ABSTRACT
This chapter explores the principles of sustainability and identifies important stakeholder relationships. It introduces a framework—the Corporate Sustainability Model—to guide managers in measuring and managing sustainability performance. This framework provides a tool for the implementation of corporate sustainability and the evaluation of corporate impacts. The evaluation of social, economic, and environmental impacts of organizational actions is necessary to make effective operational and capital investment decisions that positively impact organizational objectives and satisfy the objectives of multiple stakeholders. Transparent companies broadly identify their stakeholders. The governance principle is a commitment to manage all resources conscientiously and effectively, recognizing the fiduciary duty of corporate boards and managers to focus on the interests of all company stakeholders. Companies must encourage reciprocity in their relationships with suppliers, by treating them as valued long-term partners in enterprise, enlisting their talents, loyalty, and ideas.
