This paper is divided in three major parts. In the first one a definition of “sustainable
development” and an overview about it’s history and importance will be
given before part two (chapter 3) will follow with the consequences and importance
sustainable development has for business. In the third part (chapter 4) the
author will give an idea how sustainable development and strategic management
can be linked. Finally the author will draw a brief conclusion. To have a common understanding throughout the text one of the most popular
definition will be given. It’s taken from the report “Our Common Future” published
1987 by the WCED better known as the “Brundtland-Commision”:
“<Sustainable development> is development that meets the needs of the present
without compromising the ability of future generations to meet their own needs. It
contains within two key concepts: the concept of <needs>, in particular the essential
needs of the world’s poor, to which overriding priority should be given;
and the idea of limitations imposed by the state of technology and social organization
on the environment’s ability to meet present and future needs”1
The idea itself is not new and can be found in a lot of cultures e.g. the Indians say
“Treat earth well - it is brought from your grandchildren.” The important aspect of
having this rather vague definition is that for the first time a definition on an international
level was found and widely discussed by governments, NGOs, and the
industry.2
1 Wagner, G.R. 1997, S.35
2 compare Matten, D.; Wagner, G.R. (1998), pp. 55-56.
Table of Contents
1. The Papers structure
2. What is “Sustainable Development”
2.1 A definition of sustainable development
2.2 The roots of sustainable development
2.3 The importance of sustainable development – why now?
3. Bringing sustainable development to business
3.1 The typical business approach to sustainable development
3.2 three drivers why business has to act
3.2.1 changes in law are tightening the business framework
3.2.2 peoples choice and customer demand
3.2.3 OEM’s require certificated suppliers
3.3 New business and business models through sustainability
3.4 “Eco-Efficiency” – a first step to change business
3.5 A green industrial revolution is needed
3.6 Environmental Management as a (top) management issue
4. Integrate of sustainability into strategic management
4.1 Strategy formulating
4.1.1 sustainable development as one aspect of strategic management
4.1.2 analysis: environment is a stakeholder
4.1.3 strategy forming - integration of sustainable development
4.2 Strategy implementing
4.2.1 change management - the critical factor during the shift of strategies
4.2.2 greening corporate philosophy and principles
4.2.3 adjusting the organizational structure
4.3 Strategy evaluating
5. Outlook
Objectives and Topics
This seminar paper explores the integration of "Sustainable Development" into corporate strategic management, examining the transition from reactive environmental protection to proactive strategic sustainability. The core research question addresses how companies can effectively align environmental concerns with economic success factors to achieve long-term competitive advantages.
- The historical evolution and definitions of Sustainable Development.
- Drivers for corporate engagement, including legal requirements, customer demand, and supply chain standards.
- Methodologies for integrating sustainability into the strategy formulation process.
- Key success factors for strategy implementation, specifically change management and organizational adaptation.
- The role of "Eco-Efficiency" and the necessity of shifting toward closed-loop industrial systems.
Excerpt from the Book
3.2.1 changes in law are tightening the business framework
Rules and regulations set by the government together with moral and ethics set the main part for business’ framework. On the Rio Conference in 1992 that has been continued in Kyoto in 1997 many governments committed to the developed protocol. The major aim of the conference was to reduce the world wide emission of green house gases –meaning gases that accelerate the green house and thereby global warming. Even though the U.S.A. did not sign the protocol the remaining countries are very eager to overcompensate the U.S. part in the reduction and thereby make the protocols reduction reality. As countries efforts are tough this means that limiting values for the industries will be tightened and regulations enforced. A further expanded liability regulation already took place in some countries e.g. Germany others will follow. There is also positive promotion of environmental strategies by subsidizing projects and alternative energy. For firms this means a higher threat through liability claims, rising manufacturing costs e.g. through higher energy prices or raised charges for waste deposit.
Summary of Chapters
1. The Papers structure: Outlines the scope of the paper, detailing the three-part approach covering definitions, business implications, and strategic integration.
2. What is “Sustainable Development”: Defines the concept based on the Brundtland Report and examines the historical roots and growing importance of sustainability.
3. Bringing sustainable development to business: Analyzes why and how businesses must move from reactive approaches to proactive strategies driven by legal, social, and supply chain pressures.
4. Integrate of sustainability into strategic management: Discusses the systematic inclusion of sustainability in strategic processes, specifically in formulation, implementation, and evaluation.
5. Outlook: Provides a final reflection on the necessity of radical change and the leadership role of environmentally driven firms.
Keywords
Sustainable Development, Strategic Management, Eco-Efficiency, Corporate Strategy, Environmental Management, ISO 14000, Liability, Change Management, Stakeholder Analysis, Sustainability, Green Business, Corporate Risk Management, Industrial Ecology, Competitive Advantage, Organizational Structure.
Frequently Asked Questions
What is the core focus of this paper?
The paper examines the intersection between Sustainable Development and business strategy, focusing on how companies can integrate environmental considerations into their long-term management processes.
What are the primary drivers for businesses to adopt sustainability?
The main drivers include tightening legal frameworks, shifting customer preferences and public demand, and requirements for certifications from original equipment manufacturers (OEMs).
What is the ultimate objective of the research?
The goal is to demonstrate that integrating sustainable development into strategic management is not just a moral obligation but a necessity for maintaining competitiveness and long-term viability.
Which methodologies are discussed for strategy integration?
The author highlights the importance of incorporating environmental aspects into standard strategic tools like SWOT analysis, stakeholder analysis, and Porter’s Five Forces.
What does the main part of the text cover?
The main body focuses on the practical application of sustainability: from identifying drivers to the actual formulation and implementation of "green" strategies within a corporation.
Which keywords best describe this work?
The work is characterized by terms such as Strategic Management, Eco-Efficiency, Environmental Management, Corporate Responsibility, and Sustainability.
What is the significance of the "Eco-Efficiency" concept?
The paper presents Eco-Efficiency as a first step for businesses to do "more with less," though it warns that it is often limited because it does not fundamentally change the underlying destructive industrial systems.
How does the author propose managing the "green" transition?
The author emphasizes that change management is the critical factor, requiring the commitment of top management (CEO), employee training, and an organizational structure that holds specific departments like SHEQ accountable.
- Quote paper
- Thomas Hollwedel (Author), 2002, Sustainable Development - a special strategic management issue, Munich, GRIN Verlag, https://www.grin.com/document/27244
