The business case justifies a project's undertaking for the project's stakeholders. Business justification is usually based on the estimated cost of development and implementation against the risks and the anticipated business benefits and savings.
Business justification is generally based on the anticipated financial benefit to the project participants along the project value chain. The value chain of a project is typically measured in terms of financial performance and economic benefit throughout its whole-life cycle.
Sustainability is the carrying out of economic activity without depleting resources or having harmful impacts now or for future generations. Sustainable development anticipates financial profit for the project participants as well as the creating of shared value for all stakeholders.
Environmental, social and corporate governance (ESG) factors can have a significant impact on corporate financial performance. Increasingly, lenders and investors demand that the companies they finance or invest in consider environmental and social factors in their business.
ESG factors are considered at different stages of investment analysis and business valuation. The terms and conditions of loans and investments may be linked to ESG key performance indicators (KPIs).
Creating shared value is the business model used to accelerate the achievement of sustainable development goals (SDGs). Companies are creating shared value (CSV) when using policies and operating practices to synchronize the progress of the economy and society while enhancing their competitive advantages and profitability.
Corporate social responsibility (CSR) has an ethical responsibility focus on doing right by the community and the environment while making a profit for shareholders. It requires ethical behavior in all parts of the business process and is commonly viewed to coincide with creating shared value for all stakeholders.
In 2011, the European Commission (EC) defined CRS as “the responsibility of enterprises for their impacts on society”. Moreover, the World Economic Forum declared in 2017 that “society is best served by corporations that have aligned their goals to serve the long‑term goals of society”.
