CSR and Sustainable Development - A Primer

Abstract

Sustainable development and social responsibility of businesses or corporations have become increasingly an issue of concern since the early 1990s. The basic human activity trade is not always about making money though profit has been associated with it. Business with their products and consequence are essentially more social than economic. Through the marketplace and governmental regulation, social and environmental concerns are related to business. Society and business depend on each other and business must take full account of the societal expectations. Sustainable business looks at how a business can adapt to global social and environmental trends, such as future regulation on carbon output, water shortages, and changing demographics. Social, Economic and environment are the three pillars or dimensions of Sustainable development. Sustainability is a conscious choice on a continuous basis. To move towards more sustainability, all of us need to change our patterns of consumption and production. Principles of Sustainable Development and CSR have close links. Sustainable businesses create the future by creating stronger, richer markets for business. Every business strives to earn maximum profit. However, companies have to shoulder certain responsibilities as a corporate citizen. Corporation need to review and consider new or modified business practices regularly that will improve the quality of life of all stakeholders. Both society and business used to believe that taking care of other social and environmental concerns are the duty of the state or government. Companies have become the main players in creating environmental and social problems; therefore, change must begin with companies that can lead a transition. CSR matters as it mirrors the core values of the society and been instrumental in bringing about Sustainable development. CSR has a complex relationship between business and society and plays an important part of the business environment. Business organizations are accountable to that society for their actions as they are part of the larger society Responsible leaders are concerned with reconciling and aligning the demands, needs, interests, and values of the key stakeholders. CSR expects accountability from all stakeholders. Good Stakeholder relationships can lead to competitive advantage The relationship between Sustainable Development and CSR was not explicit as these concepts progressed separately for a long time. In recent years these two concepts of CSR and sustainable development has strengthened with their interactions. A dynamic and well-functioning business sector, can be driving force of sustainable development CSR is multifunctional in nature. Hence, it is important that integral and broad sustainable CSR is undertaken. This will help in the quest to develop transformational and sustainable CSR practices. **************************