What
is a Sustainable Business?
Sustainability and Business
Over the past year there has been a major shift in the business world towards the idea of becoming more sustainable. Beyond just “greening” your operations, the concept of sustainability is an innovative approach to business practices where every decision is made with three key themes in mind:
Economic Prosperity
Traditionally, economic progress has been measured in terms of the quantity of economic activity, or profits. From the perspective of sustainability, the key issue is the quality of economic activity, the extent to which it meets real needs, and whether it respects ecological limits. Some factors to consider include whole cost accounting, marketing, fair trade, and stakeholder accountability.
Environmental Quality.
The environmental dimension of sustainability concerns an organization’s impacts on living and non-living natural system, including ecosystems, land, air and water. Some factors to consider include lifecycle assessment, eco-efficiencies, product and service design, sourcing, beyond compliance, restorative to nature, and ecological footprint.
Social Justice.
The social dimension of sustainability concerns the impacts an organization has on the social system within which it operates. Some factors to consider include internal labour practices, human rights, and impact on the local and global community.
The concept of a sustainable business is both fluid and evolving. Focusing on the coming together of these three interconnected areas of sustainability, the aim is to create a solid win-win-win business model.
5 Reasons Businesses are Embracing Sustainability
Sustainability is much more then just a trend, it is becoming a necessity for business survival in the 21st Century. The number of Canadian companies, institutions and organizations adopting sustainability has multiplied dramatically in the last decade.
Here are 5 important reasons why businesses are embracing sustainable practices:
- Reputation. In today’s market, engaging in sustainable business practices can put organizations on the leading edge. Maintaining a positive reputation has been proven to be one of the most important factors in a business’ success. Whether you are seeking recognition, avoiding backlash by the public or simply acting on your values, being more sustainable can put you ahead in today’s marketplace.
- Differentiate Your Products and Services. Since customers are demanding sustainability, which is not yet a widely adopted practice, there is an opportunity for you to stand out from your competitors.
- Employee Retention. People want to work for a company that shares their values and respects them. Retaining employees means less turnover which can save both time and money as well as increase employee loyalty, productivity and innovation.
- Stay Ahead of Regulations. Municipal, provincial and federal laws are consistently changing. Embracing sustainable practices could save you a lot of money and time in the months and years to come. Some unprepared businesses have already been affected by major retailers and trade regulations.
- Reduce Your Costs. Potential cost reductions can include savings in energy and waste. In fact, some businesses have even found ways to profit from selling off residual products.
|
