The Concept Of Sustainable Development Strategy Business Essay

The Concept Of Sustainable Development Strategy Business EssayThe concept of sustainable using has received growing recognition, exclusively it is a new era for many origin executives. For most, the concept remains abstract and theoretical.Protecting an organizations capital base is a well-accepted business principle. Yetorganizations do not gener tot each(prenominal)yy recognize the possibility of extending this notion to theworlds natural and human resources.If sustainable development is to achieve its potential, it mustiness be conflated into theplanning and beat systems of business enterprises. And for that to happen, theconcept must be articulated in foothold that are familiar to business leaders.The following definition is suggestedFor the business enterprise, sustainable development means adopting business strategiesand activities that take on the needs of the enterprise and its stakeholders today whileprotecting, sustaining and enhancing the human and natural resource s that allow be neededin the future.This definition captures the temperament of the concept as originally proposed by the WorldCommission on Environment and Development, and recognizes that sparingdevelopment must meet the needs of a business enterprise and its stakeholders. The latterinclude shareholders, lenders, customers, employees, suppliers and communities who areaffected by the organizations activities.It also highlights businesss dependence on human and natural resources, in addition tophysical and pecuniary capital. It emphasizes that economic activity must not irreparablydegrade or destroy these natural and human resources.This definition is intended to help business directors throw the concept of sustainabledevelopment to their own organizations. However, it is important to emphasize thatsustainable development substructurenot be achieved by a single enterprise (or, for that matter, bythe replete(p) business community) in isolation. Sustainable development is a per vasivephilosophy to which every participant in the global economy (including consumers andgovernment) must subscribe, if we are to meet todays needs with out(a) compromising theability of future generations to meet their own.Implications for businessIt has become a clich that milieual problems are substantial, and that economicgrowth contributes to them. A common reaction is stricter environmental regulation,which often inhibits growth. The result can be a trade-off surrounded by a lusty environmenton the one hand and healthy growth on the other. As a consequence, opportunities forbusiness may be constrained.However, there are some forms of development that are both environmentally and lovingly sustainable. They lead not to a trade-off but to an improved environment,together with development that does not draw vanquish our environmental capital. This iswhat sustainable development is all about a revolutionary change in the way weapproach these issues.Businesses and societies ca n find approaches that will move towards all three goals environmental protection, social wellbeing and economic development at the same time.Sustainable development is good business in itself. It creates opportunities for suppliersof green consumers, developers of environmentally safer materials and processes, firmsthat invest in eco-efficiency, and those that absorb themselves in social well-being. Theseenterprises will generally have a competitive advantage. They will earn their localcommunitys goodwill and see their efforts reflected in the bottom line. applicatory considerationsWhile business traditionally seeks precision and practicality as the basis for its planningefforts, sustainable development is a concept that is not amenable to simple and everydaydefinition. It is fluid, and changes over time in response to increased information andsocietys evolving priorities.The role of business in contributing to sustainable development remains indefinite. Whileall business enterp rises can make a contribution towards its attainment, the ability tomake a difference varies by sector and organization size.Some executives consider the chief objective of business to be making money. Othersrecognize a broader social role. There is no consensus among business leaders as to thebest balance between narrow self-interest and actions interpreted for the good of society.Companies continually face the need to trade off what they would like to do and whatthey must do in quest of financial survival.Businesses also face trade-offs when dealing with the transition to sustainable practices.For example, a chemical company whose plant has excessive effluent discharges mightdecide to counterchange it with a more effective treatment facility. But should the companyclose the existing plant during the two or three-year construction period and risk losing market share? Or should it continue to operate the polluting plant despite the cost of finesand adverse public relations? Which is the better course of action in terms of economy,social wellbeing and the environment?Moreover, many areas of sustainable development remain technically ambiguous, makingit difficult to plan an effective course of action. For example, the forestry industry hashad obstacle defining what constitutes sustainable forest counselling. Some critics deal that simply replacing trees is not enough, because harvesting destroys thebiodiversity of the forest. Clearly, more research will be needed to serve such technicalissues.From a broader perspective, however, it is clearly in the interest of business to operatewithin a healthy environment and economy. It is equally plain that, on a global basis,growing and sustainable economies in the developing countries will provide the bestopportunities for expanding markets.To some, sustainable development and environmental stewardship are synonymous. Inthe short(p) term, sound environmental performance is probably a reasonable objective formost bu sinesses, with sustainable development as a longer term goal. However, this canlead to confusion. In the developed world, the focus is on environmental centering,while in developing countries, rapid and sustainable development is paramount.The global economy is approach path under growing pressure to pay for the restoration ofdamaged environments. But this economic engine is being asked to help solve otherpressing problems at the same time. The challenge is to solve all of these problems in asustainable manner, so as to generate continuing development.Despite ambiguities about definitions, there is like a shot widespread support for sustainabledevelopment principles within the business community. However, for that support togrow, it will be important to recognize and reward initiatives that are being taken to turnthe concept into reality.Positive signs of changeWilliam Mulligan, environmental affairs manager at Chevron Corporation, reflects theview of many in the business communi ty who believe that the environment is now amajor issue one which presents both challenges and opportunities.Over the last decade, we have seen many polls confirming the importance of theenvironment to Americans, he says. Only an irresponsible company would dismiss thistrend as a passing fad or fail to recognize the need to integrate environmentalconsiderations into every aspect of its business. Environmental excellence has to becomepart of strategic thinking. It is in our best economic interests to do so. In fact, wheneverwe are force to change, we often find opportunities.This positive change in attitudes and practices is echoed by the Organization forEconomic Cooperation and Development, which says There is now a realistic prospectof harmonizing environmental and economic considerations, and thus of graduallyincorporating these objectives in policy.Many executives have demonstrated that pursuing sustainable development strategiesmakes good business sense. For example, a 3M manu facturing plant scaled down awastewater treatment operation by half, simply by running cooling water through itsfactories repeatedly instead of discharging it after a single use. Meanwhile Dows WasteReduction Always Pays programme, which began in 1986, has fostered more than 700projects, and saved millions of dollars a year. And in a Westinghouse metal finishingfactory in Puerto Rico, the company reduced dragout the contamination accidentallycarried from one tank to another by 75% simply by shaking the tank to remove solids onward releasing the chemical to the next tank.Pacific Gas and Electric decided that energy conservation was a more profitableinvestment than nuclear power, and McDonalds make its well-publicized move fromplastics to paper the cornerstone of a much broader, but less visible, waste reductionstrategy.The managers of these businesses clearly believe that environmentalism has something tooffer business.In an interview with tomorrow magazine, John Elkington of envir onmental consultancySustainAbility says We are seeing the birth of corporate environmentalism. In fact themain impetus for sustainable development in the future will probably come frombusiness.There are other significant developments too, Elkington points out. Many consumers arenow prepared to pay more for environmentally responsible products. And the developmentof ethical investment funds has thrown the spotlight onto corporate environmentalperformance.Also significant, says Elkington, is that companies are changing from within, rather thansimply responding to external pressure from consumers and environmentalists.Enhancing management systemsThe concept of sustainable development needs to be incorporated into the policies andprocesses of a business if it is to follow sustainable development principles. This does notmean that new management methods need to be invented. Rather, it requires a newcultural orientation and extensive refinements to systems, practices and procedures.The tw o main areas of the management system that must be changed are those come towithA greater accountability to non-traditional stakeholdersContinuous improvement of reporting practices.Developing an effective management framework for sustainable development requiresaddressing both decision-making and governance. The concept of sustainabledevelopment must be integrated both into business planning and into managementinformation and control systems. Senior management must provide reports that billperformance against these strategies.Governance is increasingly important because of the growing accountability of thecorporation and its senior management. Information and reporting systems must supportthis need. Decision-making at all levels must become more responsive to the issuesarising from sustainable development.Seven steps are required for managing an enterprise according to sustainabledevelopment principles. These are set out below.