Sustainability
Bursa Malaysia has always advocated corporate responsibility as key to sustainability. Today, sustainability, which supports stakeholder value creation, should be the main focus of every responsible company.
Tip of the Week: Approximately only 10 percent of every landfill can be cleaned up.
Introduction
- What is Sustainability?
- Role of Governments & Businesses in Sustainability
- Key Global Issues
- Sustainability Trends in Malaysia
- The Case for Sustainability in Business
- What are the Benefits of Sustainability to Businesses?
- Sustainable Investments
- Case Studies
"It is clear that we need to move CSR up the business agenda and embed it into the DNA of every company. This presents and enormous challenge, as well as a huge opportunity to get things right from the start1"Dato' Sri Mohd
Najib Tun Razak
Prime Minister of Malaysia
What is Sustainability?
In 1987, the United Nation's World Commission on Environment and Development (the Brundtland Commission) described sustainable development as "Development that meets the needs of the present without compromising the ability of future generations to meet their own needs2".
Leading global companies have long moved beyond Corporate Social Responsibility (CSR) as it was perceived that the focus was more on the social aspects of the business – its people and the community, and had limited impact on stakeholder value creation.
In 2006, Bursa Malaysia launched its CSR framework for public listed companies (PLCs) to highlight that CSR is more than philanthropy and community initiatives. Bursa Malaysia has always advocated CSR as being key to sustainability. Today, sustainability, which supports stakeholder value creation, should be the main focus of every responsible company.
Business opinion polls and corporate behaviour both show increased levels of understanding of the link between responsible business and good business. Also, institutional investors, investment managers and financial service providers recognise that sustainability activities that integrate broader environmental and societal concerns into business strategies and performance can drive superior operating performance and be the hallmarks of good management and corporate govemance.
Sustainability is not new – some aspects of sustainability are already embedded in businesses. Those that adhere to the Shari'ah principles, for example, adopt ethical practices that are in line with sustainability.
Increasing Importance of Sustainability
Globally, sustainability, as a key business issue is becoming increasingly important, largely due to key trends:
Changing Social Expectations
Consumers and society in general expect more from companies. This sense has increased in the light of recent corporate scandals, which reduced public trust of corporations.
Globalisation
The growing influence of the media, including the Internet, sees any 'mistakes' by companies brought immediately to the attention of the public, especially amongst like-minded groups and consumers — empowering them to spread their message and giving them the means to co-ordinate collective action for impact (i.e. a product boycott).
Increasing Affluence
Increasingly amongst developing countries like Malaysia, affluent consumers can afford to pick and choose the products they buy. An affluent society is more likely to enforce strict regulations and penalise organisations by taking their business and money elsewhere.
Limited Natural Resources
With the increasing depletion of the earth's natural resources, companies are looking at better efficiency in managing their resource needs.
1 Prime Minister's Office, www.pmo.gov.my, accessed March 2010
2 World Commission on Environment and Development, "Our Common Future", 1987