In 1992, the United Nations Conference on Environment and Development took place in Rio de Janeiro, Brazil.
Governments and Non-Governmental Organizations alike participated in the discussions at the Conference, as well
as the ratification of several major treaties for protection of the global environment. In addition, the
private sector's voice was heard at Rio. The following text is the declaration of a group of over 50 companies
convened as the "Business Council for Sustainable Development" (BCSD). It is reproduced in full for its
relevance to the business sectors in Tanzania.
Business will play a vital role in the future health of this planet. As business leaders, we are
committed to sustainable development, to meeting the needs of the present without compromising the welfare
of future generations.
This concept recognises that economic growth and environmental protection are inextricably linked, and that
the quality of present and future life rests on meeting basic human needs without destroying the environment
on which all life depends.
New forms of cooperation between government, business, and society are required to achieve this goal.
Economic growth in all parts of the world is essential to improve the livelihoods of the poor, to sustain
growing populations, and eventually to stabilize population levels. New technologies will be needed to permit
growth while using energy and other resources more efficiently and producing less pollution.
Open and competitive markets, both within and between nations, foster innovation and efficiency and
provide opportunities for all to improve their living conditions. But such markets must give the right signals;
the prices of goods and services must increasingly recognize and reflect the environmental costs of their
production, use, recycling, and disposal. This is fundamental, and is best achieved by a synthesis of economic
instruments designed to correct distortions and encourage innovation and continuous improvement, regulatory
standards to direct performance, and voluntary initiatives by the private sector.
The policy mixes adopted by individual nations will be tailored to local circumstances. But new regulations
and economic instruments must be harmonized among trading partners, while recognising that levels and conditions
of development vary, resulting in different needs and abilities. Governments should phase in changes over
a reasonable period of time to allow for realistic planning and investment cycles.
Capital markets will advance sustainable development only if they recognize, value, and encourage long-term
investments and savings, and if they are based on appropriate information to guide those investments.
Trade policies and practices should be open, offering opportunities to all nations. Open trade leads to
the most efficient use of resources and to the development of economies. International environmental concerns
should be dealt with through international agreements, not by unilateral trade barriers.
The world is moving toward deregulation, private initiatives, and global markets. This requires corporations
to assume more social, economic, and environmental responsibility in defining their roles. We must expand our
concept of those who have a stake in our operations to include not only employees and shareholders but also
suppliers, customers, neighbours, citizens' groups, and others. Appropriate communication with these stakeholders
will help us to refine continually our visions, strategies, and actions.
Progress toward sustainable development makes good business sense because it can create competitive advantages
and new opportunities. But it requires far-reaching shifts in corporate attitudes and new ways of doing business.
To move from vision to reality demands strong leadership from the top, sustained commitment throughout the
organization, and an ability to translate challenge into opportunities. Firms must draw up clear plans of action
and monitor progress closely.
Sustainability demands that we pay attention to the entire life cycles of our products and to the specific
and changing needs of our customers.
Corporations that achieve ever more efficiency while preventing pollution through good housekeeping, materials
substitution, cleaner technologies, and cleaner products and that strive for more efficient use and recovery of
resources can be called "eco-efficient."
Long-term business-to-business partnerships and direct investment provide excellent opportunities to transfer
the technology needed for sustainable development from those who have it to those who require it. This new concept
of "technology cooperation" relies principally on private initiatives, but it can be greatly enhanced by support
from governments and institutions engaged in overseas development work.
Farming and forestry, the businesses that sustain the livelihoods of almost half of the world's population,
are often influenced by market signals working against efficient resource use. Distorting farm subsidies should
be removed to reflect the full costs of renewable resources. Farmers need access to clear property rights.
Governments should improve the management of forests and water resources; this can often be achieved by providing
the right market signals and regulations and by encouraging private ownership.
Many countries, both industrial and developing, could make much better use of the creative forces of local
and international entrepreneurship by providing open and accessible markets, more streamlined regulatory systems
with clear and equitably enforced rules, sound and transparent financial and legal systems, and efficient
administration.
We cannot be absolutely sure of the extent of change needed in any area to meet the requirements of future
generations. Human history is that of expanded supplies of renewable resources, substitution for limited ones,
and ever greater efficiency in their use. We must move faster in these directions, assessing and adjusting as
we learn more. This process will require substantial efforts in education and training, to increase awareness
and encourage changes in life-styles toward more sustainable forms of consumption.
A clear vision of a sustainable future mobilizes human energies to make the necessary changes, breaking
out of familiar and established patterns. As leaders from all parts of society join forces in translating the
vision into action, inertia is overcome and cooperation replaces confrontation.
We members of the BCSD commit ourselves to promoting this new partnership in changing course toward our
common future.
From: Changing Course: A Global Business Perspective on Development and the Environment, 1992.
Stephen Schmidheiny, with the Business Council for Sustainable Development.
