THE ECONOMIC ASPECTS OF SUSTAINABLE DEVELOPEMENT

Abstract

The need for sustainable development increasingly affects the behaviour of the corporate sector. The main influencing factors include an expanding regulatory framework and more stringent environmental protection standards. However, if a better match between the corporate behaviour and the principles of sustainable development is to be achieved, businesses themselves will have to be active in seeking ways of meeting social, environmental and economic objectives. Corporations seeking to exercise sustainable development must make sustainable development a part of their strategic planning. The contribution presents the substance of value oriented strategic planning. Delivering value to shareholders is presented as the primary responsibility of corporation. The contribution specifies some types of real benefits derived from sustainable development activities. The attention is addressed to the benefits in the form of reduced expenses in manufacturing, increased revenues, and reduced risk. It is shown that there are good reasons to support shareholders value not only with regards to shareholders but in respect to other stakeholders. Stakeholders are presented as key drivers of business value. Potential benefits created through collaborative stakeholder relations and main specific competencies required for value creation are outlined. Finally the process of sustainable value creation is presented. The characteristic of the competencies and the process of sustainable value creation follow the conception presented in the book Sustainable Company written by Ch. Laszlo. Methodology of sustainable value creation is demonstrated. Following particular steps of the methodology are described: understanding of current position, prediction of future expectation, setting of sustainable value goals, designing of value creation initiatives, developing of the business case, assuring the value, validation of results and building sustainable value capacity.