Sustainability Dilemmas in Emerging Economies

Vol 26, No 2; Article by Rama K  Jayanti and M V Rajeev Gowda; June 2014

Increasing evidence of climate change is forcing businesses to play an active role in reducing sustainability burdens and preserving resources for future generations. Extant research on sustainability has an exclusive focus on developed countries with stringent environmental regulations and activist scrutiny. Emerging markets present interesting dilemmas since rapid mass urbanisation aimed at raising standards of living poses concomitant threats to environmental health. The round table aimed to uncover best practices in the Indian business context in order to draw some parallels to global sustainability best practices.

The Indian business world shares common concerns with the Western world such as rising energy costs, water shortages, cost savings through waste reuse, and consumer demand. However, some unique Indian factors include maintenance of backup generators-necessitated by frequent power outages-that increase carbon emissions, higher material costs that provide an incentive to avoid waste for a higher payoff, and supply chains that embrace economically vulnerable villages, necessitating efforts to keep them viable by upgrading water supplies, education, and providing better connection from farmer to market. Additionally, Indian government policies have turned up the pressure on business compliance through new initiatives in recent years.

Implementing a comprehensive sustainability strategy that is profitable to the firm is all about initiating and managing change. Such an effort requires a long term focus on institutionalising sustainability within the firm.  Management education in business schools plays a key role in raising awareness with regard to embedding sustainability within organisations. Providing critical insights into the success of sustainability strategies is still a work in progress, especially in emerging economies. We believe that the round table opens the door to an important dialogue among sustainability enthusiasts to bridge the gap between academic and managerial perspectives on best practices in sustainability.