The growing importance of sustainability in business

As Loyola University Maryland celebrates Earth Month, two professors from the Loyolas Sellinger School of Business define and discuss sustainability and its growing importance for organizations, different business disciplines, and the planet. Stacy Chavez, Ph.D., assistant professor of accounting, and Astrid Schmidt-King, JD, teaching assistant professor of management and organizations, specialize in sustainability management, corporate social responsibility, measurement and sustainability reporting and international trade.

What is sustainability? Why is it important?

Chávez: Sustainability can be defined in several ways depending on the context. Business sustainability refers to an organization's ability to survive and thrive in the future. More commonly, and especially during Earth Month, sustainability refers to longevity and the ability of people and the planet to survive, to use only what we need to preserve the future.

It is not possible for a single person to act in a way that will preserve our world for future generations. The more we know about how to become a better global citizen, whether it's recycling and reducing waste or simply seeking knowledge about how our actions have a domino impact on the world, the more we can be a positive force.

Why should organizations work towards sustainable development?

Schmidt-King: Sustainability exists on many levels: individual, organizational, societal and global. Not only are organizations, businesses and businesses able to be agents and drivers of innovation and impact, but a sustainable future is a prerequisite for their own survival. Given the scale, scope and activities of businesses, they can create and adopt sustainable business practices that serve and support their business and stakeholders, including the well-being of the ecosystem. Organizations are realizing that doing well and doing good are not mutually exclusive terms. Businesses can find a balance between the two and, in doing so, become leaders in sustainability.

What are the different types of sustainability?

Schmidt-King: Sustainability is a broad term that can pose a challenge and an opportunity. In 2015, the United Nations created 17 Sustainable Development Goals focusing on dimensions of sustainability including people, planet, prosperity, peace and partnerships. For businesses and organizations this has translated into terms such as Triple Bottom Line PPP for People, Planet and Profit and ESG for Environment, Social and Governance and calls on businesses to become aware of their role and responsibility in promoting sustainable strategies and sustainable development. Our Sustainability Management specialization at the Sellinger School of Business views sustainability as how businesses deliver value to people, the planet, and profits while creating and maintaining competitive advantage.

How do different business disciplines support sustainability?

Chávez: All business disciplines have a role to play in supporting sustainability. Examples include considering green businesses or initiatives in financing and investment decisions, appropriate messaging and management of sustainability initiatives to prevent greenwashing or misleading claims, and accounting to help measurement, information assurance and data presentation.

Schmidt-King: McCormick & Co. and Pompeian Olive Oil visited Loyola to speak to our students about their organization's integration of sustainability into their business practices and strategies. From management to marketing, collecting and evaluating data, reporting and understanding global trends in areas such as climate and geopolitics, sustainable development requires collaboration not only across disciplines, but also between organizational divisions.

How do organizations measure and report sustainability?

Chávez: The world of sustainability reporting is like the Wild West. Companies may feel pressure from their stakeholders, investors, customers, employees, etc., to report on certain activities, or they may report based on their mission or ethics. Unlike financial reporting, sustainability financial reporting is not yet universally mandatory or mandated, so companies have some autonomy over what they choose to report on, how often to whom they report, the published guidelines they use to measure their impact and the format of their report. . We are starting to see proposals for mandatory emissions disclosure (GHG), which is the first step towards more uniform reporting on sustainability.

How does sustainability follow the Jesuit commitment to caring for our common home?

Schmidt-King: Laudato Si is the name of Pope Francis' encyclical on caring for our common home, planet Earth. It calls to action every person living on this planet and calls for an integral ecology that takes into account the interdependence of environmental, economic, political, social, cultural and ethical issues. In 2021, Loyola University Maryland joined the first cohort of Laudato Si universities, committing to responding to the cry of the earth and the cry of the poor by fostering ecological economics, adopting sustainable lifestyles, promoting ecological education, fostering ecological spirituality and building community. resilience and empowerment.

Why should students study sustainable development?

Chávez: Students should study sustainability because it is quickly taking root in the corporate world. Have knowledge of vocabulary, reporting frameworks, industry specific impacts, etc. will help students succeed and contribute to their chosen path. For example, the accounting industry expects Loyola freshmen in the Class of 2027 to be involved in auditing sustainability information during their first year of employment. The focus on sustainability is growing in all its aspects, so it is imperative that our students are aware of the issues.

Schmidt-King: Not so long ago, sustainability was just another thing a business could consider. Now it is an integral and ingrained part of an organization’s strategy and operations. I am proud that Loyola University Maryland was the first institution in Maryland to create a sustainability management major. It is a path that empowers students to succeed by doing good, and provides a career path that highlights the critical role of business in achieving meaningful change.

Loyolas Sellinger Business School launched the Bachelor of Business Administration in Sustainability Management in 2020. At the graduate level, MBA Emerging Leaders students participate in a sustainability symposium that addresses the question: how can competent, credible and sustainable emerging leaders confident contribute to the creation of sustainable value for all stakeholders? Conference participants obtain certification in ESG reporting.