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A sustainable business is any organization that participates in
Environmentally friendly or green activities to ensure that all processes,
products, and manufacturing activities adequately address current
environmental concerns while maintaining a
profit. In other words, it is a
business that meets the needs of the present
world without compromising
the ability of future generations to meet their own needs.
It is the
process of assessing how to design products that will take advantage of the
current environmental situation and how well a company’s products perform
with renewable resources. |
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A sustainable business, or a green business, is an enterprise that has
a both strategically and tactically
positive impact on the economy, society
and environment. Often, sustainable
businesses have progressive
environmental and human rights
policies.
Sustainable development within a business can create value for customers,
employees,
investors, and the environment. A sustainable business must meet
needs of investors and customers while, at the same time, treating the
environment well. To succeed
in such an approach, where stakeholder balancing and joint solutions are
key, requires a
holistic approach (→
Example). |
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Circular Economy
Harmonious Mega-Innovation
Circular Business Models
Green
Entrepreneurship
Sustainable
Technology
Green Jobs
Green
Procurement
UN SDG
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SOCIAL SPHERE
Organizations that give back to the community, whether through employees
volunteering their time or through charitable donations are often considered
socially sustainable. Organizations also can encourage education in their
communities by training their employees and offering internships to younger
members of the community. Practices such as these increase the education
level and quality of life in the community.
For a business to be truly sustainable, it must sustain not only the
necessary environmental resources, but also social resources—including
employees, customers (the community), and its reputation.
Corporate sustainability strategies
Corporate sustainability strategies can aim to take advantage of sustainable
revenue opportunities, while protecting the value of business against
increasing energy costs, the costs of meeting regulatory requirements,
changes in the way customers perceive brands and products, and the volatile
price of resources.
Not all eco-strategies can be incorporated into a company's Eco-portfolio
immediately. The widely practiced strategies include: Innovation,
Collaboration, Process Improvement and Sustainability reporting.
1. Innovation & Technology
This introverted method of sustainable corporate practices focuses on a
company's ability to change its products and services towards less waste
production and sustainable best practices.
2. Collaboration
The formation of networks with similar or partner companies facilitates
knowledge sharing and propels innovation.
3. Process Improvement
Continuous process surveying and improvement are essential to reduction in
waste. Employee awareness of company-wide sustainability plan further aids
the integration of new and improved processes.
4. Sustainability Reporting
Periodic reporting of company performance in relation to goals. These goals
are often incorporated into the corporate mission.
→
Sustainable Scoring Platform
5. Greening the Supply Chain
Sustainable procurement is important for any sustainability strategy as a
company's impact on the environment is much bigger than the products that
they consume. The B Corporation (certification) model is a good example of
one that encourages companies to focus on this
Additionally, companies might consider implementing a sound measurement and
management system with readjustment procedures, as well as a regular forum
for all stakeholders to discuss sustainability issues.[42] The
Sustainability Balanced Scorecard is a performance measurement and
management system aiming at balancing financial and non-financial as well as
short and long-term measures. It explicitly integrates strategically
relevant environmental, social and ethical goals into the overall
performance management system [43] and supports strategic sustainability
management.
Circular business models
Further information: Circular Economy
While the initial focus of academic, industry, and policy activities was
mainly focused on the development of re-X (recycling, remanufacturing,
reuse, recovery, ...) technology, it soon became clear that the
technological capabilities increasingly exceed their implementation. To
leverage this technology for the transition towards a Circular Economy,
different stakeholders have to work together. This shifted attention towards
business model innovation as a key leverage for 'circular' technology
adaption.[44]
Circular business models are business models that are closing, narrowing,
slowing, intensifying, and dematerializing loops, to minimize the resource
inputs into and the waste and emission leakage out of the organizational
system. This comprises recycling measures (closing), efficiency improvements
(narrowing), use phase extensions (slowing or extending), a more intense use
phase (intensifying), and the substitution of product utility by service and
software solutions (dematerializing).[
***
Sustainability is often confused with corporate social responsibility (CSR),
though the two are not the same. Bansal and DesJardine (2014) state that the
notion of ‘time’ discriminates sustainability from CSR and other similar
concepts. Whereas ethics, morality, and norms permeate CSR, sustainability
only obliges businesses to make intertemporal trade-offs to safeguard
intergenerational equity. Short-termism is the bane of sustainability.
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