Why Businesses Should Embrace Sustainability
Most, if not all, businesses are striving to achieve sustainability in their operations in this 21st Century. Haanaes (2020) states that sustainability is an approach that businesses apply to ensure long-term efficiency by considering how they operate in the economic, ecological, and social environments. Sustainability is a concept that encompasses three issues; the impact of the business on the environment, society, and economy (Spiliakos, 2020). The main aim of sustainability is to ensure equality among its three pillars; economic, social, and environmental. According to Purvis, Mao & Robinson (2019), these three pillars are often, but always, presented in three intersecting circles representing the environment, society, and economy. This portrays a relationship where there should be an effort towards all the pillars. If one of the factors is neglected, sustainability is not achieved. Spiliakos (2020) states that it is the responsibility of business enterprises to make an effort towards positive impacts in either one or all the pillars. Failure can lead to negative impacts. Therefore, businesses should embrace sustainability to ensure long-term sustenance, the fulfillment of their corporate social responsibility (CSR), as well as achieve social, economic, and environmental sustenance.
Businesses should embrace sustainability to ensure the fulfillment of their Corporate Social Responsibility (CSR). Corporate Social Responsibility involves creating a balance in meeting the needs of a business’s stakeholders (DesJardine, 2015). Lee (2009) defines stakeholders as “those who have some kind of claim on the services of the organization (“claimants”) or those who can influence the workings of the business in some way, that is, “influencers”. These include employees, suppliers, government, society, shareholders, creditors, and customers. These are the stakeholders that are affected by as well as influence the decision making of the businesses; hence there is a need to perform due diligence to ensure the satisfaction of their needs. Businesses hold a certain level of responsibility towards these stakeholders. For instance, the employees need to receive their wages in full and on time, while suppliers need the business to continue purchasing and utilizing their products and raw materials at an agreed price. On the other hand, the business needs to pay taxes to the government, both local and national governments. The creditors that supply the businesses with raw materials on credit need to get paid in full and on time. Customers need businesses to provide products of good quality and at reasonable prices. Lastly, the local community is concerned about the business’s ability to provide services to its members, such as provide job opportunities while at the same time monitoring its operations’ impact on the environment. To achieve these goals, there is a need to embrace sustainability. This can be achieved by balancing the utilization of resources and monitoring the business’s impacts on the environment, economy, and society while at the same time striving to provide the above-listed services.
Businesses should embrace sustainability to ensure long-term sustenance. As earlier stated, sustainability aims at ensuring the creation of long-term value. By giving this definition of sustainability, it shows that sustainability requires time. DesJardine (2015), claims that therein, “sustainability balances resource usage and supplies over time”. This statement means that a business’s utilization of resources should be in line with the Earth’s ability of providence of the said resources and their regeneration for the sake of future businesses. For instance, a tourism business can embrace sustainability by adopting ecotourism services. Eco-tourism encompasses safe travel to natural destinations, being mindful of the impacts of tourism on the environment. Eco-tourism involves activities such as using environmentally friendly means of transport, to destinations with natural resources while observing its impacts hence helping the local communities conserve biodiversity. Kiper (2013) incites that eco-tourism stresses on the conservation of the natural environment that most tourism businesses rely on. Upon embracing ecotourism, tourism businesses selectively utilize resources while minding the needs of the future. By balancing resource utilization with the needs, sustainability is achieved; hence business security of the ability to sustain itself on a long-term basis is achieved.
Businesses should embrace sustainability to achieve a competitive advantage. Businesses that comply with sustainability measures have the upper hand in the competition (Haanaes, 2020). This is because compliance to set measures such as empowerment of local communities, protection of the environment, giving back to the society through programs et cetera brings a sense of fulfillment to the duties of a business. As a result, it is placed on the map with the other socially, economically, and environmentally responsible businesses. Given that these are the pillars of sustainable development, it is advisable to note that there is a need to integrate them into business strategies. Wade (2019) explains that sustainability is not achieved overnight; it is a process that requires planning, research, and implementation. It is about incorporating the changing social, economic, and environmental needs into their decision making. Therefore, to achieve sustainability, there is a need to; first think strategically. Second, nurture innovation. According to Wade (2019), this involves assessing the production process to ensure that the “product cycle” spells sustainability. This is where designing to feature longevity is put into place. As earlier mentioned, sustainability aims at ensuring the creation of long-term sustenance of businesses and their environment. This can be done through repurposing or remanufacturing of the waste resources. Third, create a sustainability culture. A business’s culture involves the values, beliefs, and behaviors of the employees. By adopting a sustainable culture, a business attains a competitive advantage that ensures it is at the forefront of performance. In the long run, sustainability is achieved, and the businesses stand higher compared to those that do not embrace sustainability.
In conclusion, businesses should embrace sustainability to ensure long-term sustenance, the fulfillment of their corporate social responsibility (CSR), competitive advantage as well as achieve social, economic, and environmental sustenance. The earlier given instance of eco-tourism is a perfect example of a way to achieve sustainability. Kiper (2013) incites that, “Eco-tourism contributes to the conservation of biodiversity; sustains the well-being of local people; involves responsible action on the part of the tourist and the tourism industry; promotes small and medium tourism enterprises; requires lowest possible consumption of natural resources; stresses local participation, ownership, and business opportunities, particularly for rural people; and above all includes the learning experiences.” This statement is a wholesome explanation of how sustainability can be achieved. This statement encompasses sustainability as a means to achieve Corporate Social Responsibility (CSR), achieve longevity, competitive advantage, and achieve social, environmental, and economic sustenance. And this is why businesses should embrace sustainability.
References
Ben Purvis, Y. M. (2019). Three pillars of sustainability: in search of conceptual origins. Sustainability Science, 681–695.
Retrieved from: https://link.springer.com/content/pdf/10.1007/s11625-018-0627-5.pdf
DesJardine, T. B. (2015). Don’t Confuse Sustainability with CSR. Ivey Business Journal.
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Haanaes, K. (2020, June 24). Why all businesses should embrace sustainability. RESEARCH & KNOWLEDGE.
Retrieved from: https://www.imd.org/research-knowledge/articles/why-all-businesses-should-embrace-sustainability/
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Retrieved from: https://scholar.lib.vt.edu/ejournals/JOTS/v33/v33n1/lee.pdf
Spiliakos, A. (2020, June 24). WHAT DOES “SUSTAINABILITY” MEAN IN BUSINESS? Retrieved from Harvard Business School Online: https://online.hbs.edu/blog/post/what-is-sustainability-in-business
Wade, B. (2019, April 4). Success is Good, But Don’t Forget to Embrace Sustainability. Entrepreneur.
Retrieved from: https://www.entrepreneur.com/article/331743