RESOURCES
RESOURCES: PAPERS & PRESENTATIONS
| Author : | Candice Hunter & Kevin Mearns |
|---|---|
| School/Work Place : | University of South Africa |
| Contact : | mearnkf@unisa.ac.za |
| Year : | 2016 |
The
world is changing into a place where broader spectra of responsibilities are
now being embraced. A significant realisation has grown throughout the world
that the Earth’s natural resources are scarce. Industrialisation and economic
growth has provided worldwide prosperity. The increasing evidence of negative
impacts caused by climate change has given rise to persistent environmental
concerns, particularly caused by the global reliance on fossil fuels and
limited energy and water supplies (Gummer & Goldsmith, 2007). There is vast
evidence of devastating effects that humans have had on the environment
(Schmidt-Traub& Sears, 2005). Economic development has also resulted in
both positive (emergence of middle classes, better water and electricity supply,
better transport systems and education) and negative social impacts around the
world (high levels of poverty, youth unemployment, shortages of housing and
other social resources). Protests against these negative social issues have
encouraged institutional and corporate efforts to address environmental and
social concerns, resulting in more organised interventions and incentives for
people, companies and governments to change their behaviours and actions that
are creating negative social and environmental effects. However, there is still
a continuing need to address the environmental and social changes as humans are
dependent upon the natural environment and its resources to achieve human
development goals. All the environmental and social problems will have a direct
effect on every human being around the world unless steps are taken to mitigate
and reverse negative environment impacts. It is unsustainable to continue to
‘practice as normal’ focussing only on economic gains. It is crucial to look
after the environment and society through changes in behaviours, practices and
activities. “Sustainable development had a profound influence on the way people
now perceive themselves as an integrated part of the environment: people are
increasingly aware that their activities have a significant impact on the
environment (Mearns, 2012: 7851).” A strong call for the implementation of
sustainable development and triple bottom line reporting has been made. A new
focus on companies’ environmental and social impacts have grown in the
corporate world. Corporate impropriety resulted in calls for corporate
transparency and accountability, which has led to the rising demand for
corporate social responsibility, sustainability reporting and sustainable
development (Freemantle, 2005; Erlandsson & Olinder, 2009). The triple bottom line, was enforced within
the corporate world through several avenues. An influential aspect that has
practically forced companies to implement the triple bottom line reporting in
South Africa is the development of the King Code III on corporate governance.
According to the code, all JSE listed companies are required to comply with the
latest King code, incorporating sustainable development into their business
practices (King Committee on Governance, 2009). With the pressure placed on companies to
enforce the triple bottom line within their business practices, this has
challenged companies to create a balance of economic, social and environmental
priorities. As a consequence to
implementation of sustainability practices, sustainability reporting has become
an important phenomenon amongst corporations. Corporate social responsibility
(CSR) is a focus on corporate governance, especially with regard to sustainable
development and sustainability reporting, also known as triple bottom line
reporting (Aras & Crowther, 2008). This has had an influence on business
activities and the way in which businesses report their activities.
