Sustainable development

Definition

Sustainable development is the process of meeting the needs of the present without compromising the ability of future generations to meet their own needs. This concept emphasizes a balanced approach that considers environmental, social, and economic factors, ensuring that progress does not lead to resource depletion or environmental degradation. The idea promotes ethical responsibility in business practices and aims for long-term viability, fostering a better quality of life for all.

5 Must Know Facts For Your Next Test

1. The concept of sustainable development gained global prominence with the publication of the Brundtland Report in 1987, which highlighted the need for a more integrated approach to development.
2. Sustainable development encourages businesses to adopt practices that minimize their environmental impact while still achieving economic growth.
3. International agreements like the Paris Agreement focus on sustainable development by addressing climate change through cooperative efforts among nations.
4. Sustainable development is not just about environmental sustainability; it also emphasizes social equity and economic viability as essential components for long-term progress.
5. Measuring sustainable development often involves assessing various indicators such as carbon footprints, resource consumption rates, and social wellbeing metrics.

Review Questions

• How does sustainable development influence ethical decision-making in international business?
  • Sustainable development influences ethical decision-making by encouraging companies to consider the long-term impacts of their actions on society and the environment. Businesses are prompted to adopt practices that not only pursue profit but also promote environmental stewardship and social equity. This holistic approach leads to more responsible business strategies that can enhance a company's reputation and support community well-being.
• Discuss the role of sustainable development in shaping corporate strategies and stakeholder relations.
  • Sustainable development plays a crucial role in shaping corporate strategies by pushing companies to align their goals with broader societal values. This alignment often involves engaging stakeholders—such as customers, employees, and local communities—in discussions about sustainability initiatives. By prioritizing sustainability, companies can build trust with stakeholders, drive innovation, and create competitive advantages in markets that increasingly demand responsible practices.
• Evaluate the impact of sustainable development initiatives on global economic practices and the potential challenges they present.
  • Sustainable development initiatives have significantly impacted global economic practices by encouraging a shift towards greener technologies, ethical sourcing, and responsible consumption. However, challenges such as resistance from traditional industries, differing regulations across countries, and balancing short-term profits with long-term sustainability goals complicate this transition. Companies must navigate these hurdles while striving to implement sustainable practices that contribute positively to both their bottom line and societal progress.

Related terms

Corporate Social Responsibility:

The practice where businesses integrate social and environmental concerns into their operations and interactions with stakeholders.

Triple Bottom Line: A framework that evaluates a company's commitment to social, environmental, and economic performance, often summarized as people, planet, and profit.

Circular Economy: An economic system aimed at eliminating waste and the continual use of resources by creating closed-loop systems where waste is minimized, and products are reused or recycled.