ABSTRACT

This chapter discusses the importance of leadership in communicating corporate commitment to sustainability. It also discusses the critical role of leadership in developing and implementing sustainability. The chapter explains how socially responsible investment and rating systems can influence sustainability strategies. Effective and consistent leadership provides an alignment between environmentally and socially responsive activities and corporate goals and provides internal credibility to promote progress toward improved social and environmental management within business units and organizational functions. The development of a strong corporate sustainability strategy is critical to changing corporate culture and reducing potential negative impacts. The commitment of the board and management to the enforcement of sustainability principles and development of organizational systems can encourage all employees to comply with company strategy. Corporate sustainability strategies are used to set corporate policies, change corporate culture, and integrate sustainability impacts in managerial decisions at all levels, in all facilities, and at all geographic locations of the organization.