The Concept Of Sustainable Development Strategy Business Essay

The Concept Of Sustainable maturement Strategy Business EssayThe innovation of sustainable discipline has certain growing recognition, but it is a modern era for many line of reasoning executives. For most, the concept remains abstract and theoretical.Protecting an organizations capital base is a well-accepted dividing line principle. Yetorganizations do non more(prenominal) often than not recognize the hazard of extending this notion to theworlds internal and human resources.If sustainable reading is to achieve its potential, it essential be integrated into theplanning and measurement systems of patronage openings. And for that to happen, theconcept must(prenominal) be articulated in terms that ar familiar to demarcation leaders.The following definition is suggestedFor the railway line enterprise, sustainable phylogeny means adopting moving in strategiesand activities that meet the needs of the enterprise and its stakeholders today whileprotecting, sustaining and enhancing the human and natural resources that ordain be neededin the future.This definition captures the spirit of the concept as originally proposed by the WorldCommission on milieu and Development, and recognizes that scotch exploitation must meet the needs of a business enterprise and its stakeholders. The latterinclude sh arholders, lenders, customers, employees, suppliers and communities who argonaffected by the organizations activities.It in addition highlights businesss dependence on human and natural resources, in addition to somatogenic and financial capital. It emphasizes that economic activity must not irreparably unload or destroy these natural and human resources.This definition is intended to wait on business directors apply the concept of sustainabledevelopment to their own organizations. However, it is serious to emphasize thatsustainable development cannot be achieved by a atomic number 53 enterprise (or, for that matter, bythe entire business associat ion) in isolation. Sustainable development is a pervasivephilosophy to which every participant in the international economy (including consumers andgovernment) must subscribe, if we are to meet todays needs without compromising the strength of future generations to meet their own.Implications for businessIt has be get hold a clich that environmental problems are substantial, and that economic step-up contributes to them. A common response is stricter environmental regulation,which frequently inhibits growth. The result can be a trade-off between a healthy environmenton the peerless hand and healthy growth on the other. As a consequence, opportunities forbusiness may be constrained.However, at that place are some forms of development that are both environmentally and genially sustainable. They lead not to a trade-off but to an improved environment,in concert with development that does not draw down our environmental capital. This iswhat sustainable development is all about a rev olutionary change in the modal value weapproach these issues.Businesses and societies can find approaches that will move towards all terce goals environmental protection, social well cosmos and economic development at the alike duration.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 engage themselves in social well-being. Theseenterprises will generally have a competitive advantage. They will earn their localcommunitys grace and see their efforts reflected in the bottom line.Practical 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 universaldefinition. It is fluid, and changes over time in response to increased information andsocietys evolving priorities.The role of bus iness in contributing to sustainable development remains indefinite. Whileall business enterprises can make a contribution towards its attainment, the ability tomake a difference varies by sector and organization size.Some executives consider the important objective of business to be do money. Othersrecognize a broader social role. There is no consensus among business leaders as to thebest commensurateness between narrow self-interest and actions taken for the good of society.Companies continually see the need to trade off what they would like to do and whatthey must do in pursuit of financial survival.Businesses also face trade-offs when dealing with the variation to sustainable practices.For example, a chemical company whose plant has excessive outgoing discharges mightdecide to replace it with a more effective preaching facility. But should the companyclose the existing plant during the two or three-year construction period and risk losingmarket share? Or should it slip by to operate the polluting plant despite the cost of finesand adverse public traffic? 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 difficulty delineate what constitutes sustainable forest commission. Some critics think that simply replacing trees is not enough, because harvesting destroys thebiodiversity of the forest. Clearly, more research will be needed to exile 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 patent that, on a global basis,growing and sustainable economies in the ontogenesis countries will provide the bestopportunities for expanding markets.To some, sustainable development and environmental stewardship are synonymous. Inthe short term, sound environmental performance is probably a reasonable objective formost businesses, with sustainable development as a longer term goal. However, this canlead to confusion. In the developed world, the heighten is on environmental management,while in developing countries, rapid and sustainable development is paramount.The global economy is coming under growing oblige to pay for the restoration ofdamaged environments. But this economic engine is being asked to help solve otherpressing problems at the same time. The contest is to solve all of these problems in asustainable manner, so as to generate continuing development.Despite ambiguities about definitions, there is at a time far-flung 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 a ffairs theatre director at Chevron Corporation, reflects theview of many in the business community who believe that the environment is in a flash amajor issue one which presents both challenges and opportunities.Over the last decade, we have seen many polls indirect the importance of theenvironment to Americans, he says. Only an irresponsible company would dismiss thistrend as a passing fad or soften 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 forced to change, we often find opportunities.This unequivocal 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 step by stepincorporating these objectives in policy.Many executives h ave demonstrated that pursuing sustainable development strategiesmakes good business sense. For example, a 3M manufacturing plant scaled down awastewater treatment operation by half, simply by political campaign 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 finishing factory in Puerto Rico, the company reduced dragout the contamination accidentallycarried from one tank car car to another by 75% simply by shaking the tank to remove solidsbefore releasing the chemical to the next tank.Pacific petrol and Electric decided that energy conservation was a more profitableinvestment than nuclear power, and McDonalds made its well-publicized move fromplastics to paper the cornerstone of a much broader, but less visible, waste reductionstrategy.The managers of these bus inesses clearly believe that environmentalism has something tooffer business.In an interview with Tomorrow magazine, John Elkington of environmental consultancySustainAbility says We are seeing the birth of corporate environmentalism. In fact themain impulse 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 emergenceof honourable investment funds has thrown the spotlight onto corporate environmentalperformance.to a fault 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 manage ment methods need to be invented. Rather, it requires a newcultural predilection and extensive refinements to systems, practices and procedures.The two main areas of the management system that must be changed are those concernedwithA greater accountability to non-traditional stakeholdersContinuous advantage 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. precedential management must provide reports that measureperformance 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 r equired for managing an enterprise according to sustainabledevelopment principles. These are set out below.