Sustainable Value Creation: An Inevitable Challenge to Business and Society (Sustainable Finance)

Sustainability sheds a whole new light on economic value creation. Sustainable value creation means looking critically at both revenues and costs. Not everything that makes money is of value. Not everything for which no bill is sent is 'free'. This book explains how this is the case and what it means to incorporate sustainability into a company’s strategy and manage activities based on sustainable principles. At the same time, it keeps an eye on the broader societal context in which companies operate, such climate change policies, the SDGs and ESG finance. Since the launch of the concept of sustainable development, many policies at various institutional levels have focused on reducing environmental damage and social ills. This book reflects this broader context. However, despite many serious efforts, it cannot be denied that these policies do not stand up against continued economic growth and a growing global population. This is why this book also stresses that more radical approaches are needed for a successful transformation towards a sustainable society. Businesses should not be content to wait and see what lies ahead. They need to proactively take ownership of the change process that is needed. The book has eight chapters that discuss the various aspects of sustainable value creation from different points of view, including sustainable management and chain management as well as sustainable accounting and reporting. It gives a concise but well-underpinned picture of what sustainable business means today. Preface Contents About the Author List of Boxes Chapter 1: Introduction 1.1 The Road Towards Corporate Sustainability 1.2 The Chapters in a Nutshell 1.3 The Sequence of the Chapters 1.4 Accessibility Chapter 2: Sustainable Development 2.1 Companies Have a Central Role to Play 2.2 The Green Economy 2.3 The Scientific and Ethical Approach The Scientific Approach The Ethical Approach 2.4 The Ecological and Social Aspects 2.5 The UN Sustainable Development Goals 2.6 The Triple Bottom Line (People, Planet, Profit) People Planet Profit 2.7 Ranking of Values References Chapter 3: Sustainable Value Creation and Management Responsibilities 3.1 Sustainable Value Creation: Necessary and Full of Opportunity 3.2 Sustainability in Business 3.3 Managers ́ Key Role in Sustainable Value Creation 3.4 CFOs and Sustainable Management Not Calculations Alone Financial Underpinnings 3.5 The Role of Controllers Combination of Roles References Chapter 4: Sustainable Business at the Supply Chain Level 4.1 Introduction 4.2 Sustainable Supply Chain Management Supply Chain Management (SCM) Developing Sustainable Supply Chain Management 4.3 Implementing Sustainable Supply Chain Management Stepping Stones for Sustainability in the Supply Chain The Reach of Sustainable Supply Chain Management (SSCM) 4.4 Implementing Sustainable Supply Chain Management Aspects of International Chains Governments Enhancing Traceability Voluntary Chain-Based Action Based on Self-Regulation References Chapter 5: Environmental Management and the Circular Economy 5.1 Environmental Management Environmental Management ́s Place in the Company The Essence of Environmental Management Searching for Synergy Environmental Management and Environmental Performance Environmental Management and Economic Performance Environmental Management Systems ISO 14001 Environmental Audits 5.2 The Circular Economy From a Linear Industrial Economy Towards a Circular Industrial Economy The Future of Circular Production Planned Circularity Bottom-Up Sufficiency Circular Modernism Peer-to-Peer Circularity Critical Remarks CE in Action References Chapter 6: Human Resources and Roles in Achieving Corporate Sustainability 6.1 Introduction 6.2 Globalisation and Human Resources 6.3 Demand-Led Growth and the Survival of the Planet 6.4 Leadership for Corporate Sustainability 6.5 The Role of HRM in the Transition Towards a Sustainable Economy 6.6 A Stakeholder Approach to Sustainable HRM 6.7 Sustainable HRM, Stakeholder Management and Corporate Social Responsibility (CSR) References Chapter 7: Corporate Governance and CSR as Vehicles of Corporate Sustainability 7.1 Corporate Governance Business Continuity Software and Sustainability Sustainability and Finance One and Two-Tier Models Bookkeeping Scandals 7.2 Stakeholder Management Stakeholder Management in Steps 7.3 Corporate Social Responsibility Strategic CSR Undeniable Corporate Responsibility Coherence in CSR Policies ISO 26000 7.4 Sustainability Reporting Governance Gaps in Global Value Chains References Chapter 8: Sustainability Accounting and Reporting 8.1 Introduction 8.2 The Planet Element of Sustainable Business 8.3 Eco-Efficiency Innovation and New Business Concepts End-of-Pipe Measures Preventative Technology Allocation of Environmental Costs Organisational Partitions Preventative Technology Diversity in Internal Environmental Costs Environmental Activities and Environmental Costs Environmental Benefits 8.4 Total Cost Accounting 8.5 Environmental Costs Throughout the Supply Chain Sustainable Procurement Life-Cycle Costing Society and External Effects 8.6 The Sustainable Balanced Scorecard (SBSC) 8.7 Further Developments in Sustainability Accounting Special Issues in Sustainability Accounting Accounting for Climate Change Accounting for Water Accounting for Biodiversity Accounting for Human Rights Accounting for Economic Inequality References Chapter 9: From Green Growth to Post-growth Approaches 9.1 Introduction What Has Been Achieved so Far? New Realities Various Crises Issues Insufficiently Addressed 9.2 The Green Economy Eco-Efficiency Ecological Modernisation 9.3 Ecological Sustainability Popular Belief New Scarcities and Market Forces 9.4 Social Sustainability The Poor and Universal Sustainability Goals The Launch of the U.N. Sustainable Development Goals 9.5 Export of Minerals and the Poorest People 9.6 Food Security and Climate Change Ecological and Social 9.7 Beyond Climate Change Transition to a Sustainable Economy An Irreversible Process 9.8 Post-growth Perspectives A Historical Puzzle Conceptual Barriers Steady-State Economics Eco-Development Post-growth Economics References Index