Social and Cultural Sustainability
Businesses generally work in the interests of their owners.
However, societal expectations, the law and the market force
them to recognise responsibilities to their other stakeholders
such as their workers, customers, suppliers and the
communities in which they operate.
Sustainability is defined as the capacity to endure. It is about meeting the needs of
today without adversely impacting on the needs of tomorrow.
Social and cultural sustainability means that businesses take care of the community
and their employees, and ensures that their values, beliefs and customs are respected
and maintained for future generations.
Social sustainability is about people’s quality of life, now and in the future. It
describes the extent to which a business supports individual and collective wellbeing. Cultural sustainability is aimed at raising and recognising the significance of
the culture within local, national and global businesses.
SOCIAL RESPONSIBILITY AND BUSINESS ETHICS
For many businesses social responsibility is an increasingly important issue. More
and more consumers are demanding goods and services are produced in sustainable
ways, which care for the environment, employees and society. It's a demand
increasingly reinforced by government legislation in a growing number of countries.
However, operating in a responsible way may also improve a firm’s reputation,
working conditions and staff retention, while reducing risks and waste.
If there is a strong culture of caring towards all the stakeholders, there is more likely
to be a strong social and ethical culture. In businesses where the emphasis is mainly
on financial targets, social and ethical issues may play little part in decision-making.
There is a direct trade-off between the interests of different stakeholders.
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As an example, Generosity Ltd donates $1m per year to the Starship Foundation.
The opportunity cost of this is $1m not paid to shareholders as dividends, or to
employees in higher wages. The best case scenario for a socially responsible
business is to choose a course of action that benefits all stakeholders.
In contrast, Fantastic Fizzes Ltd sponsors children’s swimming programmes. If
this sponsorship leads to an increase in fizzy drink sales, shareholders and
employees can benefit through higher dividends and more jobs. Families in the
community benefit from free swimming lessons for children. But there are
disadvantages of this sponsorship. It could encourage customers to drink more of
the unhealthy fizzy drinks. Some people might also accuse the company of
sponsoring swimming lessons only as a slick public relations exercise.
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Corporate Social Responsibility (CSR)
The phrase CSR is now commonly used to describe an
organisation's commitment to operating in an ethical way, taking
into account profit, people and the planet.
A business can demonstrate CSR by actions such as:
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Treating workers fairly, including workers in foreign countries.
Using environmentally sound practices in energy consumption, waste and
recycling.
Operating in an open, accountable and transparent way and showing concern for
employees and the communities and societies in which the firm operates. For
instance, the business may contribute to some development project in a country,
such as providing clean water or developing the work skills of worker in host
countries.
Complying with local laws and regulations and avoiding corrupt practices such as
giving or receiving bribes.
Living up to commitments. This would start with supplying quality goods and
services that meet or exceed the claims made about them.
Demonstrating good business practice, for example, by invoicing and paying bills
on time, delivering what was promised, exceeding expectations.
In an effort to become a better “corporate citizen” a business might carry out a social
audit. This is a way of measuring and reporting on the firm’s social and ethical
performance. A social audit moves away from the traditional way of measuring a
company’s success ~ revenue, profit and dividends ~ towards looking at the firm’s
impact on the environment, its workforce, suppliers and wider community.
Look at the community and development report for The Warehouse for 2010.
The Ministry for the Environment [www.mfe.govt.nz] states that:
“Sustainable businesses are competitive businesses
 A competitive edge ~ Customers and investors are increasingly looking beyond
the balance sheet before making a choice about where to place their business.
Creating cleaner business practices can strengthen and build your brand, giving
you a stronger identity and a reputation that you can be proud of and promote to
customers. This may help to build your market share and even open up new
markets.
 Market leverage ~ Many large businesses are conscious of enhancing their
corporate image and are increasingly choosing suppliers with environmental,
social and cultural values and practices that match their own. Consumers are
actively selecting and paying more for products that they believe are less harmful
to the environment. Government is also applying environmental criteria when
selecting a supplier.”
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Developing a sustainable business
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Start with a strategy (a carefully written plan or an informal set of values). The
strategy must reflect the firm’s commitment to economic, environmental, social
and cultural ideals.
Place people at the centre of the business. Family-friendly employment policies,
flexible working conditions and access to training will help to make workers feel
valued and content.
Ensure there is sufficient capital to invest in the sustainability model. The
investment is likely to be rewarded by savings from efficiencies and increased
profits from the improved business image.
CULTURAL SUSTAINABILITY
The challenge for many businesses, especially Maori, is how to balance cultural
enrichment, e.g. retaining strong elements of traditional culture, with more modern
elements of advancement such as growth and economic development.
Example
Landcare Research is a crown research institute
with its head office in Lincoln, Canterbury.
Landcare’s primary goal is to protect and enhance
the land environment and grow NZ’s prosperity.
The business’s Maori name, Manaaki Whenua, means to care for the land in the sense
that the environment is inextricably linked to economic, societal and cultural wellbeing. Māori are tangata whenua, the indigenous people of Aotearoa New Zealand,
with whom Landcare consults and collaborates.
Sustainability is embedded throughout the organisation and is evident in its research
focus and its day-to-day operational activities. Each year Manaaki Whenua fully
reports on the extent to which their sustainability goals have been met.
More information about Landcare Research and its sustainability practices can be
found at http://www.landcareresearch.co.nz/home
The organisation’s cultural performance indicators are:
Governance
Priorities, goals and objectives are determined by
directors and managers working cooperatively with an
ancestrally or tribally related constituency, and reflect the
origin and purpose of the business.
Key performance indicators (KPIs) include:
 Maori values are recognised and endorsed by the
board of directors
 The business measures and reports its economic,
environmental, social and cultural performance
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Cultural
practices/tikanga
Economic
Environmental
sustainability
Social
Spiritual
To what extent does the organisation play an important
role in retaining, promoting and advancing cultural values,
practices and activities?
KPIs:
 State the degree to which cultural heritage and values
are taken into account in decision-making
 Identify a list of cultural taonga (treasures) within the
business where cultural heritage is recognised,
protected, conserved and promoted
 Provide examples of activities that advance cultural
training/ cultural practice/tikanga in the workplace
Are profits used to advance and reinforce cultural values?
KPIs:
 Proportion of spending of profit and revenue to
integrate cultural values within the organisation
 Proportion of spending of profit and revenue to
achieve cultural goals and objectives
Does the organisation play an important role in
environmental and cultural guardianship?
KPIs:
 Describe kaitiakitanga practices in place to achieve
sustainable best practice
 Identify kaitiakitanga practices in place to safeguard
and protect cultural values, such a culturally significant
areas and cultural sites
Is the success and wealth of the organisation redistributed
back to the community, shareholders and stakeholders?
KPIs:
 List training and educational funding to promote
employment opportunities
 Identify the number of jobs created and the proportion
of Maori employed
 Provide examples of savings schemes or bank loans for
shareholders, businesses or as part of tribal or
development or social capital initiatives
Does the organisation have a soul?
KPIs:
 Identify cultural frameworks and policy that define the
organisation’s commitment, sensitivity and adherence
to cultural practices and protocols (i.e. tikanga and
kawa)
 Provide examples where cultural values are
incorporated and practised routinely, with the aim to
increase cultural awareness and understanding.
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