Governance, Risk and Compliance: Concerns in Sustainability …
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Effective corporate governance implies structuring mechanisms that ensure that
executives respect the rights and interests of stakeholders, as well as those responsible
for the generation and distribution of wealth invested in the company, the shareholders
(Aguilera et al. 2015). For Bajpai and Mehta (2014), corporate governance is a set of
systems, processes and principles that ensure an appropriate company administration
aiming at the best interest of all stakeholders.
With respect to Compliance, the implications are not limited to the internal organizational scope. Implications are also extended to the selection and analysis of
suppliers and business partners, which justifies the need for criteria of best practices
on how to build partnerships. Furthermore, the adoption of internal mechanisms
and procedures for integrity, honesty, and more transparent practices are important
recommendations to prevent illicit acts (Delbufalo and Bastl 2018). Such a position, besides reducing risks, avoids the applicability of punishments, ensures image
preservation, organizational reputation and respective market permanence.
3 Sustainability
Sustainability is a relatively recent issue in the organizational environment. Its inception focused on major environmental disasters that occurred between 1950 and 1990,
such as the Chernobyl nuclear accident, the Great Smog of London and the contamination of Minamata Bay in Japan. These events encouraged a global discussion on
the subject of environmental policy, drawing attention to the need for measures to
ensure sustainable development.
Two main milestones concerning the devastating effects of disorderly growth are
the Stockholm Conference, which gave rise to the discussion of “Development and
Environment”, a concept of “ecodevelopment”, and the Conference on Environment
and Development (UNCED, Rio/92). The latter is certainly one of the most important movements, which promoted the development of Agenda 21, an important step
towards the development of the concept of sustainability, primarily in the business
context.
However, it was prior to these events that the concept of sustainable development
was brought up. In 1987, the Brundtland Commission Report, a document from the
World Commission on Environment and Development (WCED), defined sustainable
development as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (WCED 1987, p. 8).
The World Business Council for Sustainable Development is a coalition of international companies committed to the three pillars of sustainability: social, economic
and environmental.
From the Brundtland Report, other concepts of sustainability have emerged
(Munisamy and Arabi 2015), however, in the scientific field the definition that is
currently most widespread and used as a model is the composition of sustainability
309
Effective corporate governance implies structuring mechanisms that ensure that
executives respect the rights and interests of stakeholders, as well as those responsible
for the generation and distribution of wealth invested in the company, the shareholders
(Aguilera et al. 2015). For Bajpai and Mehta (2014), corporate governance is a set of
systems, processes and principles that ensure an appropriate company administration
aiming at the best interest of all stakeholders.
With respect to Compliance, the implications are not limited to the internal organizational scope. Implications are also extended to the selection and analysis of
suppliers and business partners, which justifies the need for criteria of best practices
on how to build partnerships. Furthermore, the adoption of internal mechanisms
and procedures for integrity, honesty, and more transparent practices are important
recommendations to prevent illicit acts (Delbufalo and Bastl 2018). Such a position, besides reducing risks, avoids the applicability of punishments, ensures image
preservation, organizational reputation and respective market permanence.
3 Sustainability
Sustainability is a relatively recent issue in the organizational environment. Its inception focused on major environmental disasters that occurred between 1950 and 1990,
such as the Chernobyl nuclear accident, the Great Smog of London and the contamination of Minamata Bay in Japan. These events encouraged a global discussion on
the subject of environmental policy, drawing attention to the need for measures to
ensure sustainable development.
Two main milestones concerning the devastating effects of disorderly growth are
the Stockholm Conference, which gave rise to the discussion of “Development and
Environment”, a concept of “ecodevelopment”, and the Conference on Environment
and Development (UNCED, Rio/92). The latter is certainly one of the most important movements, which promoted the development of Agenda 21, an important step
towards the development of the concept of sustainability, primarily in the business
context.
However, it was prior to these events that the concept of sustainable development
was brought up. In 1987, the Brundtland Commission Report, a document from the
World Commission on Environment and Development (WCED), defined sustainable
development as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (WCED 1987, p. 8).
The World Business Council for Sustainable Development is a coalition of international companies committed to the three pillars of sustainability: social, economic
and environmental.
From the Brundtland Report, other concepts of sustainability have emerged
(Munisamy and Arabi 2015), however, in the scientific field the definition that is
currently most widespread and used as a model is the composition of sustainability