Corporations are created and managed for economic reasons. However, amid a global economic crisis, we are now faced with additional challenges that disrupt business as we know it. It is even more important than ever before, to re-think the way business is conducted. Companies are not only finding it increasingly difficult to stay afloat, but they are also having to maintain their public reputation by adjusting to new environmental and social factors as enforced by law, demanded by consumers, and encouraged by shareholders. Present challenges should be transformed into opportunities for accelerating economic growth while minimizing social and environmental risks and impacts. Implementing “sustainability” can be a source of competitive advantage offering avenues for lowering costs and risks, improving brand reputation, attracting and retaining high-quality employees as well as growing market share and revenues. The business case for sustainability should start through the social and environmental lenses and not through the economic thinking.
What is Sustainability?
There are many different terms used to capture this evolving and broad concept, including sustainability, corporate social responsibility (CSR), corporate citizenship, ESG (environmental, social, and governance), and others. However the consensus prefers the term “sustainability” signifying our moral obligation to“meet the needs of the present without sacrificing the needs of the future,” which was first established by the Brundtland Commission in 1989. Three years later at the Rio Conference, also known as the Earth Summit, all countries, including Romania, agreed unanimously that there was an urgent need to adopt Agenda 21? a global strategy for the next century. The option of which was to be the implementation of sustainable development principles. The aim was to reconcile two objectives of mankind: the need to continue social and economic development, while also improving the state of our environment as the only way to secure the well being of current and future generations. The European Union’s new Green Economy Initiative further sets the tone for enhancing conscious operating behaviors.
Why is this important for your operations?
In a competing situation, there are winners and losers, and those winning today may be losing tomorrow. The best business deals are generally consummated with a win-win mindset. The sustainability initiative can be described as the ultimate win-win initiative.
Companies, organizations and governments are finding it increasingly difficult to maintain reputations with the growing demand for accountability. Organizations must adapt to remain viable for the long-term interest of the owners and even employees will be charged with a greater role in reshaping work environments. At the same time, systems will have to become more efficient, while success will be documented in a more transparent manner.
In the past, it was enough to report financial measures, including accounting and market-based figures in annual reporting. Professionals and industry specialists soon started to advocate for a broader set of indicators to reveal real-time depth behind corporate activities. Only recently have other less tangible operational performance measurements, otherwise known as “sustainability indicators,” been applied to CSR or sustainability reports published separately or as a component of annual reports.
What does this mean for your company?
The new environmental and social standards developed locally and globally have turned sustainability into a “cost of entry” for businesses. Market data shows that forward thinking companies that have managed to implement sustainable practices into their operations have out-performed those who have failed to do so during this economic downturn. Rather than freezing activity and waiting to see how the markets pull out of the global recession, this time could be best spent reevaluating business practices and designing strategies that are in line with national and international objectives. Those who wait for the rules to be put into place after markets recover will naturally be caught in a scramble to catch on and could very well lose out to other well-prepared competitors. Sustainability is an acknowledgment that amid environmental, social and even economic uncertainty, an organization must adapt to remain viable for the long-term interest of the stakeholders. In other words, companies and other entities need to design their corporate strategies, policies, goals and initiatives based on drivers of economic, social and environmental risk.
How can companies achieve sustainability?
As a new member of the European Union, Romania will be increasingly required to adapt to sustainability-driven principles and directives, which are to be enforced by national legislation. Advice Human Resources understands the importance of preparing their clients for this new business environment, especially during a time that is also characterized by economic downturn. Providing guidance to clients is crucial since sustainability is a process rather than a destination. In order to provide better service to clients in Romania, ISOSGroup Global has partnered with Advice Human Resources to conduct trainings related to implementing sustainability and managing environmental impacts. ISOSGroup Global is a sustainability driven company offering flexible, out of the box solutions to help you improve your environmental and sustainability performance.
To learn more, please refer to:
http://www.advice-hr.ro/content/sustainability-open-training-events.htm
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Tags: Agenda 21, Business Case, Competitive Advantage, CSR, Economic Growth, ESG, European Union, Green Economy, ISOS Group, ISOSGroup Global, Market Data, Rio Conference, Romania, Social and Environmental Risks, Stakeholders, Sustainability, sustainability report, Sustainability Reports, Sustainability Trainings
