Sustainability is becoming increasingly important across every discipline and sector. There’s scarcely a part of modern life that people aren’t trying to improve, and businesses that want to succeed in the future will undoubtedly need to show that they are socially and environmentally conscious.
According to a survey conducted by IMD, 62% of executives consider a sustainability strategy to be essential for competing in today’s market – and a further 22% think that it will be in the very near future. With such a broad consensus, it’s obvious that businesses should be making sustainability a priority, but that can be easier said than done.
With these thoughts in mind, here’s why you should invest in sustainable business practices and how you can move your firm in the right direction to secure future success.
What is a sustainable business?
A sustainable business is one that can continue to generate profits all whilst improving conditions in society and without damaging the environment. Sustainability is a very wide-reaching concept that covers everything from your business operations through to the contents and intentions of your products and even your approach to employees.
Sustainability can be split down into five general areas: supply chain, energy, waste, people management, and logistics. If you can balance these areas well enough, your business could enjoy a real boost. Studies have shown that companies with higher Environmental, Social and Governance (ESG) ratings have lower costs and less debt. Perhaps more interestingly, they also benefit from greater public support and higher revenues.
So, how is it that you can do well out of doing good?
Adopt ethical production standards
The first step for any business that wants to become more sustainable is to look at their production operations. Regardless of the products you’re making, there are often greener and more environmentally friendly ways to make them – and without much extra cost or any loss of quality.
Whether it’s a case of sourcing your base materials locally, or purchasing perishable goods from fair trade suppliers, it doesn’t have to be a hard process. For most businesses, a few small tweaks could make all the difference to your environmental footprint while supporting fairer working standards further down the supply chain.
Stick to strong values
Every successful business has a set of core values. These are the messages and beliefs that your business lives and dies by, and without them a firm can’t hope to be anything more than an opportunist.
By setting values and sticking to your moral compass, your business will become more purpose-driven. Beyond this, you’ll have a far clearer set of guidelines by which to run your operations and to make decisions. Of course the ultimate benefit will be to your reputation. Firms that set themselves apart through an ethical approach are more likely to attract public support and all the extra custom that comes with it.
Once you’ve established a set of core values, the next challenge is to live up to them. This may mean changing your business policies, education your staff, or even switching your focus towards new ethical products. It’s about leading by example, and with real conviction too.
Provide equal opportunities
Businesses are about people. From your employees and stakeholders to customers and suppliers, without people there would be no hope for any commercial enterprise.
Sustainability may evoke green thumbs and organic produce, butit’s not just about the natural world. If you want to create a more ethical business, you need to create a healthy, happy workplace that supports employees and communicates clearly and openly with all stakeholders.
Beyond this, you should take steps to make your products or services more accessible to customers. This might mean installing disabled ramps or making your website friendly to screen readers. In some cases, it could even be as simple as updating your payment solutions to provide an eCommerce payment gateway or a mobile card reader. These easy steps could facilitate transactions with customers who can’t make it to your physical premises, and it will show that you are committed to inclusivity and accessibility.
Protect the environment
The global climate emergencyis a problem for everyone, and businesses are now expected to do their bit to fight pollution and other issues. Failing to protect the environment and to limit the impact of your operations could lead to a PR disaster, and there are lots of things you can do to cut down on waste and become greener.
Starting with switching energy providers and ensuring that your materials are recycled wherever possible, you could even switch to high-quality card machine paper. This will prevent misprints and negate the need for so many different rolls, epitomising the small and simple steps you can take to do your bit for the globe.
Above all else, you absolutely need to create a long-term business plan if you’re to have any hope of becoming energy efficient. A plan that outlines your business activities over the coming years will better enable you to incorporate environmentally friendly choices into your extended strategy.
Give back to your community
On a wider level, firms that really want to become more ethical should consider giving back to their community. This could be through financial donations, but you could equally host fundraising events or even just put time and effort into supporting a local cause.
Consumers are far more inclined to shop with a business that has shown kindness to local communities than one is purely driven by revenues and figures. It’s why there has been such a revolution in the SME market, and it seems likely that we will continue to see the public supporting small businesses for a long time to come.
The bottom line
It’s no longer negotiable to have an ethical business. Customers expect it, and corporate governance principles are gradually becoming more robust so as to require it. At the end of the day, the sustainability of your business is reflected directly in how people perceive you and your products or services.
If you truly want your business succeed over the long term, sustainability is the answer.
