The advantages of a sustainable business30 Jun 2015
In today’s globalised, interconnected and competitive business world the way that environmental and social corporate issues are managed should now be an integral part of a companies’ overall management strategy.
Companies that are able to demonstrate and perform better with regard to these issues can expect increased shareholder value. For example properly managing risks, anticipating regulatory action and accessing new markets whilst contributing to the sustainable development of the environment in which they operate will all help to improve the bottom line.
All of these issues have a strong impact on a company’s brand and reputation and are an increasingly important part of its value - both in perceived and real terms.
Companies that choose to adopt sustainability practices can create further growth opportunities by:
- Appealing to customer values to build trust whilst developing a socially and environmentally responsible image.
- Launching products and services that meet the increasing demand for socially and environmentally conscious alternatives.
Through the development of more sustainable business models, companies have been able to produce goods and services using fewer resources and at a lower cost. For example leveraging alternative sources of energy such as solar and wind will reduce dependency on hydroelectric, coal-burning, and nuclear power sources.
In addition, by improving product design and production processes, energy and material waste will be reduced as well as packaging and transportation costs. Reviewing processes and procedures can lower business costs and increase company productivity and ultimately profitability.
Improving sustainable management techniques and practices can also help to mitigate the impact of risk to your business:
- Reduced risk of litigation arising from social and environmental issues.
- Improved safety to customers, employees, and communities as a result of eliminating or reducing the use of toxic substances.
- Prevention of regulatory issues as a result of waste management practices.
- Improved relationships with government, environmental, and community agencies.
The right leadership is required at Board level, to keep these environmental and
social issues high on the Agenda. Ensuring the company is recognised as a
leader within the sector and a positive economic force within the community and wider
The Grichan Partnership is proud to sponsor the Sustainable Business Award at this year’s National Business Awards. Entries are now closed and a shortlist of finalists will be published very soon.
For more information about The Grichan Partnership go to www.grichan.com