A Critical Appraisal Of Social And Environmental Sustainability

3059 Words13 Pages
Introduction
Environmental and social sustainability is a growing concept, in the modern day business world. This essay will cover sustainability but particularly, will cover the following: A critical appraisal of social and environmental sustainability, its importance related to issues that can affect corporate social responsibility. The essay will evaluate specific ideas; provide evidence to support the recommendation, using relevant academic books, journals and articles where it is appropriate. Concluding this essay, there will be a critical appraisal of a company’s annual reporting, that may contribute to embedding sustainability in decision making, in the context of business practice.
1.1 Sustainability A firm is legally a separate entity and it is treated as a citizen. Although it is controlled and directed by people, “Corporate governance is the system by which companies are directed and controlled. Boards of directors are responsible for the governance of their companies”(Financial Reporting Council, 2012). FRC corporate code tells us that the company is driven by the board and they are also responsible for the effective running of the firm. This clearly states that the board owes the fiduciary duty of care to act in the best interest of the shareholders and other stakeholders, as they are acting as agents on the behalf of the principal (shareholders). Stakeholders are all those who can affect or be affected by the business activities. Rajan defines sustainability

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