Ethics is generally understood as the distinction between right and wrong. However, legal aspects can complicate ethical decisions for organizations. While illegal actions are typically unethical, some legal actions can still be unethical, such as a company harming a community despite being EPA compliant. This creates a dilemma: lose money by ceasing harmful operations or continue to harm the community while maintaining profit.

Sustainability, in a general sense, refers to the capacity to support, maintain, or endure. From an organizational perspective, it involves integrating environmental, economic, and social dimensions for global stewardship and responsible resource management. This requires balancing profit-making (economic) with protecting the environment and improving society. Finding a 'sweet spot' where all three are balanced is crucial, though often challenging due to financial implications.

Operating ethically and sustainably can be expensive. For example, properly discarding oil is more costly than improper disposal, even though improper disposal harms society and the environment. Companies face decisions to decrease profits to properly manage resources and balance environmental and social responsibilities. This is particularly difficult for smaller businesses where ethical practices might only allow for breaking even, potentially leading to unethical shortcuts.

Three key principles form the foundation of a corporate sustainable initiative: transparency, employee development, and resource efficiency. Transparency involves open communication with both the company and the community, showing a commitment to bettering society and protecting the environment, which can lead to increased profits and repeat customers.

Employee development recognizes people as the most important renewable resource. Leadership must educate and train employees internally on how to balance economic prosperity, environmental protection, and social well-being. Resource efficiency means companies must adapt to a rapidly changing environment by implementing new ideas and efficiently using resources, avoiding outdated methods that could harm the environment or decrease profits.

Operating ethically and sustainably can be costly. Ethics, encompassing right and wrong, is closely tied to sustainability, which considers economic, environmental, and societal aspects. The goal is for organizations to balance maximizing profits, protecting the environment, and making society a better place. This corporate social responsibility is built on transparency, employee development, and resource efficiency.