Over the past fifty years, the concept of corporate sustainability has been
evolving. To date, there is not a single commonly accepted definition for it, although
managing the triple bottom line—economic, environmental and social aspects—is
gaining traction. Companies see different types of value in embracing sustainability,
from reducing costs to enhancing their brand reputation and fostering product
innovation. This chapter describes the multiple meanings of corporate sustainability,
introduces the drivers of sustainability, explains how key historical events have shaped
it and reviews the typical path that companies have taken to incorporate sustainability
into their business agenda. It also provides a description of the value proposition that
motivates companies to embrace it and challenges in achieving that value.
Keywords: Altamira hydroelectric dam, apartheid, bhopal, brand management, brent
spar, brundtland commission, copenhagen climate conference, corporate citizenship,
corporate social responsibility, corporate sustainability, corporate sustainability
learning curve, deepwater horizon BP oil spill, eco-efficiency, ESG (environment
social governance), environmental, social, economic dimensions, exxon-valdez,
GEMI global environmental management initiative, greenhouse gas measurement
protocols, greenwashing, innovation, IPCC, ISO 14001, Kayapo Indians, lifecycle
assessment, our common future, precautionary principle, Rio conference, silent spring,
sustainability, sustainable development, supply chain, triple-bottom-line, value chain.
