Sustainable Development and Business – An Introduction to the What and the How

Abstract

Till a few decades ago, CEOs believed that the factors that determine business success were business strategy, market share, product innovation, and financial and human resources, to name a few. The potential for environmental and social factors to impact business success was not on the radar. These factors were neither discussed in business schools nor reflected in organisational structures. The idea of sustainable development became more widespread post the 1992 UN Conference on Environment and Development. Many believe that its adaptation to a business context was first done by John Elkington’s postulation of a “Triple Bottom-line”, often referred to as TBL or the 3Ps – People, Planet, Profits. Elkington’s proposition, simply translated, meant that going forward, business success would be as much about managing traditional business factors mentioned above as it would be about managing environmental and social (E&S) issues. These issues include pollution, human rights, safety, and climate change, among others. This idea is now referred to as “sustainability” in business parlance