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LSweek 9 m 9 - Essay Example

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Why sustainability must become a fundamental factor in the calculus of management Name A review of literature Sustainability as a fundamental factor in cal management Sustainable development in management is an important venture in the corporate world as asserted by McElroy (2010), tensions exhibited with the use sustainability in relation to organizational activities such as strategic management and measurement of performance…
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LSweek 9 m 9
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Download file to see previous pages It should also be noted that all aspects of development, whether social or economic, need to be measured in terms of sustainability. These efforts, however, if met by companies and or corporate bodies should be rewarded. However, historical experiences show that such rewards have rarely occurred. If this has to be done, measurement and strategic management is an inevitable requirement. Major changes in political will and economic policy need to be put in place to control use of resources in a manner that does not comply with the principles of sustainability. Such measures can include legislations, positive rewards to complying companies just to mention a few. In a research conducted in Japan by Michael Angelo and Cortez, in 2011 at the Asia Pacific University to establish how challenges related to social and environmental performance affect financial performance, any environmental innovation geared towards sustainability impacted positively on market performance. In addition, an increase in the short-term liabilities was attributed to the investment placed on environmental innovation in terms of cost of maintenance corporate social responsibility cost. Similarly, while markets’ concern about environmental conservation takes precedence in economic measures, social expenses is not their major concern as they presumably take this as a government responsibility. It is important that as we work towards economic stability, leaders should be able to Measure Company’s performance in more systematic ways. These way organizations will play an important role towards a competitive and suitable society. Based on the above-mentioned fact, most leaders today have adopted the strategy through reduction of the company’s socio-environmental impacts in the world as well as drawing limits to risks posed on the environment such as global warming. This is done through enhanced ecological management practices, sustainable use of the available resources and care for the natural resources. An emerging trend is where executives and top management officials are beginning to exhibit transparent operations with regards to finances and accountability in a manner that go beyond use of ancient performance measures. This behavior is as a result of increasing compulsion for companies to take responsibility for the non-financial effects. On the other hand, the general ideas of sustainability are geared towards the enhancement of valuable features with an intention of reaching them out to the upcoming generations. Two theories have been adapted to explain the meaning of this statement; preservation and development version and resilience. The second theory is that of enhancing and maintaining natural and human capital. The adaptation based theory views sustainability as an adaptation route whose approach closely links system theories and complexity theories on self-maintenance. The view relates the internal systems of an organization to external interactions exhibited by the environment. It is worthy to note that as the organization tries to ...Download file to see next pagesRead More
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