A common misconception of CEO’s and small business owners is that the adoption of sustainable business practices will negatively impact profitability. In other words, a business cannot be both sustainable and profitable at the same time. In reality, companies that commit to sustainable business practices have been able to maintain or increase profitability while still maintaining a strong commitment to societal, environmental and economic concerns.
Some sustainable initiatives have an immediate and positive impact on profitability while other programs take root over time, but are no less impactful on a company’s bottom line and commitment to the global community, environment and economy.
In fact, more business leaders are now saying that creation of sustainable business opportunities and implementation of sustainable practices is not just a “nice thing” to do, but is a necessary business strategy to competitive positioning and advantage in today’s business climate. What are the reasons for this and why are sustainability or green business practices being adopted by companies despite the economic downturn of recent years?
In sum, sustainable or green business practices are not just seen as effective public relations campaigns by companies, but are quickly becoming core business objectives and strategies and necessary to profitability and competitive advantage in today’s challenging and competitive business environment. So much so that top-tier consulting firms like Deloitte have dedicated sustainability practices.
More today than ever, companies are redesigning their business practices, models and agendas to accommodate sustainable behavior; spawning both extraordinary value for consumers, vendors, shareholders and employees while at the same time, providing appreciation, care and support for the global environment and international community. Companies can have a strong commitment to sustainable behavior while consistently maintaining strong financial performance.