Business

Description

Corporate Social Responsibility has become a key word for company CEOs. NGOs are checking products that these are produced in a fair labor environment, and boycott movement worked as a strong power to correct companies’ attitude. The concept of Social Responsibility Investment changed pension funds to invest in companies which are regarded as appropriate in terms of sustainability. Due to a survey by Eurosif, 17.5% of financial assets managed in Europe has SRI policy. Thus, profit is still important figure to measure companies’ achievement, but not one single measure now. Even though companies are more concerned about sustainability, some of them are reluctant to increase capital expenditure in order to reduce CO2 emission. It is said companies need more effort to achieve the target set by Kyoto Protocol in 1996, but this means they have to give up part of their profit.

On the other hands, public’s interest in sustainability is creating new businesses. A Green New Deal which was advocated by British researchers, and became famous by Obama administration, states that government should spend its budget on training ‘carbon army’ of workers to provide the human resources for environmental businesses.

Enablers

People’s interest

More people get interested in sustainability and companies’ social activity, sustainable business will be more popular. Also, people can be a shareholder of sustainable company, and help its business as a provider of risk money.

Reference

Eurosif

http://www.eurosif.org/publications/sri_studies

A Green New Deal

http://www.neweconomics.org/gen/z_sys_publicationdetail.aspx?pid=258

Stuart L. Hart (1997) Beyond Greening: Strategies for a Sustainable World, Harvard Business Review