Business sustainability became increasingly popular among corporate systems as consumers demanded more eco-friendly products, transparency, and accountability. Through these requirements, customers wanted the environmental impact to be lowered since companies are contributing to massive amounts of greenhouse gas emissions.
The issue is much more complex than it seems because the manufacturing and transportation processes are vital for the supply chain. Unfortunately, current practices are inefficient or unproductive in the new technological era.
Therefore, businesses are beginning to change their approach in an attempt to adopt a circular economy model that includes sustainability measures. For an easier direction, using the three pillars of sustainability can help accumulate strategies that fit their goals.
Why is sustainability not that straightforward?
Most people see sustainability as a simple method of using eco-friendly products to mitigate climate change. However, this affects people, animals, and ecosystems on numerous levels, which is why a better technique is needed.
Balancing the financial and technological implications of changing the system is complex, considering how society is constructed. That’s why recycling plastic might not be that efficient if we increase production or choose products that claim to be sustainable but practice greenwashing.
Therefore, in addition to the environmental aspect, we must also consider the social and economic aspects of an eco-friendly approach.
Ecological matters
The first and most popular approach is sustainability. Most companies try to reduce their carbon footprint and avoid wasting packaging material while benefitting from fuel efficiency and reduced spending. Whether they buy new compactors or used/refurbished baler machines instead, businesses can lessen their environmental impact.
Still, we’re facing a situation in which numerous businesses are liable for greenwashing, the practice of adopting a green brand image without improving the products’ sustainability. Unfortunately, massive corporations, from Volkswagen to IKEA, have been disclosed by consumers or organisations as adopting this illicit behaviour.
Social involvement
There’s always a team of employees behind the production of a garment or a technology device, and businesses must provide them with fairness and respect, along with other principles based on human rights in the workplace. However, various organisations violate these laws, especially when carrying out manufacturing operations abroad, where the labour pay is considerably lower. Thus, many of the products we buy and use today are the product of child labour and forced labour.
As uncomfortable as this subject is, we cannot help but pressure companies to act on it because a sustainable world is one in which all people are treated well at the workplace, regardless of their country, and products, despite their price or value, are created with responsibility.
Corporate social responsibility must place worker’s safety above profit because of the risks of modern slavery surrounding communities from developing and under-developed countries.
Economic implications
The economic pillar of sustainability concerns aspects of governance, risk management, and compliance, and it should not focus mainly on profit. Indeed, a business needs cash flow to adopt sustainability properly, but choosing stakeholders and collaborators who share similar views on sustainability is more important than following common value chains.
However, companies can significantly benefit from green practices because they’re more productive, and the brand image receives a reputation from respecting people’s inclinations. Luckily, many governments offer fiscal advantages for companies that approach sustainability, from tax revenues to reducing long-term liabilities.
Indeed, a company’s beginning with eco-friendly methodologies can be met with challenges, from regulatory compliance to the transition to a circular economy.
How can these pillars improve your business?
While it’s currently underrated, corporate sustainability could have a massive positive impact on communities and the economy because it could help reach efficiency and sustainable growth. The three pillars previously presented can be used to develop a new corporate strategy that enables you to keep up with eco-friendly trends.
Therefore, you could start with:
- Collecting valuable materials for learning practical concepts related to the planet, humans, and various economic aspects and introducing them into your operating business;
- Assessing business priorities and align them with sustainability purposes to understand what’s best for the environment and your company as well;
- Creating a mission statement that fits your company’s culture and sustainability goals;
- Seek feedback from stakeholders in order to help them understand the benefits of working with a company like yours;
Challenges to be prepared for
While adopting sustainability within your business is highly beneficial, you might come across various issues when implementing this ideology. First, it shouldn’t come as a surprise seeing that customers are not always ready for such a change, especially when sustainability wasn’t among your top priorities before this moment. Although an increasing number of users prefer sustainable companies, shifting your brand image and goals must be achieved in a way that doesn’t hinder customer loyalty. It might help if your transition is smooth, accompanied by progressive collaborations and appropriate customer support.
At the same time, the beginning of this change might translate into considerable upfront investments that will pay up in the long term. Still, you may not have all the necessary funds for the change at the moment, so you may need government support and better financial organisation.
Finally, companies often find it hard to continue with sustainability, considering the lack of tools, insights, and expertise. The trend has only been on board for a few years, and professionals in this domain are scarce. Moreover, since not so many companies excel in adopting sustainability, accessible expertise is deficient or inadequate. Still, the demand for eco-friendly products and approaches is growing now, so there’s a continuous conflict between organisations.
Are these three pillars helpful for your business?
Sustainability isn’t easily measurable, but working towards achieving it can be possible by respecting these three fundamental guidelines. When trying to adopt a greener and more systematic approach to sustainability, you must consider the environmental factors, employees’ rights, and financial aspects that contribute to pushing towards a circular economy. Therefore, take your time to research the topic properly and adapt your business to new trends that matter.
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