Why is Sustainability Necessary for Businesses?
Corporate social responsibility is a company's way of ticking a box. Sustainability is the holistic approach of an organisation to look at their effect on the economy, the society and the environment and assess whether or not their practices can continue into the future, both externally and internally.
Corporate social responsibility is seen from two different types of leaders: the compassionate leader and the leader who wants to out-CSR the other companies. Sustainability is seen from good businesspeople and developed leaders.
Sustainability is not optional in business. Sustainability is absolutely necessary to guarantee the operations of the company into the future. Every business owner and company director is focused on sustainability; however, the focus tends to be predominantly on economic sustainability and often in terms of the business' own economic sustainability. As an businessperson would know, this is vital. However, it is not the only aspect of sustainability which is necessary to develop.
Participation in the local community is an essential way to gain the trust of consumers and to demonstrate a commitment to contributing something back to society. Whether it is sponsoring a local sporting team, participating in a local event as the naming sponsor or even organising a staff volunteer event for the local community, the more consumers see engagement in the local community, the more likely they are to associate your brand with a positive image.
Research has shown that a majority of millennials want to see commitments from businesses to sustainability. This is important to note for businesses undergoing future strategic planning as these values are likely to be similar to those of the generation after also. With changing consumer demand, it is important for businesses to plan for the future in order to be sustainable.
While there are many economic benefits for businesses to adopt sustainability practices, there are also moral obligations. It is critical that we ensure the sustainability of our planet, economically, socially and environmentally, for future generations.