Corporate Sustainability and CSR: Trends, Challenges, and Future Directions

Overview of Sustainability Across Industries

Sustainability is a concept that is receiving attention in numerous industries—from auto manufacturing to accounting (Bouten & Hoozee, 2015; Kwangeson, 2014). Companies like Tesla, Porsche, GM, Audi, Volkswagen, and others are finding ways to become more sustainable by creating electric vehicles (EVs) that consumers can purchase in place of gas-powered cars to avoid polluting the earth. Sustainability concepts focus mainly on green energy and protecting the environment, but they also focus on managing waste more efficiently and promoting social goals and values that are important to communities. Lago, Kocak, Crnkovic, and Penzenstadler (2015) examine the environmental dimension of software performance and discuss how one of the main problems of "current software engineering practice with regard to sustainability is that the technical and economic dimensions are taken into account while the environmental and social dimensions are not" (p. 70). By focusing attention on how products and processes may impact the environment or society overall, companies and researchers are finding ways to bring sustainability concepts into the mission and vision of corporations.

Current issues and trends in the field of sustainability also focus on the dilemma of global warming, with many nations around the world creating public policy to regulate emissions and switch the energy industry from coal-burning to green energy (solar, wind, etc.). The dilemma of food resources and food security, ending hunger, and ensuring that seed populations are preserved in case of disaster, as well as managing ecosystems (Anderies, 2014), are all aspects of sustainability that remain challenges for the modern world to address.

Corporate Social Responsibility and Sustainability as a Business Imperative

This paper focuses on the need to develop corporate social responsibility (CSR) programs that promote sustainability. As Baumgartner (2014) notes, sustainable development is a major value for the world today: communities want companies that promote sustainability, and consumers want to shop from companies that devote themselves to sustainable development. Companies like Patagonia, Eileen Fisher, Tesla, Kroger, and others all have sustainability programs that are part of their CSR policy, reflecting the values of their communities.

Developing a sufficient CSR policy is important for a business to be successful in the 21st century, as a new generation of consumers is entering the market with values related to protecting the environment and promoting a sustainable future. In order to attract those consumers, companies need to reflect those same values in their corporate orientation. The development of a CSR policy with sustainability as its core value is an opportunity for a company to engage consumers of current and future generations and build broad appeal.

Lubin and Etsy (2010) show that sustainability is today not just an option but an imperative. The reason is that consumers are acutely aware of changes in their environment. They want to see corporations being more proactive and engaged on the environmental front. They want natural cleaners and natural foods; they want products that will not harm the environment or increase the likelihood of global warming. They are tired of corporations treating consumers as passive targets to be manipulated: they want to support corporations that will be accountable and transparent in their dealings. To succeed today, companies must embrace sustainability, as this is the major way forward as far as the next generation is concerned.

Williams (2014) supports the outlook of Lubin and Etsy (2010) by discussing how CSR policies could change the world in the coming years. Because the global environment is impacted by what global industries do—from agriculture to manufacturing—the global business community, in collaboration with governments around the world, must reach agreement on what regulations shall be put in place to ensure sustainability in the future. The more that companies and governments work together to set standards for sustainability across their respective industries, the more they can level the playing field and provide a new direction for coming generations in terms of how they engage with and care for the environment.

Communicating Sustainability: Social Media and Stakeholder Engagement

Dovleac (2015) shows that new communication technologies are vital for reaching out to the public and communicating a company's sustainability policy. Tesla's CEO Elon Musk is expert at using social media, for example, to promote his company's sustainability vision, goals, and product development. Musk uses Twitter and Instagram to gain direct access to investors, consumers, and others in the sustainable space: he posts links to articles discussing current practices in green energy and solar power, highlights new achievements at his own company, and gives updates on the future direction of the industry. Using social media in the way Musk does could be a great way for a company to position itself in tomorrow's market, develop a following, and build a loyal consumer base dedicated to the brand.

Pressley (2015) highlights that workers, investors, consumers, and all stakeholders appreciate it when companies demonstrate interest in the values that stakeholders cherish. The more that companies promote an Ecotopian vision of the world, the more the world's population can begin to get behind the sustainability movement and embrace it as a standard that all civilizations around the globe should promote.

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