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.
Inhaltsverzeichnis (Table of Contents)
- 1. The Paper's 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 People's 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
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to define sustainable development, explore its historical context and significance, and analyze its implications for business strategy. It then investigates how sustainable development can be integrated into a company's strategic management process.
- Defining and contextualizing sustainable development
- The impact of sustainable development on businesses
- Integrating sustainability into strategic management processes
- The role of change management in implementing sustainable practices
- The evolving relationship between business and environmental responsibility
Zusammenfassung der Kapitel (Chapter Summaries)
1. The Paper's Structure: This chapter outlines the paper's organization, dividing it into three main parts: a definition and historical overview of sustainable development; the consequences of sustainable development for businesses; and the integration of sustainable development into strategic management. It sets the stage for the subsequent in-depth analysis of the topic.
2. What is "Sustainable Development": This section provides a foundational understanding of sustainable development, drawing on the Brundtland Report's definition. It traces the historical evolution of the concept, highlighting the shift from viewing natural resources as limitless to recognizing their finite nature and the consequences of environmental degradation. The chapter also emphasizes the growing awareness of environmental concerns among individuals, businesses, and governments, underscoring the increasing importance of sustainable practices.
3. Bringing sustainable development to business: This chapter explores the implications of sustainable development for businesses. It examines the traditional business approach to environmental issues and identifies three key drivers pushing businesses towards greater sustainability: changing legislation, evolving consumer preferences, and the demands of original equipment manufacturers (OEMs). The chapter further discusses how sustainability can lead to the creation of new business models and the importance of eco-efficiency as a starting point for change. It also emphasizes environmental management as a crucial top-management concern.
4. Integrate of sustainability into strategic management: This chapter delves into the integration of sustainable development into strategic management. It examines the process of strategy formulation, implementation, and evaluation, highlighting how sustainable development should be considered at each stage. This includes analyzing the environment as a stakeholder, adapting organizational structures, and managing the significant changes required to shift towards sustainable practices. The importance of a green corporate philosophy and principles is also emphasized.
Schlüsselwörter (Keywords)
Sustainable development, strategic management, corporate social responsibility, environmental management, change management, eco-efficiency, stakeholder analysis, business models, legislation, consumer demand, OEM requirements.
Frequently Asked Questions: A Comprehensive Guide to Sustainable Development in Business Strategy
What is the overall structure of this paper on sustainable development?
The paper is structured into five main chapters. Chapter 1 outlines the paper's structure. Chapter 2 defines sustainable development, exploring its historical context and significance. Chapter 3 analyzes the implications of sustainable development for businesses. Chapter 4 delves into the integration of sustainable development into strategic management. Finally, Chapter 5 provides an outlook.
What is the definition of sustainable development used in this paper?
The paper uses a definition of sustainable development consistent with the Brundtland Report, emphasizing the need to meet present needs without compromising the ability of future generations to meet their own needs. It highlights the finite nature of natural resources and the consequences of environmental degradation.
Why is sustainable development important for businesses now?
The paper identifies three key drivers pushing businesses towards greater sustainability: 1) tightening legislation and changes in the legal framework; 2) evolving consumer preferences and increasing customer demand for sustainable products; and 3) requirements from original equipment manufacturers (OEMs) for certified suppliers who adhere to sustainable practices.
How can businesses integrate sustainable development into their strategies?
The paper details a three-stage process: Strategy Formulation involves considering the environment as a stakeholder and integrating sustainable development into the strategic planning process. Strategy Implementation necessitates change management, greening corporate philosophies and principles, and adjusting organizational structures. Strategy Evaluation involves assessing the effectiveness of implemented sustainable practices.
What role does change management play in implementing sustainable practices?
Change management is identified as a critical factor in shifting towards sustainable business practices. Successfully integrating sustainable development requires adapting organizational structures, corporate culture, and operational processes to reflect new priorities and goals.
What are some key themes explored in this paper?
Key themes include defining and contextualizing sustainable development, the impact of sustainable development on businesses, integrating sustainability into strategic management processes, the role of change management in implementing sustainable practices, and the evolving relationship between business and environmental responsibility.
What is eco-efficiency, and how does it relate to sustainable development in business?
Eco-efficiency is presented as a first step towards more sustainable business practices. It involves improving resource productivity and reducing environmental impact while maintaining economic competitiveness.
What is the significance of the Brundtland Report in this context?
The Brundtland Report's definition of sustainable development serves as a foundational concept throughout the paper, providing a framework for understanding and addressing the challenges of balancing economic growth with environmental protection.
What are some key words associated with this paper's subject matter?
Key words include sustainable development, strategic management, corporate social responsibility, environmental management, change management, eco-efficiency, stakeholder analysis, business models, legislation, consumer demand, and OEM requirements.
- Quote paper
- Thomas Hollwedel (Author), 2002, Sustainable Development - a special strategic management issue, Munich, GRIN Verlag, https://www.grin.com/document/27244
