CSR and Corporate Sustainability

Sustainability means "Meeting the needs of the present without compromising the ability of future generations to meet their needs." (Brundtland Commission).

CSR vs Sustainability

• CSR: Often looks back. "We made profit, now let's share some."
• Sustainability: Looks forward. "How do we operate so we can keep making profit for 100 years?"

ESG (Environmental, Social, Governance)

Investors now use ESG scores to measure sustainability.

• E: Carbon footprint, water usage.
• S: Labor rights, diversity.
• G: Board diversity, ethics.

Why Sustainability matters?

If a timber company cuts down all the trees today (high profit), it will have no wood to sell tomorrow (bankruptcy). Sustainable Business: Replanting trees as fast as you cut them.

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