Why You Should be a Sustainable Business

In the 1900s, many business owners believed that their only responsibility was to create profit for their shareholders. While this allowed for the world economy to grow, it also caused businesses to adopt practices that led to a multitude of negative impacts on the communities they work within, the people who work for them, their customers, and the natural environment in which they are based.

Over the years, these impacts have ranged from clear infringements against human rights to the unsustainable depletion of natural resources and the generation of waste. With these issues coming more and more to the forefront, running a business that is solely focused on profit is no longer an option.

Indeed, all these negative impacts can be stopped or significantly reduced through the creation of sustainable businesses which can be defined as businesses that adhere to the triple bottom line, aiming to not only earn profit but also to be socially responsible and protect the planet’s resources.

To keep it simple, these businesses focus on all three ‘Ps’: profit, people, and the planet.

This has been extremely beneficial to businesses as the implementation of practices to minimise environmental degradation and increase the quality of life experienced by employees and customers, has been proven to have positive impacts on a company’s profitability. This is because they help to improve:

Improved Reputation – Studies have shown that as awareness about climate change increases, a high percentage of global consumers are willing to change their habits and/or pay more for sustainable products.

This means that by adjusting practices to suit these conscious consumers, businesses can gain increased market share. This explains why many companies have now created advertising campaigns wherein they share their sustainable practices.

On the other hand, integrating sustainability practices into your business can ensure that you minimise improper and unsafe practices which may have otherwise damaged your business’ reputation.

Increased investors

The ability to raise funds and gain access to increased investments is crucial for almost all businesses, particularly those that are aiming to expand. With increased global drives towards sustainability, recent times have found that companies with a good sustainability strategy usually gather more investors as this portrays a good impression of the investor in the marketplace.

Decreased overall cost

Many global governments offer tax incentives for going green, meaning that sustainable businesses might spend much less on energy, technology, and materials. Moreover, using sustainable technologies can significantly reduce operational costs and the act of minimising environmental impacts can save companies from legislative liabilities which may, in turn, save a large sum of money.

Better employee retention

Research has shown that the incorporation of sustainability agendas within company practices leads to better retention of employees. This is because businesses with clear sustainability measures have been shown to attract a more motivated and skilled workforce and can also lead to increased feelings of satisfaction and fulfilment.

Therefore, while the process of transitioning into a sustainable business can come with its challenges, such as the need for expertise and increased monitoring and reporting, business sustainability is ever more important in the present day, and thus, is an essential avenue for your business to explore as you move forward.

Moreover, incorporating sustainability into your business does not mean sacrificing profits, instead, it is now becoming a crucial element to any business’ success due to its positive impacts on brand reputation, investments, operation cost, and employee retention.