Sustainable business , or green business , is a company that has a minimal negative impact on the environment, community, or global or local economy - a business that seeks to fulfill the triple bottom line. Often, sustainable businesses have progressive environmental and human rights policies. In general, businesses are described as green if they match the following four criteria:
- This incorporates the principle of sustainability into each of its business decisions.
- It supplies an environmentally-friendly product or service that replaces the demand for a nongreen product and/or service.
- Greener than traditional competition.
- Has made an ongoing commitment to environmental principles in its business operations.
Sustainable business is any organization that participates in green or green activities to ensure that all manufacturing processes, products and activities adequately address current environmental issues while maintaining profit. In other words, this is a business that "meets the needs of today's world without compromising the ability of future generations to meet their own needs." It is the process of assessing how to design a product that will take advantage of the current environmental situation and how well the company's product performance with renewable resources.
The Brundtland report emphasizes that sustainability is a human, planetary, and three-legged bench. Continuous business with the supply chain tries to balance all three through the triple-bottom-line concept - using sustainable development and sustainable distribution to influence the environment, business growth, and society.
Everyone affects the sustainability of the market and the planet in several ways. Sustainable development in business can create value for customers, investors, and the environment. Sustainable business must meet customer needs while, at the same time, treating the environment well. In order to succeed in such an approach, where the stakeholder equilibrium and the shared solution are key, requires a structural approach. One philosophy, which includes many different tools and methods, is the concept of Sustainable Enterprise Excellence.
Sustainability is often confused with corporate social responsibility (CSR), although the two are not the same. Bansal and DesJardine (2014) argue that the notion of 'time' discriminates against the sustainability of CSR and other similar concepts. While ethics, morality, and norms permeate CSR, sustainability only requires companies to make inter-time trade-offs to preserve intergenerational justice. Short-termism is the curse of sustainability.
Green business has been seen as a mediator of economic-environmental relations, and if it breeds, it will serve to diversify our economy, even if it has a negligible effect in lowering atmospheric CO 2 levels. The definition of "green jobs" is ambiguous, but it is generally agreed that this work, the result of a green business, should be linked to clean energy, and contribute to greenhouse gas reductions. These companies can be seen as generators not just "green energy", but as new producers of "materiality" that are technology products developed and disseminated by these companies.
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The main initiative of sustainable business is to eliminate or reduce the environmental damage caused by the production and consumption of their goods. The impact of such human activities in terms of the amount of greenhouse gases produced can be measured in units of carbon dioxide and is referred to as carbon footprint . The carbon footprint concept stems from an ecological footprint analysis, which tests the ecological capacity required to support product consumption.
Businesses take on a variety of green initiatives. One of the most common examples is the action "go without paper" or send electronic correspondence instead of paper whenever possible. At a higher level, examples of sustainable business practices include: fixing used products (for example, setting up lightly used commercial fitness equipment for resale); revise the production process to eliminate waste (such as using more accurate templates for design cutting); and choosing raw materials and non-toxic processes. For example, Canadian growers have found that flax is a sustainable alternative to rapeseed in their traditional crop rotations; flax grown for fiber or seeds does not require pesticides or herbicides.
Sustained business leaders also take into account the cost of the life cycle for the goods they produce. The cost of inputs should be considered in terms of regulation, energy use, storage, and disposal. Designing for the environment (DFE) is also a sustainable business element. This process allows users to consider the potential environmental impact of a product and the processes used to create the product.
The many possibilities for adopting green practices have caused considerable pressure placed on companies from consumers, employees, government regulators and other stakeholders. Some companies have used greenwashing instead of making meaningful changes, simply marketing their products in a way that demonstrates green practices. For example, various manufacturers in the bamboo fiber industry have been brought to court for advertising their products are more "green" than they are. However, many other companies have taken the sustainability trend seriously and enjoy the benefits. In their book "Corporate Sustainability in International Comparison", Schaltegger et al. (2014) analyzes the current state of corporate sustainability management and corporate social responsibility in eleven countries. Their research is based on an extensive survey focusing on corporate intentions to pursue sustainability management (ie motivation, issues), integration of sustainability within organizations (ie connecting sustainability to core business, involving corporate functions, using business case drivers for sustainability) and actual implementation of the steps sustainability management (ie stakeholder management, sustainability management tools and standards, measurements). The Gort Cloud is written by Richard Seireeni, (2009), documents the sustainable business experience in America and their reliance on a vast but invisible green community, referred to as gort clouds, for support and markets.
Green investment firms are consequently attracting unprecedented interest. In the UK, for example, Green Investment Bank is devoted to supporting renewable domestic energy. However, Britain and Europe as a whole lag behind the impressive speed set by developing countries in terms of green development. Thus, green investment companies create more opportunities to support sustainable development practices in developing countries. By providing micro loans and larger investments, these companies help small business owners in developing countries seeking business education, affordable loans, and a new distribution network for their "green" products.
Sustainable Business
Harvard Business School business historian Geoffrey Jones (academic) has traced the historical origins of green business back to start-up pioneers in organic and wind and solar energy before the First World War. Among the big companies, Ford Motor Company occupies an odd role in the story of sustainability. Ironically, the founder of Henry Ford was a pioneer in the sustainable business world, experimenting with biofuels during the Model T period. Ford Motor Company also sent Model A trucks into crates that later became floorboards of vehicles at factory destinations. This is a form of upcycling, maintaining high quality in closed industry cycles. Furthermore, the original car body is made of hemp composites that are stronger than steel. Today, of course, Ford is not made of hemp or they run on the most reasonable fuel. Currently, Ford's claim to eco-friendly fame is the use of upholstery fabric made from 100% post-industrial materials and the seat of renewable soy foam. Ford executives recently appointed senior vice presidents of the company's sustainability, environmental, and security sectors. This position is responsible for establishing long-term sustainability strategies and environmental policies. People in this position will also help develop the products and processes necessary to satisfy customers and society as a whole while working towards energy independence. It remains to be seen whether Ford will return to the vision of its founder of a petroleum-free car, a vehicle powered by the remains of plant matter.
Subaru car manufacturer is a giant of sustainability. In 2008 a Subaru assembly plant in Lafayette became the first automaker to achieve zero filling status when the plant implemented sustainable policies. The company successfully implemented a plan that increased waste recycling to 99.8%. In 2012, the company increased its use of Styrofoam by 9%. And from 2008 to 2012, incidents and environmental accidents decreased from 18 to 4.
Smaller companies like Nature's Path, an organic cereal and snack-making business, have also made significant sustainability gains in the 21st century. CEO Arran Stephens and his colleagues have ensured that the company's rapidly growing products are produced without toxic agricultural chemicals. Furthermore, employees continue to be encouraged to find ways to reduce consumption. Sustainability is an important part of corporate discussions. Another example comes from Salt Spring Coffee, a company founded in 1996 as a certified, fair, and trade organic coffee producer. In recent years they have become carbon neutral, reducing emissions by reducing long-haul trucks and using bio-diesel in shipping trucks, improving to energy-efficient equipment and purchasing carbon offsets. The company claims to offer the first carbon neutral coffee sold in Canada. Spring Coffee Salt is recognized by David Suzuki Foundation in the 2010 report Doing Business in the New Climate . The third example comes from Korea, where rice husks are used as non-toxic packaging for other stereo and electronic components. The same material is then recycled to make bricks.
Mining and especially the gold mining industry are also moving towards more sustainable practices, especially given that the industry is one of the most environmentally damaging. Indeed, concerning gold mining, Northwestern University scientists, in the laboratory, invented an inexpensive and environmentally sustainable method using simple corn flour - instead of cyanide - to selectively isolate gold from raw materials. Such a method would reduce the amount of cyanide released to the environment during the extraction of gold from the raw ore, with one of Northwestern University scientists Sir Fraser Stoddart maintaining that: "The removal of cyanide from the gold industry is the most important in the environment." In addition, the retail jewelry industry is now trying to be truly sustainable, with companies using green energy providers and recycling more, and preventing the use of mined gold called 'virgin gold' by applying the method of re-finishing on pieces and selling them. Furthermore, customers can choose Fairtrade Gold, which provides better deals for small and artisanal miners, and is a sustainable business element. However, not everyone thinks that mining can be sustainable and much more needs to be done, provided that mining generally requires greater regional and international regulation and regulation, which is a valid point considering the huge mining impacts on the planet and large numbers products and articles made wholly or partly of mined material.
Maps Sustainable business
Social scope
Organizations that give back to the community, whether through employees who volunteer their time or through charitable donations are often considered socially sustainable. Organizations can also encourage education in their communities by training their employees and offering internships to younger community members. Such practices increase the level of education and quality of life in the community.
In order for a truly sustainable business, it must maintain not only the necessary environmental resources, but also social resources - including employees, customers (communities), and reputation.
Organization
Guidelines for Restriction of Dangerous Substances Europe prohibits the use of certain hazardous substances in the production of various electronic and electrical products. The rest of the Electrical and Electronic Equipment (WEEE) directive provides collection, recycling, and recovery practices for electronic goods. The World Business Council on Sustainable Development and the World Resources Institute are the two organizations working together to set standards for reporting on the company's carbon footprint. From October 2013, all companies cited in the UK are legally required to report their annual greenhouse gas emissions in their board of directors report, based on Company Rules 2006 (Strategic Report and Directors Report) 2013.
Lester Brown B 2.0 Plan and Natural Capitalism Hunter Lovin provides information on sustainability initiatives.
Company sustainability strategy
The company's sustainability strategy can aim to take advantage of sustainable revenue opportunities, while protecting business value against increased energy costs, the cost of meeting regulatory requirements, changes in how customers perceive brands and products, and changing resource prices.
Not all environmental strategies can be incorporated into the company's Eco portfolio immediately. Widely practiced strategies include: Innovation, Collaboration, Process Improvement and Sustainability Reporting.
- 1. Innovation & amp; Technology
This introverted method of sustainable enterprise practice focuses on the company's ability to transform its products and services toward less waste production and sustainable best practices.
- 2. Collaboration
Establishing networks with partner or similar companies facilitates knowledge sharing and fosters innovation.
- 3. Process Improvement
Ongoing survey and improvement processes are critical to reducing waste. Employee awareness of corporate sustainability plans further helps the integration of new and better processes.
- 4. Sustainability Reporting
Periodic reporting of company performance in relation to objectives. These goals are often incorporated into the company's mission (as in the case of Ford Motor Co.).
- 5. Greening Supply Chain
Sustained procurement is important for any sustainability strategy because the company's impact on the environment is much greater than the products they consume. Model B Corporation (certification) is a great example of one that encourages companies to focus on this.
In addition, companies may consider applying good measurement and management systems with adjustment procedures, as well as regular forums for all stakeholders to discuss sustainability issues. The Sustainability Balanced Scorecard is a performance measurement and management system that aims to balance financial and non-financial and short-term and long-term measures. It explicitly integrates strategically relevant environmental, social and ethical goals into an overall performance management system and supports strategic sustainability management.
Standard
The enormous economic growth and population around the world in the second half of the twentieth century exacerbated the factors that threaten the health and the world - ozone depletion, climate change, thinning, pollution of natural resources, and loss of biodiversity and vast habitat. In the past, the standard approach to environmental problems generated by businesses and industries has been a remedial "end-of-the-pipe" remediation effort. In the 1990s, efforts by governments, NGOs, companies and investors began to grow substantially to develop awareness and plans for investment in business sustainability.
One important milestone was the establishment of the ISO 14000 standard whose development came as a result of the Rio Summit on the Environment held in 1992. ISO 14001 is the main standard of the ISO 14000 series. It defines the control framework for the Environmental Management System against which the organization can be certified by third party. Other ISO 14000 Series Standards are actually many, many guidelines to help you achieve registration to ISO 14001. They include the following:
- ISO 14004 provides guidance on developing and implementing an environmental management system
- ISO 14010 provides a general principle of environmental auditing (now replaced by ISO 19011)
- ISO 14011 provides specific guidance on environmental management system auditing (now replaced by ISO 19011)
- ISO 14012 provides guidance on qualifying criteria for environmental auditors and principal auditors (now replaced by ISO 19011)
- ISO 14013/5 provides review of audit programs and assessment materials.
- ISO 14020 labeling problem
- ISO 14030 provides guidance on performance targets and monitoring within the Environmental Management System
- ISO 14040 covers life cycle issues
Circular business model
While the initial focus of academic, industrial, and policy activities is primarily focused on the development of re-X technology (recycling, remanufacturing, reuse,...), it soon becomes clear that technological capabilities are increasingly exceeding their application. To utilize this technology to transition towards Sustainable Economy, different stakeholders must work together. This draws attention to the innovation of the business model as a key lever for the adaptation of 'circular' technology.
The circular business model is a business model that closes, narrows, slows, intensifies, and dematerialising loops, to minimize inward resource input and leakage of waste and emissions from the organizational system. It consists of recycling (closing) measures, efficiency improvements (narrowing), use of phase extensions (slowing or expanding), more intensive use phases (intensifying), and substituting utility products with dematerializing services and solutions.
LEED Certification
Leadership in Energy and Environmental Design Standards was developed by the US Green Building Council in an effort to encourage green building design in the United States. LEED certification is a highly prestigious title and can be achieved through "compliance with all environmental laws and regulations, shelter scenarios, permanent development and pre-ranking settlements, site boundaries and site-to-site ratios, and a mandatory five-year all-building energy and water using data from the beginning of the dwelling (for new construction) or date of certification (for existing buildings) ". [15].
Six important characteristics
Matthew Tueth, Ph.D. repeating ideas proposed by authors such as Paul Hawken ( Ecological Trade and Natural Capitalism ), William McDonough and Michael Braungart ( Cradle to Cradle ), and Janine Benyus (Biomimicry ) when he proposed that a mature and authentic sustainable business contains six important characteristics.
1. Production of the top three row values ​​
"TTL Establishes three simultaneous requirements of sustainable business activities - corporate financial benefits, natural world improvement, and social benefits for employees and members of the local community - with each of these three components recognized as equal in status. "While many businesses use the triple bottom line," triple top line "emphasizes the importance of initial design and is a term attributable to McDonough and Braungart in his book Cradle to Cradle.
2. Natural-based knowledge and technology
"This basic biomimic-based principle involves the conscious emulation of the natural-world genius in terms of growing our food, utilizing our energy, building things, doing our own healing business, processing information and designing our communities"
3. Products for Consumer Products
" Service products are durable goods that are routinely hired by customers made from technical materials and returned to the manufacturer and reprocessed into new generation products when they are out of date. (These products are mostly non-toxic for human health and the environment but toxic materials used will be stored in closed-loop type systems and can not escape to the environment.) Consumer products are shorter life items made only from biodegradable materials They are broken down by organisms detritus after the product loses its usefulness (It is also harmless to human health or the environment).This principal requires that we produce only two of these products and require a gradual but continuous reduction of service products and their replacement with consumer products in line with technological advances. "
4. Solar energy, wind, geothermal and ocean .
"These key proponents only use sustainable energy technologies - solar, wind, ocean and geothermal - that can meet our unlimited energy needs without any negative effects on life on Earth." Other authors, such as Paul Hawken, refer to this as utilizing today's solar income.
5. Organization and local-based economy
"This material includes a durable, beautiful and healthy community with locally owned and operated businesses and locally managed nonprofit organizations, along with regional companies and shareholders working together in a dense network of partnerships and collaborations."
6. Continuous improvement process
"Successful operational processes within organizations include provisions for constant advancement and upgrading as companies conduct their business • Monitoring, analysis, redesign and sustainable implementation processes are used to intensify the value of TTL production when conditions change and new opportunities emerge."
Challenges and opportunities
Implementing sustainable business practices can have an impact on bottom line profit and 'bottom line'. Initially, this challenge may make many corporate executives cringe. However, during times when environmental awareness is so popular, green strategies tend to be embraced by employees, consumers, and other stakeholders. In fact, according to many studies, there is a positive correlation between environmental performance and economic performance.
If the organization's current business model is inherently unsustainable, being a truly sustainable business requires a complete business model change (eg selling cars to offer car sharing and other mobility services). This can present a great challenge because of the difference between old and new models and the necessary skills, resources, and infrastructure. The new business model can also offer great opportunities by entering or even creating new markets and reaching new customer groups.
Companies leading the way in sustainable business practices can be said to take advantage of sustainable income opportunities: according to the UK Department of Business, Innovation and Green Economy Skills grew by 4.9-5.5 percent a year by 2015, and an internal average return on energy efficiency investments for businesses big is 48%. The 2013 survey showed that demand for eco-friendly products appeared to be increasing: 27% of respondents said they were more likely to buy sustainable products and/or services than 5 years ago. In addition, sustainable business practices can attract talent and generate tax breaks.
See also
Note
External links
- David O'Brien Center for Sustainable Companies, Concordia University, Montreal
- The Erb Institute for Global Sustainable Enterprise at the University of Michigan
- Center for Sustainable Global Companies at Cornell University
- Natural Resources Defense Council
- Sustainable Business Model - Concerning the New Economy
- MN Magazine | Sustainable Business and Innovation-friendly environment
Source of the article : Wikipedia
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