Why Should Business Be Concerned About Social Sustainability?
What is Sustainability?
Sustainability is a concept that relates to the maintenance and enrichment of the environment, social and economic resources so as to meet the needs of the present and future generations. The components of sustainability are divided into three:
• Environmental sustainability – this requires that all the natural capital remains unharmed. In this regard the environmental source and sink functions should remain un-degraded. This means that the rate of extraction of the minerals should not exceed the rate at which they are renewed and the environmental absorptive capacity to integrate with the wastes should ...view middle of the document...
Some of these companies, like those involved in the extraction of oil, may be forced to start up their small communities in order for them to operate. Such companies have a social responsibility of determining and improving the living conditions of such communities (Ghiara, 2012). This will help in promoting the brand of the business, which is the most essential asset of a company’s reputation in the market. Based on surveys, the willingness of the customer to buy is dependent on the product or the company’s reputation.
Role of Social Sustainability in Market Share
Large organizations have an advantage over the small businesses. As the large corporations are going green on their supply chains, the small businesses that supply them get affected by the environmental and social requirements. Small businesses that are innovative may maintain or gain the market share and be ahead of their competitors, hence helping them gain access to new markets. For instance, the safety concern of the customer on the dangers of the use of the refillable water bottle in 2008 created a market opportunity that resulted into the development of better products for the Klean Kanteen that are more socially adoptive and which could not affect the environment.
Labour Rights are Human Rights
Businesses should have a major concern on the social sustainability because the labour rights are part of the human rights. Business ethics stipulates that every individual has the right to work, to consider having an employment of free choice, justified to have favourable working conditions and be protected against unemployment. Labour rights require that every individual is entitled to equal pay for equal work without any form of discrimination. All individuals who work have a right to a just and favourable remuneration and can join trade unions for protection of their interests. All workers have the right to leisure. This consists of reasonable working hours in a day and being given periodic holidays with pay.
The labour human rights are divided into two, namely, complicity and sphere of influence. A company may be termed as complicit in human rights in an event that it knowingly facilitates the abuse of human rights that are committed by an entity that is associated with it. A company’s sphere of influence includes persons whom the company has connections with in terms of political, economic, contractual or even geographical proximity. The persons may include the employees, nearby communities that dwell near the business operations, consumers, business partners, government and the armed groups that provide security in the territory in which the business operates.
Social Sustainability and Human Rights
It is paramount for businesses to be concerned about the human rights. This is because they contribute at least 25 per cent of the world economic output. FDI by MDCs surpassed the Overall Development Assistance (ODA) in the 1990s. The annual sales of ten largest MNCs are more...