Transformation of Business Organization Towards Sustainability

This chapter starts with a short history on the development of the definition of sustainability. The analysis of different sustainable development definitions where economic activity should be seen not as an end in itself, but rather as a means for sustainability-advancing human capabilities is provided. The main features of conventional economics and addiction to growth as a favoured way to assert our creative power and critical analysis is presented as well. The main steps for transformation from standard neoclassical economic paradigm towards sustainability are discussed and dilemma of growth is formulated.

Reducing unsustainability is not the same as creating sustainability and in most cases this is just attacking the symptoms. Therefore, it makes great sense to prevent and remove the causes and sources of unsustainability. One of the most effective approaches in this case is resource efficiency and cleaner production method. The new systems that are generating preventive incremental innovations, financing, and implementation are elaborated and presented. Data from practical experience clearly shows that the use of integrated management reduces unsustainability by application of preventive incremental innovations to processes, products, and services, while significantly increasing the production efficiency through optimisation of natural resource consumption at different stages of production, minimising the generation of waste and emissions, and fostering safe and responsible production which leads to economic, reputational, and regulatory benefits. The chapter concludes with the integration of sustainability issues into training programs and university curriculum and future of sustainability science.

This chapter gives short description of the 2030 Agenda for sustainable development “Transforming our world”, 17 goals, and the Global Sustainable Development Report “Future is Now—Science for Achieving Sustainable Development” produced by the UN Independent Group of Scientists, appointed by Secretary—General. The mathematical formulation and structure of systems for economic and social transformations are presented. New views on consumption and production, role of markets, role of state, social responsibility, climate change, human’s health, GDP, localisation, investments, and governance are discussed. Based on systems theory, the final conclusions and discussions on three types of management/control systems that facilitate sustainable development are presented: (I) systems for unsustainability reduction at the level of enterprise, (II) systems for management of socio-economic transformations on the regional level, (III) decision-making support systems for governance.

This chapter concentrates on theoretical insights regarding corporate transition and commitment to sustainability and social responsibility. Initially, considering that the concept of CSR is dynamic and acquires new shapes and facets which reflect the maturity of the society, the historical evolution of CSR is described and variety of CSR definitions is presented. Next, as CSR has its roots in the stakeholder theory, the general review of stakeholder theory is provided and four stakeholder groups, namely employees, potential employees, customers in B2B context, and consumers are briefly described. Then, CSR transitions are analysed as long-term changes that are multi-dimensional and fundamental transformations of organisational systems towards more sustainable patterns of productions and consumption. Finally, the scientific literature is advised for the drivers and tensions of sustainability transitions followed by a discussion.

This Chapter of the monograph concentrates on the empirical insights regarding obstacles and drivers of organisations vested in sustainability. The context of transitioning economy of Lithuania is presented as it does pretty well being the leading country in the EU by GDP per capita growth since 2000, that, however, struggles to meet the EU and local sustainability requirements. Followingly, prior research of the authors that are dedicated to exploring CSR perception of different stakeholders of the organisations are presented, including employees as inner drivers, potential employees as drivers, B2B partners, and importance dedicated to sustainability by millennials. Consecutively, the empirical research methodology and results of the research on drivers and obstacles of CSR-oriented organisations are defined. Semi-structured interviews revealed that the main barriers of the 18 analysed organisations were determination, organisational culture, definition, narrow vision, employees, customers, economic profit vs. sustainability, environmental concerns, large vs. small, flawed practices, society, context, global challenges, communication, and leadership; main drivers include organisational image, leadership, employees, customer demands, stakeholders, risk management, corporate financial incentives, new prospects, competitive advantage, communication, regulations, and bad practice. Some of the barriers and drivers are ambidextrous, sometimes resulting in tensions, pointing towards the need to manage sustainability transitions.