Learning

Topic to be
Session Readings Activities in
covered
Session
8-9 Sustainability Case: The Ford Pinto (https://philosophia.uncg.edu/phi361-matteson/module-1- Group Discussion
Regulation as why-does-business-need-ethics/case-the-ford-pinto/)
Business Risk

(PDF) Understanding Business Sustainability: The What, the Why, and the How of
Sustainable Business Practices (researchgate.net)

Roychowdhury, A. (2015). Cheating to pass: Does Volkswagen fraud signal death

of diesel? Down to Earth, 31 Oct 2015.
 Sustainability Regulation as Business Risk= Social and environmental problems faced by the global community:
• – social inequality, unequal distribution of wealth, failing economics, war and conflict, gender inequality, lack of education, rampant poverty, changing climate,
habitat loss, species loss, ecological loss etc.
• These problems are especially acute in developing and less developed countries.

 Sustainable Development Goals

• In 2015, the United Nations declared 17 goals for the global community to achieve. These came to be known as the Sustainable Development Goals (SDGs) and
replaced the Millennium Development Goals (MDGs) set two decades earlier.
Source: Understanding Business Sustainability: The What, the Why, and the How of Sustainable Business Practices, Wangchuk Chungyalpa
Defining Sustainable Business Practices= The general consensus is that a sustainable business is one that is economically viable, socially responsible, and environmentally friendly. It
would translate as:

• the business is financially sound and self-reliant;

• tries to improve the social impact
• championing equal opportunity,
• human rights,
• caring for the community of its actions on key stakeholders (employees, customers, government, society);
• and ensures that its activities (production to consumption of its goods and services) do not adversely impact the environment.

• The social and environmental dimensions are particularly important and are key differentiating factor distinguishing a sustainable business from a traditional for profit businesses.
Dyllick and Muff Business Sustainability Typology According to their Commitment to Sustainability Efforts= The four business sustainability typology (BST)
are compared and differentiated along the following parameters:

 where the primary concern of the business lies

 for whom the business is primarily creating value for and
 the organizational perspective of each business

• Concerns refer to the three dimensions of sustainability – economics, environment and society.
Dyllick and Muff Business Sustainability Typology According
to their Commitment to Sustainability Efforts

High Tier IV
Business Sustainability

Commitment to sustainability
3.0

Tier III
Business Sustainability 2.0

Tier II
Business Sustainability 1.0

Tier 1
Low Business as usual
 Table 1: Four Business Sustainability Typologies – A
Comparison (Dyllick & Muff, 2016)
Business Sustainability Concerns Values Created Organizational
Typology (BST) (What?) (What for?) Perspective (How?)
Business as usual Economic concerns Shareholder value Inside-out
Business Sustainability 1.0 Three dimensional Refined shareholder value Inside-out
concerns
Business Sustainability 2.0 Three dimensional Triple bottom line Inside-out
concerns
Business Sustainability 3.0 Three dimensional Creating value for the Outside-in
concerns common good
The key shifts involved 1st shift: broadening 2nd shift: expanding the 3rd shift: changing the
the business value created perspective
concern
Case Study= Case: The Ford Pinto (https://philosophia.uncg.edu/phi361-matteson/module-1-why-does-business-
need-ethics/case-the-ford-pinto/)
Guiding principles governing the thinking and practices of sustainable
businesses:=Protection of the biosphere
 Sustainable use of natural resources
 Reduction and disposal of waste
 Wise use of energy
 Risk reduction
 Marketing safe products and services
 Damage compensation
 Disclosure
 Environmental directors and managers
 Assessment and audit