Businesses do not function in a vacuum. They operate in a commercial space comprising numerous entities of different types with whom they regularly engage in the transactional give-and-take that enables them to succeed and thrive.
The fundamental principles of sustainability require businesses to
- Recognize stakeholders as constituencies intrinsic to their ecosystem and be accountable to them as such.
- Take a positive-sum approach while dealing with stakeholders and managing their relationships with them.
The Trifecta of Challenges
Erosion of Public Trust
Coming under varying degrees of pressure from different stakeholders, the need to address this trifecta of challenges – climate change, social disparities and erosion of public trust in institutions – has never been more acutely felt by organizations around the world. Industry leaders are now paying keen attention to the key factors that determine sustainability, driven by a combination of customer demands for environmentally friendly and ethically produced goods and services, shareholder directives to integrate profit with purpose, employee concerns about workplace safety, diversity, equality and inclusion, and supplier expectations of fair and decent treatment.