How is sustainability defined when it comes to business? And how can we consider a company or a start-up sustainable? Here are some simple explanations that can help you understand this basic business elements further and assist you in turning your organisation into a sustainable business.
What is Sustainability when it comes to Business?
The term sustainability is used in business in order to describe two main elements of a company. The first one has to do with the effect a business has on the environment and the second one has to do with the effect a business has on society. The ultimate goal for companies is to include in its operations both of these elements but usually companies are considered sustainable when they include at least one of them. When companies do not include any of these elements and fail to assume responsibility various consequences can occur such as social injustice, environmental degradation and inequality.
Why is Sustainability important?
The are two main reasons why sustainability is important in business. The first one has to do with the global challenges our generation has to face and the impact companies and businesses have on this matter, while the second one has to do with the attitude of modern investors. Sustainability can drive companies to success in various ways. For starters people tend to prefer and trust more companies that are socially responsible and companies that are environmentally sensitive in comparison with companies that do not take actions about these sort of matters. Moreover sustainable companies seem to have better financials since one of the reasons why they want to become sustainable is to cut costs while also helping society and the environment. This considers such companies as attraction poles for investors and will play a massive role in the future of investments and business.
How to create a more Sustainable Business Strategy?
Since we now have a better understanding of what it means for a business to be sustainable it is time to see what should we do in order to create a more sustainable business strategy.
Assess the Problem & Define Objectives
The first step in to driving your business towards sustainability is defining what this term means for your brand, your industry, your clients. Once you note down what sustainability means for each one of these parties you will have a more clear image of the problem, the next step would be to start defining the objectives you want to accomplish I order to solve that problem.
Establish your Mission
Once you have developed your company’s objectives and you have a better understanding of what you should focus on it is time to establish your mission. Company missions are very important and the can be used as guides every time a company is not sure of where it is heading especially when it comes to sustainability. Try establishing a strong and clear company mission that answers to the 5 W’s: who, what, when, where and why?
Develop your Strategy
Now that you have your objectives sorted out and your company’s mission formulated it is time to develop the right strategy in order to accomplish them. The top priority for every company should always be it’s survival, in other words it’s economic wellbeing. Companies should start developing strategies that turn them into profitable organisations and only then can they be able to become sustainable but the truth is that sustainability is proven to lead to profitability. Therefore start assessing the measures and the steps your company should make in order to become sustainable thus profitable.
The world we live in is already facing many challenges and at the moment it looks like it will be facing even more in the future. Businesses have to become socially responsible and environmentally sensitive if they want to have a marketplace to operate in the future. Sustainability will play a massive role in the future in both the way business is conducted among with our lives and therefore companies should start considering change even more and that is why they have to become more familiar with sustainability.