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development of the company.
For the first time, the concept of sustainable development of a company
appears in the work of Elingkton J. [1], who proposed to consider the concept
of sustainable development
at the company level, considering a corporate
strategy leading to sustainable development. According to [2], a company can
be considered as sustainable if the interested parties approve of the company’s
actions and it remains competitive in the market. Thus, an important role in
modern management is played not only and not so much by the company’s
profitability as by its social responsibility.
According to a study by Deloitte [3], companies wishing to achieve success
in the next decade must revise their main goal of activity and relate it to
the sustainable development goals developed by the United Nations (UN)
countries. In 2015, the leaders of the UN member states developed goals,
called the "The 2030 Agenda for Sustainable Development". This document
contains 17 socially significant goals, the achievement of which is necessary for
the prosperous life of people on the planet, namely: the elimination of hunger;
the elimination of poverty; good health and well-being for everyone; quality
education; gender equality; clean water and sanitation; inexpensive and clean
energy; decent work and economic growth; industrialization, innovation and
infrastructure; reducing inequality; sustainable cities and towns; responsible
consumption and production;
combating climate change; conservation of
marine ecosystems; conservation of terrestrial ecosystems; peace, justice and
effective institutions; partnership for sustainable development [4].
While all elements of society, including governments, citizens, commercial
and non-profit companies must participate in the process of achieving
these goals and ensuring the sustainable development of society, commercial
organizations have an important role to play in this process. Firstly,
organizations can contribute to economic growth in society by paying taxes
and the financial well-being of employees by providing citizens with jobs, as
well as ensuring gender equality in hiring and providing services. Secondly,
it is important to assist commercial companies in solving environmental
problems, resisting the aggravation of the environment.
Striving for sustainable development does not contradict the commercial
success of the company; on the contrary, sustainable development naturally
contributes to commercial success. This is achieved by meeting the needs
of the company’s stakeholders: a company
with a goal of sustainable
development is able to attract and retain highly qualified employees, as well
as attract consumers and partners, investors and the government. But for
the principles of sustainable development to become an urgent goal of the
company, it is necessary to reformulate its strategy and operating model,
corporate culture and values in accordance with the goals of sustainable
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development [5].
Few companies are currently able to align the core goal with the goals
of sustainable development and community well-being. According to the
Deloitte study, about 30% of companies do not have a clear goal at all, 75%
of companies do not link their main goal to sustainable development goals,
and the vast majority of companies believe that they are making a sufficient
contribution to the well-being of society even without much effort. However, if
the focus on sustainable development is
not expressed in the main
activities of the company and is not reflected in its processes, strategy,
corporate culture, this means that the company’s contribution to the
development of the welfare society is minimal, which may affect the success
of the organization in the near future.
Finally, despite the emergence of difficulties on the way to the formation
of a socially significant goal and the desire for
sustainable development of
the company in order to approximate the sustainable development of society
as a whole, many organizations show commitment to this approach and
demonstrate their development goals for the period up to 2030, for example:
The British financial conglomerate Lloyds Group has a long-term goal:
"To help the United Kingdom prosper."
FMCG market leader Unilever is inspired by the goal of “Making
sustainable development the norm for everyone”.
UK-based Pearson is committed to "Helping people succeed in life
through learning".
In this way, by making socially meaningful decisions, organizations around
the world can contribute to the overall well-being of society. By introducing
innovative
technologies, the issues of environmental pollution, inefficient
use of resources, and lack of electricity in some countries can be solved.
The social responsibility of the company encourages employees to improve
their skills, reduce staff turnover, increase motivation and enthusiasm.
Finally, the focus on sustainable development
of the company improves
relationships with stakeholders, which gives an annual increase in the value
of the company’s shares by 2% [6], which proves the relationship between
sustainable development and commercial profitability of the company.
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