Global Corporate Sustainability Report 2013

With increasing and encouraging regularity, corporate sustainability is appearing on the radars and agendas of companies around the world. Corporate leaders recognize the growing relevance and urgency of global environmental, social and economic challenges.

They see how sustainability issues affect the bottom line and are looking beyond traditional business and financial factors to map out their priorities and strategies.

For these companies, corporate sustainability has immediate material relevance. In their own backyards, at their site locations and through their extensive supply chains, they increasingly face the effects of extreme poverty, unacceptable working conditions, environmental degradation, systemic corruption or eruptions of violence. In this environment, companies can choose one of two routes: uphold high standards or try to ignore the situation, muddle through and risk costly damage to growth prospects, long-term investments and reputation.

Turning a blind eye to sustainability issues is a ticking time bomb, and hiding missteps – no matter how deep down the supply chain – is no longer an option.

Technology advances have enabled rapid access to information and accelerated the spread of social networks. These developments challenge the traditional forms of authority and make transparency a necessary tool for management. Earning a “licence to operate” increasingly requires public legitimacy and proactive societal engagement.