CHAPTER 1 - INTRODUCTION TO SUSTAINABLE DEVELOPMENT

Simple, complex, wicked problems

- Simple problems: easy to solve, standard protocol
- Complex problem: no strict protocol and outcomes uncertain
- Wicked problems: resist defining, solutions not readily available occur at different societal
interfaces and require system change
- SDGs are "wicked problems". They often relate to Spaces 3 & 4.

Simple problem Complex problem Wicked problems

Easy to solve Difficult to find a Difficult to find problem/definition

solution

Standard protocol Problem and solution The boundaries of the problem and its
are not clear, but can operations are not clear; the problem and
be understood over its solution are not clearly understood
time and are constantly changing as we try to
define them.

1. Definition and Core Concepts

1.1. Key Historical Milestones of the Sustainable Development Concept

1.2. Sustainable Development (SD) Definition

- "Sustainable development is development that meets the needs of the present without
compromising the ability of future generations to meet their own needs." (Brundtland 1987, 41)
→ This definition implies two key concepts:
 Needs (referring to meeting the essential needs of the world's poor)
 There are environmental limits to meeting our needs.

- Achieve sustainable development by: promoting sustained, inclusive and equitable economic
growth, creating greater opportunities for all, reducing inequalities, raising basic standards
of living; fostering equitable social development and inclusion; and promoting integrated and
sustainable management of natural resources and ecosystems that supports inter alia economic,
social and human development while facilitating ecosystem conservation, regeneration and
restoration and resilience in the face of new and emerging challenges. (UN General Assembly
2012, para. 4)

→ Sustainable Development captures the integration of economic opportunity, ecological

sustainability, and social inclusion.

- Sustainability and Sustainable Development

 "Sustainability" defined as:
• "the quality of being able to continue over a period of time"- Cambridge Dictionary
• "the ability to be maintained at a certain rate or level" - Oxford Dictionary
• "the quality of not being harmful to the environment or depleting natural resources,
and thereby supporting long-term ecological balance" - [Link]

 Sustainability originates from Ecological Economics, which recognizes that the economy is
closely linked to natural ecosystems. Therefore, current and future economic prosperity
depends on the protection of natural ecosystems. Sustainability is an economic, policy and
social trend towards the comprehensive goal of human coexistence in harmony with nature.

→ Sustainability is often considered a long-term goal towards a more sustainable world, while
sustainable development refers to the many processes and pathways to achieve that goal.

1.3. Three Pillars of Sustainability and Sustainable Development

 Components of Sustainability and sustainable development consist of three pillars: the
environment, the economy, and equity.
 Balanced Approach
The argument is that sustainability can only be achieved when all three pillars are balanced and
rejects the notion that achievement in one pillar can be accomplished by sacrificing either of the
other two.
 To achieve the economic, social and environmental goals of sustainable development, the fourth
goal must also be achieved: Good governance.
○ The government must perform many core functions to help society prosper. These functions
include:
• The provision of social services such as health care and education
• The provision of infrastructure such as roads, ports and electricity
• The protection of individuals from crime and violence
• The promotion of basic science and new technologies
• The implementation of regulations to protect the environment

● Therefore, sustainable development envisions the four basic goals of a good society:
• Economic prosperity
• Social integration and cohesion
• Sustainable environment
• Good governance by major social actors, including governments and businesses

● What is the Balanced Society?

 2. Transition from MDGs to SDGs

2.1. Millennium Development Goals (MDGs): Were in effect from 2000-2015.

● Limitations of MDGs:
○ Lack of ambition to be the lever to drive progress.
Not being ambitious enough to be effective levers for progress; being too simple and focusing on
poverty.

○ Lack of solid analytical rationale for selecting targets and ignoring others.
Lacking solid analytical reasons to choose these particular objectives and leave others out.

○ Relatively vague, without clear indicators.

Being 'goals without means'; being generated in a non transparent way; not aligning with human
rights.

2.2. 17 Sustainable Development Goals (SDGs):

● SDGs Classification
● Types of interactions between SDG targets
❖ Positive interactions [238]
❖ Negative interactions [66]
 For example: SDG 2 (Zero Hunger) and SDG 13 (Climate Action)
❖ Neutral [12]

→ An integrated approach to policy making and decision making that focuses not
only on individual components but also considers interactions between SDG
targets to reduce trade-offs and take advantage of mutual benefits.

Prioritizing SDGs according to different approaches

developed countries underdeveloped countries

● Critiques of SDGs
○ Compromise and Politicization
The goals and targets were the result of compromise (or politicized). This suggests that the SDGs
may not fully address all critical issues due to political negotiations and trade-offs.

○ Lack of Coherence
They lack coherence by being too vague and too numerous. This critique points out that the SDGs
may be difficult to implement effectively due to their broad scope and large number of goals.

○ International vs. Local Priorities

Their targets were a result of international negotiation, not reflect local or national sustainable
development priorities and problems. This highlights a potential disconnect between global
objectives and specific regional needs

● Subjects implementing the SDGs

○ The most challenging part of the SDGs relates to the complexity of society.

→ There needs to be a diverse range of stakeholders (with different interest) working

together to solve problems. These stakeholders also have a significant influence on how
problems are framed and perceived, how information is collected and generated, and how
decisions are made..
 ○ In institutional terms, ‘social sectors’ include: government (state), business (market)
and citizens (community). For the same problem, each social sector has a different
approach and logic.

○ The main capacities and main tasks of each sector are clearly different: Markets
provide private goods on a competitive and for-profit basis; governments provide public
goods to the community on a non-profit and non-competitive basis and communities foster
social capital, mutual support, and collective action to address needs that neither markets
nor governments fully meet, often relying on trust, shared values, and volunteerism.

→ The “societal triangulation” principle focuses on the question of the extent to

which each component of society “have” and “share responsibility” and what this
requires in an increasingly volatile, uncertain, and institutionally boundary-blurring world.

3. Societal Triangulation Model and Stakeholder Roles

● Three Main Actors:

○ State (S): Government and public institutions (Symbol: G).
○ Market (M): Private sector and businesses (Symbol: M).
○ Civil Society (C): NGOs, community groups, and social organizations (Symbol: C).

 The model shows that: Achieving sustainability requires well-coordinated efforts across
all three actors. Relying solely on one actor often leads to failed outcomes or negative
impacts.
→ Sustainable development goals (SDGs) require well-coordinated efforts across state,
market, and civil society.
  This presents a System Failure Severity Scale in the context of the Societal Triangulation
Model.
It is essentially a way to measure how well (or poorly) the three key sectors of society
(markets, governments, and communities) are functioning.
+ 10–20 points: Sectoral failure (failure of one sector alone)
Only one sector is underperforming or failing to fulfill its role, but the other two are still functional
enough to partially compensate.
For example: A market monopoly leads to price gouging, but government regulation and active
community advocacy keep essential goods accessible.

+ 20–30 points: Lack of responsibility for negative externalities

Multiple sectors fail to solve harms they cause, leading to unchecked negative impacts.
For Example: A mining company pollutes a river (market failure), the local government turns a
blind eye (government failure), and the community lacks organization or resources to demand
change (community gap).

+ 30–50 points: Failure to generate enough positive externalities

There’s also a lack of proactive value creation for society → missed opportunities for
collective benefit.
For example: A city’s public–private partnership on renewable energy meets minimum legal
requirements but fails to expand access to underserved communities or stimulate local green jobs.
+ 50–70 points: Systemic/pervasive issues → Trust erosion, institutional void
Widespread breakdown across all three sectors, leading to loss of public trust and weakening of
institutional frameworks.
For example: During a public health crisis, companies profiteer on essentials, the government
mismanages response, and communities are fragmented resulting in chaos, misinformation, and
worsening outcomes.

 The “Institutional Void / Trust Gap” zone

A state where none of the three pillars (market, government, community) are working
effectively.
Rules and enforcement are weak, trust among citizens erodes, and coordination collapses.

 The social origins of the dilemma

The severity of a problem is determined by the extent to which we expect each component of
society to take responsibility for it.
The further a problem lies outside the primary responsibilities and core capacities of each
component, the more complex it becomes to design effective solutions. The most serious
problems are found at the center, where institutional voids and the largest trust gaps exist.

 Social origins of success

A well-functioning society is a “balanced” one, in which each component of society fulfills its
primary roles and supports one another.
In other words, the better each component performs all of its roles at every level of
responsibility, the easier it becomes to address complex problems.
 The role of each sector at different levels
  Social origins of success
Level 1: Social actors effectively perform the key roles they are assigned: Companies compete
effectively; Governments regulate through the rule of law; and Civil society creates
positive, mutually supportive communities.
Level 2: Level 2 refers to roles that fall within the sphere of influence of a given social actor but
require the participation of other parties to be fulfilled: Companies may outsource,
governments may facilitate (for example, through subsidies), and civil society may
advocate (persuade others) to change behaviour.
Level 3: This level roles involve areas that fall only within an indirect sphere of influence:
Companies engage in community activities; civil society organizations become “service-
oriented”; governments may endorse the activities of companies or organizations.
Level 4: The least clear aspect is the exact role that sectors can play in addressing issues
requiring collective action: collaboration is needed, but this calls for more detailed elements
such as forms of cooperation, cooperative actions, and the allocation of responsibilities.
This depends heavily on the context and the specific issue.
 Tasks of each actor for each level
 Typical sources of failure for each subject
  Partnerships between actors

SDGs are "wicked problems". They often relate to Spaces 3 & 4.

Please give an example to illustrate the roles of stakeholders in a sustainable development issue in
specific spot.
For example:
4CSM: Tổ chức xã hội phát động chiến dịch bảo vệ môi trường với sự hỗ trợ từ nhà nước và doanh
nghiệp.

4. Distinguishing Sustainability Concepts

Concept Definition / Primary Focus Key Differentiator

Green Economy Focuses on the sustainable and Aims for sustainable development and
environmentally friendly use of minimization of negative environmental
resources. impacts.
Circular Economy Focuses on reusing and recycling Aims for sustainable development and
resources to minimize waste. minimization of negative environmental
impacts. The two models should be
combined for an optimized, sustainable
economic system.
Corporate Social Integration of social, Has evolved through stages (CSR 1.0 to
Responsibility (CSR) environmental, and economic 4.0).
concerns into a company's
operations and interactions with
stakeholders. Main goal is to
generate benefits for the company
and society while enhancing the
company's image.
Creating Shared Businesses create economic CSV = Social Value + Economic Value.
Value (CSV) value by simultaneously It goes beyond CSR and drives
generating value for society, innovation and growth.
addressing social issues within
their core business operations.
Environmental, A set of criteria used to evaluate a Environmental (Climate impact,
Social, and company's performance in these resource management, waste), Social
Governance (ESG) three areas, increasingly (Labor relations, human rights,
important in investment decision- community engagement), Governance
making. (Structure, ethics, anti-corruption, board
independence).
 Green Economy and Circular economy
❖ Similarities
Both the green economy and the circular economy aim for sustainable development and the
minimization of negative environmental impacts.
❖ Differences
The green economy focuses on the sustainable and environmentally friendly use of resources.
The circular economy focuses on reusing and recycling resources to minimize waste.
→ The two models should be combined to create a sustainable economic
system in which resources are optimized, and products are designed for
recycling and reuse.

Circular economy and business

 Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) is a term referring to the integration of social,
environmental, and economic concerns into a company’s business operations and its
interactions with stakeholders.
CSR often encompasses a range of activities such as environmental protection, community
development, and ensuring good working conditions for employees.
The main goal of CSR is to generate benefits for both the company and society while enhancing
the company’s image and reputation in the eyes of stakeholders.

CSR has evolved through various stages (from version 1.0 to 4.0), with each version reflecting the
progress and expansion of CSR’s scope in response to changing economic and social contexts.
→ CSR 1.0: Business & Society
→ CSR 2.0: Business IN Society
→ CSR 3.0: Business-Society Management
→ CSR 4.0: Sustainable Business

Creating Shared Value (CSV)

Creating Shared Value (CSV) is a concept developed by Michael E. Porter and Mark R. Kramer in
2011. This concept suggests that businesses can create economic value by simultaneously
generating value for society, addressing social issues within operations their core business
operations.
CSV emphasizes aligning corporate benefits with societal benefits to produce a more integrated
and sustainable form of value.

CSR and CSV

 CSV is not CSR
Creating shared value that goes beyond corporate social responsibility.
 CSV = Social Value + Economic Value
Creating shared value means addressing social needs and challenges through a business model.
 CSV can drive INNOVATION AND GROWTH
Creating shared value will stimulate the next wave of innovation and productivity in the global
economy.

Environmental, Social, and Governance (ESG)

ESG stands for Environmental, Social, and Governance. It is a set of criteria used to
evaluate a company’s or organization’s performance in these areas.
ESG is becoming increasingly important in investment decision-making,as investors and
shareholders today often consider not only financial performance but also a company’s
environmental, social, and governance impacts.
 Environmental:
o Climate impact and climate change
o Natural resource management
o Energy use and energy efficiency
o Waste and pollution management.
 Social
o Labor relations and working conditions
o Diversity and equal opportunity
o Community engagement and social impact
o Respect for human rights and protection of labor rights
 Governance
o Governance structure and transparency
o Business ethics and anti-corruption
o Compensation and dividend policies
o Independence and qualifications of the board of directors
 ESG Indices: ESG indices are benchmarks that track the performance of companies meeting
specific ESG criteria.
 ESG Rating Tools:These are tools used to assess and rate companies based on ESG criteria.
 Sustainability Reports: Companies publish annual sustainability reports providing detailed
information on their ESG activities, there by helping investors gain a more comprehensive and
in-depth understanding.
SDGs vs ESG
 CSR vs ESG

Green, Inclusive, and Sustainable Growth

 Green Growth
Economic growth that prioritizes environmental sustainability, promoting eco-friendly technologies
and practices to reduce environmental impact.
 Inclusive Growth
Economic growth that ensures fair distribution of benefits across all segments of society, reducing
inequality and promoting social inclusion.
 Sustainable Growth
Economic growth that balances economic, environmental, and social dimensions to meet present
needs without compromising future generations' ability to meet their own needs