Question

Sustainability has been widely considered as a key issue driving business in the future.

Critically discuss the concept of sustainability and the difficulty to understand the concept from the business point of view.

Answer 1

SUSTAINABILITY IN BUSINESS WORLD

Firstly, we must focus on the true meaning of the term “Sustainability”.

The concept of sustainability focuses on meeting the needs of the present without compromising the ability of future generations to meet their needs. It is composed of three pillars: economic, environmental, and social — also known informally as profits, planet, and people.

Sustainability from a business point of view, or simply Business sustainability is a strategy that prioritizes the long-term survival of a business and connected ecological, social and cultural systems. It is an accepted business principle that is widely recognized as a critical strategic concern for governments and organizations.

Sustainability encourages businesses to frame decisions in terms of years and decades rather than on the next quarter's earnings report and to consider more factors than simply the profit or loss involved. Usually, a company will issue sustainability goals and will work towards them. The goals are often reasonable—cut emissions by 5%, for example—so that when the business achieves its sustainability marks, they are able to call themselves "green" or "sustainable."

A sustainable business is an organization that emphasizes environmental principles and socially responsible behavior in its business model. Environmental principles are applied to all business decisions and are a central theme of its business strategy.

Organizations are often found to be in a fix while dealing with the term Sustainability. Sustainable strategy can be formulated in any field of operation, be it energy conservation, social responsibility, quality standards of its products and services, etc.

However, moving toward sustainable production is often a complex process for companies. By basing decisions on longer timelines, some of the higher upfront investments in efficiency and renewable sources are easier to justify. Investors have had to adjust their expectations for returns because a company that commits to the sustainable development of resources may have more modest earnings results in the near term.

Many companies have been criticized for exploiting cost-cutting measures such as offshoring production to obtain cheaper labor. This practice, although beneficial for the bottom line, often comes at the price of compromised worker safety and security.

Lastly, we can conclude with the challenges a sustainable business is likely to be facing in the coming future:

• The world is currently dealing with the ever-evolving crisis of inequality at all frontiers.
• With rapid industrialization and developmental strategies, the risk factor in the industry has come to a whole new level along with increased hazards.
• Sometimes, businesses have to collaborate with others to become sustainable. This may give rise to conflict of interests as every individual has a separate set of beliefs and principles.
• The most predominant challenge faced by any business entity is the creation of a long-term orientation towards sustainability. With a dynamic business environment, it often becomes cumbersome to be on the right track.