Almost all corporate giants have named sustainability as a key priority moving forward. However, most small and medium-level companies are not yet clear on what corporate sustainability really means. The three main pillars of understanding corporate sustainability are the environmental; the economic; and the social.  

These have become known as the pillars of corporate sustainability because each of them is needed to support sustainable goals. These three pillars are informally referred to as people, planet, and profits. So, let us look at each of them in detail:

The Environmental Pillar 

The environmental component frequently receives the greatest focus. Many businesses are working to minimize their water use, packaging waste, carbon footprints, and other environmental harm. These actions can benefit the economy in addition to the environment. Reduced costs on packaging materials, for instance, and increased fuel economy also assist the company’s budget. 

A company does not account for its influence totally. Thus, the externalities are not reflected in consumer pricing. It is one of the difficulties with the environmental pillar.  

Since businesses are not always held responsible for the garbage they make, it is difficult to estimate the total expenses of wastewater, carbon dioxide, land reclamation, and waste in general. Benchmarking is used to attempt and quantify these externalities. 

The Social Pillar 

The social pillar is related to social license, another ill-defined idea. Employees, shareholders, and the community in which a firm operates should all be in favor of it. There are many ways to gain and keep this support, but ultimately it boils down to treating employees fairly and acting responsibly in both the local and global communities. 

Businesses are refocusing their efforts on employee retention and engagement methods. They do this by offering more flexible perks such as greater maternity and family benefits, flexible scheduling, and chances for learning and development. Companies have developed a variety of strategies to give back to the community. This includes fundraising, sponsorship, scholarships, and investment in regional public initiatives. 

A company must be aware of how its supply chain works on a worldwide social scale. Does everyone receive a fair wage? Is the workplace secure? Public outcry over tragedies like the Bangladesh factory collapse has caused many of the major retailers to grapple with this. 

The Economic Pillar 

Finally, let us look at the economic pillar in detail. Most firms consider their footing to be secure in the economic pillar of sustainability. A firm must be lucrative to last. Profit, however, cannot be put above the other two pillars. In actuality, the economic pillar is not at all about maximizing profit at any cost.  

Compliance, effective governance, and risk management are examples of activities that fall within the economic pillar. While most North American businesses currently consider them to be minimum requirements, they are not the industry norm.  

Also known as the governance pillar, this pillar emphasizes sound corporate governance. Basically, this indicates that the interests of shareholders, the company’s community, value chains, and end-user consumers align with those of the boards of directors and management. 

Generally, investors are interested in the governance of a firm. Basically, this includes knowing whether it employs accurate and transparent accounting practices and whether it allows stockholders to participate in voting on significant matters. 

Incorporation of the economic pillar and profit makes corporate adoption of sustainability solutions feasible. The economic pillar acts as a check against excessive steps that businesses may take. This includes immediately quitting fossil fuels or chemical fertilizers instead of adjusting gradually.