BU1002 Lecture Notes - Lecture 12: Sustainable Development, Natural Capital, Triple Bottom Line
14 Jun 2018
School
Department
Course
Professor
Sustainable business
• ensuring business is continuously profitable
0R
• the ability of the entity to continue or maintain a business as a going concern i.e to be
able to continue operating into the future
Business sustainability
• The developed world is highly industrialised, we produce goods using raw materials who
by-products and consumption impact on natural resources
• "Sustainable development is development that meets the needs of the present without
compromising the ability of the future generations to meet their own needs"
• Key concepts
o Concepts of need, in particular worlds poor
o Limitations of the environments ability to meet present and future needs
Key Drivers of Business Sustainability
Competition for resources
• Growing population: leading to increasing demands on natural resources, causing some
to become finite because they cannot be replenished quickly enough, i.e forests
• Depletion of resources is also impacting on ecosystems and our environment
Climate Change
• Industrialisation and fossil fuel based economy has led to global warning and climate
change
• More extreme weather conditions, cycles of drought and flood, which is meant to be
impacting on primary producers
• Implementing climate policy to minimise carbon emissions and create solutions to global
warming
Economic Globalisation
• Business operate nationally expanding to operate at a global level
• Disparities exist between countries in relation to their enforced environmental and
social standards
• Push for companies to meet international expectations in addition to local enforced
standards
Connectivity and Communication
• Advances in digital communication and technology enables people to track a company's
sustainability and disseminate perspectives on it using social media networks
Business sustainability: principles
• The need for sustainability has lead to the development of guidelines and principles to
help shape the business sustainability movement
1. Ethics
2. Governance
3. Transparency
4. Business relationships
5. Financial return
6. Community involvement / economic development
7. Value of products and services
8. Employment practices
9. Protection of the environment
Business sustainability theories
find more resources at oneclass.com
find more resources at oneclass.com
