By D. Crowther
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Extra info for Corporate Social Responsibility
X Conservation of the environment, which is essential for maintaining the options available to future generations. This maps onto the environmental impact aspect. x Ensuring social justice, which will include such activities as the elimination of poverty, the ensuring of human rights, the promotion of universal education and the facilitation of world peace. This maps onto the societal influence aspect. 7 Distributable sustainability At this point we deliberately use the term distributable sustainability in order to reflect one of the key components of this argument.
Dedicated Analytical Solutions FOSS Slangerupgade 69 3400 Hillerød Tel. 9 Conclusions The two key components of durability – or durable sustainability – therefore are efficiency and equity. But efficiency needs to be redefined to prioritise the efficient use of environmental resources rather than the efficient use of financial resources. And equity requires as a minimum the satisficing of all stakeholders, and not merely the provision of returns to owners and investors. These are the prerequisites for sustainable development.
For example an employee can choose to leave the employment of the organisation and therefore is a voluntary stakeholder. The local society or the environment are not able to make this choice and must therefore be considered to be involuntary stakeholders. 5 Stakeholder Theory The argument for Stakeholder Theory is based upon the assertion that maximising wealth for shareholders fails to maximise wealth for society and all its members and that only a concern with managing all stakeholder interests achieves this Stakeholder theory states that all stakeholders must be considered in the decision making process of the organisation.