Sustainability Standards and Instruments

Academics, policymakers, businesspeople, members of civil society and individuals have all recognized the significant effect the activities of the private sector have on employees, customers, communities, the environment, competitors, business partners, investors, shareholders, governments, and others. It is also becoming increasingly clear that firms can contribute to their own wealth and to overall societal wealth by acting as a sustainable business and considering the effect they have on the environment, community, and the world at large when making decisions and taking operational actions to execute their strategies. The commitments and activities associated with any sustainability initiative should begin with compliance with laws and regulations promulgated by the governmental entities have jurisdiction over the firm's activities; however, the law has not been able to keep up and the gap has been filled by sustainability standards promulgated from a variety of sources. This book describes the most well-known sustainability standards and instruments as of the date of publication referenced below. While the sheer volume of initiatives can make the process of review challenging and daunting, particularly for sustainable entrepreneurs with limited resources trying to put together an initial set of sustainability commitments and targets for their fledgling businesses, the number and diversity of initiatives available offers the possibility of flexibility, avoids a "one-size fits all approach" and increases the chances that firms will be able to find support to address concerns of particular interest. Businesses may create their own sustainability guidelines (i.e., corporate codes of conduct); however, many companies publicly commit to be held accountable for adhering to industry-led or multi-stakeholder sustainability initiatives (including submission to auditing and reporting to stakeholders on compliance). While the various sustainability standards and initiatives were developed separately and intended to operate on a "stand alone" basis, businesses can (and generally do) refer or commit to several initiatives (or parts thereof) when putting together their own codes of conduct and sustainability programs. For example, sustainable entrepreneurs may integrate the provisions of the ILO Declaration on Fundamental Principles and Rights at Work, the OECD Convention on Combating Bribery of Foreign Officials in International Business Transactions, and the UN Global Compact to cover a comprehensive range of labor issues including freedom of association and collective bargaining, elimination of all forms of forced or compulsory labor, abolition of child labor, non-discrimination in employment and occupation, general development, employment promotion, training, wages and benefits, hours of work, safety and health, social protection and industrial relations. The three initiatives can also be used for sustainability-related issues other than labor including reporting and disclosure, human rights, environment, bribery, consumer interests, competition, and taxation.