Sustainability Increasing Business Competitiveness

One of the challenges in transitioning business sustainability from the drawing board to daily practice is the ability to link sustainability concepts to specific business value. In our professional consulting experience, we find organizations are primarily driven by an expectation to deliver a positive return to their stakeholders. Specific to this goal, we often remind our clients that sustainability increases business competitiveness.

For most businesses, especially those in competitive markets, differentiation is critical to long-term success. Due in part to the growth in general eco awareness, the traditional criteria of product and service differentiation are expanding to include the actions of the business that delivers them. Business customers and end consumers now evaluate business sustainability practices in conjunction with responsible products and services.

At Wal-Mart, shelf space is no longer defined by brand, history or past performance. In a similar effort being observed in other companies and industries, the retail giant is defining a new sustainability standard for its supply base. The competitive differentiator going forward will be a business that can demonstrate and tract business sustainability action. Some of the responsible actions increasing competitiveness include:

•    Consistent delivery sustainable products and services.
•    Defined and traceable material sources.
•    Management of environmental impact, including process waste streams and emissions.
•    Demonstrate corporate social responsibility.

Building of a comprehensive business sustainability program may include specific strategies to increase competitiveness. In our sustainability experience, we find that one of the keys to implementation success is to define a specific value proposition for each business sustainability initiative.   As seen by changing market expectations, sustainable businesses are creating a competitive advantage.

Determining the criteria that will move an organization on the business sustainability scale has become the focus of many companies. At Taiga Company, our small business resources work with clients to incorporate sustainability concepts into internal operations and across the value chain.