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?

Exercises

  1. Find three articles about businesses that have adopted sustainability practices. Find an article that shows a sustainability practice that resulted in lower costs. Find an article that shows a sustainability practice that improved reputation and sales. Find an article that shows a sustainability practice that might preempt government regulation (can be local, state, or federal). Be prepared to discuss the action the company took, the benefit the company received, and how the action resulted in benefit.
  2. An industrial company with a history of violating its water discharge permit of pollutants decides to "go green". It switches to a biodegradable cleaning detergent for cleaning its offices and starts a paper recycling program for its offices. The cost of the change is minimal to the company. However, the company does not change any of its water discharge practices. The company then commences a marketing campaign of national television and radio ads claiming that it is now a sustainable company. Do you think this is an example of greenwashing? Why or why not?