ABSTRACT
Chapter 5 presents five stages of sustainability governance, beginning with a reactive approach towards sustainability. In this case a company only deals with social and environmental issues when it is forced to. The next stage is called “compliance” and represents a follow-the-rules attitude. A third stage is called “risk management”, in which a company addresses legal as well as reputational risks. The fourth stage is “proactive” – the board starts to discuss current sustainability risks as well as opportunities. Lastly, the fifth stage is called “trailblazer” – the board is recognized for its leadership in sustainability and for taking a long-term view. Based on these stages the chapter concludes with a short self-assessment, allowing companies to evaluate their current stage of sustainability governance.
