The current challenges involved with ensuring
global sustainability are daunting.
Climate change is increasing the incidence
of severe weather events, natural resources
are undergoing rapid depletion, labor conditions
in global supply chains are often inhumane
and degrading, and corruption around
the globe is undermining competition and
destroying wealth. These and other global
challenges pose serious problems not only to
mankind in general, but also to the sustainability
of companies. Indeed, companies rely
on enabling environments, local and global
alike, for long-term success. Companies depend
on a reliable legal framework conducive
to investment and competition, a healthy
and viable natural environment, and a secure
social environment that facilitates the wellbeing
of its inhabitants. However, given the
overexploitation of shared resources, also
known as the “tragedy of the commons,”
companies often find it difficult to address
global sustainability challenges and invest
in enabling environments. All sustainability
challenges face this tragedy: Although each
societal actor ought to have an interest in creating
or ensuring the viability of these common
goods, the incentive to “free ride” on the
efforts of others and let them bear the costs
is exceedingly high. As a result, short-term
profit maximization often damages the longterm
growth prospects of companies. Since
governments lack the capacity to address the
complexity and global scope of sustainability
challenges alone, a “strategy for the commons”
is needed that allows companies, governments
and other actors to overcome the
free rider dilemma and invest in sustainable
development
