Social and Environmental Justice: The Management Challenge of Repurposing Business

We are all challenged today to deal with an unprecedented set of issues that are manifested in climate change, violence, poverty, rising inequality, resource depletion, biodiversity loss, water scarcity, and species extinction to name just a few. The responsibility for many of these pervasive problems has been placed at the door of an economic system that does not account for the negative externalities it generates and has a penchant for uncontrolled consumption and growth. The global population that now stands at about 7.5 billion is projected to grow to approximately 9.7 billion by the year 2050 and the likelihood of our finite planet adequately providing for a population of that size seems remote. It is in this context that important questions about role of business in the context of social, environmental, and intergenerational justice need to be answered. The sustainability movement has gained tremendous momentum in the last few years, with many calling for a paradigm shift in the purpose and functioning of the business sector. This paper provides an overview of the evolution of the sustainability movement in business including the formation of the United Nations Global Compact and its academic counter-part, the United Nations Principles for Responsible Management Education (UNPRME). In particular, while many advocates for sustainability have used the notion of the business case as their primary argument, this paper will argue that a paradigm shift calls for a reexamination of the fundamental principles and values of business focusing on responsibilities not only toward shareholders, but also toward all stakeholders including those who are often invisible and voiceless. The paper focuses on the management challenges that both businesses and business schools that will need to address to not only ensure our survival as a species, but also that all species on the planet will flourish forever.