The Bermuda Triangle: The Interdependence of Social, Governance and Environmental Challenges to Sustainable Development

Abstract

Companies operating on the stock market face many challenges which may hamper their growth and development. They need to take into account the impact of the globalization and internationalization processes which provide as many opportunities (access to labor, customers and resources) as well as threats (hyper competition, quest for innovation and lower costs). The business environment is characterized by the unprecedented scope and frequency of changes rooted in technology (ICT), the specific market structure (consolidations, severe competition), the changing sociology and demographics as well as current inefficiencies related to the financial crisis. Besides, these problems companies also need to incorporate other areas of constrains for their daily operations as well as strategic development which result from the extensive use of natural resources, industry impact on the environment, plundering consumption, inefficient waste management and risks of energy, clean water and clean air shortage as well as devastation of fauna and flora. Recent years have brought about significant adverse impacts on the natural environment to such an extent that they have resulted in a reduction in quantity and quality of natural resources which has severe impacts in the companies’ operations. This chapter addresses the set of social, environmental and economic forces which have led to the emergence of sustainable development. The main goal of the paper is to identify the specific factors of the three natures and to track how they have influenced the understanding of today’s business forcing companies to integrate social, environmental and economic requirements for their performance.