Sustainable Development

CSR has come a long way from a being a dangerous fad to one of the functions of business. I feel time is not far when CSR wont be taken up just as an act of charity but for strong economic and business reasons. CSR is just one aspect of the broader idea of Sustainable Development. I believe Sustainable Development practices will be taken up by more and more companies as they see its advantages particularly in the long run. What exactly is Sustainable Development (SD)?

SD, as I understand, has three aspects to it- environmental, social and political. When the business practices are socially sustainable, politically sustainable and environmentally sustainable we have a business model that’s economically sustainable for perpetuity. Environmental sustainability deals with practices that do not harm the environment irrevocably. The companies need to be concerned about the natural resources that they consume and if possible, replenish them so as to remain resource neutral. Political sustainability deals with respecting the regulations of the countries in which we operate not only in letter but also in spirit. It calls for highest standards of corporate governance and business ethics. This is the only way we can forge a long term meaningful relationship with our customers, employees and the suppliers.
Social sustainability relates to the idea of inclusive growth. Our business divides the members of the society in two parts- one who are benefited by us and the others who are not benefited by us. It should be our endeavour to continually increase the count in the former group and reduce in the latter group. The logic for such a step can be easily seen from the fact that most of the countries today are democracies and it’s the numerically stronger group that decides the policies (at least on paper!). So, inclusive growth is no charity but a strategic move to cover up for the potential catastrophic losses in the future. It’s like buying insurance or going for hedging.

The time has come for all of us to embrace SD for our own benefits and long term survival.