Question

Yvon Chouinard doesn’t think it is appropriate to describe a company as sustainable. He thinks we need to spend more time in nature, simplify our lives and be responsible. Explain how these ideas fit together with his beliefs about running a responsible company.

Answer 1

A sustainable company may be referred to as company that has or generates minimal negative externalities on the society and environment. It does not necessarily means spending more tie in nature, rather it focuses on producing or supplying that goods or services that causes little or no harm to the nature or people around. This can be done by reducing the amount of waste produced, emitting less carbon, using more energy efficient techniques of production, among others. This not only has short term implications on nature but also has positive long-term benefits for the global environment as a whole.

World Business Council for Sustainable Development in its report Corporate Social Responsibility (CSR)- making good business sense, January 2000 has defined CSR as ‘‘the commitment of business to contribute to sustainable economic development, working with employees, their families, and the local community and society at large to improve their quality of life’’. Investing in CSR results in brand building for the company, boosts its employees productivity and attract more investors in the company. Naming a few, the company may spend on relief measures during a natural calamity or organize holiday trips for the employees and their families or work for the welfare of under-priviledged sections of the society. Doing this, Yvon Chouinard may run a sustainable and thus responsible business.