HOW TO BE SUSTAINABLE - Sustainable Business International

HOW TO GROW YOUR BUSINESS WITH SUSTAINABLE RESOURCES IN MIND

Sustainable Development, Corporate Social Responsibility, Sustainability and Environmental Footprint Reduction are all hot current topics for discussion. But what do these issues really mean for your business? Depending on your industry, the best way to address these issues will differ. Whether it’s chemical manufacturing, agribusiness, grape growing, winemaking or coffee farming, there is a common thread: respecting and addressing the social, environmental and economic needs of the communities in which you operate, while ensuring benefits for other stakeholders (employees, customers and investors).

At SBI we are passionate about improving the world and believe that private enterprise can, and should, be a major and effective player in this. So what can you do to make your business more sustainable? It starts with one thing, commitment. Commitment to…

what the company buys
whom it buys from
what it manufactures
who makes the product(s) and
Social and environmental practices throughout the chain.
To assist in determining materiality, the formation of a sustainability report review committee is crucial. Committee members should have expertise in: labor, human rights, environmental, social, economic and diversity issues.
A materiality assessment for what should be included in your annual sustainability report means identifying issues that reflect your company’s significant economic, environmental and social impacts, or substantively influence the assessments and decisions of stakeholders. In this process, consult a variety of resources, both internal and external. They should include:
- papers on company objectives, strategies, policies, programs and risk factors
- employee surveys and input gathered through various other feedback mechanisms
- customer-contact feedback
- shareholder resolutions and anecdotal feedback
- input gathered through stakeholder dialogues
- informal input from suppliers
- media coverage and blog discussions of company issues
- stakeholder feedback about the company’s past sustainability reports
- Global Reporting Initiative’s Guidelines,

Reporting is not an end in itself. It is only useful if it discloses publicly and formally how your sustainability strategy includes corporate action and facilitates change.

MATERIALITY & CORPORATE RESPONSIBILITY

Materiality is a concept within the auditing and accounting fields where information, taken on the basis of financial statements could influence decisions of investors, regulators and suppliers. According to international accounting standards, information is “material” if its omission or misstatement in financial statements could influence the economic decision of these users.

Materiality depends on the size of the item or error judged in the particular circumstances and whether a reasonable person, relying on this information, would have been influenced by the omission or misstatement. Thus, materiality provides a threshold or cut-off point to guide companies in making decisions about what information to disclose.

The main driver for discussing materiality in the context of sustainability is the increasing importance of sustainability reports. Studies indicate that publicly reporting social and environmental performance issues keeps a business on its toes: the process of building a public report is the single most important driver of change in how these issues are managed, because it increases organizational knowledge, facilitates reflection and transforms policies and practices. Under the annual deadline for submitting metrics and numbers for a sustainability report, the business manager focuses on the commitments made the year before and the pending public disclosure of how things have improved or not.

However, transparency and the communication of material information are not confined to an annual sustainability report. A materiality assessment is equally critical in setting a company’s sustainability strategic direction.

SANDRA TAYLOR: The Shaping of Corporate Social Responsibility

As the recipient of the 2015 Johnson Institute Exemplary Leadership Award at the University of Pittsburgh, Sandra Taylor’s career is the subject of a case study used to teach sustainability leadership at the graduate school level: University of Pittsburgh Case Study Series | Fall 2017. “The widely used term Corporate Social Responsibility (CSR) refers to an enlightened philosophy about a corporation’s responsibilities to the public. See more here: https://www.youtube.com/watch?v=GgW_18BvgYw

In general, CSR embraces the notion that corporations need to be proactive, not just reactive, in improving their impact on society.

For maximum impact, a vibrant CSR program must be embraced by top leaders in the organization and fully integrated into the firm’s mission, operating values, and business strategy. The CSR philosophy invites corporations to create ways to simultaneously meet their own business goals while doing what is right for communities, nations, and the world in which they work.

SEE MORE here: Johnston Institute

THE FUTURE IS NOW

At SBI we help companies reduce their environmental footprint and develop valuable relationships with communities and stakeholders, no matter where they are on their journey. Whether you are a recent entrant/adopter of sustainability priorities or want to be a sustainability leader, SBI can provide guidance and work closely with you to:

Develop a viable corporate responsibility and sustainability strategy
Engage with community leaders, activists and employees for the good of all
Identify opportunities for corporate giving, strategic philanthropy and social investments
Design communication tools including sustainability and sustainability reports aligned with your business goals.

An essential first step in sustainability strategic planning is to identify the material issues that senior management must consider in order to minimize environmental risks and maximize opportunities. A first-rate strategy provides a structure for managing all sustainability challenges and impacts, and puts responsible practices at the core of business planning. This includes supply chain accountability, environmental impact assessment, governance, stakeholder engagement, social community commitments and transparency.