Sustainability from a Strategic Management Perspective

1987 UN Brundtland Commission Definition

"Meeting the needs of the present without compromising the ability of future generations to meet their own needs."

1992 Deloitte / IISD Definition

1. Added third-party "stakeholders" beyond just individuals

2. Added protecting, sustaining, and enhancing human and natural resources

3. Changed the framing of "own needs" to "needed" in a general sense — removing the individual perspective

Normative Ethics

The branch of philosophical ethics that investigates the questions that arise regarding how one ought to act, in a moral sense. In other words — when people tell you what you should or shouldn't do; what is "right" and "wrong."

Normative Ethics Creep

Slowly evlolving the components of a concept that has already been accepted as ethically sound in order to inculcate (infuse or include) new ideas under the existing ethical halo. The more sub-concepts added to a definition, the more areas there are for people to vehemently disagree - hence it can be very divisive.

2022 UN Sustainable Development Agenda

“A unviversal call to action to end poverty, protect the planet,and improve the lives and prospects of everyone, everywhere.”

Corporate Social Responsibility(CSR)

Caroll’s Pyramid: Economic(Make Profit)→Legal(Follow the Law)→Ethical(Be Ethical)→Philanthropic(Be a good corporate Citizen)/(Controversial)

Environmental, Social, Governance(ESG)

A set of standards for measuring a company’s impact on society and environment. Large hedge funds use it to direct capital like Blackrock.(Very Controversial)

Triple Bottom Line(People, Planet, Profit)

Sweet Spot where economic, social and environmental performance overlap.(Less controversial; acknowledges that corporate profit is morallly valid)

Circular Economy(UN)(Reduce, Reuse, Recycle, Remanufacture)

Focused on actionable resource stewardship improvements (Least Controversial; gaining business traction because it aligns with economic principles)

Negative Externalities

When the production or onsumption of a product or service results in a net cost to a third party. EX: noise pollution, air pollution, farming pesticides leaking into water supply, passive smoking