Sustainable Development, Leadership, and Innovations

Dalia Streimikiene, Asta Mikalauskiene, Remigijus Ciegis

• Publisher: CRC Press
• Year: 2019
• ISBN:
  9781000755145
• Edition: 1
• Topic: Scienze biologiche
• Subtopic: Scienze ambientali

This book deals with the main challenges of sustainable development and the role of sustainable business and corporate social responsibility in implementing these challenges through sustainable leadership and innovations. It includes the economic, social, and environmental dimensions of sustainability and emphasizes the importance of achieving a socio-environmental balance in society. The theoretical frameworks and insights from sustainable development implementations on macro and micro levels, as well as the practical examples and case studies provided to introduce the concept of sustainable leadership and its impact on sustainable business development, are a scientific novelty in the field of sustainability. The book is comprised of six interconnected chapters that sequentially reveal the principal provisions of sustainable development, corporate social responsibility, and sustainable leadership, together with their correlations.

Features:

• Provides cutting-edge examples and case studies of sustainable leadership, viewed as the most significant means for the creation of sustainable organizational culture
• Includes case studies on the economic, social, and environmental dimensions of sustainability
• Addresses scientific aspects of sustainable development and its challenges
• Discusses issues of sustainable development at different scales, ranging from macro to mirco levels
• Provides policy implications for sustainable business development

The theoretical framework and practical case studies presented in Sustainable Development, Leadership, and Innovations make it an invaluable resource and guide to both the academic and business communities. Business leaders, policy makers, and other professionals, as well as academics and graduate students, will all benefit greatly from this text.

1 Sustainable Development and Organizational Sustainability

1.1 The Concept of Sustainable Development and the Main Dimensions of Sustainability

The concept of sustainable development includes three closely related areas: economy, social environment, and natural environment. All these areas are inseparable in order to encourage sustainable development. Over the last decades, the problems of the loss of natural resources and global environmental pollution have risen sharply. Dwindling, rare, and expensive natural resources, acidification of freshwater bodies, soil erosion, and the ozone depletion, as well as global warming and natural cataclysms related to it—these particularly sensitive global environmental problems have encouraged world governments to implement sustainable development policies and businesses to introduce socially responsible and sustainable business ideas in their activities (Raworth 2012; Nykvist et al. 2013). In addition to global environmental problems, there are a number of sensitive social issues in the world such as famine, poverty, high morbidity and mortality rates, social inequality, and the constant increase in social tensions (Tepperman and Curtis 2003). These issues are closely linked to the increased risk of terrorism and the threat of dictatorial regimes to peace and security around the world. The concept of sustainable development plays an essential role in today’s unstable world as its objectives are in line with the development interests of all countries and promote cooperation between countries in order to ensure the sustainable future of humanity.

The concept of sustainable development was formalized in 1987, following the publication of the report by the United Nations (UN) World Commission on Environment and Development named Our Common Future (1987). For the first time, in this report, the term sustainable development was defined and a new qualitative definition of economic growth—rapid and at the same time socially and environmentally sustainable economic growth—was formulated. Thus, sustainable development includes three dimensions: economic, social, and environmental. The concept of sustainable development states that all economic growth must take into account the economic and social aspects and consequences accompanying it (Dearing et al. 2014).

The society and its established systems function in a closed ecosystem and use limited resources, such as water, soil, and biomass; therefore, they must absorb the pollution caused by public activities in the ecosystem (United Nations 2014). Rapid population growth and rapid economic growth, which are related to the increasing environmental pollution and the loss of natural resources, have led to the growing concerns of scientists and the public primarily over environmental issues and, subsequently, over further opportunities for societal development and the achievement of social objectives of sustainable development. The polluted environment and the loss of natural resources have sent the first signals to society of irreversible processes in the world related to economic development; these processes not only may determine the lifestyle of our generation but also may have even greater negative consequences for future generations (Rockström et al. 2009). Therefore, in 1987, in the report Our Common Future (World Commission on Environment and Development, 1987), a vision of future development—sustainable development—was formulated.

According to the UN definition, sustainable development is a type of development that meets the present economic, social and environmental needs of society without compromising the ability of future generations to meet their own needs. Currently, a clear contrast between developed and developing countries exists, and a direct link between poverty and environmental problems has been determined (Steffen et al. 2015). It has allowed us to extend the content of sustainability together with the concept of sustainable development. In 1992, at the UN Conference on Environment and Development in Rio de Janeiro, the main sustainable development provisions were made and an action program of sustainable development implementation—Agenda 21—was approved.

Thus, fundamentally sustainable development provides a better quality of life for our generation as well as those in the future (Elliott 2005). Quality of life includes such important aspects as the environmental conditions, state of personal and public health, security, material welfare, psychological well-being, emotional condition, social ties, etc. Moreover, the improvement of the environmental condition is not an end in itself, as environmental imbalance sooner or later disturbs economic development and deteriorates people’s quality of life. Therefore, the main objective of sustainable development is to meet the people’s basic physical, material, social, and spiritual needs and to allow them to freely choose, develop, and use their potential (Ciegis 2004). It is possible to achieve it if there is an effective environmental protection and healthcare system, accessible education and information; also, if people have conditions to work and earn money, participate in public activities, etc. Of course, in order to meet the present and future basic needs of citizens and to ensure a high quality of life, it is necessary to strengthen the economy (Ciegis, Ramanauskiene, and Martinkus 2009). However, economic growth and social welfare alone are not enough to make people happy. Society requires opportunities for freedom, choice, self-realization, and spiritual growth. Sustainable development is often equated with such environmental activities as waste sorting, recycling, biodiversity protection, etc. Nevertheless, the concept of sustainable development is much broader and essential aspects of human social development and improvement should not be forgotten.

The World Bank defines sustainable development very succinctly, as a development that continues. In 1992, in the Rio de Janeiro Declaration on Environment and Development, sustainable development was described as a long-term continuous “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (Keating 2004). These two definitions reveal that the World Bank defines sustainable development only as a continuous process, while the Rio de Janeiro Declaration emphasizes not environmental or economic but continuous societal development, which can be achieved by employing three essential and equivalent components (environmental protection, economic growth, and social development).

Sustainable development is often described as the result of growing awareness of the common interface between environmental problems and socio-economic issues related to poverty, inequality, and concerns about healthy future humanity (Hopwood, Mellor, and O’Brien 2005; Mauerhofer 2008). According to this definition, sustainable development is understood as the result of the successful solution of environmental, social, and economic problems. In modern times, sustainable development is first perceived as the desire of humanity to stimulate a coordinated development all around the world, in every country, and in all areas of social life, that brings about harmonious and minimized harm to the human and environment as well as minimizes social opposition. Sustainable development is based not only on a high level of environmental protection and environmental quality improvement but also on the competitive social market economy and an effort to achieve significant social progress (United Nations General Assembly 2012). Although sustainable development can be interpreted in different ways, the main point stays the same: it is a never-ending process seeking a compromise among environmental, economic, and social objectives of society, and enabling general welfare for present and future generations within the limits of permissible impact on the environment (World Business Council for Sustainable Development 2014).

According to the Academic Dictionary of Lithuanian, the word “develop” means to grow, mature, become stronger and more complicated than before; it includes both quantitative and qualitative changes. Meanwhile, in terms of development in the context of sustainable development, one of the most frequently discussed issues is whether economic growth and sustainable development are compatible and whether the growth can be seen as a part of the sustainable development process. In the report of G. H. Brundtland (Our Common Future), economic growth is viewed as an indispensable condition of development and it is indicated that only economic growth can ensure a successful solution to poverty and environmental pollution problems. In the report, recommendations are even provided for maintaining high rates of economic growth. Developing countries should maintain stable economic growth rates of 5–6 percent, while developed countries should “slow down” their economic growth by halving current economic growth rates (World Commission on Environment and Development, 1987).

Though the problems and main purposes of sustainable development vary in different countries and regions, the concept of sustainable development still includes three essential equivalent components: environmental protection, economic development, and social development (Spangenberg 2002a, 2002b). Only such development can guarantee security for people and make them happy. Although the concept of sustainable development usually refers to the three main components, one element that is not directly mentioned can also be distinguished: the institutional one; this element includes formalization, validation, maintenance, and support of solutions of economic, environmental, and social problems as well as the creation and adaptation of infrastructure, etc. Institutions play an important role in the implementation of economic, social, and environmental objectives of sustainable development. The high quality of institutions and the developed institutional capital allow countries to achieve their sustainable development aims more successfully. Successful compatibility of economic, environmental, and social objectives can only be achieved by creating a favorable institutional environment, as the institutions and their decisions influence economic, social, and environmental dimensions, whereas these dimensions have an impact on the institutions (Spangenberg 2002a, 2002b; Hajer 2011). It can be said that sustainable development is not possible without the participation of institutions, not only in solving the specific, identified challenges but also in making decisions at various levels that are important for sustainable development.

Notwithstanding that all the components of sustainable development and their enveloping institutional dimension are united by the overall purpose of sustainable development, each component has its own objectives and specific functions (Pattberg 2012). Economic sustainability primarily focuses on material needs and their fulfilment since the economic approach of sustainability covers the requirements of sufficient and stable economic growth, such as preserving financial stability, low and steady inflation rates, the ability to invest, and innovations; in addition, it requires the integration of economic activity and productivity of ecosystems. Thus, economic sustainability not only is business oriented, which should provide long-term benefits that contribute to people’s financial welfare, but also must take into account the efficient and responsible use of natural resources (Mikalauskiene and Streimikiene 2014).

It is obvious that economic growth has an impact not only on the environment but also on the social development of society. The positive consequences of social economy development are the following: the improvement of living standards, income redistribution, poverty reduction; the negative ones are: unfavorable lifestyle changes, private costs, and social costs. Therefore, the economic dimension of sustainable development includes such development which creates conditions for long-term, stable economic development by using available resources more efficiently.

Environmental aspects of sustainable development include pollution control, cleaner and sustainable production, eco-design, waste reduction, etc. The environmental aspect of sustainability is mainly focused on integrity, productivity, and preservation of the stability of biological and physical systems (Ciegis 2004, 2006). The environmental sustainability first seeks to ensure the protection of the environment so that natural resources are preserved and accessible for future generations. The environmental sustainability is based on the fact that people can exhaust or exploit too many natural resources without leaving anything for future generations, only contaminated water, impoverished soil, and cut-down forests. Hence, the environmental dimension of sustainable development is directed at development in which the environmental and natural resources are used wisely and effectively, in this way preserving them for future generations.

Sustainable development is impossible without social sustainability, which means a free, democratic, healthy, secure, conscious, and righteous society based on social inclusion and cohesion and which respects fundamental rights and cultural diversity, as well as ensuring equal opportunities and combating all forms of discrimination. Thus, social sustainability promotes social development, justice, and at the same time seeks to strengthen corporate social responsibility. In addition, the role of local communities, their knowledge, experience, traditions, and participation in order to achieve sustainable development, is also very important. The social aspect of sustainable development can be analyzed as the development of human capital, which is related to the entirety of human possibilities, but not to the interaction among people and the rules they follow that are described by the before-mentioned institutional dimension of sustainable development or institutional capital (Elzen, Geels, and Green 2005).

If the components of sustainable development do not cooperate, the enveloping institutional dimension of all these components, which aims to achieve the best-balanced results in economic, environmental, and social aspects, has not been successfully achieved. Therefore, every component of sustainable development is important; however, in order to understand the process of sustainable development, the best option is to analyze not the individual parts of the process but their interaction. In addition, when analyzing the process of sustainable development, one should pay particular attention to the institutional dimension since only effective and well-functioning institutions can provide the basis for sustainable development (Pfahl 2005). In the context of sustainable development, institutions include the legal structure, formal and informal markets, and various public bodies, as well as interpersonal networks, rules, and norms that are followed by members of society. The institutional dimension not only influences other dimensions and their coordination but also connects them into one entirety.

Thus, the implementation of sustainable development requires high-quality institutions to ensure good governance, which can be associated with the best possible decision-making and the process of its successful implementation at all levels. Good governance of sustainable development should be displayed in national, regional, and organizational levels because, in order to implement the objectives of sustainable development, effective, transparent, and democratic institutions are necessary at all levels (United Nations 2018). Good governance is impossible without public participation. It should be emphasized that the basis of implementation of sustainable development in each country is an appropriate environmental, social, and economic policy that is impossible without the broad public participation not only in addressing specific problems but also in making important decisions for sustainable development at various levels. This policy should be effective and send appropriate signals to market entities (business, residents) primarily promoting clean and sustainable production together with sustainable and responsible consumption (United Nations 2018).

In summary, although there are different interpretations of the concept of sustainable development and various explanations of the dimensions of sustainable development, the content of this concept remains the same: to seek economic, environmental, and social sustainability. Management of sustainable development is a complex process consisting of such elements as the number of organizations, political instruments, and financial mechanisms, as well as rules, procedures, and norms that regulate sustainable development processes at all levels.

The majority of EU and other developed countries pay increasingly more attention to sustainable development as well as sustainable and socially responsible business development. Strategic documents of countries’ sustainable development, including the sustainable development of transport, industry, agriculture, and other areas, are prepared or included in other programs, where the emphasis is on environmental aspects and economic and social aspects which are associated with them. Many governments all over the world have established a variety of institutions to help the industries implement sustainable development measures and raise their qualification in this area—for example, setting up cleaner production centres or special departments providing technical assistance for companies interested in green businesses. The activities of these departments aim to build the trust of companies and ensure that they receive all the necessary information related to the installation of cleaner production measures and their benefits. Increasingly, more attention is being paid to scientific and technological progress as well as innovations; appropriate programs have been created and specific support measures have been applied, while the entities are encouraged to create and use new, effective, resource and energy-efficient technologies which are neutral in terms of pollution; they are financially supported and other measures of encouragement are applied, such as social marketing, dissemination of information, publicity, various awards, etc.

In Lithuania, environmental legislation is practically in line with the EU standa...