Sustainable Development and the Business

"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".

In the 37 years since the publication of Silent Spring, the book that sparked the environmental movement in the USA, corporations have learned to accept "compliance" as business as usual. In the UK sustainable development has received growing support and recognition since "Our Common Future" was published in 1987.

The argument of the 1980s, that environment and economy are incompatible has developed beyond discussion into economic theory that supports sustainable development and its implementation. It may appear from our economic discussions sustainable development is still somewhat nebulous and theoretical but this is certainly not the case. A vast range of national and international policies and projects are being carried out, new legislation is being introduced and markets both at home and abroad are feeling the influence of "green consumerism" and indeed new markets are developing.

This definition recognises that economic development must meet the needs of the business enterprise and its stakeholders, (shareholders, lenders, customers, employees, suppliers and communities). It also highlights the dependence of the enterprise's economic activities on human and natural resources in addition to physical and financial capital, and, that economic activity must not irreparably degrade or destroy these natural and human resources.

Truly environmental and socially sustainable development should lead not to a trade-off between environmental damage and economic growth but to development that does not draw down our environmental capital, but rather maintains or increases it and introduces new markets and opportunities for business. Sustainable development is about a revolutionary change in approaching these issues. The blueprint for how business is conducted is shifting from Industrial Age operating assumptions of "take, make and throw away" to fit the situation society faces today.

Society in its desire to survive is increasing the pressure on companies that refuse to move forward. The authors of Interface Inc.'s 1997 Sustainability Report say, "We believe institutions that continuously violate these [natural] principles will suffer economically". In order to continue to prosper, business must play a role. Society will not allow it to be passive. A Company that does not embrace these principles will in time be regulated into taking the actions it would not take voluntarily and efficiently.

As global consciousness and social values come to the forefront, the private sector is increasingly called upon to go beyond compliance and participate in fundamental ways as leaders of society. The Industrial Age view that business' sole function is to produce products, services, and profit is less and less acceptable to society.

On the other hand, sustainable development is good business in itself. It is good business for, firms that invest in increasing their own efficiency or reducing waste and those that engage themselves in social well being. These enterprises will generally have a greater competitive edge. Many companies have found investments that show an attractive rate of return through reducing, reusing, recycling or process redesigns.

From a broader perspective, it is clearly in the interest of business to operate within a healthy environment and economy. It is just as clear that, on a global basis, growing and sustainable economies in the developing countries will provide the best opportunities for expanding markets.