{"id":3650,"date":"2025-04-02T20:38:28","date_gmt":"2025-04-02T20:38:28","guid":{"rendered":"https:\/\/aomtodayprod.wpenginepowered.com\/?p=3650"},"modified":"2025-07-09T15:14:59","modified_gmt":"2025-07-09T15:14:59","slug":"how-sustainability-and-corporate-social-responsibility-became-intertwined","status":"publish","type":"post","link":"https:\/\/www.aom.org\/today\/how-sustainability-and-corporate-social-responsibility-became-intertwined\/","title":{"rendered":"How Sustainability and Corporate Social Responsibility Became Intertwined"},"content":{"rendered":"

By Daniel Butcher<\/a><\/p>\n

As scientists\u2019 warnings about climate change have become increasingly urgent, environmental issues and sustainable business practices have become more central to corporate social responsibility (CSR). Now, there is much more pressure on companies to track environmental, social, and governance (ESG) metrics, including their carbon footprint, and consider other environmental factors affecting the climate and ecosystems as part of their CSR commitment.<\/p>\n

That\u2019s according to Academy of Management Scholar Herman Aguinis<\/a> of the George Washington University School of Business, who noted that 99% of companies in the S&P 500 report ESG information to some degree, most annually, including:<\/p>\n

\u2022 452 that align with the Sustainability Accounting Standards Board (SASB);
\n\u2022 395 with the Taskforce for Climate-related Financial Disclosures (TCFD); and
\n\u2022 346 with the Global Reporting Initiative (GRI), with some following more than one set of standards.<\/p>\n

\u201cThat dimension has become so, so critical that CSR-ESG and sustainability are key aspects of it,\u201d Aguinis said. \u201cIn the 1980s, there was a big emphasis on making the business case for CSR, and now, things have changed a little bit, because many companies are saying, \u2018This is the right thing to do\u2014if we make money, great, but if we don\u2019t, that\u2019s not that critical\u2014we need to do the right thing.\u2019<\/p>\n

\u201cBut CSR and sustainability work best when you do good and do well simultaneously,\u201d he said. \u201cFor example, by embracing sustainable practices, you can actually save money and make money, and at the same time, you can look good in the eyes of the community, consumers, and very importantly, your own employees, who are your best ambassadors.<\/p>\n

\u201cIn fact, if you do CSR and sustainability right, you can use that as a recruitment and retention tool.\u201d<\/p>\n

Leaders who want to embrace CSR and sustainability as an honest, genuine, strategic core aspect of the business need to embed them throughout the organization, Aguinis stressed.<\/p>\n

\u201cIf you do not measure these things at all, and if you don\u2019t reward them, then all employees are not likely to take them seriously,\u201d Aguinis said. \u201cThey can\u2019t be evaluated as something you do on this side, as a nice-to-have, so it is critical to embed CSR and ESG within the strategic goals and the organization’s operations.\u201d<\/p>\n

CSR, ESG, and sustainability becoming intertwined strategically also relates to reimagining the purpose of the corporation. For example, in 2019, Business Roundtable issued a Statement on the Purpose of a Corporation signed by 181 CEOs who committed to leading their companies to benefit all stakeholders, including customers, employees, suppliers, communities, and shareholders.<\/p>\n

\u201cThe goal of the business in a publicly traded company is to make money and create value for shareholders, but even if you\u2019re not publicly traded, you have a responsibility to serve your customers,\u201d Aguinis said.<\/p>\n

\u201cWe have expanded the concept from shareholders to stakeholders more generally\u2014not only the customers you serve but also the communities within which you’re embedded. So, to what extent are you adding value\u2014both financial and otherwise\u2014to all of these stakeholders?\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

By Daniel Butcher As scientists\u2019 warnings about climate change have become increasingly urgent, environmental issues and sustainable business practices have become more central to corporate social responsibility (CSR). Now, there is much more pressure on companies to track environmental, social, and governance (ESG) metrics, including their carbon footprint, and consider other environmental factors affecting the […]<\/p>\n","protected":false},"author":4,"featured_media":4352,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27,26,19,78],"tags":[],"sp_smart_badges":[],"ppma_author":[70],"class_list":["post-3650","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-c-suite","category-corporate-social-responsibility","category-leadership","category-policy"],"acf":[],"yoast_head":"\nHow Sustainability and Corporate Social Responsibility Became Intertwined - Academy of Management Today<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aom.org\/today\/how-sustainability-and-corporate-social-responsibility-became-intertwined\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Daniel Butcher\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/how-sustainability-and-corporate-social-responsibility-became-intertwined\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/how-sustainability-and-corporate-social-responsibility-became-intertwined\\\/\"},\"author\":{\"name\":\"Daniel Butcher\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/#\\\/schema\\\/person\\\/d1297a59039d9ca7bac9d9f0952e508c\"},\"headline\":\"How Sustainability and Corporate Social Responsibility Became Intertwined\",\"datePublished\":\"2025-04-02T20:38:28+00:00\",\"dateModified\":\"2025-07-09T15:14:59+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/how-sustainability-and-corporate-social-responsibility-became-intertwined\\\/\"},\"wordCount\":511,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/how-sustainability-and-corporate-social-responsibility-became-intertwined\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.aom.org\\\/today\\\/wp-content\\\/uploads\\\/2025\\\/04\\\/sustainable-city-horiz.jpg\",\"articleSection\":[\"C-SUITE\",\"CORPORATE SOCIAL RESPONSIBILITY\",\"LEADERSHIP\",\"POLICY\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.aom.org\\\/today\\\/how-sustainability-and-corporate-social-responsibility-became-intertwined\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/how-sustainability-and-corporate-social-responsibility-became-intertwined\\\/\",\"url\":\"https:\\\/\\\/www.aom.org\\\/today\\\/how-sustainability-and-corporate-social-responsibility-became-intertwined\\\/\",\"name\":\"How Sustainability and Corporate Social Responsibility Became Intertwined - 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You can reach him at dbutcher@aom.org or via LinkedIn.","sameAs":["https:\/\/aomtodayprod.wpenginepowered.com","https:\/\/www.linkedin.com\/in\/danielbutcher\/"],"url":"https:\/\/www.aom.org\/today\/author\/daniel-butcher\/"}]}},"authors":[{"term_id":70,"user_id":4,"is_guest":0,"slug":"daniel-butcher","display_name":"Daniel Butcher","avatar_url":{"url":"https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/01\/DanButcher_Academy-of-Management.webp","url2x":"https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/01\/DanButcher_Academy-of-Management.webp"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"rttpg_featured_image_url":{"full":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/sustainable-city-horiz.jpg",700,500,false],"landscape":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/sustainable-city-horiz.jpg",700,500,false],"portraits":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/sustainable-city-horiz.jpg",700,500,false],"thumbnail":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/sustainable-city-horiz-150x150.jpg",150,150,true],"medium":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/sustainable-city-horiz-300x214.jpg",300,214,true],"large":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/sustainable-city-horiz.jpg",700,500,false],"1536x1536":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/sustainable-city-horiz.jpg",700,500,false],"2048x2048":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/sustainable-city-horiz.jpg",700,500,false],"owl_elementor_thumbnail":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/sustainable-city-horiz-600x429.jpg",600,429,true],"owl_elementor_team":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/sustainable-city-horiz-350x450.jpg",350,450,true],"owl_elementor_testimonial":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/04\/sustainable-city-horiz-100x100.jpg",100,100,true]},"rttpg_author":{"display_name":"Daniel Butcher","author_link":"https:\/\/www.aom.org\/today\/author\/daniel-butcher\/"},"rttpg_comment":2,"rttpg_category":"<a href=\"https:\/\/www.aom.org\/today\/category\/c-suite\/\" rel=\"category tag\">C-SUITE<\/a> <a href=\"https:\/\/www.aom.org\/today\/category\/corporate-social-responsibility\/\" rel=\"category tag\">CORPORATE SOCIAL RESPONSIBILITY<\/a> <a href=\"https:\/\/www.aom.org\/today\/category\/leadership\/\" rel=\"category tag\">LEADERSHIP<\/a> <a href=\"https:\/\/www.aom.org\/today\/category\/policy\/\" rel=\"category tag\">POLICY<\/a>","rttpg_excerpt":"By Daniel Butcher As scientists\u2019 warnings about climate change have become increasingly urgent, environmental issues and sustainable business practices have become more central to corporate social responsibility (CSR). 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