This is the second post in a five-part blog series focused on future trends in business.
Huge corporations are working towards achieving a sustainable business environment. This is achieved when businesses are able to manage the triple bottom line. The triple bottom line is the process by which a business is able to meet the three sustainability pillars - financial, social, and environmental efforts.
There are several fundamentals that must be achieved in order for a business to be recognized as a sustainable one. It is important that corporations find a common ground when engaging with different stakeholders of the business. Listening to customers, employees, and the surrounding environment can give the business a new perspective and allow it to formulate sustainable solutions. Implementing Environmental Management Systems (EMS) is another way that could help work towards a sustainable business. An EMS is a process that helps an organization build a framework to accomplish its environmental goals. This is achieved through consistent review, evaluation, and improvement of its environmental performance. Also, a lot of businesses are disclosing information to outsiders. This can be done by adopting the Global Reporting Initiative Standards which shows that the company is protecting and improving the environment and society. Furthermore, it will be thriving economically by enhancing governance and stakeholder relations which will build trust and create a good reputation. They can do this through the Global Reporting Initiative’s standards. Moreover, organizations aiming to become sustainable must make sure the products they use and sell do not have a negative environmental and social impact.
There are several examples of businesses that have started to practice sustainability. For example, Coca-Cola improved its efficiency on water use by 20% and wants to introduce a third-party evaluation to its water approach. Additionally, the software company, Adobe, is using renewable energy technologies such as hydrogen fuel cells and solar arrays. These companies want to improve their business sustainability by promoting environmental efforts which will ultimately decrease the negative external effects put upon outsiders.
A sustainable business has major benefits not only to the surrounding environment but also to the business itself. It improves the brand image and gives the organization a competitive advantage. This will attract employees and investors because generally, people want to be involved with respectful companies. Also, it increases the ability for the business to comply with state or federal government environmental regulations implemented in the future.
Click here for the first post in this series.