Domain

Name of the Case: What are the defining attributes & actions of sustainable development by
corporate as perceived by its stakeholders? How can corporates demonstrate their
environmental commitment?
Sponsor:

Introduction:

Remaining committed to conserving natural resources while ensuring sustainable growth and fostering
strong relationships with communities is what many corporates are aspiring for.

Building a business that is as relevant and impactful tomorrow calls for a culture of agility. Leveraging
innovation capabilities, technology leadership and sustainability focus to create long-term value for
stakeholders is what Companies are looking forward to in-order to remain competitive.

For the business enterprise, sustainable development means adopting business strategies
and activities that meet the needs of the enterprise and its stakeholders today while
protecting, sustaining and enhancing the human and natural resources that will be needed
in the future. This definition captures the spirit of the concept as originally proposed by the World
Commission on Environment and Development, and recognizes that economic
development must meet the needs of a business enterprise and its stakeholders. The latter
include shareholders, lenders, customers, employees, suppliers and communities who are
affected by the organization’s activities.

It also highlights business’s dependence on human and natural resources, in addition to

physical and financial capital. It emphasizes that economic activity must not irreparably
degrade or destroy these natural and human resources.

Background

Imbibing an underlying responsibility towards planet Earth in Co’s operations, ensuring the health and
safety of people at workplaces, balancing economic prosperity and generating social benefits for
the community are the norms by which Companies are looking forward to operating.

Climate change is recognised globally as one of the key risks in the 21st century. Specific mitigation
and contingency plans for each of the identified risks should be a part of Company’s long-term strategy.

Most of the corporates are building internal R&D capabilities in carbon reduction and other sustainability
measures, in collaborations with R&D institutes, academia and technology suppliers. The Companies
need to continue building new portfolio of Value-added Products, Services & Solutions to establish new
markets and consumer segments.

it is also important to add that sustainable development cannot be achieved by a single enterprise (or,
for that matter, by the entire business community) in isolation. Sustainable development is a pervasive
philosophy to which every participant in the global economy (including consumers and
government) must subscribe, if we are to meet today’s needs without compromising the
ability of future generations to meet their own.

Problem Statement/Challenges Faced:

With the increased pressure on natural resources with burgeoning population and increasing demand,
the businesses need to relook at their operations and products.
Realigning the corporate objectives without harming ecology, investors’ sentiments, consumers’
expectations and company’s profits are going to be some of the challenges that Corporates need to take
care.

Optimizing costs and maintaining the profit margins including the inflation and crunch of resources, while
keeping pace with the growth aspirations of the entity, the challenges are going to be multi-faceted.

The pace at which the technologies are changing, regulations are getting stricter, the customer’s needs
are changing, the Companies must continue innovating and be agile to adapt.

The continuous efforts taken by the Corporates need to be adequately informed to their stakeholders for
their trust and maintaining their goodwill.

Critical Case Questions

1. What key transforming actions should Co. undertake in their internal processes?

2. How shall Cos. approach their annual business planning w.r.t. Sustainable business practices?

3. How should Companies track, monitor and communicate the impact of their sustainable actions in
short-term and long-term?

4. How can Companies bring about the cultural changes in their stakeholder management for long-
lasting impact on triple Ps?

5. What role can communications play in bringing about the desired cultural changes?