Companies have long avoided regulations through exhibitions of self-governance and self-regulation, often touting extravagant goals to their communities, employees, and customers. However, more often than not, these goals are rarely brought up again. Many companies seem to focus on planning and advertising effective strategies to achieve these goals without actually enacting them. According to a study conducted by the World Benchmarking Alliance, which contacted 1000 companies across 60 countries, only 10 companies achieved the United Nations’ Sustainable Development Goals. This amounted to a failure rate of approximately 99%.
Many of these goals relate to regulating important aspects of ensuring sustainable development. This includes everything from humanitarian efforts to curtail the potential distress of employees along the supply chain lines of products these companies purchase or sell, as well as more direct sustainable initiatives that help conserve and preserve the environment. Although many companies seem to have a good understanding of what is needed from them, they often have difficulties providing it. This is why many critics are advocating for better regulations. As most companies simply do not have the forethought or wherewithal to keep their sustainability goals in mind during their operations, official regulations and legislations would help incentivize them to keep pushing innovation and sustainability forward.
A move towards official legislation would help all parties involved. This would mean that companies are no longer obliged to develop complex sustainability plans, while the community and employees of the company would be able to enjoy better support and resources.