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Sustainable Business
Sustainable Business
Corporate Sustainability Defined

CS has been defined as "Creating shareholder and social value while decreasing the environmental footprint along the value chain."

Dow Jones elaborates on CS: Corporate Sustainability is a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental, and social developments.

Corporate sustainability leaders achieve long-term shareholder value by gearing their strategies and management to harness the market's potential for sustainability products and services at the same time successfully reducing and avoiding sustainability costs and risks.

  • Strategy: Integrating long-term economic, environmental, and social aspects in their business strategies while maintaining global competitiveness and brand reputation.
  • Financial: Meeting shareholders' demands for sound financial returns, long-term economic growth, open communication, and transparent financial accounting.
  • Customer & Product: Fostering loyalty by investing in customer relationship management, product and service innovation that focuses on technologies and systems, which use financial, natural, and social resources in an efficient, effective, and economic manner over the long-term.
  • Governance and Stakeholder: Setting the highest standards of corporate governance and stakeholder engagement, including corporate codes of conduct and public reporting.
  • Human: Managing human resources to maintain workforce capabilities and employee satisfaction through best-in-class organizational learning and knowledge management and practices and remuneration and benefit programs.

The Case for Sustainability Investing

Increasingly, investors and diversifying their portfolios by investing in companies that set industry-wide best practices with regard to sustainability. The Dow Jones Sustainability Indexes (DJSI World) was created to track this. The indices consist of more than 300 companies that represent the top 10% of leading sustainability companies in 59 industry groups in the 33 countries covered by the biggest 2500 companies in the Dow Jones Global Index.
Photo : Araquem Alcantara
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