Introduction to Sustainable Business
This chapter will introduce you to how businesses are increasingly acting with concern for the environment and society. Read Chapter 1 to see how companies can play a positive role in sustainability, follow legal and regulatory concerns, lower costs and increase profits, and achieve competitive advantages in the marketplace.
How can businesses play a positive role in helping to solve environmental and social problems? What are some examples of sustainable business practices? What does the term "triple bottom line" mean?
1.3 What Does It Mean to Be a Sustainable Business?
Key Takeaways
- Businesses' main concerns are their own viability and profitability.
- Sustainable businesses also take into consideration how their activities impact society's resources and future generations.
- Examples of sustainable business practices include efforts to reduce energy and materials use and to use renewable and nonpolluting resources.
- Some of the main motivations to engage in sustainable business practice include the legal and regulatory concerns, the potential to lower energy and material costs, the opportunity to improve reputation and sales, the founder or owner's concerns and values, and a competitive advantage.
- Three-fourths of top company boards have given attention to sustainability, but only 10 percent are actually implementing sustainability plans. This highlights a large disconnect between interest in sustainability and actually taking steps for companies to become more sustainable.
- Significant barriers to sustainability include uncertainty involved, lack of understanding of what sustainability is, difficulty making the business case for sustainability, and failure to properly execute sustainability plans.