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5 J. Mgmt. & Sustainability 1 (2015)

handle is hein.journals/jms5 and id is 1 raw text is: Journal of Management and Sustainability; Vol. 5, No. 1; 2015 ISSN 1925-4725 E-ISSN 1925-4733 Published by Canadian Center of Science and Education A Dynamic Programming Approach to Sustainability Rani G. Selvanathan 1Department of Management, West Chester University, West Chester PA, USA Correspondence: Rani G. Selvanathan, 125 Scarlet Drive, Conshohocken, PA 19428, USA. Tel: 1-610-504-2128. E-mail: Rselvanathan owcupa.edu Received: November 28, 2014 Accepted: January 19, 2015 Online Published: February 20, 2015 doi: 10.5539/jms.v5nlpl URL: http://dx.doi.org/10.5539/jms.v5nlpl Abstract This paper proposes to formulate the sustainability management problem as a multi-objective or goal programming problem, in order that the level of activities engaged by a corporation meets the three objectives of economic, environmental, and social obligation. Further, noted in the paper is the fact that sustainability optimization does not end within one time period but is an on-going activity. The paper further links the dynamic programming concept to model this on-going nature of sustainability measurements. Optimal levels of activities resulting in a given triple bottom line situation are linked to the future levels of the same activities. Keywords: mathematical formulation, optimizing sustainability 1. Sustainability and Triple Bottom Line A corporation's responsibility should not rest with economic growth alone but extend over to cover other environmental elements it influences. The external elements affecting a corporation can be classified broadly under two categories: environmental and social. Current thinking in the field of management reflects an approach that outlines the objectives that corporations hope to achieve. Actions of a corporation should therefore assure at least a minimum performance on the three fronts: economic (Profits), environment (Planet), and social (People). This concept has been referred to as a Triple Bottom Line (TBL). Introduced by John Elkington in 1994, current usage of triple bottom line is a measure of a company's economic value along with its social and environmental responsibilities. Interest in triple bottom line has seen a consistent growth ever since its introduction. Used in varying ways, the concept of TBL has its applications in organizations, both for profit and not for profit, government, and regional development programs. The ways to assess a company's economic value is more quantifiable as compared to its social and environmental responsibilities and the three put together do not have a common unit of measurement. The benefits of Triple Bottom Line approach has been widely discussed by Willard, B. (2002). The concept of Triple Bottom Line and the problematic application associated with it arise from a) lack of integration among the three factors considered in the TBL and b) lack of well-defined relationships between the factors of TBL. Critiques of the approach Norman et al. (2004) question the possibility of managers and investors, while using the TBL, being distracted from achieving more effective social and environmental objectives. International Council for Local Environmental Initiatives (ICLEI) founded in 1990 and United Nations in 2007 saw a need for a unified approach to assure the triple bottom line by both public and private sector corporations. It is to be noted that the level of importance given to the three fronts of economic, environmental and social could be different for public and private sector corporation and among different industries with the sectors. The overall objective of sustainability management is to choose the levels of activities engaged in by a corporation such that: a) The profits generated or the costs incurred by the corporation are maximized/minimized thereby assuring economic sustainability. b) The impact of the activities on the environment is minimized, thus maintaining environmental sustainability, and c) The positive effects on the society resulting from the activities pursued is maximized thereby assuring an acceptable level of social sustainability. This paper proposes to formulate the sustainability management problem as a multiple-objective or goal

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