There is growing evidence that corporate sustainability is making a significant competitive advantage and higher profits for organizations willing to change their mindset and corporate culture to understand that doing the right thing for the environment and society makes good business sense. Climate change, the global economic crisis, geopolitical instability, national security, and socially unfair trade and labour practices are prominent problems that fuel the global drive toward sustainability. Stakeholders, including customers, investors, financial institutions, employees, communities, NGOs, regulators, and the media, all have growing expectations for companies to examine and address their businesses' broader impacts on the environmental surroundings and community. Whether your stance is founded on ideological beliefs and values or on improving bottom-line numbers, it could be difficult to have internal and external buy-in for the advantages of developing and implementing a corporate sustainability strategy.
Many still think that there has to be a trade-off between business profitability and environmental and social responsibility. Here are simply five of many reasoned explanations why a fruitful corporate sustainability strategy should participate every organization's drive to provide higher value to all stakeholders: Well-developed and visible corporate sustainability initiatives are really appealing criteria for attracting and retaining the very best employees. Today's workers increasingly expect more than simply a safe workplace, competitive salaries, and job security; the overwhelming most candidates prefer to engage in a business that positively impacts the surroundings and society. Human capital is important to business success. It is not too difficult to quantify the worthiness of attracting and retaining top talent and achieving high employee motivation, productivity, and satisfaction.
In an attempt to keep competitive in a ever-changing global marketplace, many companies are realizing the worthiness of proactively anticipating, managing, and giving an answer to business risks. With a corporate sustainability strategy while the guide, a business may be ready for changing expectations, trends, drivers, and regulations within their industry. This helps to ensure potential risks and liabilities are accounted for along the company's entire value chain, decreasing the severity of the risks and even achieving preferred status for financing and insurance in the process. This could mean the difference between maintaining and increasing profitability or going out of business. Companies that offer environmentally and socially responsible products or services can gain an entirely new class of loyal customers, thereby increasing market share and tapping new markets. People desire to feel well in what they're buying, so it's no more enough to simply deliver high-quality products and services at fair and competitive prices. To adapt to the change in customer expectations, companies must innovate to create services and re-engineer old ones to reposition themselves as leading the way in sustainable practices.
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