business ethics and corporate governance

1. CORPORATE
SUSTAINABILITY

2.  A business approach that creates long-term consumer
and employee value by implementing a business
strategy that considers every dimension of how a
business operates in the social, cultural, and
economic environment.
 Formulates strategies to build a company that adopts
permanence through
Transparency
Proper employee development

3.  An alternative to traditional growth and profit-
maximization model.
 Significant focus on: sustainable development.
 Sustainability is a business approach creating
shareholder value in the long run.

4. CONCEPT OF CORPORATE SUSTAINABILITY
 Borrows elements from four more established
concepts:
1) Sustainable development
2) Corporate social responsibility
3) Stakeholder theory
4) Corporate accountability theory

5. 1) SUSTAINABLE DEVELOPMENT
 Concept that balances the need for economic
growth with environmental protection and social
justice etc.
 Development that met the needs of present
generations without compromising the ability of
future generations to meet their needs.

6.  Contribution of sustainable development to CS
are:
a. Helps set out the areas that companies
should focus
b.Provides a common societal goal for
corporations, governments, and civil society.

7. 2) CORPORATE SOCIAL RESPONSIBILITY
 CSR contributes to corporate sustainability by providing
ethical arguments
ie,why corporate managers should work toward sustainable
development
 If society in general believes that sustainable development
is a worthwhile goal, corporations have an ethical
obligation to help society move in that direction

8. 3) STAKEHOLDER THEORY
 Stronger your relationships are with other external parties, the
easier it will be to meet your corporate business objectives
 Worse your relationships, the harder it will be.
 Goal: To help corporations strengthen relationships with
external groups in order to develop a competitive advantage.
 stakeholder theory provides business arguments such as
why corporations should work towards SD.

9. 4) CORPORATE ACCOUNTABILITY
 The fourth and final concept
 Accountability is the legal or ethical responsibility
to provide an account or reckoning of the actions for
which one is held responsible.
 It helps define the nature of the relationship between
corporate managers and the rest of society.
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