The idea of sustainability was first put forward at the United Nation’s WorldCommission on Environment and Development in 1987, and it was brought forth as an agenda for examining and guiding the global development and environment. It has since then moved from being apolitical rhetoric to an important factor influencing business management. Now the question arises, what is the need to adopt practices of sustainable management in a business scenario? The answer to this question can be divided into the point of stakeholders and the overall business case for sustainability. Let us delve deeper into the ways in which sustainable management can aid in the overall growth of a company in this article below.
The stakeholders looking for responsible economic growth
There is an increasing demand from a wide range of stakeholder groups for the organizations to adopt and implement responsible management practices. This is because thestakeholders nowadays demand strong economic performance along with the organizations being socially and environmentally sustainable by adhering to responsible business practices. Thus, it is not surprising that things like business ethics, corporate social responsibility, and sustainable management have become crucial parts of the business strategy and day-to-day operations for any organization.
Understanding the business case for sustainability
One of the major reasons for businesses to recognize the significance of sustainability into the core activities is the idea of a business case for sustainability. The idea emphasizes how the links between environmental and corporate economic success can be amalgamated together to be managed, advanced, or innovated. The underlying factor to the idea is that if a business can achieve at least one of the six drivers of business (i.e.Cost and Cost Reduction, Risk Reduction, Sales and Profit Margin, Employer Attractiveness, Reputation and Brand Value, and Innovative Capabilities) by undertaking a voluntary environmental activity, then it will also allow them indirectly to capture economic value. It will be, thus, also profitable for a company to engage in such activities.
Allowing transparency and winning the trust of customers
Transparency is one of the pre-conditions for improving and assessing sustainability practices. It thrives on the idea that an open environment in the company as well as within the community will aid in the improvement of the overall performance of a business. Sustainable management practices help in accomplishing transparency through open communications with all the key stakeholders built on high levels of information disclosure, clarity, and accuracy. Such practices will also allow the companies to have openness about recognizing their faults and improving their practices. This naturally helps to win over the trust of the customersand that translates into higher profits for the business.
Compliance providing a competitive advantage to the businesses
The businesses need to address compliance with sustainable management practices to avail competitive advantage in the market. Complying with regulations in waste management, pollution, energy efficiency, as well as human rights and labor responsibility adds to the image of the company and provides value to its products. Compliance is also a major concern for the investors as they are continually shying away from the ventures that may pose risks to the compliance. The investors divest from the companies that have poor sustainability performance.
The proof of sustainable management offered by the leading businesses
There is overwhelming evidence available to show that many of the businesses across the varied sectors have been able to indirectly,as well as directly, derive value from engaging in the sustainable management practices. Such businesses have begun the work by designing a sustainable business model that allows them to create, deliver, and capture value for different stakeholders across the economic, social, and environmental borders. The leading businesses have shown the way by turning political grandiloquence into mainstream practice, and more businesses are now all set to follow the suite.
The ideas and concepts of sustainability management are factors that need to be incorporated from the early stages of management education in order to better prepare the students for their roles in the future. We, at the Lingaya’s Vidyapeeth, recognized as the Best Private University in Haryana, also believe that it is crucial for the budding business professionals to learn the ideals of sustainable management as they are the flag bearers for positive environmental changes in the world. To that end, we have designed our modern curriculum in order to facilitate the theoretical and practical knowledge about the matter in our students. The curriculum is expertly managed by the experienced and dedicated faculty at the Lingaya’s Vidyapeeth. They guide the students at every step of the way enabling them to become the corporate leaders of tomorrow who can shine brightly with their sound sustainable management practices.