Embracing Sustainable Development - Essay Example

Embracing Sustainable Development By Introduction Sustainable development refers to the accepted model of integrating development and environment polices. This calls for the interaction of Socioeconomic and environmental policies so that a balance is struck between economic growth, protection of the environment and social equity. Sustainable development cannot be achieved simply through the efforts of government and policy makers alone, it requires a concerted effort by all players in the economy. Companies have an ethical obligation to ensure the well being of present generations while at the same time focusing on future generations. Based on ethical theories and literature, this paper will attempt to show that it is important for companies to embrace the concept of sustainable development in order to grow their bottom line and ensure future growth. Companies are required to embrace sustainable development because by doing so, they will be fulfilling their ethical obligations to sustainability. In order to understand these ethical obligations, this paper analyses the ethical theories related to sustainability and how they apply. In an article by Mohamed Eid (2012) on sustainable development, the author relates the four major ethical theories to sustainability. These theories help understand how sustainable development is critical to any company. The first ethical theory supporting sustainable development is utilitarian ethics, a theory that focuses on the need to maximize good and the promotion of happiness. Based on this theory, sustainable development is approached by looking at the balance between economic, social and environmental welfare. Companies are thus required to engage in actions that will promote the overall good by striking a balance between these aspects. Companies have to focus not only on themselves and the majority in society but include the minorities as well. This requires that future generations are considered when making critical decisions. This also demands a focus on the economic gains of the company that meet the needs of all stakeholders (Najam, 1999 p. 70). The utilitarian theory requires companies to use approaches and methods that promote happiness from the individual level to the wider society. Companies thus need to create an environment that guarantees a better future for everyone. Secondly, sustainability is also tied to the deontological theory in which it is argued that actions are either right or wrong irrespective of their consequences. In this case, actions need to be justified by accepted universal principles. Currently, the world has a number of accepted principles and guidelines such as the millennium development goals (MDGs) that touch on sustainable development (Najam, 1999 p. 70). When applied to Sustainable development, this theory is based on three main principles which are accepted as universal principles. First, there is the social level of sustainability involves issues of human rights, diversity and community inclusion. Companies are mandated to promote social welfare by focusing on these aspects. Secondly, on the economic aspect of sustainability, companies should follow best practices related to the use of natural resources and eradication of poverty. Through this, companies will be able to grow better societies and at the same time ensuring that future generations are not at risk (O’Rourke, 2011 p. 10). Finally, the deontological theory is based on the ecological aspect in which it is globally accepted that there is environmental degradation. Companies are therefore mandated to promote eco-efficiency and limit the damage caused by human activities to the environment. Companies should therefore make ethical decisions that support the universally accepted principles, thereby fulfilling the deontological ethical principles. This helps companies contribute to the current global agenda that touches on issues such as social justice, sustainability and environmental protection. Third, the social justice theory also helps promote the concept of sustainable development. According to this theory, all individuals need to be treated equally, and justice is only served when everyone has equal opportunities and advantages in the society. When applied to sustainable development, this theory demands that governments and business should strive to make a better future for all generations- the present and future. From an environmental perspective, this theory requires that everyone has a responsibility for preserving the environment, and build a democratic society that is sustainable, justice and peaceful. It is in the best interest of companies to engage in such activities in order to promote a fair and just society (Lertzman, & Vredenburg, 2005 p. 242). This theory also focuses on the social aspect of sustainability by arguing that every group or member of the society has to fight discrimination and help in building a homogenous community. Such communities should be built on social inclusion and acceptance. In such a community, companies can grow. Finally, from an economic perspective, this theory supports the idea of economic enhancement that is based on fair distribution of wealth. Such growth should be based on approaches that support green economies for a better future. Therefore, companies are required to embrace sustainable development in order to promote justice and fairness in society. Finally, companies are obligated to engage in sustainable development based on the theory of virtual ethics. According to this theory, decisions should be made based in one’s ethical integrity and character as opposed to the consequences that follow. From a sustainability perspective, companies are required to base their actions on morals that enhance the quality of life in societies. This theory emphases on the idea of common good; all actions have to ensure benefits to all as opposed to only a section of the society. From the environmental perspective, companies should base their actions based on individual commitment to protecting the environment. This involves understanding the daily practices that enhance environmental sustainability. Therefore, companies are supposed to a culture in which employees just like other members of the society, understand their responsibilities towards the environment (O’Rourke, 2011 p. 10). When examined from the economic perspective, sustainable businesses require leaders and workers with outstanding characters. Companies should encourage innovation and creativity that helps to bring up green economies while at the same time increasing the bottom line. In general, this theory requires that business should develop a culture that promotes virtues that strike a balance between protecting the society and environment on one hand while at the same time enhancing economic growth. In article by Mel Wilson (2003), the author discusses the stakeholder theory and how it relates to the wider concept of sustainability. According to this theory, the stronger the relationships are with the external parties, the easier it is for a business to meet its objectives. Therefore, companies need to engage in sustainable practices that help in building strong ties with external stakeholders in order to meet its objectives. These external stakeholders include customers, suppliers, and local communities. Therefore, if companies want to achieve their objectives, adopting sustainable practices can contribute towards this. A part from fulfilling their ethical obligations, companies need to embrace sustainable development because it is simply good for business (Lertzman, & Vredenburg, 2005 p. 242). Research shows that businesses can make money and save on costs by adopting sustainability practices. In an article appearing in the Guardian, Bjorn Stigson (2011) notes that business are in competition in becoming more sustainable because it helps grow their bottom line. First, companies that adopt sustainable practices end up reducing on energy use, thereby saving on money. In a study conducted by the We Mean Business group (2014), the actions and investments companies had taken in addressing energy use and climate change. The results of this study revealed that companies that take up such steps benefit from financial returns by reducing the amount of energy used. Depending in the strategies adopted, these companies were able to make substantial savings, thereby increasing their bottom line. Companies that adopt the use of alternative and sustainable sources of energy boost of financial returns. Companies are encouraged to adopt energy efficient processes as well as adopt new sources of energy. In addition, due to the changing needs of customers, companies that produce their products based on energy efficient methods are likely to attract many customers. Secondly, companies have to embrace sustainable development because it guarantees efficient use of raw materials. One of the key drivers of sustainable development is the reduction of wastage and the adoption of alternative, cheap and sustainable raw materials (Bear (Ed), 2007 p. 16). This is particularly important for companies because it guarantees a reduction in the costs incurred in the acquisition and use of natural resources. Companies therefore need to embrace this concept in order to ensure full utilization of the available raw materials. This is best achieved by focusing on waste prevention through re-use and recycling. By doing so, the costs that would have been incurred in the purchase and use of new materials are eliminated. For instance, a company that deals with bio-degradable materials may opt to focus on recycling and recovery of remaining materials rather than disposing them into landfills. For example, in the food industry, most of the by-products generated are biodegradable, and hence such materials can be used to make fertilizer or be used to generate energy, which helps in cost reduction and revenue generation (Bear (Ed), 2007 p. 19). Minimizing on wastage can also be achieved through efficient packaging that reduces on wastage. In addition, efficient use of raw materials also touches on proper use of water, which is an important resource in nearly all companies. Thirdly, sustainable development is a major driver of innovation across businesses. In terms of sustainable development, companies can achieve innovation in three main areas. First, in making value chains sustainable, companies can come up with new sources of raw materials and other components (Nidumolu, et al, 2009 p. 6). This innovation opportunity can help a business differentiate itself from the rest, thereby attracting more customers and at the same time ensuring efficient delivery of goods and services. In addition, this involves devising new sources of clean energy such as wind and solar. The second innovation opportunity arises from the designing of sustainable products and services. The challenge to come up with come up with new products or modify existing ones is a good innovation chance that allows companies apply new methods in product design and packaging (Nidumolu, et al, 2009 p. 6). For example, products that were previously packed in nylon papers may now be packaged in biodegradable casings. Through this approach, a company can come up with new products that meet the demands of customers better, while ensuring that the costs incurred in production and delivery are minimized. The final innovation opportunity relates to the development of new business models. This mainly focuses on enhancing capacities of understanding the needs of customers and finding ways of meeting those needs. For instance, companies that adopt sustainable strategies may end up with new communication strategies that allow for efficient communication with consumers and suppliers. This not only allows the company run its businesses in an efficient manner but gives it a competitive advantage over other businesses. Therefore, sustainability is a good way of promoting creativity and innovation through the organization, thus ensuring efficient production and delivery of goods and services. Finally, sustainable development is a sure way of enhancing accountability, thereby gaining of competitive advantage. According to a pamphlet by Tracey Swift and Simon Zadek (2002), by engaging in activities that promote social justice, environmental sustainability and economic growth, companies are able to build their reputation, which enhances their competitiveness. They are able to attract the best talents in the market and also ensure that they operate in societies that accept their activities. Conclusion Throughout the paper, it has been argued that sustainable development can help companies grow their bottom line while at the same time enhancing their competitive advantage. Based on the ethical theories discussed in the paper, businesses have an ethical responsibility towards the community and the environment. Through sustainable development, businesses can stimulate innovation and creativity, and this helps in growing of the business and meeting of customer needs. 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