, Sustainability, Responsibility and Ethics
SUSTAINABILITY
Learning Outcome 01:
▪ Systems approach to management views the business as an open system, comprising various subsystems Explain sustainability by differentiating
○ Subsystems are smaller systems within larger systems the terms 'sustainability',
▪ 'Open system' means the environment it exists in affects the business 'development' and 'sustainable
○ The business affects the environment in which it operates development'
▪ All the business's subsystems work together to achieve its goals & objectives
▪ The business relies on the environment for providing inputs (like human, physical, capital, and information),
which are transformed within the business to produce outputs (like products and services)
▪ Businesses strive to remain in balance & businesses are open system
▪ Resources (inputs) taken from the environment are limited, while the consumer's needs are unlimited
What is sustainability?
▪ Sustainability: to maintain, to keep being, to preserve and support, with structures to hold on to
▪ Sustainability connects the 3 dimensions of the environment — physical environment, economy an social
justice
○ Sustainability requires a balance between the 3 dimensions
What is development?
▪ To develop means to grow, mature, progress, improve, advance and to change
▪ Development: growth, maturation, improvement or advancement
▪ Growth is quantitative
○ An increase in size / an increase in production that can be measured in quantity
▪ Development is qualitative
○ An improvement in the quality of goods and services, with/without growth
▪ There is equal importance of both qualitative and quantitative measures in sustainable development
○ E.g. Quantity and quality of the resources provided in our natural environment should be considered
○ Profits are important, but should we be dumping waste in rivers and polluting our air?
What is sustainable development?
▪ Sustainable development: 'the development that meets the needs of the present without compromising the
ability of future generations to meet their own needs'
▪ Developed nations must be more cautious in their development decisions, as they can influence the
decisions of developing nations, potentially influencing society's progress in future generations
▪ Brundtland definition of sustainable development covers two basic dimensions — referred to as pillars:
a. The social dimension (human needs)
b. The environment/physical dimension (the imperative to preserve the ability to provide ecosystem services)
▪ The report neglects the economic dimension, focusing on economic growth as a means to meet needs while
acknowledging societal ecological limits
▪ To achieve sustainable development, a significant transformation is required, particularly in three key areas,
to balance and interconnect the three elements or pillars:
1. Population growth
2. The way human beings consume materials and resources
3. The role of technology in sustainable development
• Population growth
- The current rate of population growth and resource consumption cannot be sustained
- The larger a society's population and resource consumption rate, the more challenging it is to transition to a
sustainable condition
- Population growth and the growth rates in the consumption of resourced need to be transformed
• The way human beings consume materials and resources
- The current rate of human consumption of materials and resources cannot be sustained
○ To transform this situation, attention needs to be given to aspects like:
The more effective and efficient use of materials & resources
The reduction of waste
The prevention of pollution
Educating society about the sustainable use of resources and materials
Changing the perceptions, attitudes and behaviours of society towards a more ethical &
