From Philanthropy to Values: The Evolution of Corporate Sustainability
Corporate Sustainability (CS) has evolved tremendously over the last 10 years with the majority of corporations embracing various aspects of the sustainability agenda. In fact, there has been a clear progression a from a philanthropic to a strategic approach. We will explore this evolution below and offer why, in spite of this, sustainability is still not truly integrated in day-to-day business operations.
Philanthropy led
The focus here is on financial, in-kind and time donations to various charitable organisations. (How much has business given?). While these donations did yield strong benefits for the organisations involved, they did not affect the broader impact of corporations. In fact numerous organisations who were known for their generous philanthropy were also some of the corporate world's worst offenders. An example of this is the Enron Corporation.
Communications led
Once it became apparent that social and environmental impact could affect a company's operations, both positively or negatively, it became a priority in many organisations to publicly embrace CSR or sustainability. However, in many cases, this was based on weak or inadequate understanding of the strategic importance of sustainability, with sustainability remaining an ad-hoc activity not meant to interfere in the 'real business' of running a company. Most sustainability-driven activity was therefore limited to communications exercises in CSR reports or glossy company brochures. There was little depth behind the facade.
Strategy led
Eventually, corporations became aware that irt wasn't enough to 'talk the walk', one had to 'walk the talk' if the real benefits of Corporate Sustaina ...