The wanton disregard for nature and human communities that comes with unbridled exploitation is no longer viable nor acceptable. Instead, forward-thinking companies are embracing practices that respect the world in which they act without jeopardizing the bottom line.
Why should your company follow suit, and how should you start? Find the answers below.
What Is Business Sustainability & Why Does It Matter?
Sustainability in business is an increasingly popular development strategy. It reconciles companies’ pursuit of profitability with broader societal and ecological concerns. Sustainable companies don’t focus on the bottom line in the immediate future. Rather, they develop continuously while trying to minimize or even reverse any adverse effects on society and the environment.
Businesses that champion sustainability seek balance defined by the triple bottom line concept. They strive to conduct business as usual in the economic sense. That involves reducing costs and ensuring optimum cash flow and profits that satisfy all stakeholders. However, they do not do so at the expense of the other two bottom lines – people and the planet.
The people aspect refers to positive practices on a societal level. They cover steps companies take to lessen racial & gender inequality, address pay gaps, and promote social well-being. Protecting the planet by reducing waste, investing in renewable energy, and safeguarding natural resources is equally, if not more important.
Benefits for everyone
It’s not just about altruism, either. Accounting for sustainability is the pragmatic thing to do if you don’t want to start lagging behind the competition. Millennials, Gen Z, and luxury shoppers of all ages are interested in and conscious of companies’ authentic sustainability efforts. An ESW report highlights how 83% of them factor sustainability into their shopping decisions.
Taking a short-term financial hit and switching to more sustainable business practices may seem counterintuitive to some. However, companies that do so consistently grow faster and outperform stragglers.
Which Sustainability Practices Should Your Company Adopt?
Sustainable business development is a holistic pursuit focused on achieving balance. As such, it’s multi-faceted and affects everything from day-to-day operations to long-term strategies. Here are the most important points to consider when aligning your company’s development with the sustainability mindset.
Creating a mission
Aimlessly jumping on the sustainability bandwagon won’t yield the desired results and could be counterproductive. The last thing any company needs is for the public to confuse their sincere, if clumsy, efforts with greenwashing.
Informing oneself about sustainability principles and best practices is the first step to creating a comprehensive strategy. The leadership needs to outline the company’s mission and develop a clear set of goals and expectations to serve as guidelines & milestones.
Environmental concerns
Demonstrating genuine concern for the environment and taking steps to improve it should be among any sustainability strategy’s core principles.
How to tackle these concerns varies depending on industry and company type. Large businesses may consider investing in renewable energy sources or upgrades to water & waste management. Doing so helps lessen their burden on local ecosystems while improving production efficiency and paying for itself in the mid-to-long term.
Small businesses and startups can also make a difference. For example, they can promote working from home and use eco-friendly packaging to make their products less wasteful.
Innovation & security
To be sustainable means to adapt. It involves anticipating and being ready to deal with changes that could have widespread consequences for the way you do business.
Implementing new practices and technologies as they emerge will help you stay ahead of the curve. For example, achieving sustainability without a data-driven approach to making business decisions is hard.
We often view sustainability as a concern of the physical world. It’s very much an issue in the digital one as well. A company can’t meet its goals if its subject to repeated cyberattacks and data leaks. They’re costly and undermine trust. That’s why comprehensive cybersecurity measures should be an invaluable sustainability safeguard.
Continually educating employees on common dangers is a must, as is securing devices and digital assets. Most breaches happen due to employees’ poor password hygiene, which companies can mitigate by adopting business password managers. These safeguard business data by providing unique passwords for all employees and storing them in an encrypted format with clear access restrictions.
Societal improvements
No company is influential enough to enact societal change single-handedly, but yours can lead by example.
You can make a statement by working with like-minded providers to secure a more sustainable supply chain. Endorsing ethically sourced materials and drawing on local expertise helps revitalize the communities you’re operating in.
Fostering a positive presence in the community is equally important. Investing in infrastructure & education or supporting local organizations shows you’re here to stay and improve matters for everyone.
Fair employee treatment
You can start righting some of society’s wrongs at the company level. It’s a win for everyone. Existing employees are happier and more productive, while talented prospects will be more likely to apply.
Enacting transparent hiring practices ensures everyone who’s qualified for a job gets a fair shot. Validating employee feedback and enacting their suggestions can unexpectedly further sustainability goals. It also fosters a sense of ownership and responsibility that drives everyone to give it their all.
Conclusion
Our collective neglect of and disrespect for the world’s finite resources is already resonating globally. The ecological and societal impact will only become more pronounced. That’s why focusing on sustainability isn’t just desirable but the only viable way forward. Make sure you’re at the forefront to reap the most long-term benefits.