As Loyola University Maryland celebrates Earth Month, two professors from Loyola University's Selinger School of Business define sustainability and its importance to organizations, various business fields, and the planet. Let's discuss. Stacey Chavez, Ph.D., assistant professor of accounting, and Astrid Schmidt-King, J.D., assistant professor of management and organization, specialize in sustainability management, corporate social responsibility, sustainability measurement and reporting, and international business. Masu.
What is sustainability? Why is it important?
Chavez: Sustainability can be defined in different ways depending on the context. Business sustainability refers to an organization's ability to survive and thrive into the future. More generally, and especially important during Earth Month, sustainability refers to longevity and the ability of people and the planet to use only what they need to survive and protect their future.
It is not possible for any one person alone to act in a way that preserves our world for future generations. The more we know about how to become better global citizens, whether it's recycling and reducing waste, or simply seeking knowledge about how our actions have a domino effect on the world, the more we can become a more positive force.
Why should organizations strive for sustainability?
Schmidt King: Sustainability exists at many levels: individual, organizational, societal, and global. Organizations, companies and businesses are not only positioned as agents and engines of innovation and influence, but a sustainable future is a prerequisite for their survival. Considering the scope, scope, and operations of your business allows you to create and adopt sustainable business practices that serve and support your business and your stakeholders, including the health of your ecosystem. Organizations are beginning to realize that doing well and doing well are not mutually exclusive terms. Companies can find a balance in doing both, and in doing so, become leaders in sustainability.
What are the different types of sustainability?
Schmidt King: Sustainability is a broad term that is both a challenge and an opportunity. In 2015, the United Nations created 17 Sustainable Development Goals that focus on sustainability aspects such as people, planet, prosperity, peace, and partnership. For companies and organizations, this translates into terms like the triple bottom line (PPP for people, planet and profit and ESG for environment, society and governance) to drive sustainable strategies and sustainability. We ask companies to understand their roles and responsibilities in development. The Sustainability Management major at Selinger School of Business views sustainability as “the way businesses create and sustain competitive advantage while delivering value to people, planet, and profit.”
How do different business sectors support sustainability?
Chavez: All business areas have a role to play in supporting sustainability. Examples include consideration of green companies and green initiatives in financing and investment decisions, proper messaging and handling of sustainability initiatives to prevent greenwashing and misleading claims, measurement, information assurance, and data management. Examples include accounting treatments that support presentation.
Schmidt King: McCormick & Company and Pompeian Olive Oil visited Loyola to speak to students about how their organizations are incorporating sustainability into their business practices and strategies. From management to marketing, data collection and evaluation, reporting, and understanding global trends in areas such as climate and geopolitics, sustainability requires collaboration not only across disciplines but also across organizational sectors. is also required.
How do organizations measure and report on sustainability?
Chavez: The world of sustainability reporting is like the Wild West. Companies may feel pressure to report on specific activities from stakeholders such as investors, customers, or employees, or based on the company's mission or ethics. Unlike financial reporting, sustainability reporting is not yet universally mandated or prescribed, so companies have to decide what topics to report on, how often to report, and how to measure impact. have some autonomy over which publication guidelines to use and the format of reporting. . We are beginning to see proposals for mandatory emissions (GHG) disclosures, which are a first step towards more uniform reporting on sustainability.
How does sustainability follow the Jesuit commitment to “cherishing our common home”?
Schmidt King: “Laudato Si'” is the name of Pope Francis' encyclical on caring for our common home, the Earth. It is a call to action for “everyone living on earth” and calls for an integrative ecology that takes into account the interconnectedness of environmental, economic, political, social, cultural, and ethical issues. In 2021, Loyola University of Maryland will join the first group of Laudato Si' universities to promote environmental economics, adopt sustainable lifestyles, promote environmental education, promote ecological spirituality, and We are committed to responding to the cries of the earth and the cries of the poor through environmental construction. Community resilience and empowerment.
Why should students learn sustainability?
Chavez: Sustainability is rapidly permeating the corporate world, so students need to learn about it. Knowledge of vocabulary, reporting frameworks, specific industry impacts, and more will help students succeed and contribute to their chosen path. For example, the accounting industry expects Loyola's current freshmen in her class of 2027 to be involved in auditing sustainability information in their first year on the job. With the increasing focus on sustainability in all aspects, it is essential that students understand the issue.
Schmidt King: Not so long ago, sustainability was a special consideration for companies. Nowadays, it is integral and embedded in an organization's strategy and operations. I am proud that Loyola University Maryland was the first university in Maryland to create a sustainability management major. It is a path that allows students to achieve good grades through good behavior, and provides a career path that emphasizes the important role of business in bringing about meaningful change.
Loyola's Selinger School of Business introduced a Bachelor of Business Administration in Sustainability Management in 2020. At the graduate level, Emerging Leaders MBA students participate in a Sustainability Colloquium that addresses the question, “How do competent, trustworthy, and confident emerging leaders contribute to sustainable value creation for all stakeholders?” Participate in ” Colloquium participants will receive certification in ESG reporting.
