Business Sustainability Flashcards
What is the definition of Business Sustainability?
The development that meets the needs of the present without compromising the ability of future generations to meet their own needs
Two Key concepts of Business Sustainability
- Needs of the world’s poor
* Limitations of the environment
Why do business focus on sustainability?
- Competition for Resources
○ As the worlds population continues to increase rapidly, in a world of infinite wants and needs, the already limited resources will only become more scarce are more people=more infinite wants/needs - Climate Change
○ Our current fossil-fuel based economy has led to a growing concentration of greenhouse gases in the atmosphere which is causing extreme weather conditions
○ Which has ultimately led to harsher rules and regulations regarding carbon emissions
- Connectivity and communication
○ Advances in technology and digital communication allows for opinions and ideas to spread at a much faster rate than ever before.
○ Thus reputations are much easily made and also destroyed - thus is a business is polluting, it is much easier for potential customers to become aware
9 Principles of Business Sustainability
- Ethics
- Governance
- Transparency
- Business Relationships
- Financial Return
- Community involvement
- Value of products and services
- Employment Practices
- Protection of the environment
Ethics
The company established and maintains ethical standards and practices in dealing with all stakeholders
Governance
The company manages all of its resources effectively, recognises the duty of corporate boards and managers to focus on the interest of all company stakeholders
Transparency
Company provides timely disclosures of information about its products/services/activities to its stakeholders
Business Relationships
Company engages in fair trading practices with suppliers, distributers and partners
Financial Return
Company compensates providers of capital with a competitive return on investment and the protection of company assets
Community involvement
Company fosters a mutually beneficial relationship between the corporation and the community
Value of products and services
The company respects the needs and desires and rights of its customers and strives to provide the highest levels of product and service values
Employment Practices
The company engages in human resource management practices that promote personal and professional employee development
Protection of the environment
The company strives to protect and promote sustainable development with products, processes, services and activities
