The SDGs: A change agenda shaping the future of business and humanity at large

Abstract

This editorial is the second in our BEER Spotlight Editorial Series, where we intend to shed light on important emerging topics in business that we think deserve more scholarly attention, both in BEER and beyond. Specifically, our aim is to focus on hot future-oriented topics related to business ethics, the environment and responsibility, which have relevance and importance, and that we expect to gain traction and attention over the coming period. We sincerely hope these editorials will serve as eye openers and stimulators for further knowledge generation within the domain of our journal. More specifically, in this editorial, we will focus on responsible business engagement with Sustainability and the Sustainable Development Goals (SDGs) in the context of the United Nations (UN) 2030 agenda. The UN 2030 agenda was launched in 2015 and intended as an ambitious roadmap for a more sustainable future for humanity at large. At the heart of this agenda, there are 17 Sustainable Development Goals (SDGs) aimed at reducing poverty and hunger, protecting the planet, and promoting economic, social and environmental prosperity. The UN 2030 agenda was adopted by 197 member states, with an explicit call for the active participation of the private sector as a key partner, beyond business as usual, in contributing to a more sustainable future. Its evolution and contents have been discussed elsewhere, including extensive UN documentation (https://sdgs.un.org/). In this editorial, we will approach the SDGs from a BEER perspective, highlighting a number of important questions that we believe require more scholarly attention in BEER and beyond. How much progress have we achieved in general and in the domain of private sector engagement, in particular, especially given the ambitious timeline of the SDGs and its 169 associated targets (https://sdg-tracker.org/)? What are the opportunities and challenges faced? What can businesses do more to promote sustainable engagement and embrace the SDGs as a pathway for value creation for shareholders and for society at large? What have been the key themes in scholarship on this topic to date, and what are the salient gaps in terms of themes, topics, and/or questions that have been less addressed? We will try to address these questions in an engaging way and provide a roadmap for future scholarship in this important domain. The Sustainable Development Goals (SDGs) are a set of 17 non-binding and aspirational goals, which have been identified and propagated by the UN with the aim of achieving a more sustainable future for all by 2030. The SDGs span three interlinked categories, including the primarily social SDGs (alleviating poverty and hunger, promoting health and wellbeing, quality education, and gender equality), the economic SDGs (focusing on decent work and economic growth, industry, innovation and infrastructure and responsible consumption and production), and the environmental SDGs (addressing clean energy issues, protecting the oceans and life on land and below water, and climate action). These 17 SDGs aim to provide a blueprint for peace and prosperity for people and the planet, and present a framework for change embodying an urgent call for action to all nations. SDG 17, entailing partnership for the goals, embodies the spirit of this change agenda, recognizing that partnerships are central to ensure progress on the goals and the need for the mobilization of a range of actors including governments, private sector, academia and NGOs in pushing for progress, while SDG 16 touches on the importance of strengthening universal peace and strong institutions. The salient question here is whether there has been any real progress to date in relation to the SDGs and the UN 2030 agenda and whether the engagement of the private sector has been as effective as anticipated? The Sustainable Development Goals Report 2022 (UNDESA, 2022) provides a global overview of progress on the implementation of the UN 2030 Agenda for Sustainable Development, using the latest available data. It tracks the global and regional progress towards the 17 Goals with in-depth analyses of selected indicators for each Goal. According to the Report, cascading and interlinked crises have put the UN 2030 Agenda for Sustainable Development in grave danger, including the confluence of multi-faceted crises, dominated by COVID-19, climate change, worldwide political turmoil, and conflicts, which are in turn creating spin-off impacts on food and nutrition, health, education, the environment, and peace and security. This has affected all the Sustainable Development Goals (SDGs) and put the future of humanity at risk. The Report highlights the magnitude of the challenges and details the reversal of years of progress in eradicating poverty and hunger, improving health and education, and providing basic services. It points out areas that need urgent action in order to rescue the SDGs and deliver meaningful progress for people and the planet by 2030. According to recent UN statistics and the Social Progress Index, we are a staggering 62 years behind schedule in relation to the UN 2030 agenda and some of the most prominent SDGs. For example, at the rate of current progress, we still need 257 years to close the economic gender gap globally; 1 in 10 children are still exposed to child labor; global warming is on the rise and expected to reach over 3 degrees Celsius by 2100; and we continue to dump 8 million tons of plastic in our oceans every year (UNDESA, 2022). These are alarming statistics, and there is little doubt that progress on the SDGs has been severely halted with the onset of the COVID-19 pandemic, which has magnified the challenges faced, has been associated with 500 million jobs lost globally by mid-2020, and has thrown an estimated 71 million people globally into extreme poverty. COVID-19 has also increased domestic violence against women globally by an alarming 30%, diverted attention and resources away from climate action, and reduced the GDP of some developing countries by at least 4% on average (UNDESA, 2022). Ultimately, the UN 2030 agenda has suffered a major hit and setback with the escalation of the COVID-19 pandemic, which diverted attention and resources away from a core progressive developmental agenda. Facing these stark realities, we, as scholars, academics, practitioners, policy makers and global citizens, are faced with two choices with no gray area in-between. Either we sit back and watch the depletion, even erosion, of our valued social, economic and environmental capital, which will put basic human rights and our very own survival at risk, or pull together for more serious, collaborative and impactful action for the SDGs. While the broader question of the concerted action needed at the policy-making and governmental level certainly deserves scholarly attention but is beyond the scope of this editorial, we will focus in the next section on the concerted action needed by businesses to address the UN 2030 agenda, and the escalating challenges faced, and how scholarship in the domain of business ethics and sustainability needs to continue to evolve to accelerate pace and support the important transformations that are needed looking ahead. There is no doubt that achieving even moderate success in relation to the UN 2030 agenda hinges on the ability to engage the private sector, known for its resilience, ingenuity, and innovation. In their recent report on Business Support for the SDGs, the Global Reporting Initiative (GRI) provides interesting insights into the plans, commitments, actions, and progress of 206 companies affiliated with the GRI. The SDGs that seem to be prioritized by business include SDG 8 (Decent Work and Economic Growth), SDG 12 (Responsible Consumption and Production) and SDG 13 (Climate Action), while the SDGs that are least tackled by businesses include SDG 1 (No Poverty) and SDG 2 (Zero Hunger) as well as SDG 14 (Life Below Water). In other words, there is a strong business affinity to SDGs relating to economic growth and responsible consumption and production but less activity linked to many others that are predominantly social or environmental in nature (GRI, 2022). These trends are also supported by recent research conducted by PwC and KPMG. While the business community is showing a greater understanding and engagement with the SDGs and the UN 2030 agenda, attention remains selective rather than holistic with the absence of explicit business strategies and targets to make concrete progress on the goals. According to Schramade (2017), there are at least two good reasons for businesses to invest in the SDGs, namely returns to society and returns to shareholders. Speaking the instrumental language of business, it makes sense to invest in those SDGs which will provide financial value to shareholders, thus optimizing the synergy between economic and social goals. Among the people-oriented SDGs, SDG 3 (Good Health and Wellbeing) is possibly the most investable, with the healthcare sector contributing directly to this Goal, with fewer investment opportunities in SDG 1 (No Poverty) and SDG 2 (Zero Hunger), which are generally relegated to micro finance institutions and investment banks (Schramade, 2017). In relation to the Planet SDGs, the most investable Goals appear to be SDG 7 (Clean and Affordable Energy) with huge opportunities on the renewable energy side, followed by SDG 6 (Water and Sanitation), with fewer investment opportunities in SDG 13 (Climate Action), SDG 14 (Life Below Water) and SDG 15 (Life on Land) (Schramade, 2017). On the Economic SDGs, there is little doubt that SDG 9 (Industry, Infrastructure and Innovation) presents the largest and most lucrative investment opportunity for businesses, followed by SDG 8 (Decent Work and Economic Growth), SDG 11 (Sustainable Cities and Communities) and SDG 12 (Responsible Consumption and Production) (Schramade, 2017). The SDGs thus not only constitute a roadmap to make the world a better place but also present sizeable business opportunities (Jamali et al., 2019). The call to action embedded in the UN 2030 agenda needs to be heeded by businesses, by identifying those SDGs that are most relevant to the core of their business models and industry, and leveraging opportunities for win-win collaborative impact. Increasingly, as we look ahead, the SDGs will play an important role in communications with investors, particularly in the context of the exponential rise of developmental impact and impact investing (Johnson, 2021). Companies need to move beyond the exploration and experimentation phase, to identify concrete strategies and targets in contributing to those Goals. Furthermore, businesses need to move beyond instrumental views of SDGs to harness their responsibilities as global citizens that have a normative moral obligation to assist in achieving the SDGs. Schramade (2017) identifies a relevant roadmap for business to follow entailing: (1) exploration of the SDGs; (2) assessing SDG exposures, risks and opportunities; (3) SDG goal setting and integration; and (4) SDG measurement and reporting. This is a simple and useful framework and the entire article is relevant and provides great reading overall. Business is an important part of the puzzle to achieve a more sustainable future. Indeed, the private sector should serve as the catalyst for this transformation, and leading the charge, given its agility, innovation, and people-centered mindset. The SDGs can present real opportunities for business to make a difference and contribute to a better world, injecting a sense of purpose and mission into traditional business, comprising purely commercial activities. This can be intensely empowering and impactful vis-à-vis a range of internal and external stakeholders. As outlined above, a simple way is to think of the SDGs in the context of useful social or environmental activities that can be undertaken in pursuit of financial return and identifying real opportunities for synergetic impact. This is not only desirable but also entirely feasible. Businesses need to engage more intently and forcefully with the SDGs, by identifying those SDGs that are material to their industry and operating models. They need to lead by example, explore, engage, enact, enforce, and monitor and demonstrate to the entire Universe how this can be hugely impactful and immensely rewarding. There is a wide range of examples of businesses leading the way in this regard (e.g. Unilever, Microsoft, KPMG, Philips, Novozymes), and we certainly hope and expect this to be the norm rather than the exception over the coming years. In parallel, it is equally important to reflect on the problems and shortcomings associated with previous modes of corporate responsibility that the literature has now dealt with for several decades. Generations of scholars have explored the CSR business case and have provided evidence for its existence (Friede et al., 2015; Margolis & Walsh, 2003). There are numerous examples of how companies have elevated societal objectives to the level of core corporate strategy (Porter & Kramer, 2011), sustainable business models are becoming more influential (Bocken et al., 2014) and a range of alternative forms of organizing have emerged, including hybrid organizations (Battilana & Lee, 2014), sustainable entrepreneurs (Anand et al., 2021), or B Corps (Moroz et al., 2018). We know all this now. Yet, overall progress has looked bleak, and corporate responsibility often forms a marginal, add-on component of corporate activity that tends to be symbolic in nature (Bansal & Clelland, 2004; Gray, 2010). Likewise, too much emphasis has been placed on corporate outcomes, questioning how corporate social performance can contribute to the achievement of financial objectives, rather than treating social performance as an objective in its own right (Barnett et al., 2020; Kudlak et al., 2022). Sustainable Development is a systems-level concept; as a consequence, we need to move beyond the organization as the primary unit of analysis, and better understand and evaluate the systems that companies form part of. It is important to keep in mind that business organizations are part and parcel of the social and environmental fabric of ecosystems around them, and they are not only inherently associated with the sustainability challenges faced, but should as importantly be at the heart of a long-term sustainable recovery plan. To summarize, the SDGs represent a new normative agenda and require new ways of thinking. In many ways, however, with the SDGs, we encounter the same obstacles that CSR and related concepts had faced (Markovic et al., 2021), and we need to learn from past experiences and avoid repeating the same mistakes. A simple overview of scholarship that has specifically focused on the SDGs reveals that what we have on offer so far is scant and thin and does not measure up to the aspirations of the UN 2030 agenda or our professional duty as activist and engaged scholars. Considering recent meta analyses pertaining to Corporate Social Responsibility (CSR) and Sustainability in general, and to the SDGs in particular, we note that only very few recently published meta-analysis articles have tackled the SDGs substantively whether in the title, abstract or content. These include an article by Lopez-Torres et al. (2021) on “Stakeholder Engagement, CSR Development and SDGs Compliance: A Systematic Review from 2015 to 2021,” which synthesizes the main approaches, issues and methodologies that have dominated in this field for the past 5 years, identifying trends and promising lines of scholarship pertaining to the relationships of Stakeholders, CSR, and Human Resources Management. Another relevant meta-analysis review is presented by Park et al. (2022), entitled “The Grand Challenge of Human Health: A Review and an Urgent Call for Business-Health Research.” Here, the authors analyze the business-health literature in the context of the ascendancy of SDG 3 on Good Health and Well-Being. Another interesting review article by Hishan et al. (2020) focuses on CSR for Climate Change Using Social Contracts: A New Research Agenda” outlining a conceptual model, using social contract theory, that can offer a holistic approach for disaster mitigation in the context of the unabated escalation of climate change. We also highlight a recent article by Ramani et al. (2017), presenting an interesting policy perspective on “Nudging MNEs for Action on UN SDG Goal 1 (No Poverty).” More broadly, there is a large set of review articles addressing different aspects of Sustainability but not touching on the SDGs specifically (e.g. Rathner, 2013, on Socially Responsible versus Conventional Investment Funds; Khizar et al., 2022, on the Conceptualization and Measurement Challenges of Sustainability Orientation; Lopez-Torres et al., 2021, on Sustainability for Competitiveness for Firms; Carter & Easton, 2011, on Sustainable Supply Chain Management: Evolution and Future Directions; Khizar et al., 2021, on Business Orientation and Sustainable Development; Katz et al., 2022, on Employee Green Behavior: A Meta Analysis; Vysochan et al., 2021, on Sustainability Accounting; and Adhikariparajuli et al., 2021, on CSR Implications and Disclosure in Higher Education). These are just examples of relevant meta-analysis reviews pertaining to Sustainability in general, highlighting some important angles being tackled in recent scholarship. While the link to the SDGs and the UN 2030 agenda is obvious and feasible, very few scholars have gone the extra mile to address this link explicitly in their research and synthesize the main orientations and implications in this regard. Finally, research into the SDGs is an important tool for building and transmitting knowledge, facilitating learning, raising public awareness, and building confidence and credibility in supporting or disproving claims that are made in relation to the UN 2030 agenda. We hope that BEER will lead the way in this regard, and we invite scholarship that is thoughtful, meaningful and relevant, addressing different aspects of the SDGs from both the ethics and sustainability perspectives. We hope other journals will join this urgent call for action, which falls within our academic duty as engaged scholars vis-à-vis humanity at large.