Sustainability - Sustainability 1 Sustainable Development a...

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Sustainability 1. Sustainable Development a. Development that meets the needs of the present without compromising the ability o future generations to meet their own needs 2. Sustainability: Corporate Perspectives a. A business approach that creates long term shareholder value by embracing opportunities and managing risks deriving from economic, environmental, and social development b. Meeting the needs of a firm’s direct and indirect stakeholders without compromising its ability to meet the needs of future stakeholders as well 3. Sustainability Issues/Criteria a. Economic: Corporate and global b. Environmental/ Natural c. Social: Internal and External 4. The “Triple Bottom Line a. To obtain corporate sustainability, firms have to maintain and grow their economic, social and environmental capital base while actively contributing to sustainability in the political domain 5. Economic Capital a. Economically sustainable companies guarantee at any time: i. Cashflow sufficient to ensure liquidity ii. A persistent return to their shareholders b. Economic Capital to Manage: i. Financial (equity and debt) ii. Tangible (machinery, land, and materials) iii. Intangible (reputation, intellectual resources and inventions, routines 6. Environmental Capital a. Ecologically sustainable companies i. Consume natural resources at a rate below natural reproduction or the development of
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This note was uploaded on 03/31/2008 for the course MHR 420 taught by Professor Greenwood during the Spring '08 term at University of Wisconsin.

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Sustainability - Sustainability 1 Sustainable Development a...

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