Sustainability: business, life, environment

Have you ever observed a once thriving business, product line, or even an innovative idea suddenly begins to fail and eventually disappear?  Maybe it was a place of business you have been going to for years, and it is now closing down.  Why might this have happened?  The answer may lie in a second question: Was sustainability an engrained part of this company’s strategies and operations?

But what does ‘greening’ a business have to do with its profitability?

Business sustainability is often reduced to environmental or social action.  While certainly two very important areas of focus, business sustainability is really about taking action to maintain the on-going health and profitability of the company as a business strategy.  This includes valuing the relationship with the environment and social stakeholders.

Sometimes viewed in terms of risk, sustainable business actions are activities which have a positive impact on either the inbound or outbound flow of money.  For example most business sustainability concepts can be tied to:

Effective use of money going out:
•    Reduction in procurement and supply chain expenses.
•    Reduction in business and operational waste.
•    Reduction in environmental and social impacts.

Efficient use of money passing through:
•    Increase internal and external process efficiencies.
•    Increase employee productivity.

Maximum capture of money coming in:
•    Responsiveness to customer expectations.
•    Openness to new markets with innovative products and services.

In far too many cases, business models and strategies become misaligned with some basic business sustainability concepts.  Cash flow eventually slows and may even come to a stop.
By regularly reevaluating the company’s business model and its applied sustainability concepts, sustainable organizations are able to respond to the critical questions affecting the circulation of money.