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McKee Chapter 15:
SUSTAINABILITY AND CORPORATE SOCIAL
RESPONSIBILITY: ENSURING THE FUTURE
CHAPTER OBJECTIVES
15.1 Explain why sustainability and corporate social responsibility are important in
today’s world.
15.2 Define sustainability.
15.3 List and describe the three pillars of sustainability.
15.4 Define environmental sustainability.
CHAPTER SUMMARY
Chapter 15 explores how organizations and individuals are approaching the closely
related topics of sustainability and responsibility. The chapter begins with a definition of
sustainability and why it is important followed by a brief look at the history of this
Next, the chapter introduces the three “pillars of sustainability”—environmental
sustainability, social sustainability, and economic sustainability—and examines what
each of them entails. A brief history of the conservation and ecological movements
follows with an eye toward the EPA and the impact the agency has had since its inception
in the early 70’s The Kyoto Protocol of more recent time is also examined. The section
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concludes with an exploration of the new green economy and resulting green-collar jobs
and what is being done to foster environmental sustainability.
defensive, accommodative, and proactive.
The chapter then looks at what HR can do to support sustainability and social
responsibility at work, as well as what managers, leaders, and you can do to ensure that
organizations are positioned for success both today and tomorrow. It concludes with a
section about how we all can support sustainability and corporate social responsibility
such as servant leadership.
CHAPTER OUTLINE
Teaching Objective: To increase awareness of the importance and impact of
sustainability and corporate social responsibility in today’s economic environment.
I. Why Are Sustainability and Corporate Social Responsibility Important in Today’s
World?
A. All people are fundamentally interconnected and, as a result, the actions of
II. What is Sustainability?
1. Sustainability – the process of meeting present needs without compromising
the ability of future generations to meet their needs
A. People Have Been Practicing Sustainability for Generations
1. Sustainability can be traced back to prehistoric times when our ancestors
B. Four Key Reasons Why Sustainability is Important Today
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• Climate change
1. Climate Change, Global Warming, and Sustainability
a. Global Warming- term used to describe a fairly recent increase in the
temperature of Earth’s lower atmosphere (the air we breathe) and the land
2. The Rise of New Economies, Shifts in Economic Power, and Sustainability
a. Massive growth in emerging nations increases strain on forests,
3. The Call for Business Ethics and Social Responsibility
a. Countless scandals over the years in companies
b. Today, however, millions of people are involved in discussions about
companies’ labor policies, working conditions, environmental impact, and
executive compensation.
4. The Great Recession
a. Global economic crisis that exploded in 2008 caused damage to
III. What Are the Three Pillars of Sustainability?
A. the “three pillars of sustainability”: environmental sustainability, social
sustainability, and economic sustainability
1. Environmental sustainability – the preservation of environmental resources
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3. Economic sustainability – “an economy’s capacity to regularly produce
outcomes consistent with long-term structural [economic development
B. Tracking Companies That Focus on Sustainability
IV. What Is Environmental Sustainability?
A. The History of the Conservation and Ecology Movements in the United States
1. From the 1800s through the present, there have been numerous acts of
B. Reducing Greenhouse Gas Emissions: World Leaders Try to Agree on a Course
of Action
1. The Kyoto Protocol is an international agreement drafted during the
aforementioned 1997 meeting in Kyoto, formally known as the United
Nations Framework Convention on Climate Change for the purpose of
C. Reliance on Fossil Fuels: It Can’t Last Forever
1. U.S. produces less than half of its oil consumed, and is dependent on other
countries
D. The Green Economy and Green Jobs
1. Green economy – an economic model that focuses on development and use
of renewable energies to displace traditional fossil fuels and move businesses
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E. Pollution, Waste, and Environmental Sustainability – the nation’s current set of
pollution-control laws regulates the use of numerous materials that are potentially
harmful to both human health and the environment
V. What Is Social Sustainability? – Social sustainability focuses on improving people’s
lives through equity, equality, and access to health and education.
A. Child labor – still very much an issue in today’s world
1. The problem of child labor can be more complicated than it seems, especially
B. Slavery in the World Today
1. Slavery refers to a type of forced labor in which people are owned by others
as if they were property.
C. Safety and Risk at Work – most of the world’s governments have some sort of
system in place to regulate workplace safety
VI. What Is Economic Sustainability? –refers to an economy’s ability to create and
maintain economic conditions that foster current economic health and long-term
economic development.
A. Contained within the UN definition of economic sustainability are two key
concepts:
1. a focus on the needs of the world’s poor, “to which overriding priority should
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VII. What is Corporate Social Responsibility? – corporate responsibility has its
roots in corporate philanthropy
1. Philanthropy – giving money, time, services, or products in the service of
supporting people’s well being
2. Corporate social responsibility (CSR) – a form of corporate self-regulation
that builds sustainability and public interest into business decision making and
VIII. How Can Companies Approach Corporate Social Responsibility?
A. CSR Is A Choice
1. People want to do business with companies that make social responsibility
in socially responsible activities
B. Common Approaches to CSR
1. Obstructionist – firm provides little, or no, attention to social responsibility.
2. Defensive – only engages in those activities in which it is legally required to
IX. What is HR’s Role in Sustainability and CSR?
1. HR professionals hold an important role in moving a company toward
sustainable business practices
A. Telecommuting – One way to reduce our dependency on oil and reduce emissions
X. What Can Managers, Leaders, and You Do to Support Sustainability and CSR?
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A. Servant Leadership – leadership style in which the leader seeks to serve
followers and stakeholders, as opposed to dominate them.
B. The Greenleaf Center has identified 10 ways in which you can enact servant
leadership:
a. Listening
DISCUSSION QUESTIONS
Discussion Questions for Objective 15.1:
1. List some of the major environmental, technological, and social changes that have
occurred in the past five years. Focus on changes that have implications for issues of
sustainability and corporate social responsibility. How do they affect your school or
workplace?
Suggested Answer:
Student responses will vary.
• Social networks
2. Research a recent environmental disaster that resulted from a lapse in ethical decision
making by the leaders of a large organization. What were the repercussions of the
leaders’ actions? How did the disaster affect the local people? How did the organization
respond to the crisis? What could the leaders of the organization have done differently to
avoid this catastrophe?
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Suggested Answer:
Discussion Questions for Objective 15.2:
1. Choose a major global business and analyze global warming’s effects on it to date,
considering social, political, and financial factors. Next, consider how climate change
may affect this company or industry during the next five years.
Suggested Answer:
2. Conduct a five-minute search on the Internet of business ethics issues in the news
recently. How many can you find? Are there any similarities shared across the group? For
example, are concerns focused largely on one industry? Are the complaints similar in any
way?
Suggested Answer:
Student responses will vary.
Discussion Questions for Objective 15.3:
1. How does your school or company approach the three pillars of sustainability?
Research and compile relevant data, such as information about mission statements,
environmental programs, and community-service activities.
Suggested Answer:
2. Do you think your school or company is doing enough in the area of social
sustainability? Why or why not?
Suggested Answer:
Discussion Questions for Objective 15.4:
1. Using the Internet, research a company that supports environmental sustainability.
Would you want to work for this company? Why or why not?
Suggested Answer:
Student responses will vary. Newsweek publishes a “Green Rankings” list of the top 500
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2. What renewable energies have given rise to green-collar jobs in your region of the
United States or the world?
Suggested Answer:
Discussion Questions for Objective 15.5:
1. Take two hours and walk around your school’s campus. What evidence do you see that
suggests the school is proactive about employee and student safety?
2. Research slavery in the world today. Who tends to be enslaved? Why do you think this
is the case? How do you feel about this issue, and what can you and others do to combat
it?
Suggested Answer:
Student responses will vary. A vast majority of slaves in the modern world are children.
Discussion Questions for Objective 15.6:
1. What is your definition of a successful organization? When formulating your answer,
consider economic sustainability and the organization’s impact on all of its stakeholders.
Suggested Answer:
2. Research the largest city near your home. What programs exist in the city to support
economic development? What programs or policies get in the way of economic
development?
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Suggested Answer:
Discussion Questions for Objective 15.7:
1. Consider this quote: “If you think you are too small to make an impact, try going to
bed with a mosquito in the room” (attributed to various authors). In light of the quote, do
you think all companies should be involved in CSR, regardless of their size? Why or why
not?
Suggested Answer:
2. Do you donate time or money to causes in which you believe?
Suggested Answer:
Discussion Questions for Objective 15.8:
1. Does your school have an articulated stance on its approach to CSR? What is it? Do
you believe that it is an appropriate stance? Why or why not?
Suggested Answer:
Student responses will vary.
2. Consider Johnson & Johnson’s Credo: Stockholders and business practices are listed
last, after individuals who use the product, employees, communities, and the
environment. Argue for and against this order of priorities (e.g., Why might this be good
for business? How might it inhibit business?)
Suggested Answer:
Student responses will vary. Johnson and Johnson recognize that a successful business
Discussion Questions for Objective 15.9:
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1. Have you ever provided service to your community through volunteer work sponsored
by your school or workplace? What did you do? What did your community get from this
experience? What did you get?
Suggested Answer:
2. What is your role as a global citizen? How does service work help you as a future
employee?
Suggested Answer:
Discussion Questions for Objective 15.10:
1. In your own words, take time to define each of the 10 ways in which a team leader can
enact servant leadership.
Suggested Answer:
2. Think about an opportunity you have to lead (formally or informally) at work or in
school. If you decided to truly enact servant leadership, what three things might you do
differently in this situation?
Suggested Answer:
END OF CHAPTER ACTIVITIES: EXPERIENCING LEADERSHIP
Leading in a Global World: Kyoto and Climate Change
Since the Kyoto Protocol took effect, the UN has held regular meetings to chart progress
and set new objectives and goals as economic and environmental variables change. The
conference is always hosted by a different country. In 2009, it was held in Copenhagen,
Denmark; 2010 in Cancun, Mexico; 2011, in Durban, South Africa; and 2012 in Doha,
Qatar. Some conferences have ended in hope (Durban), while others have ended in
frustration (Copenhagen).
1. Review the objectives and goals of the last three UN Climate Change Conferences.
What did the participating countries agree to at the most recent conferences? What did
they disagree about? What are the impacts of these agreements and disagreements?
2. Choose three key indicators of progress by the participating countries and three key
indicators that much work still needs to be done. Be sure to consider which nations are
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key to driving climate change progress and which nations are hindering progress. In
addition, pay attention to alterations and adjustments to the conference’s objectives and
goals from one conference to the next.
Suggested Answer:
Student responses will vary. For example, the UN Climate Change Conference in 2010
focused on lower emissions and heightened action on climate changes. They agreed that
Leading with Emotional Intelligence: Commitment to Compassion
Companies can approach social responsibility in a variety of ways. Your text offers four
common approaches: obstructionist, defensive, accommodative, and proactive. In most
instances, companies have a choice—not a mandate—to give back to the community or
1. In a group or on your own, research the CSR policies of two of your favorite
companies. Most company Web sites now have a separate tab for social responsibility/
philanthropy. Dig into their efforts and try to determine whether they are serious about
CSR or perhaps just riding along on the PR bandwagon.
2. While researching the validity of their CSR/philanthropic claims, be sure to ask
yourself whether the companies are genuinely proactive or perhaps merely
accommodative in their approaches? Is CSR a part of the companies’ mission and vision
statements? Do their claims to CSR/philanthropy hold up under your research scrutiny?
3. When your research is complete, rate your companies from 1 to 10 on a “commitment
to compassion “scale, with 1 being “Scrooge, Inc.” and 10 being “Mother Teresa, Inc.”
Suggested Answer:
Student responses will vary. Toms Shoes is one of the favorite companies of many
students, not just because of their products but because of their story and their purpose.
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thinking skills
Leading with Critical Thinking Skills: Is It Just Me, or Is It Getting Warmer?
The topics of global warming and climate change have been hot news items for the last
decade. Proponents of global warming observe that the rise in Earth’s temperature is
primarily the result of human activity. Opponents to the global warming theory say that it
is a natural cycle and humans have had very little if any impact on the rise of
temperatures. So who’s right? Pretend that you have been selected to be an adviser to the
President’s Commission on Environmental Sustainability. Your task will be to advise the
2. Decide what advice you will give to the commission. Use your critical thinking skills
to determine where the evidence is the most clear and objective. Remember to ask
yourself the following questions: How reliable are my sources? Is there a hidden agenda
to either argument? What has been overlooked or omitted by both sides? What has been
perhaps overemphasized by both sides and why?
Suggested Answer:
Student responses will vary. Some discussion points to get started —
• Some scientist believe human activities have no impact on global warming
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Ethical Leadership: Suffer the Little Chicken
There are countries around the world that engage in slavery and child labor to produce
the goods they ship to U.S. companies for distribution. The U.S. Department of Labor’s
Bureau of International Labor Affairs publishes reports identifying offending countries
and the industries in which they engage child labor. As a result, companies and
consumers can make informed buying decisions. Unfortunately, more and more U.S.
companies are using overseas suppliers, like garment factories in Malaysia, Central
America, and India, that employ children in sweatshops to make clothing for U.S. retail
sales outlets.
In a group or on your own, discuss the ethics of employing children in factories. Consider
the following questions, as well as those that are important to you: What are the
arguments against and the arguments in favor of child labor? Is child labor simply an
economic reality for many developing countries? Are there any circumstances that might
make child labor acceptable?
Suggested Answer:
Student responses will vary. Some thoughts to start with — In some countries, it is
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ADDITIONAL SUPPORTING MATERIALS
VIDEOS
• Susan Shaw: The oil spill’s toxic trade-off
“Break down the oil slick, keep it off the shores: that’s grounds for pumping toxic
dispersant into the Gulf, say clean-up overseers. Susan Shaw shows evidence it’s sparing
• Hans Rosling on global population growth
“The world’s population will grow to 9 billion over the next 50 years — and only by
raising the living standards of the poorest can we check population growth. This is the
paradoxical answer that Hans Rosling unveils at TED@Cannes using colorful new data
• Alex Steffen sees a sustainable future
“Worldchanging.com founder Alex Steffen argues that reducing humanity’s ecological
footprint is incredibly vital now, as the western consumer lifestyle spreads to developing
• Al Gore on averting climate crisis
“With the same humor and humanity he exuded in An Inconvenient Truth, Al Gore spells
• John Doerr sees salvation and profit in greentech
“I don’t think we’re going to make it,” John Doerr says in an emotional talk about climate
change and investment. To create a world fit for his daughter to live in, he says, we need
• Ray Anderson on the business logic of sustainability
“At his carpet company, Ray Anderson has increased sales and doubled profits while
turning the traditional “take / make / waste” industrial system on its head. In a gentle,
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• Katherine Fulton: You are the future of philanthropy
“In this uplifting talk, Katherine Fulton sketches the new future of philanthropy — one
where collaboration and innovation allow regular people to do big things, even when
money is scarce. Giving five practical examples of crowd-driven philanthropy, she calls
• Jacqueline Novogratz on patient capitalism
“Jacqueline Novogratz shares stories of how “patient capital” can bring sustainable jobs,
INDIVIDUAL EXERCISES
1. BP has been heavily criticized for not responding quickly or effectively enough to the
Gulf of Mexico oil spill. Break your class up into disaster mitigation teams of 3-5
2. Divide the class into teams of 3 or 4 students. First ask them to create a retail
business on the same concept as a Target or Walmart. Next, ask them to create both a
3. Ask students to honestly volunteer the information of whether they have ever given or
received unauthorized assistance on an assignment or exam. Start out with middle
4. Visualization: ask students to close their eyes. Ask them to think of global warming,
extinction of species, water and air pollution, tribal peoples disappearing, oil spills in
the ocean, etc. Ask students what images they are thinking of? How do they feel
about what they are seeing? What type of emotions are they feeling – anger, sadness,
frustration, indifference? How strong and deep are these emotions? Then ask them to
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TEAM EXERCISE
Newsweek publishes a “Green Rankings” list of the top 500 sustainable companies in the
U.S. The top 5 companies in 2012 were: 1. IBM, 2. Hewlett-Packard, 3. Sprint/Nextel, 4.
ADDITIONAL RESEARCH
Aboriginal Sustainability Perspectives
An ecological system is sustainable when it is in a state of dynamic equilibrium.
Biodiversity is maintained because the consumption and replenishment of resources is
balanced. The development of agriculture about 10,000 or more years ago allowed for
our prehistoric ancestors to “create” the resources they depleted, which led to the gradual
development of population dense cities as well as increases in overall population.[i]
Before the development of agriculture, our ancestors were hunters and gatherers.
Whenever resources became scarce, perhaps because of over-foraging or overhunting,
tribes would have to migrate or face starvation and possible extinction. Other groups
The semi-nomadic Maasai people who inhabit regions of the Rift Valley of what is now
Kenya and Tanzania[v] have historically been known as fierce, warriors, displacing other
groups through tribal warfare. Today, their “warrior” identity remains part of the culture
through ceremonies and traditions.[vi] The pastoral Maasai live off the products of the
cattle they have domesticated, developing a finely tuned symbiotic relationship with the
animals, although in times of drought or disease they have had to turn to hunting or to
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However, increasing reliance on trade with the outside world has made the future of the
Maasai culture “uncertain”.[x]
[i] Vasey, Daniel E.1992. An ecological history of agriculture, 10,000 B.C.-A.D. 10,000. Ames, IA: Iowa
State University Press.
[ii] Kradin, Nikolay N. 2002. Nomadism, evolution, and world–systems: pastoral societies in theories of
historical development. Journal of World-Systems Research, VIII, III, 368-388.
[iii] Dawkins, Richard. 2004. The ancestor’s tale: a pilgrimage to the dawn of evolution. New York:
Houghton-Mifflin Company.
Sustainability Permaculture
Permaculture is a term used to describe the modern development of agricultural societies
that are designed to be perennially self-sustaining by mimicking natural ecologies that are
stable and balanced. Permaculture was popularized by Bill Mollison and David Holmgren
in a series of publications in the 1970s, such as Permaculture One and Permaculture
Two.[i] Permaculture takes an inherently systems perspective to designing self-sustaining
ecosystems. O’BREDIM is an acronym[ii] that stands for:
Observation: studying a site by observation for a considerable period of time to develop
an understanding of the environmental context before any planting begins.
Boundaries: physical and social space constraints