4th Quarter – Week 5
Lesson: Sustainability in Business
Learning Objectives:
1. Define business sustainability and its importance,
2. Explain the importance of sustainable businesses,
3. Cite ways to create more sustainable business strategies
What is Sustainability?
• Sustainability refers to the ability to maintain or support a process continuously over time
• In business, sustainability refers to doing business without adversely impacting the environment, community, or society
• Sustainability in business is important to ensure responsible, ethical & ongoing success of the business
What are the 3 Principles of Sustainability?
• The idea of sustainability is often broken down into three principles: environmental, social and economic – also known as "planet, people and
profits"
• This means that in order to be considered sustainable, a business must be able to conserve natural resources (environment/planet), support a
healthy community and workforce (social/people), and earn enough revenue to remain financially viable (economic/profits) for the long-term.
What Activities Promote Sustainability?
1. Environmental Aspect
➢ using renewable energy
➢ 3Rs: Reduce, recycle, reuse
➢ “Go Green” and other environmental-friendly practices (preventing pollution, using sustainable materials, etc.)
2. Social Aspect
➢ promoting fairness in the workplace and observing fair labor practices
➢ promoting the health, safety & wellness of the employees
➢ enacting policies that benefit the local community
3. Economic/Financial Aspect
➢ making sure the business meets the following economic indicators: employment, increasing sales, income stability and profitability
➢ “Doing well and doing good” (achieving financial success and at the same time behaving in a socially responsible manner)
Benefits of Business Sustainability
1. Improving the environment
➢ cutting emissions, lowering energy usage, sourcing products from fair-trade organizations, ensuring their proper waste disposal
2. Improving the welfare of the people and the community
➢ a sustainable company retains and attracts employees, customers and investors because they positively affect the society/community
3. Financial benefits
➢ using resources sustainability can improve the long-term viability of a business concern, just as cutting waste and pollution can also help
a company save money
➢ For example, using more efficient lighting and plumbing fixtures can help a company save on utility bills, as well as improve its public
image.
➢ There may also be government tax incentives (reduction in tax payments) for companies that adopt certain sustainability practices
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The following are some stages to follow to create a more sustainable business strategy:
1. Review the problem and define objectives
In reviewing the problem, the company must consider the big problems each group thinks is a priority
2. Create the company’s mission
A clear mission statement is an important part of becoming a more suitable business.
3. Create the company’s strategy
In creating a sustainable business strategy, it is important to ensure that the company remains profitable.
4. Implement strategy and evaluate results
Once strategy is implemented, always re-examine the process regularly to guarantee the company’s objectives, mission, and improvement
remain supported
A sustainable business creates more job opportunities. There will be a lot of investors to invest in the company’s products which are the
necessities of people. Sustainable business attracts investors and employees.
What is Financial Freedom?
• It is an objective/goal for most companies and even individuals
• It means having enough savings, financial investments, and cash to afford the kind of life we desire for ourselves & for our families
• Take care of your belongings—maintenance is cheaper than replacement—most importantly, take care of your health.
