By Lauren Fenthum
<---- To view/save infographic CLICK HERE
Sustainable development was first put forward by the United Nation’s World Commission on Environment and Development in 1987, as an effort to guide the development for the global environment. Since the idea of sustainability has diverged into political realms and has further become a hot topic within business practice. But why is sustainability so important for businesses? The answer can be found within stakeholders and that of business care.
As the world moves towards a more fast-paced and immediate space, there is an increased demand from stakeholders not only with regards to production and brand expectation but also for organizations to adopt more responsible management practices. The stakeholder’s demands for a strong economic performance in addition to organizations being both socially and environmentally stable whilst adhering to responsible business practices. Therefore it should come as no surprise that CSR, Business Ethics and Sustainable Management have become an imperative part of a company’s strategy and everyday operations.
Another reason why businesses now recognize the importance of sustainability within core-activities as an essential part of developing strategies is because of the Business Case for Sustainability. This emphasizes the links between voluntary social, environment and corporate economic success and how they can be used to innovate and to take your business to the next level making it stand out from competitors. By looking at the business case drivers which consists of; cost and cost reduction, sales and profit, risk reduction, reputation and brand value, employer attractiveness as well as that of innovative capabilities, it underlines the fact that by achieving just 1 of the 6 aspects mentioned above, this will ultimately, indirectly allow your business to capture economic flow as this shows that you are more willing to engage in such activities.
Now we can see that there is an overwhelming amount of evidence to support why it is so important for businesses to engage in sustainable activities in order to derive value. Look at how you too, can design a Sustainable Business Model that has the ability to create, deliver and capture value that is not only beneficial to your company but to your stakeholders as well. By doing this, you can ensure that your business will meet the requirements of the Triple Bottom Line within its practice, which makes your company more attractive to future prospects, investors as well as ensuring the longevity of your company. Sustainability practice started as a political debate that has now turned into mainstream practice, as it is something that is not hard or too costly to implement it is a small step that can guarantee the success of any business.