562 Unit 1
562 Unit 1
Sustainability is a practice through which a business enterprise manages its environmental, economic and social threats. Sustainability helps a business to endure shocks and become resilient by maintaining a healthy social, economic and environmental approach. In some cases, however, business and sustainability do not rhyme together. These businesses view sustainability as a hindrance as it reduces the business profits through the processes and systems adopted. Pressure is building up for businesses to adopt and merge sustainability with decent business practices. This paper will critically explain why sustainability is the future of business.
First and foremost, the main reason as to why sustainability is the future of commerce is that it brings in investments. Good practices in business combined with measures that improve sustainability lures in investors. Most of the investors look for a business that is profit-driven as well as robust meaning that it can cope with risks and jolts that come with doing business. Also, investors look at the long-term measures put in place by a business, and those that have a good track record in implementing sustainable solutions and processes are most sort out.
Sustainability has also brought the aspect of competition in business. Over the years, it has become evident that companies have adopted sustainable strategies are making huge profits as well as increasing their consumer numbers. Through sustainability, companies have been forced to innovate and develop new products and services that conform to the regulations put in place.
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Additionally, this has increased profits for businesses that have the best products and services as well as opening up new markets as a result of increased consumer demand. The increase in demand by consumers for businesses that have sustainable business practices has forced businesses that had not embraced these practices earlier to do so with an aim to counter the increased demand of the rival competitors. In this case, it has led to increased competition among these companies (Danciu, 2013).
All around the world, governments have passed legislation that encourages businesses to adopt environmentally friendly measures in their operations. Such regulations have been put in place to control energy consumption, water supply, and carbon emission in businesses as they are directly linked to the costs of their operations. Governments have also introduced incentives to businesses that adopt sustainable business approaches.
In 2005, the United States of America introduced The Energy Policy Act which provides for among others tax incentives for manufacturers that use energy-saving practices and technologies in their production. This has helped guide manufacturers on the minimum requirement in the production of specific products that will guide the vision of attaining a green and clean environment. Through this initiative, businesses can benefit from the tax incentives as well as run a profitable business. Also, governments have put in place measures to prosecute those that do not adhere to the regulations such as polluting the environment in a bid to bring all businesses on board.
In conclusion, from the above discussion, it is evident that there is a great shift in the way businesses view sustainability. In the recent business practices, sustainability is not regarded as a measure that reduces profit margins but instead as a cost reduction and risk prevention strategy. With the current perception of sustainability, businesses are now implementing innovations, technologies, opportunities and new ways of achieving sustainability. Therefore, businesses that will best utilize these sustainable measures will not only endure but succeed.
Danciu, V. (2013). The sustainable company: new challenges and strategies for more sustainability. Theoretical & Applied Economics, 20(9), 7-26.
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