- Multiply the capital of its owners: The purpose of a for-profit enterprise is clearly to multiply the capital of its owners. But a new paradigm has arisen for achieving this goal. It is called “sustainability.” It embraces the complete enterprise ecosystem as a transparent, adaptive and innovative whole. Sustainability helps create a new type of enterprise, with a dual purpose: maximizing profits and creating social value that benefit others, including their stakeholders.
- Reduces the rate of resource consumption: Two of the main goals of sustainability are resource efficiency and impact minimization. Resource efficiency reduces the rate of resource consumption per unit of activity, while impact minimization reduces the environmental and social impact of all activities. This allows profitable growth with less resources and lower impacts.
- Business Ethics: Another critical element of sustainability is business ethics. Companies build loyalty and improve their reputation and brand name by demonstrating ethical standards. Consumers trust ethical brands. Connecting business ethics with resource efficiency and impact minimization is what makes sustainable enterprises.
- Launch of Sustainability Transformation initiatives: Leading companies throughout the world have launched Sustainability Transformation initiatives. The results have included improved bottom line performance, higher productivity, lowered costs, and increased market value.
- Common elements embedded into business strategy: Sustainable Enterprises share common elements embedded into their business strategy. Before launching a Sustainability Transformation, it is important to prepare the foundation to attain sustainability and verify which of the attributes of a sustainable enterprise are present.
What are the attributes of a sustainable enterprise? One where…
- Productivity is a consistent goal uncoupling profitable growth from constrained resources.
- Culture demands ethical conduct and responsible behavior.
- Value is always added across the enterprise, shareholder and stakeholder community.
- Alignment of goals and values, structure, and procedures is achieved throughout the enterprise ecosystem.
- Change is recognized, embraced, managed and used as the driver of positive innovation.
- Limits on resources are recognized and respected.
- Transparency is used to ensure accountability and effective collaboration with shareholders, stakeholders and throughout the value chain.
- Skills are recognized as the key to a stable, engaged and innovative workforce.
- Flexibility is built into the organization to allow quick adaptation to new realities and adoption of new technologies and processes.
- Social Responsibility is the obligation to act to benefit the economy, the environment and society.
These ten attributes can only be achieved with a holistic vision, a culture of determination and specific policies integrated throughout the enterprise.