ABSTRACT
In Chapter 6 we showed that there are many drivers for change for business to embrace sustainability; there are many win–win options for most business. Chapter 6 also showed how Porter's 5 Forces Model provides a framework within which to understand how sustainability strategies could help business. Shaun Mays, in his report Corporate Sustainability: An Investor Perspective, 1 points out that ‘in assessing the external environment, approaches such as Porter's five forces are used. However, most companies and analysts also look at the political and social environment when looking at the future of the industry in which they operate. Sustainability provides a framework in which to assess this “sixth force”; 2 the political and social forces that are also driving a company's external environment.’ (See Figure 8.1 for key sustainability principles and characteristics of less and more sustainable companies.) By way of example, Mays refers to the Canadian based CIRANO research centre's industry level study looking into environmental regulation and productivity. 3 Regulatory change is one of these additional political and social drivers that are additional key reasons for business to change. We consider some of these in detail now, starting with changing consumer demands.
