Responsible Corporate: A Key Component of Harmonious Society 

Xuemin Shao 

Representative, United Nations Environment Programme 

Chairman, UN Theme Group on Environment and Energy 

November 18, 2006 

Shenzhen, China 

Your Honorable Mr. Jiang Zhenhua, 

Your Honorable Mr. Wang Maolin,

Distinguished delegates, 

Colleagues and friends, 

It is my pleasure to join you today in this important Forum on Corporate Social Responsibility. At the outset, please allow me, on behalf of United Nations Environment Programme, to express my sincere appreciations and congratulations to the successful convening of this Forum. 

In today's market, corporate social responsibility represents a high-profile notion that has strategic importance to many companies. By dedicating ever-increasing amounts to cash donations, in-kind contributions, cause marketing, and employee-volunteer programs, companies are acting on the premise that corporate social responsibility is not merely the "right thing to do" but also "the smart thing to do." 

The earth’s ecosystems offer a wide array of goods and services that benefit people by providing such essentials as food, fiber, mineral, genetic resources, fresh water, and fuel, among others. They also provide “environmental” or “regulatory” services to maintain air quality, control weather and climate patterns, prevent soil erosion, process wastes, and purify water. Nevertheless, for decades, ecological deficits created by the business-as-usual industrial model can not sustain the global economy as currently structured. We are depleting the earth’s natural capital for economic activities. 

To provide welfare for the generation of today and that of tomorrow, we need economic growth. However, economic growth should be promoted at the pre-requisite of sustainability. To respond to this problem, we should think out-of-box, and explore innovative measures for environment protection vis-a-vis economic growth. Therefore, the pursuit of environmental sustainability should remain a lasting “rhythm” in the process of human development. 

Not only must the business community face the challenges of this green imperative but they must also capture the resources and develop the skills and capabilities to remain competitive in this new, dynamic, green environment. It requires the business community to think, decide, and act on a very broad basis rather than to focus only on profits. 

Without the co-operation of industry, the world will not grow cleaner. For far-sighted companies, the environment may turn out to be the biggest opportunity for enterprise and invention the industrial world has seen. A myriad of environmental problems face the international business community as it looks into this new century, from the effects of overpopulation and increasing industrialization to the loss of threatened habitats and species. In particular, stakeholder groups, concerned about these critical issues and the extent to which the business community has ignored or exacerbated them, are demanding that the business community take action 

Although Malthus’ prediction that the growth in the world’s population would have catastrophic consequences has not come to pass, concerns also exist that rapid population growth will have substantial negative environmental and social consequences. A United Nations study estimates that a global population of between 8 and 12 billion people could have catastrophic consequences, such as uncontrolled spread of disease, deforestation and soil erosion, water depletion, and air pollution. This will certainly create new challenges for business, if they are to meet future consumer demands. The complex and interrelated nature of environmental problems will challenge the business world to move beyond mere compliance with environmental regulations to develop innovative responses to environmental challenges. Attention will have to focus on responses such as reducing waste and emissions, reducing and recycling solid waste, conserving energy and other natural resources, and reducing business impact on ecosystems. 

In addition, most likely, corporates have to develop resources internally to compensate for the lack of available natural resources. As suggested by the academic community, over the next decade business will be challenged to create new concepts of strategy, and it seems likely that the basis for gaining competitive advantage in the coming years will be rooted increasingly in a set of emerging capabilities such as waste minimization, green product design, and technology cooperation in the developing world. In the future, it is those firms that are able to secure the resources and develop the competencies to address the challenges of natural environmental constraints that will thrive. 

In response to the challenges of the sustainable development movement, especially after the Rio Earth Summit and Agenda 21, the concept of Green Productivity was introduced. It is a strategy to integrate productivity and environmental concerns into business operations.  

The mindset of “harmonious and friendly ecology” is a revolution to the traditional, “business-as-usual” ecology mindset. Building an environmentally-friendly society, we should take the environmental carrying capacity as the core, follow the law of nature, take the green science and technology as the driving force, promote an environmental ethic, and nurture an environmentally- friendly culture. 

To this end, we should focus on transforming the traditional approach for economic growth, and changing the “business-as-usual” patterns for production and consumption. Circular economy and green economy, in all sectors, should be developed, with emphasis on clean production, comprehensive waste recycling and recovery, and non-hazardous waste disposal. In the entire society, we should develop and further promote the environmentally-friendly ethic and culture. 

Colleagues and friends, 

We, the human beings, live fundamentally on the natural systems and the natural resources. If environmental degradation and natural resource depletion continue unabated, our efforts to fight against poverty and pursue sustainable development will be in vain. In this context, caring for the planet, and striving for the balance between human and nature are our common responsibility. Let’s join our hand, and double our effort, to respond to the challenges the world is facing, and protect our previous ecological environment and nature resources, which are crucial to the future of our existence and the future of our planet.  

Thank you for your attention. 

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