Sustainable Business Development - Example

Introduction Establishing a business enterprise comes with different costs directly to the investor and different stakeholders and in the environment that such establishment is done. This statement implies that an investor is directly involved in the provision of all the initial costs of the establishment, and the different stakeholder have to make their required contributions to make the venture a success. Apart from the contribution of the stakeholders and the investors, the business will directly impact on the environment in which it exists. In mining, for instance, the extraction of the natural minerals has a direct impact on the ecosystem of the location of the mine. Various issues and concerns that emerge in establishing a business venture include the impact of such investment to the community and the sustainability of the business. Transportation is one such example of a business venture with significant impact to the environment and different stakeholders alike. The main reason for the significance of the impact is majorly based on the fact that in transportation, the main energy source is fossil fuels. The transportation sector is the highest consumer of this kind of energy in the world with a considerable impact to the environment. As such, in establishing a transport related business venture, it is essential to take keen consideration on the impact of such a venture on the environment. This consideration also helps in determining whether the venture is sustainable in the long run or not. As part of corporate social responsibility, a firm is required to promote the well-being of the community around its establishment (Lee & Kotler, 2013). Through environmental protection and sustainable practices, a business is well placed in fulfilling this role. The firm can also consider corporate charities that aim at improving the quality of life. This paper aims at reviewing the various concepts and concerns of sustainability in business particularly in relation to the establishment of a transportation firm. It gives a brief literature review on the subject of sustainability in business, the impact of a transportation venture and how to mitigate the impacts of the investment to the environment. Literature review Sustainability is a general term that has been used in many spheres and context of systems. It describes a condition in which an enterprise can endure or overcome different challenges posed by factors in the environment of the system. For instance, in governance, the system used in running affairs of the government can only be sustainable if it can contain opposition and different conflicts in politics over time. In business context, a business ventures endurance of the challenges and requirements is what determines the sustainability of the venture (NORTON, 2005, p. 359). Sustainability is closely linked to the principle of sustainable development. In sustainable development, the main aspects that are considered for success are culture, economic factors, politics and the ecological effect of such developments. In Font & Cochrane (2005, p. 8), these pillars of sustainable developments have been given as social, environmental and economic. The study also indicates that it is a responsibility of a business to ensure that it practices sustainable actions within its operations. The main aim of sustainable development is to alleviate any negative impacts that such development can have on the lifestyle of persons living within the environment of the business. Therefore, in terms of the environment and ecological composition, sustainability in business takes a present and future perspective. The main reason for this present and future perspective is that there are persons living in this environment now, and there are other future generations. The world council for economic development describes sustainability in development as that which is capable of meeting and supplying peoples needs at present and not reducing the ability of the future generations to do so. A business action can contribute either positively or negatively to the ecological composition of its environment (Jawahir, Sikdar & Huang, 2013, p. 141). This study uses an input-output model to illustrate the impact of a business to the environment. It demonstrates this by considering the natural resources that a business venture can use to produce its products or provide its services. This model weighs the benefits of a business against the negative impacts to the environment. It notes that while a business can be of significant economic benefits, the costs to the environment like wastes, pollution through emissions and the use of the land cannot be ignored. Wetherly, & Otter (2013, p. 199), identifies the most common cause of negative environmental impact as the internal business processes. The processes identified here include the method of production and the use of resources by the businesses. It further indicates that in order to reduce the negative impact like environmental degradation and pollution, businesses should adopt sustainable production techniques. This involves the reduction of wastages through recycling of waste materials, using green technologies and energy efficiency. At international level, the main impact to the environment by a business recoded by the study is global warming. It states that a business should note its contribution to the emissions that cause global warming and consider strategies of reduction. Another concern that emerges on the subject of business impact to the environment is the issue of toxic waste and the process of handling such. Buchholtz and Carroll (2014, p. 499), identifies the fact that these toxic wastes produced by different industries are the main course of ecological imbalance. The toxic wastes cause an imbalance in the ecosystem by killing or endangering different species of plants and other living organisms. The study indicates that due to this precedence some governments have come up with regulations that seek to limit the effect of toxic wastes to the environment. Sustainability as a concept can also be tied to the consumption of products and services by the worlds population. A growth in the consumption rate of products and services has the effect of growing the economy. However, the effect of such consumption on the environment is the main concern that needs to be addressed. Piana & Munch (2009, p. 104), describe the concept of sustainable consumption as the systematic use of resources that generates minimal impact to the environment and preserves it for posterity. It also explains that such limited and systematic use should not compromise the quality of life of the present generation. In this explanation, major attention is given to the production of hazardous materials that damage the environment and the level of wastes produced in extracting products from raw materials. Economic viability of the products that are produced for consumption is also highlighted as a major issue in sustainability. As noted earlier, there are three pillars to sustainability that is environmental, economic, and social. In order to achieve economic growth, there has to be a level of sustainability and a significant increase in the products and services availed and put forward for consumption. Piana & Munch (2009, p. 104), opines that the first consideration of businessmen before making any move is to have some consciousness regarding the environment and the costs that are involved in the venture. The consciousness here can be understood to imply that the person weighs the costs of the venture in terms of the environmental degradation and financial costs against the overall benefits of the venture. The determination of whether to implement the development is then arrived at based on logical facts and not ambition or false evaluation. It also provides a simplistic benchmark for making this decision that the venture must fulfill both individual and collective wants in the society. Bentley (2005, p. 10), identifies the main cause of unsustainable consumption as lifestyles and unsustainable habits. Unsustainable habits and lifestyles lead consumers to needs that the environment cannot support leading to degradation and pollution. The research attributes these lifestyles and habits to the impact of advertisements which influence the behavior of individuals. In Zaccai (2007, p. 57), the idea of unsustainable consumption patterns occasioned by consumer lifestyles is supported. It also suggests that in order to reduce or reverse the trend, consumers must change ways of life and be environmentally conscious. One way of reducing the rate of consumption and improving on sustainability is to increase the efficiency of processes. In increasing efficiency, the rate of waste is reduced, and the overall impact of pollution to the environment is limited. Efficient systems also consume little energy resource in the production or delivery of different services. In building and construction, for instance, different countries have set standards that provide for low carbon emission through efficient energy use. The department of energy has set regulations that aim at reducing the rate of consumption of energy in buildings (Howe, Gerrard & Fucci, 2010, p. 40). The standards provide for the amount of power to be used in elevators escalators lighting heating and cooling and other electronics within buildings. Efficiency plays a significant role in the reduction of the rate of consumption and improves sustainability. However, critics to this school of thought believe that the gains sustained in consumption can be reversed by the rebound effect. According to Herring and Roy (2007, p. 1), the proponents of such school of thought argue from an economic perspective. To illustrate the rebound effect, this study uses an example in the consumption of energy. Through efficient use of energy, the prices are likely to be low as the demand will be reduced. As such more ventures will be upgrading their use of energy, therefore the rate of consumption remains the same. Environmental impacts of transport business The transport sector, when compared to other sectors, is the highest consumer of energy generated from fossil fuels. As the main user of this type of energy, there is a significant impact that the sector has on the environment. By virtue of the transport sector majorly depending on the fossil fuels, the impacts of the extraction, transportation of the fuel will also form part of the environmental costs. In the extraction of oil, several chemicals are involved. These chemicals are either used in the drilling of oil or they are found within the compounds that produce oil itself. The disposal of these compounds poses a great threat to the ecological balance of the environment. Moreover, the air around the extraction plants remains polluted by the choking smell of the gasses emitted by the chemicals. Several health problems related to breathing and chest infections that consume a huge amount of money to treat are mainly caused by air pollution. Due to this reason, an increase in mining and refining of oil at a larger scale is unsustainable to the environment or the atmosphere. Oil spills from offshore mining and transportation of oil is another danger posed by the process of mining the fuels. Oil spills in the past have hindered the activities of fishermen who depend on fishing as a source of income. The death and migration of sea birds which leads to ecological imbalances are consequences of oil spills. Fossil fuels that are mined for use in the transport sector are carbon based compounds. When these fuels are burnt in the combustion-based engines, the fuels emit carbon dioxide into the atmosphere. The carbon emissions, as proven through studies, are the main cause of greenhouse effect which causes global warming (See, 2001). Combustion engines use in transportation, and most automobiles contribute on a major scale to this effect that destroys the O-Zone layer. Constant increase in sea levels is the direct results of the increased global temperatures. The problems associated with an increase in sea level are numerous. These include, modification of weather patterns with catastrophic effects, and it also threatens the survival of oceanic island. Apart from these indirect effects of the use of fossil fuels in transportation, the level of noise pollution caused by the combustion engines is also a challenge. In densely populated areas like urban settings, the cumulative amount of noise generate by these engines cause noise pollution. Prevention of the environmental impacts There are measures that have been devised and supported by various organizations to curb the effect of transport related businesses. These measures are either related to policy or are practical actions to reduce the rate of carbon emissions by the transport sector. As noted in the preceding discussion, the sector mainly depends on fossil fuels. Most of the efforts to mitigate the effect of transportation related businesses to the environment will largely depend on the minimal use of oil fuels. In the transportation sector, the major stakeholders are the public, the service providers, and the government. Each of these bodies has the responsibility to ensure that the effect that they generate to the environment is kept at minimal. The general public can limit their contribution to environmental degradation through change of lifestyle. The change in lifestyle would include options like driving to work or just leisure drives. Instead, options like carpooling and public transport services can be explored. Cycling or even walking are also viable options depending on the distance. Policy formulation by the government in different contexts can also help reduce the effect of unsustainable lifestyles and behavior in the transport sector. One measure that has already been developed and put into use is transportation of passengers through the electric train. This type of transport has minimal effect to the environment and has no carbon emission to the environment. The generation of the electricity used by these trains is also sustainable. The sustainability of electricity use in transport comes from two factors. That is; electricity is a clean form of energy that does not produce carbon emissions to the environment, and its generation has no negative effect on the ecosystem. Due to these reasons, the environmental cost of using electricity in transportation is negligible. The ability of the trains to ferry large amount of passengers and luggage at a time is also an added advantage. Other advantages that the electric train system comes with include low maintenance costs and low consumption of energy (Sivanagaraju, Reddy & Srilatha, 2010, p. 472). Due to all these aspects, the electric train system is a sustainable business venture. Innovation can also part of the strategy mix in protecting or reducing the cost of the fossil fuels to the environment. To reduce the emission of fumes that dirty the environment and cause air pollution, transportation automobiles can have exhaust cleaners as part of the combustion engines. The fitting of the exhaust cleaners will ensure that the aspect of air pollution through fumes is prevented. The next challenge that is to be solved through innovation is release of carbon into the atmosphere. Carbon emissions can be prevented through the use of biofuels. Biofuels are by essence fossil fuels that have been modified with additives and emit less or degradable carbon to the environment (Scragg, 2009, p. 105). Due to this nature of the biofuels, their impact and cumulative effect is much lower as compared to the ordinary use of petroleum products. Efficiency is also a possible avenue of improving the sustainability and preventing transport related business from destroying the environment. Efficiency here can be understood from two perspectives. That is; an attempt to use a limited amount of fuel to do more work or using automobiles that produce less effect on the environment through fumes generation. In moving cargo, the use of large vessels that can carry a lot of containers is an efficient method to reduce carbon emissions. Old transportation automobiles will also have an increase in the rate of carbon emissions as compared to new efficient systems. Critics to the role of efficiency in the reduction or sustainability of energy use, normally cite the rebound effect as the determent of effectiveness of the method. According to this group, in the process of reducing energy use through efficient processes, the prices are bound to go down. A reduction in prices implies that there is a large number of people who can afford the cost of the energy. Due to low fuel costs, the numbers of activities run using the fossil fuels will increase. In the long run, the amount of energy consumed and its effects to the environment will remain at the same level. This notion is true to some level; however, efficiency can be viewed in terms of the output of the automobiles with respect to the amount of carbon emissions that they produce. A low amount of emission and a higher work rate is a better method of reducing the effect of the business to the environment and create a sustainable business. Government policy and international regulations are a good method of countering the rebound effect in the efficient use of energy. Measures like taxes and fuel levies can be used to keep the prices of the energy constant. If these prices remain stable, the chance of increased use of energy in other sectors is likely to remain the same. This is because there will be no price advantages associated with the reduced demand caused by the efficient usage. Other measures that could be considered for reducing the impact of transportation venture on the environment is the use of alternatives to oil energy sources and technology solar powered cars or even nuclear-powered vessels. These methods are however still in their formative stages and might be explored in the future. Conclusion Establishing a business venture requires the investor to make keen consideration about several aspects involving the business. Most importantly an investor should consider is linked to sustainability. Sustainability of a business enterprise has three pillars; that is; the economic, environmental and social aspects. Investors are also obligated to ensure that their investments remain economically, socially and environmentally sustainable. An environmentally sustainable investment is that which considers a good use of the environments resources for the well-being of the present generation without the need to put the survival of future generations at risk. Most notable and simplistic description of an environmentally sustainable investment is given as an investment that benefits both the person and community. In establishing a transport company, there are significant contributions that such an investment will have on the environment. The effects are mainly negative impacts caused by the input or the means used to provide the services. In this literature, the most notable negative impacts given relate to the use of fossil fuels in the automobiles in transportation. The effects of the use of oil as the main source of energy include the pollution of the air from toxic fumes in chemicals found in oil deposits and the emission of carbon to the environment. These emissions destroy the O-Zone layer and cause global warming which has devastating effects on the environment. Noise pollution in urban areas has also been identified as a possible negative effect of the transportation company to the environment. In mitigating the challenges of the negative impact caused by this venture on the environment, a mix of strategies has been proposed by this literature. The proposals put forward in this literature include the use of alternative sources of energy, innovation, government regulation, and efficient use of energy in the sector. Each of these strategies aims at reducing the impact of extensive use of fossil fuels on the environment but cannot eliminate in entirety the negative impacts. Critics to some of these ideologies like the role of efficiency cite the reverse effect caused by the rebound effect. To counter their argument, this study gives suggestion such as the use of government policy to counter the negative effect on the gains already made. Bibliography BENTLEY, M. (2005). Tracking progress: implementing sustainable consumption policies : a global review of implementation of the United Nations guidelines for consumer protection (Section G: Promotion of sustainable consumption). 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