Sustainability in business has become an increasingly important issue for consumers and corporations. Companies see sustainability as a strategy for resilience and longevity. This can mean their impact on the physical environment and their metaphorical impact on the business, social and economic landscape. In the history of American business from the industrial age, philanthropy of individual magnates or tycoons was the driver of social responsibility in business. The benevolence (or lack thereof) of the master of industry in a top hat smoking an expensive cigar was the only form of corporate or social responsibility. Into the mid-20th century, the paradigm began to shift and corporate social responsibility was no longer seen as a dictate of the individual titans of industry, but rather something that should be incorporated into how a business operates.
Corporate Social Responsibility (CSR)
In 1953, economist Howard Bowen published “Social Responsibilities of the Businessman”. He coined the term “corporate social responsibility”. He argued that businesses have a moral obligation to consider societal welfare. In the 1970s, researcher Archie Carrol further developed the concept of CSR and introduced the CSR Pyramid, its key concepts are:
- Economic Responsibilities (The Foundation): A business must make money to survive. Without profit, it cannot pay employees or fulfill any other social duties.
- Legal Responsibilities: Businesses must follow all government regulations, including tax, labor, and environmental laws. This is the minimum requirement for operating.
- Ethical Responsibilities: Companies should do what is right and just, even if not required by law. This involves treating stakeholders with respect and avoiding harm.
- Philanthropic Responsibilities (The Peak): These are voluntary actions, like donating to charity or volunteering, intended to improve the community and general quality of life.
Sustainable Development Goals
As previously mentioned in posts about sustainability, The United Nation’s “Our Common Future” report famously defined sustainable development as meeting current needs without compromising the ability of future generations to meet theirs. The next evolution in sustainability was the “People, Planet, Profit” model, which sought to measure sustainability beyond just the profit paradigm. Building off of these models still further, in 2015 the UN developed the Sustainable Development Goals which they describe as:
“The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, provides a shared blueprint for peace and prosperity for people and the planet, now and into the future. At its heart are the 17 Sustainable Development Goals (SDGs), which are an urgent call for action by all countries – developed and developing – in a global partnership. They recognize that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests”.
Measuring Sustainability & ESG
With the development of the theoretical framework of the last 75 years, what does this mean in practice for organizations and corporations and how is this measured? The modern standard usage for measuring, reporting and maintaining sustainability is ESG. ESG stands for “environment, social and governance” and is used to measure an organization’s sustainability as follows:
- Environmental (E): Measures how a company performs as a steward of nature. Key focus areas include greenhouse gas emissions, energy efficiency, waste management, and biodiversity protection.
- Social (S): Evaluates relationships with employees, suppliers, and communities. It covers labor standards, human rights, diversity, equity, and inclusion (DEI), workplace safety, and data privacy.
- Governance (G): Examines how a company is directed and controlled. This includes executive compensation, board diversity, anti-corruption policies, and transparency in shareholder rights
Obligation to CSR, Marketing & Greenwashing
Depending on where you are in the world, ESG and broader sustainability principles are not always mandatory. Regulatory compliance may cover specifics of an industry or environmental operating restrictions and requirements, however the totality of CSR and ESG reporting may be optional. This means sustainability can be presented as a goal or market strategy, but may not actually be practiced. Nefarious actors can adopt a “greenwashing” strategy to capitalize on the public demand and the positive image associated with sustainability. This term simply means actions taken to appear sustainable or eco-friendly, without actually using sustainable practices. The UN lists some of the actions taken in greenwashing:
Greenwashing manifests itself in several ways – some more obvious than others. Tactics include:
- Claiming to be on track to reduce a company’s polluting emissions to net zero when no credible plan is actually in place.
- Being purposely vague or non-specific about a company’s operations or materials used.
- Applying intentionally misleading labels such as “green” or “eco-friendly,” which do not have standard definitions and can be easily misinterpreted.
- Implying that a minor improvement has a major impact or promoting a product that meets the minimum regulatory requirements as if it is significantly better than the standard.
- Emphasizing a single environmental attribute while ignoring other impacts.
- Claiming to avoid illegal or non-standard practices that are irrelevant to a product.
- Communicating the sustainability attributes of a product in isolation of brand activities (and vice versa) – e.g. a garment made from recycled materials that is produced in a high-emitting factory that pollutes the air and nearby waterways.
In total, sustainability is not just a buzzword or marketing strategy, it’s about improving the viability of the intersection of the environment, social responsibility and commerce. It impacts people beyond profit & loss sheets or abstract carbon emission figures. It is about resilient practices into the future. Foodstream works with businesses, government agencies and organizations to improve sustainable practices, limit food waste and improve food security. This year, in select New York City schools, Foodstream Learn will provide hands-on cooking and gardening programs for K–12 students across all five boroughs. Our in-school and afterschool programs build lifelong skills in nutrition, wellness, and environmental stewardship, while also helping schools implement food waste prevention and share table initiatives that align with the New York City Office of Energy & Sustainability, and Climate Action Day themes of sustainability and waste reduction.
For more information about our sustainability program and our other programs go to Foodstream or email us at support@foodstreamnetwork.com
Responses