Progress Toward Business Sustainability in Asia in the Aftermath of 2015 Hong Kong Stock Exchange Requirements

Abstract

This paper examines the progress toward business sustainability in Asia in recent years. There are five dimensions of sustainability performance: Economic, Governance, Social, Ethical, and Environmental (EGSEE) and they collectively play an important role in the overall long-term success of business organizations. The role of business corporations in our society has evolved from profit maximization to creating shareholder value and in recent years to create shared value to protect interests of all stakeholders including investors, creditors, employees, customers, suppliers, government, the environment, and society. In today’s business environment, global businesses are under close scrutiny and profound pressure from lawmakers, regulators, the investment community, and their various stakeholders to focus on sustainability measures and accept accountability and responsibility for the five EGSEE dimensions of their performance. Corporate performance is measured not only by the economic sustainability performance but also by a set of non-financial sustainability key performance indicators pertaining to environmental, social, governance, and ethical activities. In this paper, we investigate opportunities and challenges in implementing business sustainability in Asia and the progress toward integrated sustainability performance reporting and assurance. We conclude that much progress has been made in promoting business sustainability performance, reporting and assurance in Asia in recent years. However, much more needs to done in integrating business sustainability performance into business culture and corporate models in Asia. Integrated sustainability reporting and assurance also should be standardized in effectively, consistently, accurately, and reliably communicating all five dimensions of sustainability performance to all stakeholders.