Soziale Nachhaltigkeit- Pflicht oder Kür? (eBook)

1.2 Delving into the roots of the social sustainability concept

The previous chapter shows that the historical roots of the concept of social sustain­ability can be traced back to the labor movements of the late 19th and early 20th centuries. During that industrialization period, social issues such as poverty, child labor, inadequate living conditions, and poor working conditions were prevalent.

In this period, we observe some visionary examples of business engagement. Some of the early pioneers of social sustainability included:

• William Hesketh Lever (one of the founders of Unilever, a British multinational fast-moving consumer goods company), who built the Port Sunlight village for workers with housing, schools, and cultural institutions.

• George Cadbury (founder of Cadbury, a British multinational confectionery company), who developed Bournville village with affordable housing for employees.

• James Norris Gamble (a son of one of the founders of Procter & Gamble, an American multinational consumer goods corporation), who introduced profit-sharing for workers and supported schooling.

• Milton Hershey (the founder of the Hershey Company, an American multinational confectionery company), who invested in schools and housing.

• Ernst Abbe (one of the founders of the company now known as SCHOTT, a German multinational glass company specializing in the manufacture of glass and glass-ceramics) introduced workers’ rights and supported scientific development.

• Robert Bosch (founder of Bosch, a German multinational engineering and technology company), who introduced an eight-hour working day in 1906 and supported health and social causes.

The following section provides more information on these selected pioneers and some of their visionary social sustainability actions.

1.2.1 Social sustainability management pioneers

Social sustainability pioneers in the late 19th and early 20th centuries encompassed individuals and families whose business practices showcased a dedication to addressing the prevailing social concerns of their time. Their initiatives revolved around key issues of the era, such as ensuring job security, providing healthcare insurance and pensions for workers, and facilitating access to housing, sanitation, healthcare, and education for workers, their families, and local communities.

In the UK, a notable example of social sustainability includes the initiatives of William Hesketh Lever, who co-founded Lever Brothers with his brother James Darcy Lever in 1885. The company later merged with Margarine Unie to form Unilever in 1930. Lever focused on providing favorable living and working conditions for employees, exemplified by his decision to build Port Sunlight, beginning in 1887, which offered high-quality housing and various amenities such as a hospital, schools, concert hall, gallery, swimming pool, and a hotel promoting abstinence for workers. His progressive policies extended to offering pensions, supporting workers’ families during wartime, and ensuring their reintegration into the workforce afterward. In 1926, Lever initiated the Clean Hands Campaign to promote hygiene among children, demonstrating a commitment to social sustainability (Unilever, n. d.). However, debates persist regarding Lever’s responsibility for forced labor in plantations in the Congo, from which palm oil was sourced (Rosthorn, 2022).

Another prominent example of early social sustainability engagement comes from the United States. William Procter and James Gamble founded Procter & Gamble in 1837, where they and their successors implemented policies to improve workplace conditions. As early as 1887, James Gamble’s son, James Norris Gamble, introduced a profit-sharing plan for employees, providing them with opportunities to partici­pate in company management, as well as offering insurance and pension benefits. The company’s commitment to social sustainability also extended to promoting diversity, a cornerstone of its sustainability strategy to this day. In 1905, James Norris Gamble supported the establishment of Mary McLeod Bethune’s school, which later evolved into Bethune-Cookman University, furthering the cause of higher education for black communities.

Yet another compelling example of social sustainability stems from Germany. Otto Schott, a German chemist and glass researcher, along with Ernst Abbe, a physicist, and Carl Zeiss, an optician and precision mechanic, founded the glass manufacturing company Schott in 1884. In 1896, Ernst Abbe introduced the charter of the Carl Zeiss Foundation, which granted employees unprecedented social rights. These rights included protections against termination, a minimum wage, paid time off, and a pension scheme. The foundation also demonstrated a unique commitment to research and education. The information box below provides additional details about the foundation’s statute from 1896, which serves as an exemplary instance of social sustain­ability leadership.

Ernst Abbe’s impactful contribution to social sustainability was succinctly summarized in a 1913 article in the Economic Journal titled »A Successful Social Reformer, Ernst Abbe, 1840-1905« which dubbed a company’s worker as the »aristocrat of the working class« (Glatzer, 1913, p. 336). According to Glatzer (1913), Abbe’s contribu­tions encompassed:

• Advancing the company’s interests while ensuring financial stability.

• Supporting scientific developments.

• Social responsibility towards the company’s employees, ensuring their economic and social well-being even after his tenure.

• Expanding educational opportunities for the workforce.

• Promoting academic advancement through initiatives like founding new chairs and university buildings.

Abbe’s leadership not only ensured a competitive advantage for the company through the introduction of unprecedented employee benefits, but it also had a broader positive societal impact by increasing access to education and knowledge.

Abbe’s motivation to contribute to social sustainability appears twofold. On one hand, as the son of a worker, he understood the negative impact that poor working conditions and monotonous work could have on workers and felt a deeply ingrained responsibility to provide good working conditions for them (Glatzer, 1913). He implemented the eight-hour workday and witnessed the benefits it brought to the workers (Glatzer, 1913).

On the other hand, the exemplary working conditions, benefits for workers, and investments in education and research were always viewed as measures to future-proof the company, especially for the time without Abbe’s leadership (Glatzer, 1913).

Indeed, the company reaped the benefits of Abbe’s social sustainability leadership, enabling business...