Why Sustainable Business?

The Benefits of Sustainable Business Practices

Corporate social responsibility is a proxy for good management and good management is the best predictor of financial performance. Intangibles such as R&D, proprietary knowledge, intellectual property and workforce skills, supply networks, brands, and reputation are now the key drivers of wealth production, while physical and financial assets are increasingly regarded as commodities. (Global Environmental Management Initiative, www.gemi.org)

Strategies to achieve environmental and social excellence make good business sense: providing products that people want, reducing costs, reducing risks, and maximizing organizational health is not just a personal virtue, it is good business practice. We combine business, engineering, marketing, and educational expertise to help you find that sweet spot combining profitability with environmental and social responsibility.

Revenue Growth

The marketplace is changing. Consumers are seeking environmentally friendly alternatives and are willing to pay a premium for those products. The LOHAS (www.lohas.com) market is gaining momentum. Stakeholders expect increasing accountability and transparency. Green marketing, positioning, and branding is becoming more important. Competition for the environmentally and social conscious consumer is growing. Increasing awareness is changing priorities, expectations, and commitments and creating new product opportunities.

Cost Reduction

Your waste stream consists of things that you bought and then threw away. Environmental and social responsible business practices reduce waste, driving down costs and building the bottom line. Resource costs are rising as demand is increasing and supplies are diminishing and supply chains are becoming more fragile. There is growing realization that our natural capital is being spent and formerly insignificant costs are becoming important.

Risk Reduction

Corporate exposure to environmental and social risk is on the rise. Rapid increases in resource costs, public awareness of labor conditions throughout the supply chain, pending legislation, and increasing scrutiny of raw material and waste toxicity combine to create a complicated business environment. Boycotts, fines, liability judgments, and loss of goodwill can be disastrous to organizations that fail to prioritize corporate social responsibility.

Create a Healthier Organization

Intangibles such as R&D, proprietary knowledge, intellectual property, employee engagement, workforce skills, supply networks, brands, and reputation are now the key drivers of wealth production, while physical and financial assets are increasingly regarded as commodities. Healthy work environments address not only physical health, safety, and the efficient use of resources – but also the emotional, mental, and spiritual resources of the human beings who create the goods and services the organization sells. Taking care of your employees and suppliers and engaging them in strategic environmental and social improvement programs creates effective, engaged teams and committed, passionate employees.

Increase Employee Engagement

A recent survey of students and entry level hires found that 80% of young professionals are interested in securing a job that has a positive impact on the environment, and 92% would be more inclined to work for a company that is environmentally friendly (Wall Street Journal, Nov 15, 2007). They view such companies as being better prepared to meet future business challenges and opportunities and they value the sense that their effort and creativity is helping to create a better world. Preliminary studies, including one conducted by the Canada Green Building Council, have linked eco-friendly indoor environments to higher productivity and less absenteeism. Incorporating sustainable business practices has also been shown to decrease operational costs related to employee turnover, increase employee engagement and commitment, and increase the ability to recruit top new talent in a competitive job market.