This study analyzed, in the form of a case study, the experience of a large company (Mercur S.A) in the implementation of a new vision focused on sustainability. The target company is located in the south of Brazil, has almost a century of existence, and has been managed by the same family since its foundation. The study is based on the notions and concepts of corporate governance, ethics for sustainability, and social-ecological systems. The study shows that the changes implemented in the company are catalyzed by an initial change of the ‘inner change' type, and are disseminated by the company and the community through social and cultural innovations. Important changes in the economic vision and social and environmental responsibility related to the structure/architecture and operation of the company, as well as trade-offs between financial and social and environmental aspects, were identified.
TopIntroduction
The growing awareness about the impact of human activities on the environment and human development, especially since the 80’s, has resulted in a growing social debate on the concept of sustainable development. One of the main triggers for this global trend is the Brundtland Report (WCED, 1987), which defines sustainability as “meeting the needs of the present without compromising the ability of future generations to meet their needs” (p. 8). The report also states that “sustainable development requires meeting the basic needs of all and extending to all the opportunity to satisfy their aspirations for a better life” (p. 44).
However, sustainable development is a non-consensual concept, upon which divergent views and interpretations may lead to different standpoints, goals, and strategies, especially regarding different political ideologies (Davidson, 2014; Hopwood et al., 2005). The concept implies the possibility of economic growth aiming at justice and social equity, as well as respect for the limits of nature, while, on the other hand, since the Industrial Revolution, economic growth has been considered associated with social and environmental problems (Aras & Crowther, 2008; Lele, 2013; Rist, 2007, 2008).
In fact, the Brundtland Report already warned that, in order to meet human needs, humanity has been fueling an unsustainable lifestyle which not only results in inequality within our generations but also compromises the future generations as we “borrow environmental capital from future generations with no intention or prospect of repaying” (WCED, 1987, p. 8). A study modeled human population dynamics by adding accumulated wealth and economic inequality to a predator-prey model of the human-nature relationship, identifying two possible paths to collapse: (1) due to scarcity of labor (following an inequality-induced famine; Type-L Collapse) or (2) due to scarcity of Nature (depletion of natural resources; Type-N Collapse) (Motesharrei et al., 2014).
The path to (un)sustainability finds support in the prevailing worldview in society. “The increasingly global capacity of civilization to manipulate natural and human capital has fueled faith in the economic concept that humankind can be freed from its dependence on nature” (Butler, 2000, p. 156). The fragmentation of knowledge — and the economy — in modern society reinforces this faith. Such fragmentation has led to the isolated development of disciplines and often to contradictions between them. And no issue more clearly separates the traditional economic view from the view of most natural scientists than the issue of sustainability (Ayres et al., 2001).
While economic growth still has a major place in the political agenda for human development, there is much evidence that alone, economic growth does not promote human development. In fact, although there is improvement on human development in the past few decades (WCED, 1987), the environmental impacts like climate change or biodiversity loss, as well as global poverty and inequality, especially between rich and poor countries, are growing (Lele, 2013; Maddison, 2008; Rist, 2008; WCED, 1987).
Therefore, integrating with nature means perceiving humans as part of the natural systems on which humanity depends, and perceiving the opportunities to prosper in a sustainable way, both economically, socially and environmentally - ‘a better life’.
Considering this perspective, this study sought to investigate the changes implemented by a large company (to try) to achieve sustainability. The changes implemented over a period of more than a decade were evaluated from the perspectives of corporate governance (CG), ethics for sustainability and social-ecological systems.
The following topic presents the theoretical foundation. Next, the methodological approach is described. In the following topic, the case study is described and analyzed. Recommendations, considerations and future directions for studies and applications are suggested. Finally, the main conclusions and final considerations of the study are presented.