Introduction
In the contemporary competitive business environment, businesses are faced with a myriad of challenges. If not dealt with, this challenges can impact on their performance. In light of this there is a new paradigm shift which focuses more on sustainable development. As resources dwindle and competition increases, there is need to remain relevant and competitive whilst promoting sustainable social, environmental and technological best practices approaches. Business sustainability can be defined as management of the triple bottom line. This is a process in which organizations or companies manage their environmental, technological, social and financial risks, whilst meeting their obligation and utilizing available opportunities. In essence it focuses on profit maximization, people and global interactions.
In essence business sustainability requires companies to observe and follow certain principles of sustainable development. The World Council for Economic Development (WCED), defines sustainable development as development that “meets the needs of the present without compromi...
Wheelen, T. L., & Hunger, J. D. (2010). In Concepts in Strategic Management and Business Policy Achieving Sustainability, Twelfth Edition. Pearson Education.
In relation to sustainability, more and more this aspect is becoming very important for a company’s bottom line and for them to differentiate themselves from their competition that fails to establish a sustainability program. In a macro sense, it ethically responsible to establish a sustainability program to identify ways that the firm can make a difference globally and reduce their overall expense and
Stakeholders and investors are no longer only interested in financial performances, they are interested in the governance of the company like what business practices and business models are implemented, social performances, how the company is giving back to society, how costumers are handled, environment and how diversity at work placed is addressed. Hence relevant information must be provided to the stakeholders to assure them that the company has a sustainable business model (Ridehalgh, 2012).
This paper critically analyzes Nike company sustainability strategy. Every investor or a group of investors wishes to see the business profitable at the current time as well as having good prospects for future (Werbach, 2009). For this reason, business sustainability strategy is very important. A strategy is a plan that guides the company or a business firm towards a certain direction or set goals. Thus, sustainability strategy is an action plan that a company set in order to maintain the plan toward the achievement of company’s goals in future. Sustainability strategy puts into consideration aspects such as the source of raw materials, competition, human resource development, and sustainability, and the general business environment. Thus, in evaluating a business’ sustainability, it is important to consider the business planning in this direction (Heslin and Ochoa 2008)
In conclusion, I have to say that there is a solid invisible relationship between impacts of businesses on environments, profitability of sustainable business, and responsibility of business. When one of these ones changes, it will effect to others. When a business adapts efficient and sustainable system, it will reduce negative externalities and increase positive externalities to environment. Once the business adapted efficient business model, it will reduce cost and maximize its profits. Obviously, the sustainable and efficient business model will make the business social more responsible to environments.
Sustainability is an “enduring and balanced approach to economic activity, environmental responsibility and societal benefit”- Tata Steel. Sustainability is about meeting the ...
Epstein, M. J. (2008). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Sheffield, UK: Greenleaf Publishing.
Triple bottom line is defined as “a corporation’s ultimate success or health can and should be measured not just by the traditional financial bottom line, but also by its social/ethical and environmental performance” (Norman and MacDonald, 2003). There are many advantages when it comes to being a triple bottom line corporation. While incorporating the triple bottom line, you are also incorporating sustainability you’re your business. Therefore, becoming a triple bottom line corporation means it is one step higher towards helping save the planet. Becoming sustainable is cost efficient. Although it may cost a significant amount of money to convert, it will pay itself off in the long run. Additionally, it will help reduce expenses while saving
Sustainability of a business refers to the capability to stay in business, survive and perhaps thrive within the constraints or limitations imposed on it. A business and its performance is sometimes sustainable because of the favourable economic environment or because of some strategic advantage that other competitors do not have. Instead of having to deal with deeper aspects of management strategies, we will address two more apparent issues.
In a Harvard Business Review (HBR) article, “Why Sustainability is now the Key Driver of Innovation”, the contributors argue against the common view: that as businesses become more environmentally friendly they become less competitive and profitable (Nidumolu, Prahalad, & Rangaswami, 2009) The contributors go on to say that companies who initiate environmental sustainability will develop competencies that competitors won’t be able to match and that ultimately, “sustainability will always be an integral part of development” (Nidumolu et al., 2009). In the year 2016, their statements are still valid and applicable to the biggest corporations in America. The largest corporation by revenue in America with over 482 billion dollars is Walmart (“Wal-Mart”).
Traditionally, financial reporting discloses only financial information to determine its financial performance. However, nowadays, success of one business is no longer solely depending on monetary gain, instead the impacts of companies’ activities have on society and environment as a whole is highly important. This trend has come across to increase the public expectation for organization to take responsibility for their non-financial impacts for example the impacts on the environment and community. Hence, Triple Bottom Line (TBL) which was first described in 1994 by John Elkington can be an ideal integrated approach that fit in to this approach in order to support the sustainability growth of the companies. Triple Bottom Line incorporate three dimension of performance and measurement namely social (people), environment (planet) and financial (profit) which attached to the theory of sustainable development reporting. It is an expansion of the traditional performance framework as it takes into consideration not just financial outcome but also social and environmental performance that businesses are dealing with. The explanations of the three pillars are as follow.
Business sustainability consists of three components, these are: social, economic and environmental. The business has to consider these three components as the business must make a maximized profit (economic) but must not in any way damage the environment in the long term (environmental). The business must also take care of social issue and people and communities as they are support the business.
Hence, corporation must bear in mind for long-term sustainability, it need to focus on its relationship with
Business sustainability is the management and coordination of environmental, social and financial demands and concerns to ensure responsible, ethical and ongoing success. Social, Economic and Environmental sustainability are considered as the three pillars of sustainability, which is sometimes referred to as the triple bottom line.
Sustainable Development in Business EXECUTIVE SUMMARY This report is aimed at analyzing and studying the advancement and the operation strategies for sustainable development. Information was gathered, using business articles, on the strategies and techniques required for sustainable development. Sustainable development is not only important and essential for environmental protection and socially well-being, but also for certain economic goals a business may want to achieve. Much of the business community is unaware of proper sustainable development policies; sustainable management issues are often brought into awareness by risk management channels. The River Basin Management in the European Union (EU), has implemented public participation in the planning and management process.