Sustainable Development in Business: A Strategic View

Abstract

This chapter addresses sustainable development in business. Drawing upon corporate objective, corporate responsibility, and corporate stewardship perspectives, a definition of sustainable development in business is proposed as “creating value for current stakeholders – without compromising the ability to create value for future stakeholders – by ensuring that economic growth is achieved through the demonstration of environmental integrity and social responsiveness”. The definition suggests that firms take on a broader objective beyond that of a singular focus of maximising profits. However, businesses cannot be expected to solve all of society’s problems or its development needs, nor bear the full cost of doing so. Thus, a strategic approach is required. This chapter lays out an approach to engaging in sustainable development strategically, and describes how the automotive giant Toyota leverages market-based, regulatory-based, and operational-based actions to achieve sustainable development.