The Challenge of Sustainability

The Challenge of Sustainability: Corporate Governance in a Complicated World reviews the evolution of five types of corporate governance and their different sustainability objectives. It discusses the challenges for boards in achieving sustainability from an environmental, economic, employment, and social perspective and introduces the concept of a political tragedy of the commons if boards do what is in the best interests of their profitability only, without considering their responsibilities and unintended consequences for their stakeholders. It explains how volatility, uncertainty, complexity, and ambiguity complicate making sustainable decisions. This book explores ways of helping prevent such negative outcomes.

John Zinkin asserts the director’s need to reconcile volatility with vision, uncertainty with understanding, complexity with courage and commitment, and ambiguity with adaptability. To prevent a potential political tragedy of the commons, the book suggests new decision-making processes; treating employees differently; and makes the case for reforming capitalism. It is aimed at managers, board members and all those who influence them, including shareholder activists, corporate legal personnel, politicians, activists and general readers interested in applying some of these suggestions in their roles as stakeholders, managers and directors.

This series aims to increase dialogue between and within the private and public sectors on the leading environmental, social, and governance issues of our time. Exploring and testing the very purpose of corporations and governments, the series features practical solutions to complex challenges.

The Challenge of Sustainability: Corporate Governance in a Complicated World reviews the evolution of five types of corporate governance and their different sustainability objectives. It discusses the challenges for boards in achieving sustainability from an environmental, economic, employment, and social perspective and introduces the concept of a political tragedy of the commons if boards do what is in the best interests of their profitability only, without considering their responsibilities and unintended consequences for their stakeholders. It explains how volatility, uncertainty, complexity, and ambiguity complicate making sustainable decisions. This book explores ways of helping prevent such negative outcomes.

John Zinkin asserts the director’s need to reconcile volatility with vision, uncertainty with understanding, complexity with courage and commitment, and ambiguity with adaptability. To prevent a potential political tragedy of the commons, the book suggests new decision-making processes; treating employees differently; and makes the case for reforming capitalism. It is aimed at managers, board members and all those who influence them, including shareholder activists, corporate legal personnel, politicians, activists and general readers interested in applying some of these suggestions in their roles as stakeholders, managers and directors.

Introduction

Part 1: Expanding Corporate Governance’s Remit

1. Changing definitions and expectations
2. Five Corporate Governance contexts

1. Family capitalism
2. State capitalism
3. Managerial capitalism
4. Shareholder capitalism
5. Stakeholder capitalism

Part 2: Corporate Governance’s Sustainability Challenges

1. Environmental Sustainability

1. Moving to a circular economy
2. Climate change
3. Conservation

2. Economic Sustainability

1. Achieving inclusive growth
2. Tackling inequality
3. Harnessing diversity

3. Employment Sustainability

1. Globalization
2. Automation
3. Artificial Intelligence
4. Unsuitable education

4. Social Sustainability

1. Being a responsible citizen
2. Bridging cultures
3. Taming social media

Part 3: Preventing a Political Tragedy of the Commons

1. Investing in People
2. Improving Processes
3. Focusing on Reputation
4. Operating in a Post-Truth World

Conclusions