Introduction
There is no gainsaying that the continuous exploitation of the world natural resources by humans and more so corporations have led to their depletion and hence resulted in environmental degradation, pollution, change in the composition of earth’s ecosystem and biodiversity, and climate change. Foremost culprit of the exploitation of the world natural resources are the various corporations who exploit these resources to develop one form of product or the other for the sole aim of making profit. Traditionally, companies are in business solely for the maximization of shareholders returns and while this business model
has been highly successful, driving businesses by shareholders value alone has become highly unsustainable (Grayson et al, 2008).
This traditional approach to business is no longer tenable in today’s modern world. This is because business practices that involve the release of huge amount of non-decomposable waste into the environment, that consume huge amount of energy, that contaminate the environment and that undermines local communities are viewed as unfriendly to the
environment and can no longer be justified solely by shareholders return. While recognizing the importance of corporate growth and profitability, corporate sustainability requires that organisation pursues societal goals, such as environmental protection, social
justice and equity (Mel, 2003).
This paper will discuss in detail what corporate sustainability entails, while corporations need to change from their traditional values to a more sustainable one, the drivers of organisational change, the condition under which the change will occur, the factors
militating against organisational change, and the various stakeholders affected by organisational change and the benefits these changes portend to the environment and 3 various species in general. Interestingly, organisational change is already underway, these
changes are driven by modern environment reality, visionary leaders within and outside the organisation and by various change agents.
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Table of Contents
1. Executive Summary
2. Introduction
3. Sustainable Development – what is it?
4. Corporate Sustainability – Why?
5. Organisational Change for Corporate Sustainability
6. Phase Models of Sustainability
6.1 Rejection phase
6.2 Non-responsiveness
6.3 Compliance
6.4 Efficiency
6.5 Strategic proactivity
6.6 The sustaining corporation
7. Forces Driving Corporate Sustainability
8. Stakeholders Impact on Corporate Sustainability
9. Barriers to Corporate Sustainability
10. Benefits of Corporate Sustainability
11. Conclusion
Objectives and Topics
This essay explores the necessary organizational shifts for companies to adopt sustainable practices, evaluating whether these changes are effectively implemented and if they yield genuine environmental benefits. It emphasizes the transition from profit-centric models to systems that integrate social and environmental responsibility into core business strategy.
- Drivers and barriers of corporate sustainability
- Integration of sustainability into organizational vision and strategy
- Stakeholder influence and resource dependency
- Phase models of corporate sustainability maturity
- Environmental impact and long-term business advantages
Excerpt from the Book
Organisational Change for Corporate Sustainability
Grayson et al (2008) listed the following as major areas that needed to be changed or fine-tuned for an organisation to integrate corporate sustainability into its core business function.
• Make innovating for sustainability a part of your company’s vision – an organisation wishing to pursue corporate sustainability must start from the company’s vision statement by indicating the direction the company wished to follow. Vision statement being a reference point in every organisation serves as a reminder to the management of the need to pursue the organisational vision stated in the vision statement. For instance Hyflux a water recycling company has as its vision “To be the leading company the world seeks for innovative and effective environmental solutions” and has lived up to that vision (Anon, 2009). Hyflux uses a variety of treatment to extract drinking water from residual salt water and sewage. Hyflux responded to the situation of water scarcity in Singapore through successful innovation and through urgent need for sustainable response create a world-class business that is listed in Singapore Stock Exchange and with a thriving business in China, India, Middle East and Africa (Grayson et al, 2008).
Summary of Chapters
Executive Summary: Provides an overview of the necessity for companies to shift from shareholder-driven values to sustainable practices that benefit the environment and future generations.
Introduction: Addresses the environmental consequences of corporate profit-seeking and the urgent need for a transition toward societal and environmental responsibility.
Sustainable Development – what is it?: Defines sustainable development as meeting present needs without compromising the ability of future generations to meet theirs, highlighting the corporate role in this process.
Corporate Sustainability – Why?: Examines why corporations, as primary economic units, must reshape traditional values to reduce their negative environmental impact.
Organisational Change for Corporate Sustainability: Lists strategic areas for integration, such as vision statements, boardroom commitment, and stakeholder involvement.
Phase Models of Sustainability: Details the five stages of corporate evolution toward sustainability, ranging from rejection to becoming a sustaining corporation.
Forces Driving Corporate Sustainability: Discusses the internal and external drivers that compel companies to adopt socially responsible behaviors.
Stakeholders Impact on Corporate Sustainability: Analyzes how various stakeholders exert influence through direct and indirect strategies based on resource dependency.
Barriers to Corporate Sustainability: Identifies uncertainty, short-term profit pressure, and varying global development levels as primary obstacles to progress.
Benefits of Corporate Sustainability: Highlights the dual benefits of improved corporate performance and ecological restoration resulting from sustainable practices.
Conclusion: Summarizes that while transitions are costly, they are essential and offer long-term competitive advantages through consumer appeal and environmental protection.
Keywords
Corporate Sustainability, Organizational Change, Sustainable Development, Environmental Protection, Stakeholder Management, Resource Dependency, Business Strategy, Corporate Governance, Eco-efficiency, Innovation, Social Responsibility, Shareholder Value, Sustainability Phases, Environmental Impact, Competitive Advantage
Frequently Asked Questions
What is the primary focus of this paper?
The paper examines whether the organizational changes required for companies to become more sustainable are likely to occur and if these changes effectively benefit the environment.
What are the central themes discussed in the work?
The central themes include the drivers and barriers to corporate sustainability, the role of stakeholder influence, and the strategic integration of sustainable practices into business operations.
What is the main objective of the author?
The main objective is to analyze how corporations can transition from traditional, profit-maximizing models toward more responsible, sustainable business strategies.
Which scientific or theoretical framework is applied?
The author uses sustainability phase models (such as those by Dunphy et al. and Hoffman) and stakeholder theory (Freeman, Frooman) to explain organizational development paths.
What content is covered in the main section?
The main section covers definitions of sustainability, methods for integrating sustainability into corporate strategy, stakeholder analysis, and the stages companies pass through as they mature toward full sustainability.
Which keywords best describe this research?
Key terms include Corporate Sustainability, Stakeholder Management, Organizational Change, Resource Dependency, and Environmental Restoration.
How does the author define the "Rejection phase" in corporate sustainability?
In the rejection phase, the corporation views the environment and community resources as "free goods" to be exploited and actively resists environmental regulation and activism.
What role do external stakeholders play in corporate change?
Stakeholders use direct or indirect strategies to influence firm behavior based on the level of resource dependency between the firm and the stakeholder, compelling the firm to adopt more sustainable practices.
Why is short-term profit considered a barrier to sustainability?
The pressure to optimize short-term earnings to avoid hostile takeovers or maintain market competitiveness often prevents firms from investing the necessary resources into long-term sustainable innovation.
- Arbeit zitieren
- Christian Uwagwuna (Autor:in), 2011, Will the organisational changes which are necessary for companies to become more sustainable actually happen and will they benefit the environment?, München, GRIN Verlag, https://www.grin.com/document/166241
