Question

“It has been a difficult process to create measures for corporate sustainability performance.” Do you agree with this statement? If so, why? If not, why not?

Please answer in 1-2 paragraphs and include a source. APA format. Thank you

Answer 1

Answer:   There are arguments made that the main aim of a corporation is to maximize its profits. Engaging into the activities like sustainability activities is not an activity that the organizations should engage as they are wastage of the company’s resources and act as an impediment to the ultimate goal of profit maximization. Thus the organizations have always faced a challenge in which they need to develop measures that can help them to improve their sustainability performance and at the same time does not impact in their goal of profit maximization. Most of the Sustainability measures have only acted as resource consumers and have not contributed towards producing any economic gain for the companies. Thus though they have helped in improving the social and environmental performance of the companies they have not contributed towards economic aspect. This situation has disturbed the sustainability balance where economic, social and environmental performance goes hand in hand. The companies therefore have faced difficulties in developing strategies that can improve both sustainability performances along with the profit goal of the company. This has acted as one of the major impediment in developing measures for creating corporate sustainability performance.

Reference

Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), 2835-2857.