The Importance of Sustainable Business Practices for Long-Term Success

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Businesses are always on the lookout for practices that can help them attract more customers and thrive in the long term. Many can be implemented, but one that has been on the rise recently because everyone has finally started to realize that we only have this one planet is sustainability. But, is it possible for a business to be sustainable and in that way attract clients? Yes, it is. Take a look below for a useful guide on everything about business sustainability.

What Is Business Sustainability?

Also known as corporate sustainability, business sustainability is the coordination and management of social, financial, and environmental demands and concerns that will ensure ethical, responsible, and ongoing success. In most cases, financial goals are typically in conflict with social and environmental concerns – on that, a bit later.

Business sustainability is vital as it can help mitigate social, economic, and ecological problems by strategically managing resources. Companies strive toward lessening the effect they’re leaving on the planet. Of course, there are also benefits for the company itself.

There are three types of sustainability:

  •         Social sustainability focuses on the responsibility that companies have toward their communities, employees, and partners. Businesses should be investing in their local relationships and giving back to the community.
  •         Economic sustainability entails focusing on the sustainability of the supply chain, accounting, risk management, and compliance.
  •         Environmental sustainability gets the most attention. Here, various practices are implemented to lower carbon footprint, reduce water usage and packaging waste, and improve energy efficiency.

What Are The Benefits Of Being Sustainable?

Companies that have switched to the sustainable model are already seeing plenty of benefits in their day-to-day operations. For businesses that are still not convinced that this is something that should be done, here are some useful advantages of this approach.

It Builds Value And Reputation

Businesses that implement sustainability practices are made to last. In time, such a company becomes a robust, self-sustaining unit that outperforms other businesses that do not add these features. A company such as this will also get the reputation of someone who cares about the things that matter, like saving the planet.

It Meets Customer Needs

It’s a well-known fact by now that customers like to work with businesses that have similar goals and missions. If a business is known as a big polluter or someone who treats their workers poorly, individuals are more likely to avoid working with them, regardless of how much they need their services or products. By investing in sustainability, it’s easier to attract long-term clients.

It Meets Investor Demands

Most investors nowadays are looking for sustainable companies that they can support. If a business is relying on sustainability practices, it’s much more likely that it will get the necessary funding to further expand.

It Attracts Top Talent

It’s not all about attracting investors and customers – the employees are also crucial. Many of them would like to work in a place that practices sustainability. Advertising as an eco-friendly company can bring in plenty of top talent.

How Can Sustainability Be Implemented?

Any company can be sustainable to a degree if going all out is too much at first. For example, the sustainable strategy by SkyCity in NZ entails working with three different charities that are making a positive impact in the country. They work on local waterway restorations, clean up beaches and work on preventing littering, and support patients with leukemia and blood cancer.

Other approaches that also work include working from home or implementing the hybrid model, which doesn’t entail using cars and public transport as much, going paperless by digitizing all files, partnering with charities and non-profit organizations, becoming energy-efficient, and educating the staff on the best practices.

What Are The Issues With Being Sustainable?

While the issues with going sustainable are not gargantuan, they still exist. Mostly, they refer to the upfront costs that are put into the infrastructure. This is where financial goals might disturb a company’s goal of being sustainable. For example, investing in solar panels or other types of renewable energy is not the cheapest option. However, it has shown great benefits down the road, as various expenses are lowered. Moreover, investing in socially ethical practices might be a big expense, but it comes with the potential for recruiting, marketing, branding, and profitability. 

All in all, it’s easy to see how important sustainability is and all the business benefits it comes with. Furthermore, as the drawbacks are pretty much non-existent, any company can use these tips for implementing sustainability practices and reaching its goals.

About Samwel Fedha PRO INVESTOR

Fedha Samwel is a freelance financial analyst with over 5 years of experience covering the global stock market, Forex, crypto, and macroeconomics. He is currently pursuing a CFA charter and is an avid champion of simplifying the intricate world of finance for all.