Wednesday, April 2, 2014

Environmental Sustainability impact on Business Strategy

As the threat of environmental issues grows, sustainability becomes a growing factor in business strategy. As awareness of these issues grows among the public, consumers have begun to call out organizations that are not maintaining effective sustainability practices. Additionally, the media is quick to identify organizations failing to consider environmental implications in their practices. This bad publicity could cause severe financial problems for businesses that are eager to grow in their market share.

To gain the support of consumers and shareholders, more organizations are striving to incorporate sustainability measures within their strategic plan. Research is showing that sustainability practices positively affect brand value and that organizations that implement a well-structured sustainability strategy are more likely to succeed in the market and lead to continued success in the future. While sustainability is a current industry ‘buzz word’, it is clear that it is not just a fad that will soon fade, but rather a conscious long-term effort within organizations. These efforts are seen in organizations like Nike Inc., which has a transparent and detailed sustainability section within their strategic plan. Organizations are choosing to hire sustainability consultants to help form strategic plans that will not leave them out of this growing movement.

 But for me, the question remains regarding how beneficial these practices will be for the environment? Businesses are still concerned with creating and selling their product in order to make a profit. Without resources, these products cannot be made. As demand grows for the world’s resources, how long will these new plans be able to sustain business productivity and environmental protection?


----
Sources
"NIKE, Inc. - Sustainable Business Report." NIKE, Inc. - Sustainable Business Report. http://www.nikeresponsibility.com/report/content/chapter/our-sustainability-strategy (accessed April 2, 2014).

Oliveira, Paula, and Andrea Sullivan. "Sustainability and its Impact on Brand Value." Environmental Leader RSS. http://www.environmentalleader.com/2008/09/28/sustainability-and-its-impact-on-brand-value/ (accessed April 2, 2014). 

"SustainAbility | Independent think tank and strategy consultancy." SustainAbility | Independent think tank and strategy consultancy. http://www.sustainability.com/ (accessed April 2, 2014).

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.