A:

A company's stance on the environment is typically found in the company's statement on corporate sustainability. These statements can be found in corporate documents such as annual reports. However, more and more companies are putting their corporate sustainability statements on the company's website. Many companies have an entire section of their corporate website devoted exclusively to speaking about sustainable development.

Corporate sustainability is sometimes called corporate social responsibility or corporate citizenship. Corporate sustainability is a business strategy that is intended to create long-term shareholder value while taking into consideration social and environmental issues. Many corporations today have added a new executive position, that of a chief sustainability officer.

Corporate sustainability embraces the idea of sustainable development. Sustainable development can be defined as development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs.

The desire to grow their business without damaging future generations is becoming central to more and more corporations. These businesses believe that a failure to account for the social and environmental impacts of their actions would eventually make future businesses unsustainable.

For more on this read, For Companies, Green is The New Black and Five Companies Leading the Green Charge.

This question was answered by Ken Clark.

RELATED FAQS
  1. How does limited government affect corporate citizens?

    Read about the role of consumers and governments, especially limited governments, in supporting or requiring good corporate ... Read Answer >>
  2. Does investing in sustainable or "green" companies provide lower returns?

    To determine the kinds of returns that can be expected from investments in sustainable or "green" companies, the distinction ... Read Answer >>
  3. What incentives are there for a given country to enforce sustainable growth rate ...

    Find out what incentives exist for a country to promote sustainable growth in government and industry, and why those incentives ... Read Answer >>
  4. What are the top trends in corporate social responsibility?

    Learn about top trends in corporate social responsibility. Companies are increasing transparency, innovating, investing locally ... Read Answer >>
  5. What are the different groups involved in corporate governance?

    Learn about the challenges inherent to defining and executing corporate governance, and understand why different groups work ... Read Answer >>
Related Articles
  1. Financial Advisor

    The Three Pillars of Corporate Sustainability

    Corporations are under pressure to show how they plan to deliver their goods and services in a sustainable manner. But what does this all mean?
  2. Insights

    For Companies, Green Is The New Black

    Sustainability and reducing environmental impact are hot corporate objectives. Find out why.
  3. Insights

    What Does It Mean To Be Green?

    Green investing is the new buzz word for companies and investors. Find out what it means.
  4. Small Business

    Corporate Governance

    Corporate governance refers to the formally established guidelines that determine how a company is run. The company’s board of directors approves and periodically reviews the guidelines, which ...
  5. Investing

    How to Calculate Sustainable Growth Rate

    Sustainable growth rate is the rate at which a company can grow without having to borrow money to fund its growth.
  6. Investing

    Sustainability Gives Work and Investing Purpose

    Make a difference by investing in sustainability or creating a sustainable business.
  7. Investing

    The Annual Report Is a Public Company's Obligation

    The annual report is a yearly publication that public corporations provide to shareholders to describe the company’s operations and financial condition.
  8. Insights

    Five Companies Leading The Green Charge

    Corporations that reduce their environmental footprint anticipate large long-term gains.
  9. Taxes

    Is Multinational Tax Avoidance at an End?

    Are governments doing enough to end corporate tax avoidance?
  10. Small Business

    Governance Pays

    Learn about how the way a company keeps its management in check can affect the bottom line.
RELATED TERMS
  1. Sustainability

    Sustainability focuses on meeting the needs of the present without ...
  2. Dow Jones EURO STOXX Sustainability Index

    A stock index that measures the financial performance of leading ...
  3. Dow Jones Sustainability World Index

    A global index consisting of the top 10% of the largest stocks ...
  4. Alien Corporation

    A corporation that was created in another country. Alien corporations ...
  5. Corporate Tax

    A levy placed on the profit of a firm, with different rates used ...
  6. Triple Bottom Line

    A phrase coined in 1994 by John Elkington and later used in his ...
Hot Definitions
  1. Life Insurance

    A protection against the loss of income that would result if the insured passed away. The named beneficiary receives the ...
  2. Price Elasticity Of Demand

    A measure of the relationship between a change in the quantity demanded of a particular good and a change in its price. Price ...
  3. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  4. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
Trading Center