How Sustainable Businesses can make you Money

Why sustainable businesses are so successful

Although businesses are not bound by any sustainability requirements there are many reasons why being sustainable is beneficial to an organization. In this article, I wish to discuss the benefits of using sustainable resources and materials.

Being a socially responsible business encompasses responding to more than economic, technical, and legal issues. Thinking environmentally, the business is sustainable when its current goals are being met without compromising the ability of future generations to meet their needs.

Corporate Social Responsibility

CSR is the voluntary activities of companies to improve the wellbeing of stakeholders which encompass communities, environment, shareholders etc. CSR implies that corporations have more than economic and legal obligations, but also to society and the environment. Sustainable businesses are reinventing the corporate ecosystem that provides value to all of society.

Companies are beginning to recognize the financial benefits through making their operations more efficient through natural resources, energy, and minimizing waste. One study estimated that companies experience an average internal rate of return of 27% to 80% on their low carbon investments.

Increasing Consumer Interest

Consumers are very aware of sustainability in organizations. 87% will purchase a product because a company advocated for an issue they cared about. While 78% of consumers want companies to address important social justice issues. There are six benefits for becoming a sustainable business:

1. Enhanced brand image: More than 50% are more likely to buy your product knowing your brand is sustainable.
2. Increased productivity and reduced costs: Although sustainability resources are expensive, in the long term businesses see decreased costs within operations.
3. Better financial opportunities: Companies in six industries considered leaders in environmental, social and governance policies to have outperformed the general stock.
4. Prepared for future legislation and costs: With more environmental regulations, companies implementing sustainability now will prepare your company for restrictions on carbon emissions and rising energy costs.
5. Improved recruitment of quality employees: Many people want to work for companies with ethics, this is becoming a large factor when considering jobs. Hiring the best employees within their field will help your company continue innovating.
6. Healthier work environment: Implementing healthy and sustainable products increases the lifespan and health of workers in the corporation. Which leads to improved morale and thus higher production.

Although sustainable practices are considered "good", not every company has implemented the practice. Making the switch to becoming a sustainable corporation has been highlighted throughout this article. Hopefully, this helps both corporations and employees make the right decision in the business environment.

And as always have a wonderful day!

-Kyle