ABSTRACT
This chapter looks at the drivers of sustainability performance, measuring reputation, measuring risk, and measuring social, environmental, and economic impacts. Many social, environmental, and economic impacts may appear to have no market consequences and no financial effect, but many of the externalities are internalized in future periods and do affect the operations and profitability of the firm in the long term. Proper evaluation of the consequences of these long-term impacts when activities are being planned and products and processes are being designed indicates a company's sensitivity to stakeholders that is essential for profitability and sustainability. Measurement is critically important because it links performance to the principles of sustainability and facilitates continuous improvement. The Corporate Sustainability Model offers guidance to managers trying to make the business case for sustainability initiatives. Causal relationships between drivers within the four elements, including inputs, process, outputs, and outcomes as well as between drivers in different elements are based on hypothetical assumptions of causes and effects.
