Transnational corporations have come under pressure to show that their lobbying behavior is consistent with their corporate social responsibility (CSR) policies. Few empirical studies, however, have examined how companies coordinate their CSR and public policy activities or how aligned these activities are towards common goals. We address these questions by evaluating the testimony that large corporations have given to relevant UK parliamentary committees. Using an original coding frame, we assess the extent to which companies with strong CSR credentials align their testimony with the norms of the sustainability field as well as how supportive high CSR companies are of state interventions into the market. We find consistent differences in how high and low CSR companies lobby before these parliamentary committees. High CSR companies are more likely to discuss and support specific policy measures than their low CSR counterparts and to offer more fleshed out justifications for their policy positions.

This chapter aims to advance understanding of the relationship between sustainability and development, and, in particular, the role of business in development work. First, it outlines what the concept of development encompasses, providing insights on the different forms of development work. In examining the concept of development, the chapter also provides a brief history of its emergence as an academic discipline and the four distinctive features of development studies. Second, to help students comprehend the role and contribution of business in development outcomes, the chapter discusses the different ways in which firms have supported or undermined development goals through their corporate sustainability agendas. We provide explicit key case studies on Mexico, Vietnam, South Africa and Ghana, illuminating how the presence, decisions and activities of businesses can have a long-term influence on gender (in)equality, poverty reduction, democracy promotion and climate change adaptation. Overall, the discussions in this chapter are key reflections on the private sector for development agenda, and are aimed at triggering a discussion on how core business can be best aligned with societal interests to achieve development objectives.

This chapter introduces the debate about how a firm’s strategy and corporate sustainability are interrelated. Section 5.2 looks at the term ‘strategy’ and identifies some key characteristics of strategic decisions. Based on this, we discuss which characteristics a strategic approach towards corporate sustainability would entail. Section 5.3 introduces two types of approaches to link business strategy and corporate sustainability: outside-in thinking (based on the assumption that sustainability-strategy alignment starts with reflections on a firm’s competitive context) and inside-out thinking (based on the assumption that such alignment starts with reflections on a firm’s value chain). Section 5.4 extends this debate and shows how sustainability-strategy alignment can be achieved for companies with multiple business units (corporate strategy), as well as for firms that target only one market (business strategy). Section 5.5 demonstrates how firms can identify ‘material’ (i.e., strategic) ESG issues through so-called materiality assessments. Finally, section 5.6 distinguishes different stages of alignment between a firm’s strategy and its sustainability efforts, ranging from complete detachment and denial to companies that build their entire strategy around sustainability.

This chapter discusses the relationship between corporate governance and corporate sustainability. We start by looking into the different components of the general corporate governance system. This allows us to revisit a central tension: shareholder- versus stakeholder-oriented governance. We then discuss how well-designed corporate governance can support firms’ sustainability efforts. We label this debate ‘corporate governance for sustainability’, and we discuss how sustainability topics can be integrated into the discussions of boards of directors. Next, we show that some aspects of corporate governance can themselves pose challenges that need to be discussed under the ESG umbrella. We label this debate ‘corporate governance as sustainability’, and we focus on topics that reflect the ‘G’ in ESG (e.g., executive compensation). Finally, we discuss elements of a possible reformed corporate governance system which would allow to better address sustainability-related debates.

In this chapter, we examine the relationship between corporate sustainability and reputation. We show that sustainability in business moved centre stage in the reputation landscape and is a critical component that influences the overall reputation of a company. We start by introducing key terms, and by defining reputation alongside other related constructs such as identity, image and legitimacy. We then discuss Corporate Sustainability (CS) as an important part of a company’s reputation, and illustrate different ways in which companies engage in CS to enhance and protect their reputation. Specifically, we distinguish between walking and talking CS. Based on an overview of the involved risks and rewards, we advocate that companies ‘walk the talk’ and transparently communicate about and report on their commitments to, and progress on, substantial CS activities such as reducing their carbon emissions and enhancing worker welfare.

This chapter starts by discussing the changing overall context in which business, nature and society operate. It is important to understand this context, because it shapes the problems that corporate sustainability aims to address, and it influences how firms can cope with these problems. We then introduce the concept of corporate sustainability. We discuss similarities and differences to related concepts such as corporate social responsibility and business ethics. Next, we review some of the main environmental, social and governance (ESG) issues that firms are asked to address as part of their corporate sustainability commitments. Finally, the chapter reviews four key motivations (instrumental, ethical, stakeholder-based and political) that underpin firms’ corporate sustainability commitments.

This chapter introduces business model innovation for sustainability as a new way of achieving corporate sustainability. Why is thinking about business models and business model innovation useful in this regard? Because business models are essentially about how companies create value for themselves and for their stakeholders, such as customers, employees or business partners. And value creation, in turn, relates in various ways to the natural environment and society. Hence, the business model perspective is very helpful in dealing with corporate sustainability challenges. In this chapter, we explain how business models support proactive approaches to corporate sustainability; how business model innovation can help integrate sustainability principles (such as efficiency, consistency or sufficiency) into companies’ activities; and how it can help companies extend their value creation potential to be more inclusive towards non-financial stakeholders. Finally, some patterns and tools to develop business models for sustainability are introduced.

The chapter examines the legislation of corporate sustainability in South Africa through the introduction of the Social and Ethics Committee under the country’s current Companies Act, 2008. It is argued that this is a board committee of a special kind, with original board powers. Given its far-reaching powers with regard to corporate sustainability matters – including social and economic development, good corporate citizenship, consumer relations to labour and employment, the environment, health and public safety – it is argued that the Social and Ethics Committee should be seen as the second board in companies required to have this structure.