Course Name:

Sustainability
Management
Lecture-6
Actors and Actions in
Sustainability
Management
 Corporate Governance

• Governance refers to the set of rules, controls, policies, and resolutions

put in place to direct corporate behavior. A board of directors is pivotal
in governance, while proxy advisors and shareholders are important
stakeholders who can affect governance.
• Corporate governance is the system of rules, practices, and processes
by which a company is directed and controlled. Corporate governance
essentially involves balancing the interests of a company's many
stakeholders, which can include shareholders, senior management,
customers, suppliers, lenders, the government, and the community.
 Why is corporate governance related to sustainability?

• Implementing sustainability can be done in several different ways, but if a company

wants to achieve true sustainability – it requires pertaining to all three pillars of
sustainable development: economic, environmental, and social sustainability.
Creating a company dedicated to all three pillars is no easy task – as it requires
equal dedication from staff, employees, and the surrounding community to be
sustainable in all areas.
• For instance, a company looking to achieve social sustainability must be dedicated
to improving their Human Resource department as well as improving upon the
environmental health and safety of the company in order to ensure a viable working
environment for their employees. It is difficult to ensure both safe, fair working
conditions while also remaining as a financially lucrative business. Corporate
governance can help provide companies with the guidelines necessary to
successfully and simultaneously implement all three pillars of sustainability.
 Why is corporate governance related to sustainability?

• Another example is with economic sustainability. In order to achieve

economic sustainability, companies must shift their priorities and strive
to use renewable resources to ensure their product or service is still
relative and viable for the future. It is imperative that companies find
ways to make use of eco-friendly resources for the sake of finances and
future mass production for their company – demonstrating how one
pillar of sustainability is hard to uphold without the help of another
pillar.
 Why is corporate governance related to sustainability?

• Corporate governance provides guidelines for not just one pillar of

sustainability, but all three – and all three pillars of sustainability are
more successful when each pillar of sustainability is functioning at their
utmost potential. If economic sustainability is thriving, odds are
environmental sustainability and social sustainability are as well.
 CSR

• Corporate social responsibility (CSR) is a self-regulating business

model that helps a company be socially accountable to itself, its
stakeholders, and the public.
• By practicing corporate social responsibility, companies are aware of
how they impact aspects of society, including economic, social, and
environmental. Engaging in CSR means a company operates in ways
that enhance society and the environment instead of contributing
negatively to them.
 How Does CSR relate with Sustainability Management

Corporate social responsibility (CSR) and sustainability management are closely

related concepts that often overlap and complement each other within the
framework of responsible business practices.
Shared Goals: Both CSR and sustainability management aim to address the social,
environmental, and economic impacts of business activities. They both seek to
ensure that companies operate in a manner that benefits society while minimizing
negative impacts on the environment.
Long-term Perspective: Sustainability management emphasizes the long-term
viability of business operations by considering their impact on future generations
and the planet. CSR often involves initiatives and practices that support sustainable
development goals.
 How Does CSR relate with Sustainability Management

Stakeholder Engagement: Both CSR and sustainability management involve

engaging with various stakeholders, including employees, customers, communities,
and investors.
Risk Management: Sustainability management helps companies identify and
mitigate risks associated with environmental degradation, climate change, resource
scarcity, and social unrest. By implementing CSR practices, such as ethical
sourcing, fair labor practices, and community development initiatives, companies
can reduce reputational risks and enhance their resilience to external shocks.
Regulatory Compliance: Both CSR and sustainability management require
companies to adhere to relevant laws, regulations, and industry standards.
 How Does CSR relate with Sustainability Management

Innovation and Efficiency: Embracing sustainability principles often drives innovation

and operational efficiency within organizations. Companies that prioritize CSR and
sustainability management are more likely to invest in research and development of
eco-friendly products, adopt renewable energy sources, and optimize resource usage,
leading to cost savings and competitive advantages.
Transparency and Accountability: CSR and sustainability management promote
transparency and accountability by encouraging companies to disclose their
environmental, social, and governance (ESG) performance to stakeholders. By
measuring and reporting on key sustainability indicators, companies can demonstrate
their commitment to responsible business practices and build trust with stakeholders.
Thank you