sustainability

What is Sustainability?

The most widely known and used definition of sustainability is “the development that meets the needs of the present without compromising the ability of future generations to meet their own needs,” as taken from the World Commission on Environment and Development. This definition emphasizes the importance of environmental quality and the conservation of nature’s assets in consumption. Sustainability has also been defined, in general, as consumption that can continue indefinitely without the degradation of natural, physical, human, and intellectual capital. Underlining each definition of sustainability is what is referred to as the Triple Bottom Line, a perspective based on three important dimensions: environmental quality, social equity, and economic prosperity. The Triple Bottom Line of sustainability is the implication that assessment of business results should be based on not only economic performance, but also on environmental and social impacts as well. The environmental quality dimension has its focus on firm activities that do not erode natural resources through corporate environmental management. The social equity dimension of the Triple Bottom Line encourages firms to consider their impact on society. Finally, the economic prosperity dimension centers on the value creation and enhanced financial performance of a firm’s activities. Economic prosperity implies that maintaining sustainability can lead to economic success and enhancement to the firm’s reputation.