Corporate Sustainability - a brief summary

"GNP measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to country. It measures, in short, everything except that which makes life worthwhile."

Robert F. Kennedy, politician

Corporate sustainability is the measure of the balance between the cost to society and the environment of an organisation's business and the benefits obtained.

Increasingly, investors and customers want to know if an organisation behaves ethically before they commit their funds. Ten years ago the bottom line was the sole concern.

As the result of a global, consensus-based process, the first ever guidelines relating to corporate sustainability reporting were released in July 2000.

Prefacing the launch, the Global Reporting Initiative press release said:-

'In some circles, the call for standardised, transparent corporate reporting on environmental and social performance has become almost deafening. Report users such as investors and non-governmental organisations voice concerns over the inability to compare companies based on factors other than financial performance, such as the blend of economic, environmental and social aspects that comprise sustainability'.

To compete therefore, organisations will in future be expected to report on the following aspects of their performance in addition to the traditional financial and strategic outcomes and plans:

Economic - including

Wages and benefits, labour productivity, job creation, costs of R & D, expenditure on outsourcing, investment in human capital and community development.
The economic element includes but is not limited to, financial information.

Environmental - including

Waste generation, energy consumption, impacts of processes, products and services on air, water, land, biodiversity and human health.

Social - including

Workplace health and safety, employee retention, labour rights, human rights, wages and working conditions at outsourced operations.

Few organisations currently have sufficient information to be able to meet the reporting guidelines, much less report favourably on their operations. However, corporate branding is now at the top of every corporate agenda so corporate reputation is now beginning to receive priority attention, particularly in the wake of September 11, 2001.

Although not yet law, these guidelines mark a major milestone.

Increasingly, organisations that ignore sustainability are likely to find that they are losing the race for investors, customers and influence.

"If it is not right, do not do it; if it is not true, do not do it."

Marcus Aurelius Antonius, Roman Emperor, philosopher

Need to find out more about what corporate sustainability means for your business? Visit www.globalreporting.org for detailed information on the global reporting guidelines (download free), opportunities to influence the debate, attend events etc.

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