The role of corporate social responsibility in strong sustainability

doi:10.1016/j.socec.2006.12.061

The Journal of Socio-Economics

Volume 37, Issue 3, June 2008, Pages 907-918

https://doi.org/10.1016/j.socec.2006.12.061 Get rights and content

Abstract

The aim of this paper is to analyze to what extent corporate social responsibility (CSR) contributes to strong sustainability, i.e. to what extent the use of natural resources and the environment is possible, given the current level of economic activity. We therefore examine responsibilities that corporations should take in order to fulfil the requirements of strong sustainability. Based on current CSR practices and theory as well as on businesses motivations regarding environmental and social investments, we will introduce the role of corporations in influencing consumption patterns. Furthermore, we will attempt to answer to what extent responsible corporate behaviour is determined by the current economic system.

Section snippets

Weak and strong sustainability

The current burden on the planet's natural resources can result in global climate change, the growth of desert regions, and the homogenization of flora and fauna. There is an old argument among economists about the limits these problems set in light of the future of humanity (Homer-Dixon, 2004). The economic optimists (who think that there are no limits to population, economy, and consumption) and pessimists (according to whom the size of population and global economy is already too high for

Requirements of strong ecological sustainability

The aforementioned interpretations of sustainability are also important from the corporate point of view, since business corporations are the main actors in an economy which transforms natural capital into man-made capital. Based on the two interpretations, there are also two approaches used to measure corporate contributions to sustainability (Figge and Hahn, 2004, Callens and Tyteca, 1999): relative and absolute measures. The first approach investigates efficiency, while the second focuses on

The limits of technologically based concepts

Researchers dealing with corporate sustainability emphasize the role of more effective and less natural resource-intensive (both concerning energy and materials) production methods and systems. Although it is more than only eco-efficiency, which is basically at the centre of business attention (see, e.g. the official documents of the World Business Council on Sustainable Development),¹

A consumption-based view

Concerning the existence of the rebound effect, many authors suggest that sustainability demands more than increased eco-efficiency by technological development. It also requires a change in consumption patterns. Northern societies in particular have been characterized by an enormous throughput of resources and energy for many years: 20% of the world population uses 80% of the material and energy resources annually extracted and exploited. Considering these huge differences in the level of

The role of business in consumption patterns

Natural resource depletion is the result of the activity of three different, closely connected, mutually influencing main spheres: government, the business sector, and citizens and their organizations (NGOs). Although governmental power is at the centre of media attention, it is moreover the business sector which could potentially play the most important role in making a move toward greater sustainability (Hutchinson, 1996, Buday-Sántha, 2002, van Kleef and Roome, 2007, Michaelis, 2003).

The concept of CSR

As mentioned, doubt can be raised on whether the weak concept of sustainability (including eco-efficiency) is in and of itself enough for resource conservation. Strong sustainability seems to also demand sustainable consumption patterns, and business (as probably the most powerful sphere in society) also has its role in contributing to it. We therefore will subsequently examine how the business sector can contribute to sustainable consumption. Our statements are formed on the basis of current

Conclusion

CSR is gaining more importance in today's business life, and its different definitions emphasize its contribution to sustainability. However, internal CSR practices, where most of the CSR resources are spent, mainly focus on relative sustainability and eco-efficiency, while external practices, although concentrating on absolute sustainability, still represent a very low rate of business resources, and mostly only focus on the local level.

Because of scientific uncertainty, the limits of

Acknowledgement

The authors want to thank the anonymous reviewers for their very helpful comments and encouragements that contributed significantly to the development of this paper.