In the next society', observes Peter Drucker, 'the biggest challenge for the large company - especially for the multinational-may be its social legitimacy: its values, its missions, its vision.' (quoted on P. 128 of Walking the Talk).
The World Business Council for Sustainable Development (WBCSD) is an association of over 160 large companies who believe that the imperatives of making a profit are compatible with "... [running] their companies in the best interests of human society and the natural environment, now and in the future."
The book seeks to explore the opportunities and problems in doing so, and to describe the progress made over the last ten years. It is overtly evangelical, seeking to recruit more successful businesses (and specifically their CEOs) to the cause of sustainability as the authors define it. The authors are writing within a mental model that believes in the benefits of free markets, globalization, continuing economic growth and in the contemporary model of business. Although they recognize that there are alternative mental models, their primary purpose is not to address these, but to persuade those who share their broad views (which would include the vast majority of business people) that a concern for environmental sustainability and social justice is good business - that pursuit of these wider goals is the best way of ensuring a healthy bottom line now and in the future.
The book is well argued within its framework. More important, it carries the names of three of the world's most senior Chief Executives, which gives it immense clout in its avowed task of persuading other CEOs to joint the sustainability movement.
A 'foundation' chapter, which describes the business case for sustainability, is followed by a brief overview of each of ten key elements in moving toward sustainability, with each chapter illustrated with detailed case studies (significantly, they are nearly all companies and utilities which supply to industrial markets).
In building their case, they identify the dilemmas, and particularly the issue of how to balance concern for the future with prudence in the present. They also note that current market failures (failure to price for 'externalities', perverse subsidies, inappropriate tax regimes) make it more difficult to persuade many companies that pursuit of sustainability is in their best interest. In consequence, they call for partnership with government to correct these problems, and describe experience to date and needs for the future.
The 'ten building blocks' therefore include chapters on The Right Framework - what conditions are needed for business success truly to reflect sustainable operation - and From Dialogue to Partnership - how to enter partnership with the full range of stakeholders.
Too much of the literature on sustainability is taken up with immoderate attack on business and globalization - often with the inference that it is inherently evil - and equally immoderate defence of the (implied) perfection of the present state of globalization and behaviour of companies. It is therefore very refreshing to have an impeccable business source that acknowledges the move to sustainability as important business that is still in its early stages and is prepared to describe the successes, failings, dilemmas and rewards on the journey to sustainability.
Given their objective, there are some important and difficult issues that the authors do not tackle. For example, Hamilton in Growth Fetish, points to:
* the inadequacy of economic measures of progress,
* the importance of a distinction between growth and development and
* the evils of a framework that systematically promotes over-consumption.
These issues need to be argued, and could have very serious implications for business, but they are not the subject of this book.
Those who have a radically different view of the current business system and who disagree with the authors' views on globalization may well see the book as simply offering symptomatic solutions without tackling the real issues. They will none the less take comfort from the fact that community protests about unacceptable business activities (environmental degradation, comfort to repressive regimes, sweatshop labour) clearly send signals that influence the behaviour of corporate decision makers.