Chapter 4: Sustainability in Action at the Corporate, Industry, and National Level

In the past several decades, the primary goal of business organizations has been refocused from profit maximization to creating shareholder value and now in light of recent global sustainability initiatives, to create shareholder value while fulfilling social and environmental responsibilities. The question frequently being asked is, “Do corporations have social responsibility to stakeholders other than shareholders (e.g., employees, customers, government, society, and environment)?” The answer is definitely yes. For example, tobacco companies may increase shareholder wealth by selling products at the risk of being detrimental to the health of their customers. Corporate social responsibility (CSR) is an integral component of corporate sustainability particularly when there is a conflict between the corporate goals of maximizing profits and social goals. The existence and persistence of such conflict requires corporations to establish sustainability development, programs, and strategies to achieve the triple bottom line of profit, people, and planet.