Sustainable Business and Sustainable Society, Advantages and Disadvantages of Sustainability - Literature review Example

Sustainable Business

Introduction

The sustainable business practice has become a headliner for businesses and organisations all over the world. It is important to note that even organisations that care less about the impact of their businesses on the environment acknowledge the fact that the feasibility of their business depends wholly on resources found in healthy ecosystems. Such resources include fresh and clean water, unpolluted air, vigorous biodiversity and fecund lands. Moreover, such a healthy ecosystem necessitates not only the viability of business but also the society in which the company is found. Nonetheless, little has been done collectively to ensure the damage to the environment is reduced. Although several companies have kick start initiatives designed to reduce the negative to the environment by their businesses, adverse effects of market linger. Chouinard et al. (2011) argue that the problem is simple, in that products manufactured without any regard for the environment are much cheaper to buy and make than an equivalent that has been produced in sustainable ways. In other words, the inability to precisely gauge the adverse impacts of businesses to the environment means that businesses rarely pay for their full toll as a result of their operations and consequently leave out these costs in their accounting. It is, therefore, important that businesses be made aware of the impact their operations have on the environment. Moreover, greater cost to the environment does not render higher prices to consumers. The aim of this essay is to discuss why sustainable business is the only viable future for businesses. This will be achieved through some steps beginning with the definition of sustainability in businesses and societies to the challenges businesses face in their quest to become more sustainable.

Sustainable Business and Sustainable Society

Ikerd (2008) describes a sustainable business as one that has modified its practices to use inexhaustible resources and takes full responsibility for the impacts of its activities on both human beings and the environment. In countries like the United States of America, sustainable business is widely documented as social responsibility and over time, the two terms have become interchangeable. As stated in the introduction, the majority of the businesses do not want to take responsibility for the adverse impacts associated with their activities. Additionally, it is imperative to note that not all organisations parading images of social responsibility are running sustainable businesses. According to Ikerd (2008), the definition of social responsibility omits an important aspect of sustainability that is, the obligation to be practical and economic feasibility.

Therefore, a sustainable business ought to achieve its economic goals as per the immediate consumer requirement but do so in a manner that does not compromise the prospects for future compeers to attain this same needs. In such an economy, the profits are viewed as gifts for fulfilling the needs of the consumers in the present while economic viability translates to the ability of the business to satisfy the wants of future customers. Ikerd (2008) goes on to state that economic value is solely resultant from either the environment or human enterprise. In other words, economies creating nothing and throughput eventually depends upon our environment and the society. In this regard, businesses that exhaust productivity from both its environment and human enterprise is economically inevitable in the future. Nonetheless, businesses have to persist economically in the present if they are to maintain throughput and value the society in future. It is, therefore, important that businesses strike a balance between profitability and sustainability.

Viederman (1993) describes a sustainable society as one that guarantees the well-being and vivacity of both human beings for present and future cohorts. The driving force of such societies is to stop deeds that might lead to the destruction of human life and the environment and to inspire actions that help conserve, restore and preserve. Viederman (1993) lists four major aspects of a sustainable society as follows. The first aspect is the economic goals. This includes the conception of new jobs, equitable pay, economic steadying, technological exchange, self-sufficient economies and the need for sufficiency as opposed to efficiency. The second aspect is the social and cultural goals. This includes justice, equality regardless of age, gender or race, cultural diversity and reinforced communities. The penultimate aspect is the political goals. This includes political and strategically security and environmental safety. The last aspect is ecological objectives. This last segment included ecological stability and maintained biodiversity.

Although sustainability is always in the limelight these days, its meaning fluctuates substantially. This is the main reason with which it has become tough to measure sustainability in countries of the world. Van de Kerk & Manuel (2014) contend that the main drawback is the varying definition of sustainability, the absence of pellucidity which is the same as heightened complexity and the lack of consistent updates. As a result, the Sustainable Society Index (SSI) was established. This directory incorporates the most crucial facets of sustainability and eminence of life on a national scale in a modest and apparent manner. SSI consists of 22 pointers that are categorized into five groups. Van de Kerk & Manuel (2014) argue that SSI can be used to analyse sustainability in societies from different countries and help come with improvements.

Advantages and Disadvantages of Sustainability

Business

Ashe-Edmunds (2016) argues that small businesses be better placed when it comes to the decision of becoming sustainable. Although the change may lead to a drop in productivity and profit the company makes, small businesses tend to make the switch faster than large corporations. For this reason, small businesses reduce the amount of time which and therefore limit the impact the change has on the activities. It is important that both small and large firms minimize the disadvantages of sustainability to ensure that they strike a balance and remain in business. Nonetheless, Ashe-Edmunds (2016) highlights five key advantages for businesses to become sustainable.

The first advantage is the reduction of utility costs. Both multinational and small businesses can reduce their utility costs through the use of smart and efficient energy and minimise wastage. Ashe-Edmunds (2016) gives an example of replacing bulbs from incandescent to LED ones. This new technology minimises the amount of electricity required to illuminate a room without compromising on the quality of light. Ultimately, such technologies will help to reduce the utility costs of businesses greatly, and this saved money can be used in other projects. Additionally, many utility companies are offering free energy audits while at the same time giving valuable knowledge on better ways of becoming efficient in a bid to be sustainable.

The second advantage is the reduced negative impact a sustainable business will have on the environment. Such steps as the ones mentioned above help preserve the environment by using less electricity. Additionally, cost saving suggestions for businesses such as recycling and reducing the amount of water used ultimately helps in bringing down pollution. Furthermore, use of renewable energy may also become profitable. A good example is a business office that uses solar but generates more than enough and can sell the surplus to individuals in the community.

The enhanced public image is the third advantage. Businesses can use their sustainable initiatives to garner positive public response and relations to their activities. Moreover, businesses can put up advertisements on various media platforms to announce their sustainable initiatives as this can be an opportunity for new consumers. Additionally, businesses can go on and put their sustainable initiatives on the packaging of their products to appeal to more consumers and to those who prefer products manufactured in a sustainable way.

The penultimate advantage of sustainable businesses is the refunds and tax reimbursements they get. Ashe-Edmunds (2016) argues that it be easier for businesses to becomes sustainable if there are laws put in place that reward such initiatives in the form of tax reimbursements and refunds. Additionally, the laws may exempt the business or its products from particular types of taxes. An example is the exempt from vehicle excise duty (VED) for electric car owners in the United Kingdom. Such an incentive will increase the sales of electric vehicles translating to increased businesses for manufacturers of electric vehicles.

The last advantage as outlined by Ashe-Edmunds (2016) for sustainable businesses is the increased opportunities the company gets for going green. Several government and organisations mandate certain transactions only to be carried out with sustainable businesses. Other organisations dictate that purchase of goods to their stores be made by companies that meet certain sustainable standards. Ultimately, this translates into more business for sustainable organisations and enterprises.

Nonetheless, sustainable business still encounters disadvantages, chief among which is the initial cost of required to overhaul operations to make them sustainable. Joseph (2016) admits that converting a business to become more sustainable may be costly for the organisation. Additionally, the reduced utility costs are not always enough to offset the preliminary cost. Moreover, the change to using renewable resources may lead to expensive products, especially if laws lack to waive taxes on these manufactured goods.

Another disadvantage is a lack of support from the government. In the US for example, the state of Florida has less than 50 businesses that have obtained a certification of Leadership in Energy and Environmental Design due to the system that authenticates performance concerning the employment of measures geared to saving energy. Additionally, the move by businesses to become paperless may be a drawback if laptop computers or tablets are stolen, increasing the possibility of loss of crucial information. Finally, customer backlash can happen when customers become aware of businesses that made false claims of being sustainable.

Society

From either economic, environmental or social viewpoints sustainability is good business. Coupled to the visions of society, sustainable businesses and developments can help improve the livelihoods of the individuals in the community. Geis & Kutzmark (2016) give an example of a park that a sustainable constituent of the bionetwork a pivotal point for the community. When planned as a supportive system, this park can be used as a showpiece for initiatives for economic development.

Sustainability and Organizational Operation

In their study on the effect of sustainability on organisational processes, Eccles et al. (2013) discovered that there are two types of companies. These two are high durability and low sustainability companies. The former identifies organizations that had previously implemented strategies that guided them on how they affect the society and environment while the latter represented firms that had no such policies. Moreover, these low sustainability businesses relate to outmoded corporate models that prioritize maximization of profits while the impact to the environment and society are regarded as externalities. In contrast, high sustainability firms are categorised by different governance contrivances that directly link sustainability goals to executive reimbursement. Moreover, such organisations have a more profound stakeholder commitment in addition to tools to make it efficient.

Sustainability and Organizational Values

Corporate sustainability is rooted in the business’ guiding principles. Barber (2011) argues that sustainability will have an impact on all organizations and their values in the 21st century. Whitmell (2012) contends that scrutinizing a company’s mission statement can help identify whether it puts sustainable values at its core. Additionally, Tatarusanu & Onea (2013) argue that for organizations to meet their long-term goals and objectives in becoming sustainable, they have to heavily rely on the business’ culture and incorporate values which include consumer alignment, concern for the workers, openness and transparency both to its employees and the society, novelty and respect for other businesses. According to Tatarusanu & Onea (2013), these are the core values that ensure a company economic success, both in the present and future.

Challenges Faced by Businesses

As discussed throughout the course of this paper, corporate sustainability has been in the limelight for some time and will probably remain that way. Nonetheless, positive change is perplexing. The following are some of the challenges faced by organisations in their quest to become sustainable as discussed by Puritt (2012). The first challenge is support from a superior which means the switch to sustainability requires input by seniors. Puritt (2012) goes on to give the solution for this challenge as mandating sustainability goals for every senior employee’s personal objectives. This way, everyone is made responsible for the successful drive for change. The second challenge is employee engagement. It is easier to initiate change if the employees played a part in drafting the policies and feel proud about it. A possible solution is the use of teamwork to help drive this positive change. The third challenge is the cost of switching to sustainable business. A solution for this is to view the initial cost of change as a short-term inconvenience and that sustainable business increases the opportunities for the organisation.

Puritt (2012) states metric as the fourth challenge that faces businesses when switching to be sustainable. The issue with metrics involves the lack of a regulatory body. A possible solution is to use a consultant to help the company determine the potential areas that need changing. It is prudent that while identifying key areas to change, the goals and objectives are made realistic and achievable. Suppliers can also be the challenge as it might be difficult to find one that meets the needs of the sustainable business. Puritt (2012) argues that a possible solution to this be to maintain the processes as simple as possible. Another challenge is the consumers. Many a times consumers lack to communicate what they desire, and this may lead organisations to produce goods that are not being purchased and in turn cause losses. It is important that the organisation make a point to communicate with its potential customers and come up with sustainable solutions that will better the lives of the individuals in the society.

Cramer (2013) identifies four sustainability difficulties facing business leaders in the US. These are climate change, social mobility, poor infrastructure and the short-term thinking novelty. Cramer (2013) argues that progressive leadership be the solution to most of these setbacks. Moreover, Cramer (2013) suggests that business leaders who with this knowledge ought to speak up so that their ideas may be taken up by organisations struggling to switch and become more sustainable.

Purvis (2015) identifies nine strategies that can be used by organisations to overcome the limitations faced by businesses trying to become sustainable. The first is to use sustainability as a unique selling point. Businesses should brand their sustainability initiatives and use it as a platform for acquiring potential consumers. Secondly, organisations should think long term when it comes to sustainability. It is important that such a business concentrate on long-term outcomes and how to reward them. Thirdly, to overcome limitations associated with sustainability, businesses ought to come up with different ways of communicating as this may easily be a unique opportunity for an investor.

Additionally, there is embedding sustainability all through the organisation. This fourth way to overcome the barriers of sustainability incorporates complete overhauls of the organisational structures and can involve the creation of new roles. Purvis (2015) argues that improving managerial skills is prudent in overcoming barriers to a sustainable business. This is the fifth step, and it involves knowledge sharing among professionals and staff. Change is easier when there is good management. Taking risks is also another step when trying to overcome barriers to a sustainable business. Risk taking is essential to tap innovative technology before it becomes mainstream. Nonetheless, new players might find it difficult since they lack the capital to invest in such opportunities. Disrupting the ancient business facsimiles is prudent to ensure it does not interfere with the existing set-up. Networking is also important to overcome barriers to sustainability. Additionally, networking facilitates the exchange of information in addition to opening new windows of opportunities for investors. Finally, supporting other sustainable businesses is crucial.

Conclusion

From the text, it is clear that sustainability in organisations is inevitable. Moreover, sustainable business shows immense promise for both future business models and the environment and human beings at large. Nonetheless, the change from conventional business models is not going to be easy. As highlighted in the text, there are numerous challenges awaiting firms that are planning a change. Nevertheless, the advantages seen outweigh the disadvantages and with time, transitions by organisations may become less hectic. It is, therefore, important to state that sustainable business is the only future for business models.