Chris Laszlo and Nadya Zhexembayeva, authors of the book Embedded Sustainability The Next Big Competitive Advantage is an excellent and compelling guide to educate businesses worldwide. The authors cleverly combine sustainability and strategy, now and in the future while maintaining that competitive advantage. They illustrate how to be successful in the 21st-century and that corporations will have the capability to embed sustainability in their everyday agenda. For any business that wants to profit and maintain growth, embedded sustainability is essential. This strategy will help keep a competitive edge on concepts that will help future leaders with the upcoming strategies. These are distinct but interconnected trends that fall …show more content…
There is where we find three different, and still connected trends that are a key market force that is reformulating how organizations and businesses are competing: Declining Resources, Radical Transparency, and Increasing Expectations. Below, these trends are defined with examples that makes up the new business puzzle.
Declining Resources: Becoming smaller, fewer or lesser of our natural resources. Businesses across industries and regions are being progressively distressed by the fast deterioration of several of the natural resources. Fresh water, in places like Africa, Asia and Europe. Per the book 1.1 billion people lack access to clean drinking water.
Radical Transparency: An approach used to open the awareness to organization process and data. This idea of everyone knowing everything, could be a major driver of increasing the organization performances. When we talk about Radical Transparency, we are referring to the power of numbers in terms of when you have tons of people working toward the same goal, it bounds to be a success. Paul Hawken refer to it as “this wave of civic action as the largest movement on earth.” Facebook, Twitter, and any other social media work as an accelerate change.
Increasing Expectations: Continuing to fulfill the needs, desires and wants of the people. This trend encourages companies to reconsideration the demands of the market. Employees, Investors, Regulators, consumers and
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Sustainability is generating higher attention and growth in public awareness with each passing day. Sustainability issues are increasing concern to all living beings, as it is a growing agenda for the government legislatives. The media does not lose a chance to cover any aspect of the topic and thus we know that sustainability and business are now one of the hottest topics of the time.
The business case for sustainability is to try and prove that while decreasing a company’s environmental impact, they are in turn increasing their social impact, as well as their profits. The goal of the business case for sustainability is to enhance profits, comply with regulations, avoid future litigation, reduce resource use, reduce the waste stream, reduce energy use, increase customer satisfaction, increase employee satisfaction, and the good will of the community. In the past, destroying and polluting may have been good for business and the profit bottom line. But today, businesses that are “going green,” can save producers money and also be popular with consumers. With the growing demand for 'green ' products, major new markets have been created in which eco-entrepreneurs are reaping the benefits. Companies known for proactive policies that support environmental regulations are often positively recognized by customers, employees, regulators, the media and others. Because of their
In the international business arena, particularly as a result of globalization, multinational corporations are beginning to understand that being "green" or ecologically minded, is not simply for environmentalists. By supporting sustainability, many organizations hope not only to reduce their carbon footprint but also to attract younger people who prefer to work for environmentally and socially responsible organizations. This spills off into personal decisions as well, but includes a different philosophical mindset one of holism and treating the planet as one organism. The advantages of "going green" are both tangible and intangible: lower operating costs, less energy use, increased property value, and a positive, proactive, public image. Historically, there has been a battle from the so called "environmentalist cadre" who wanted slow or no growth in favor of the environment and the "capitalist right" who believed in a strong economy and the aggressive use of resources. In the contemporary environment, however, there is no doubt that both a template for robust economic growth can merge with a cleaner environment. Unfortunately, in many ways, sustainability in design and output is no longer something that would be "nice to implement," but because of the loss of biodiversity, over-use of the environment, and continuing overconsumption, is almost a necessity for the 21st century.
As of the progress of society and technology development, sustainability has become a critical issue for the whole world as well as for the business. Although sustainability may mean different things for different people, the ultimate goal is to “meet the needs of people today without compromising
Despite the lack of understanding about sustainability in our modern society this concept has been adopted by many organizations around the world for centuries and it has significant meanings in the operation of the business world. The idea is to run a business in a way that guarantees the future security of the planet as well as the business by managing its monetary, environment and social frameworks effectively. Hence, the main goal of sustainable business is to continuously strive to have a positive social effect, a minimizing natural effect while maximize the financial bottom line and It could also be said that the business must focus on the long-term impact of these three dimensional areas of the triple bottom line planet, people and
While sustainability is about the future of our society, for today's industries and businesses, it is also about
B2B companies, especially in emerging economies, operate in socio-economically and ecologically susceptible areas. We will have to create a conceptual model for how they can utilize develop a conceptual model for how they can leverage sustainability to build their corporate reputation and gain both social and financial rewards. In doing so companies change their focus from being market, customer or even shareholder driven and transcend to being stakeholder driven.
A question that arises, as a result, is whether businesses would be able to implement this EM perspective of sustainability by solely relying on its core competencies or whether it would require a broader change of the systems of which they are part (Stubbs & Cocklin 2008). Accordingly, academics who have analysed the Interface experience suggest that creating shared value – for business and the environment – in isolation from the socio-economic system is not possible (Benn, Dunphy & Griffiths 2014; Stubbs & Cocklin 2008). Stemmed from this, is the fact that sustainable development needs to be established into the minds of key stakeholders for it to be successfully implemented (Bansal 2002). For instance, Interface, a global carpet manufacturer, encountered difficulties in its commitment towards implementing sustainability – namely, the Evergreen Lease model – because customers were reluctant to pay premium for sustainability outcomes (Stubbs & Cocklin 2008). Moreover, the short-term focus of investors combined with a sole fixation on financial performance and an unsustainable supply chain further contributed to the Evergreen Lease model’s failure (Stubbs & Cocklin 2008). Elsewhere, the ecological modernist perspective has been criticised for not providing organisations with an ethically coherent
Sustainability is more than corporate social responsibility. It is a challenge to companies, how they grow and make more profit without harming the environment, society and efficiencies of the employees.
Innovation and entrepreneurship is critical to the success and future success of companies and the economy. As stated by Nathan Rosenburg, “there are only two ways of increasing the output of the economy (1) you can increase the number of inputs that go into the productive process, or (2) if you are clever you can think of new ways in which you can get more output from the same number of inputs.” Sustainability is the drive to increase the output in the economy in more efficient and different ways. It seems that originally, companies were forced to be more sustainable through government rules and regulations. However, it is becoming more and more relevant that companies take charge on their own. For they can use their innovations and eco-friendly decisions as a key marketing point and consumers are beginning to care more and more about a company’s environmental footprint.
In the new global economy, sustainability has become a central issue for the corporate world. Sustainability is mostly understood as a one dimensional phenomenon that is in relation to environment but it is a three dimensional phenomenon consisting of environmental, social and economical dimensions. Reconciliation of environmental, social equity and economic demand; form the three important pillars of sustainability and are best described as 3 Es of sustainability. In the recent years there has been an increasing interest in the field of sustainability. The main aspects which run the field of sustainability are increasing demand for more responsible products and services, along with new scientific knowledge. Thus the field of sustainability is rapidly evolving. Companies are taking effective initiatives for making sustainability as part of their business system but are facing failures. These failures are due to three major deficiencies which are as follows:
Sustainable development in a business, although a widely used phrase and idea, has many different meanings and therefore provokes many different responses. Although managing the economic bottom line and protecting social and environment resources is an important aspect of sustainability, it is not the only aspect. For example, sustainability refers greatly to an accounting framework with three parts: social, environment and financial. Commonly known as the Triple Bottom Line. One business that aims to achieve this concept is Cascade Engineering. The CEO, Mark Miller (2014) considers “the concept of sustainability as the three interconnected gears in motion”. Each category is an interdependent, innovation-enabling mechanism. Sustainability has been an often mentioned goal of business, non-profits and governments in the past decade, yet measuring the degree to which an organization is being sustainable or pursuing sustainable growth can be difficult. In broad terms, sustainable development is an attempt to combine growing concerns about a range of environmental issues with socio-economic issues.
Sustainability has become a universal issue in the world. For all multi-national enterprises (MNEs), they have to not only concentrate on their own development, but also take the social responsibility, and stimulate the harmony and progress of society. In addition, they ought to stick to integrating the idea of sustainability into their business operation, along with establishing a standardized management system. In the long term, the MNEs should continue to commit to creating economic benefits, meanwhile paying attention to the opportunities and challenges, and cooperating with each stakeholder. No matter their contribution to society, or their attitudes towards personnel, and even the advancement in reducing energy wasting, should all be strongly concerned. Three MNEs are chosen in the analysis of their sustainability performance.
With increased concern about education, health issues, climate change, depleting natural resources, and social development, a new corporation needs to tailor its operations to be as environmental friendly as possible and to tackle the needs of its customers and its employees by providing its employees with hand-on trainings and allowing them to grow financially, emotionally, and professionally. This is done by incorporating sustainability at the core of the business and not only as a peripheral choice. It needs to consider its customers as kings and to tailor its operations to tackle their needs and concerns.
Growth can be a rocky journey in any business. Whether you are a Fintech or a Fund Management company going from £50 M to £150 M, or an acquisition resulting in a bigger business, or an Initial Public Offering (IPO), or a Public Private Partnership, or even a division in a large corporate. In the article below we cover the sixteen hurdles encountered on the journey. These need to be circumvented to prosper and thrive to avoid a stunted growth. Before we continue with the insights, we need to recognize first that a sustainable business has the following features.