms everywhere

• The majority of people living on less than $1.90 a day live in sub-
Saharan Africa. Worldwide, the 
poverty rate in rural areas is 17.2 per cent—more than three times
higher than in urban areas. 
• For those who work, having a job does not guarantee a decent living. In
fact, 8 per cent of employed workers and their families worldwide lived
in extreme poverty in 2018.
• One out of five children live in extreme poverty. Ensuring social
protection for all children and other vulnerable groups is critical to
reduce poverty.
Sustainability in Development Sectors
Public Health–
SDG 3: Ensure healthy lives and promote well-being for all at all ages

• Ensuring healthy lives and promoting well-being at all ages is essential

to sustainable development.
• Before the pandemic, major progress was made in 
improving the health of millions of people. Significant strides were
made in increasing life expectancy and reducing some of the common
killers associated with child and maternal mortality.
• But more efforts are needed to fully eradicate a wide range of diseases
and address many different persistent and emerging health issues.
• By focusing on providing more efficient funding of health systems,
improved sanitation and hygiene, and increased access to physicians,
significant progress can be made in helping to save the lives of millions.
Sustainability in Development Sectors
Environment Preservation

• Pollution Prevention (P2)

– Pollution can occur in the air, water, or soil. Pollution prevention,
sometimes referred to as P2, refers to reducing or eliminating waste
at the source. Goals such as waste reduction and reducing carbon
footprint ultimately support a much broader objective of pollution
prevention.
• RESOURCE CONSERVATION
– Resource conservation refers to the practice of using resources such
as water, energy, and raw materials efficiently and ethically.
Sustainability in Development Sectors
Environment Preservation

• ZERO WASTE TO LANDFILL

– Having a zero waste to landfill goal means you plan to eliminate all
discharge to landfill. It means you are not shipping any wastes for
treatment at a landfill.
• WASTE MINIMIZATION / WASTE REDUCTION
– Waste reduction is the method used to achieve zero waste.
• ZERO DISCHARGE
– Zero discharge means to eliminate discharge pollutants from a point
source (such as a building or processing plant) to local waterways.
• ZERO EMISSIONS
– Reducing your carbon footprint is to reduce your carbon dioxide
emissions, which contribute to global warming.
Corporate Social Responsibility

• Corporate social responsibility (CSR) is a company's commitment to manage

the social, environmental and economic effects of its operations responsibly
and in line with public expectations.
• It is part of a company’s approach to corporate governance and often touches
every part of the business—operations, human resources, manufacturing,
supply chain, health and safety, and more.
• CSR activities may include:
– Company policies that insist on working with partners who follow ethical
business practices
– Reinvesting profits in health and safety or environmental programs
– Supporting charitable organizations in the communities where a company
operates
– Promoting equal opportunities for men and women at the executive level
Corporate Social Responsibility

• Some aspects of CSR may be required by law. For example, banks and
hospitals are legally required to protect people’s private information.
Others are voluntary.
• The benefits of CSR are many. Companies establish good reputations,
attract positive attention, save money through operational efficiency,
minimize environmental impacts, attract top talent and inspire
innovation. Public companies often report on their CSR performance in
their annual reports.
CSR and Sustainability

Similarity

• Both CSR and corporate sustainability focus on helping companies run

in a way that allows them to be ethically profitable—never at the
expense of others.
• Both CSR and corporate sustainability help companies make a positive
impact on those around them.
• These two concepts are closely related. After all, corporate
sustainability is part of corporate social responsibility.
CSR and Sustainability

Differences

• Vision
– CSR often looks backward and reflects on what a company has done to contribute to
society.
– Corporate sustainability looks forward and develops a sustainable strategy for the
future.
• Target
– The targets of CSR initiatives are often opinion formers (e.g., media, politicians, and
pressure groups).
– Corporate sustainability looks at the whole value chain (i.e., everyone from end-
consumers to stakeholders).
• Motivation
– The motivation and driving force behind CSR initiatives is to protect a company's
reputation.
– For corporate sustainability, the drive has more to do with creating new opportunities
for emerging markets.
References
Textbook:
Francisco Szekely and Zahir Dosa, Beyond The Triple Bottom Line, 2017, 1 st
ed, MIT Press, ISBN 7980262035966

Other resources:
https://www.un.org/sustainabledevelopment/sustainable-development-go
als/
https://ituabsorbtech.com/environmental-sustainability-business-goals-
real-world-examples/
Assignment 1
Based on the respective selected sustainability report, each student must
present and explain the company sustainability report in a drawing,
sketch, poster, collage, video, or other creative graphic medium.
Thank You