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. In what context is a corporation considered to be an individual entity?

    Read about when a corporation is considered an individual entity, when it is not and why corporations are not considered ... Read Answer >>
  2. What is the history of corporations in America?

    Read a short history of the American corporation, from the first industrial producers to the period of American business ... Read Answer >>
  3. 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 >>
  4. 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 >>
  5. 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 >>
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. Taxes

    Explaining Corporate Tax

    A corporate tax is a tax levied on the profits a corporation generates.
  4. Taxes

    Corporate Inversion: How It Works

    Large corporations are making all kinds of moves to decrease expenses and increase profits in an increasingly competitive global market.
  5. 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 ...
  6. Insights

    What Does It Mean To Be Green?

    Green investing is the new buzz word for companies and investors. Find out what it means.
  7. Taxes

    The Benefits Of Corporate Inversion

    Many U.S. companies have found it advantageous to relocate their headquarters rather than face the highest corporate tax rates in the world regardless of whether income was earned domestically ...
  8. Small Business

    What is a Corporation?

    A corporation is an organization—usually a large business—with specific characteristics.
  9. 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.
  10. Taxes

    S Corp. Vs. LLC: Which Should I Choose?

    Understand the major distinctions between an S corporation and an LLC, and the important factors to consider when choosing your business structure.
RELATED TERMS
  1. Corporate Accountability

    The performance of a publicly traded company in non-financial ...
  2. Dow Jones EURO STOXX Sustainability Index

    A stock index that measures the financial performance of leading ...
  3. Corporate Social Responsibility

    Corporate initiative to assess and take responsibility for the ...
  4. Corporation

    A legal entity that is separate and distinct from its owners. ...
  5. Corporate Charter

    A written document filed with a U.S. state by the founders of ...
  6. Dow Jones Sustainability World Index

    A global index consisting of the top 10% of the largest stocks ...
Hot Definitions
  1. Federal Direct Loan Program

    A program that provides low-interest loans to postsecondary students and their parents. The William D. Ford Federal Direct ...
  2. Cash Flow

    The net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's ...
  3. PLUS Loan

    A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, ...
  4. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  5. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  6. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
Trading Center