Globally, governments are being strongly encouraged to strive towards creating 'green' (sustainable) economies. What exactly a 'green' economy entails and how it is achieved is complex and still debated.
However, certain aspects of a 'green' economy include a reduction in carbon and other greenhouse gas emissions, and 'rigorously applies the triple bottom line of people, planet and profits across all corporations at the microeconomic level and throughout the entire economy at the macroeconomic level' (Green Economy 2011).
Although governments have a major role to play in bringing about the change required, it is now widely acknowledged that the business community has an equally important role to play in establishing a 'green' economy.
According to the International Chamber of Commerce, 'Business and industry has a crucial role in delivering the economically viable products, processes, technologies, services, and solutions required for the transition to a green economy' (International Chamber of Commerce 2011). The way in which the business community responds to the issues of sustainability and climate change will therefore have an important impact on how this transition will take place and how 'green' green economies will be.
It is against this background that the BMR conducted its research. According to Antoinette Kriel, BMR researcher, this initial analysis seems to indicate a general trend away from responses purely focused on the business case for climate change and sustainability measures. Kriel indicates that there seems to be at least awareness of and, in some cases, an active implementation of responses that consider the environmental and social cases (ie not solely driven by costs and benefits) for sustainability measures.
Interestingly this shift seems to be driven from the 'top down', ie through compliance with standards and regulations with the new King III report playing an important role in this regard. However, value-creation for shareholders still seems to be predominantly defined in terms of financial profitability of the companies, says Kriel.
It is therefore questionable from this initial BMR study and analysis whether a paradigm shift in terms of companies' business models is occurring - necessary, according to certain viewpoints, if 'real' and effective change is to be brought about. In an attempt to address this question, the BMR is already planning a follow-up study that will entail in-depth interviews with managers of companies, specifically focusing on the role of values and ethics in business sustainability strategies.
