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Understand the concept of corporate sustainability and learn how to put it into practice

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Corporate sustainability can be defined as the sum total of practices - by a company - that aim at the sustainable development of a society.

While sustainability mainly encompasses issues related to environmental degradation and pollution, the focus of sustainable development is on participatory planning and the creation of a new economic and civilizing organization.

In this sense, sustainable development includes urban and rural sustainability, the preservation of natural and mineral resources, ethics and policy for planning. The commitment to these actions suggests a greater integration between the economic, social and environmental dimensions, through programs and policies centered on social issues and, in particular, on social protection systems.

For the concept of sustainable development to be applied and valid, it is important that natural resources and human rights are protected. Businesses and governments play an important role in this work, as indicated in the UN Guiding Principles on Business and Human Rights, as they need to base their practices on responsibility and respect for both nature and human rights, at the risk of undermining the search for sustainable development if they prioritize profit.

For corporate sustainability to be effective, the company must adopt ethical attitudes and practices that encourage its economic growth, in order to reduce the damage caused by its negative externalities. Understand more about this topic in the article: "What are positive and negative externalities?".

Corporate sustainability

Corporate sustainability, when effectively implemented, improves the company's image before consumers and the community in general.

With the expansion of society's environmental awareness, the demand for services and products with less social and environmental impact increased. Consumers are increasingly looking for products and services that are in line with the concept of corporate sustainability.

However, it is worth emphasizing that corporate sustainability is not only based on superficial marketing attitudes, the so-called greenwashing. To comply with the concept of corporate sustainability, the practices adopted by the company must present practical and significant results for the environment and society as a whole.

It is common to think that by introducing the practice of corporate sustainability, the company will necessarily lose money. This is not true: in addition to improving the company's image and enabling the acquisition of new customers, some practices such as recycling, composting, water reuse and energy-saving measures contribute to reducing production costs, which it can be converted into long-term monetary gains.

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Corporate sustainability presupposes the zeal for social sustainability, so that the concern for human well-being begins within the company itself. Thus, fair wages, well-treated employees who have their physical and psychological needs respected by their superiors are some of the corporate attitudes that are part of the range of corporate sustainability requirements. A company that treats its employees well provides a favorable environment for the best performance of their duties. As such, many people are pleased to work for sustainable companies, which improves their dedication to their work.

But corporate sustainability can go beyond the private sphere of companies. To improve the practice of sustainability, the company can develop external environmental projects aimed at social and environmental development. Other practices, such as the adoption of ethical measures that go beyond the obligations of the law, must also be adopted.

For example: it is prohibited by law to exploit slave labor, evade taxes and/or defraud bids. Every company is obligated not to take these actions. However, acquiring systems for greater transparency of its actions to society is not mandatory by law, but the company can adopt this measure as an option to improve its image and be closer to corporate sustainability.

In this sense, there is the example of certifications that are not mandatory by law, which some companies adopt to demonstrate their commitment to corporate sustainability. An example is the B Corps certification. Companies that adopt this certification are called B companies. In the B Corps certification, companies adopt corporate sustainability practices based on three main pillars: community development, poverty reduction and solutions to climate problems. To learn more about this topic, take a look at the article: "Company B: a sustainable business system".

Another tool that can help companies that strive for corporate sustainability is the Corporate Sustainability Index (ISE), created by the São Paulo Stock Exchange (Bovespa). The index is an important tool for analyzing and comparing companies that have shares on the Stock Exchange, and seeks to clarify investors on how these corporations are adopting sustainable development practices.

There are a number of attitudes that can be taken by companies concerned with adopting or improving corporate sustainability. Thus, supporters of corporate sustainability believe that companies, together with governments, can achieve sustainable development.

Did you like to know what corporate sustainability is? So how about understanding the concept of sustainable development? Take a look at the article: "What is sustainable development?" See also what you can do for sustainability as a consumer in the article: "What is sustainable consumption?".