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| Sustainable
Development is high on the agenda for many companies, but others are struggling
to see the benefits outweigh the cost. In this dialogue, Sun Liping, professor
at China’s Tsinghua University and lecturer on sustainable development,
exchanges views with Dr. Stephanie Burns,
president and CEO, Dow Corning. |
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Q. How can sustainability become the foundation for good business
operations and corporate responsibility?
 | SB: Successful businesses understand the need to
weave the practice of sustainability throughout the entire culture of a
company. While sustainability may start with a vision at the top, it is
everyone’s responsibility to develop and live that vision. At Dow Corning, we
believe we “wear” three hats simultaneously in terms of sustainability. These
represent our social, economic, and environmental responsibilities. All of
these responsibilities must be met at all times. We work arduously to apply our
talents, resources and efforts to advance the quality of life throughout the
world, continuously improve our environmental performance, and create economic
growth. |
SL: The significance of sustainable development for society as a whole
and for a single enterprise is distinctly different. The urgency of sustainable
development for society is direct and self-evident while, for a single
enterprise, the urgency is comparatively less direct and evident. Whether or
not an organization
commits itself to sustainable development depends on two factors. The first is
the enterprise’s views on corporate social responsibility. Large companies,
comparatively, tend to be more committed to social responsibility. The second
factor is related to its operations and economic returns. When an
enterprise dedicates itself to sustainable development, it is actually
enhancing its competitiveness for the future when resource efficient economies
and companies will be presented with more opportunities and be in a more
advantageous position with respect to market competition. |
Q. How can companies balance the costs vs. benefits, and short-term vs.
long-term factors of sustainable development?
SB: There may be no perfect economic model to determine the right balance.
Sustainability requires a long-term approach to business, as well as the
ability to look at your company with respect to societal needs. It is critical
that sustainability become deeply embedded in all business decisions and
actions. We must
constantly gauge the effect of new initiatives and projects against the
principles of sustainability. To lose focus on any of the three
responsibilities—social, economic, or environmental—risks losing the value
entirely.
SL: The problem is that a cost-benefit relationship is only relevant
to those enterprises with specific plans for the future. Many Chinese
organizations are small so
rather than planning for the future, they are struggling to survive fierce
competition in the present. Obviously, it is unrealistic to expect them to
contribute large investments today for long-term objectives. External
guidelines—such as laws and regulations, taxation, social restrictions, and
administrative restrictions,
among others—are therefore needed to guide them which increases the cost of
wasting resources while simultaneously increasing the returns for saving
resources. This way, short term and long-term interests are unified—or at
least, the conflict between them is significantly reduced.
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Q. What do you see as the main strategies to address China’s challenges
in pursuit of sustainable development?
SB: The business community needs to carry the sustainability torch in
developing countries such as China. Chinese government officials have made it
clear that as foreign investment continues to grow in the region, environmental
stewardship and sustainability are becoming exponentially important. Dow
Corning applies
the same high standards of sustainability and environmental stewardship in all
countries where we operate, as we believe it is important to help set a high
standard for sustainable development.It is essential that well-intentioned
companies seek to understand the societal needs of each country—what the
people,
environment, and economy need to continue to advance quality of life well into
the future.
SL: China’s economic growth currently relies on huge consumption of
resources at low efficiency. Statistics from the State Environmental Protection
Administration show that in 2003 alone, China’s consumption of crude coal, iron
ore, steel, and cement accounted for 31%, 30%, 27%, and 40% respectively of the
world’s total, while China’s GDP accounted for less than 4% of the world’s
total. It is therefore evident that China’s economic growth path is not
sustainable. As a result, China’s approach to economic growth needs to be
shifted, and the development of a resource-efficient economy is of great
importance to this shifting approach. In terms of specific actions, we need to
figure out how to translate the strategy at the macro-social level into
mechanisms at the micro-levels of
local governments and enterprises.
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Q. What are the global best practices in sustainable development?
SB: First and foremost, we adhere to the same principles of sustainability
and environmental stewardship in all of our geographic locations. We set
environmental improvement goals globally and prioritize projects to deliver on
these goals. We invest in training and global sharing practices to help educate
employees throughout the globe about the importance of these principles.We make
sustainability visible to all employees via an annual Sustainability Report and
regular Web-based communications. One of the best practices we are most proud
of is our ability to say “no” to projects that don’t fit into all three of our
social, economic, and environmental responsibilities. We invest in training and
global sharing to help educate employees about the importance of these
responsibilities. Finally, by reinforcing our principles of sustainability on a
daily basis with all of our employees, customers, and suppliers, we communicate
that—in terms of sustainability—we mean business.
SL: An important practice involves the engagement of the public and
nongovernmental organizations, in the cause of environmental protection and
sustainable development. Policy advocacy can only do so much, and structural
reform combined with good governance is needed so project managers and
day-to-day decision makers can make accountable decisions with due balance of
short term vs. long term, individual gains vs. public benefit. I believe that
it is very important for China to encourage cooperation on sustainable
development between enterprises, the government, as well as the general public
and non-governmental organizations.
About Dow Corning
Dow Corning Corporation (www.dowcorning.com) provides
performance-enhancing solutions to serve the diverse needs of more than 25,000
customers worldwide. A global leader in silicon-based technology and
innovation, offering more than 7,000 products and services, Dow Corning is
equally owned by The Dow Chemical Company and Corning, Incorporated. More
than half of Dow Corning’s annual sales are outside the United States.
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