In this era of globalization, the scale of businesses have grown paramount. With growing demands, productions have increased and diversified. More players have entered the market. However, in most of such process, the exploitation of resources has been gradually paramount. Knowingly or unknowingly, in the race to earn more and more profit, we humans have created a devastating impact on the ecological environment.
This stems the need to evolve sustainable business practices which caters to business (profit), society and the environment, often summarized as the Triple Bottom Line Approach (People, Planet and Profit) – doing the welfare towards all the three. Business operating with such a model also helps itself to create an environment in which it can thrive.
The concept of sustainability in business has more so evolved in the last one and a half decades specially when the issues of climate change, global warming has evolved more and has been realized by the global community at large. Don’t we now more often hear the terms for e.g. – green building, green cities, green accounting etc. ?
Sustainability has to be observed not only in the production processes but also in the entire supply chain. Businesses need to cut down on emissions, be energy efficient, reduce all sort of pollution (at least down to permissible standards) have proper waste treatment mechanisms, enhance water efficiency (wherever applicable), adapt to increased use of use of renewable energy resource etc.
For businesses to thrive, it has to embrace sustainability in its practices. Modern day businesses are now increasingly strategizing their organizational goals and integrating them with sustainability. This has several positive implications on the business too. The more one’s business is acceptable to the society and congenial to the physical environment, the more it helps to develop it’s corporate reputation. (of course quality of services delivered by the products are also to be considered). Shareholders would want to invest more in the company. The firm would also gradually tend to have a larger customer base.
Implementing sustainability might pose to be a challenge. Since a strategic decision is involved here, the onus greatly lies with owners of the firm/ organizational heads, policy makers of the company and senior managers and HR. It may then be percolated down to the level of the employees.
Paving way for sustainability also requires businesses to be more transparent. Any decision should be made open to all the stakeholders and invite suggestions from all. This will also enhance the performance of the business.
So, isn’t it the need and time to do green business ?
School of Management
Anand Sengupta is presently working as a Teaching Associate in the School of Management at Sir Padampat Singhania University, Udaipur.
Courtesy @SPSU. #spsu #spsumba #spsusom #spsuresearch