The paper "Why Managers Must Create a Culture of Sustainability " is an outstanding example of management coursework. Business sustainability is an objective for all businesses. Conventionally, businesses uphold a powerful focus of aspects that hold a direct and apparent impact on the economic performance of the businesses. Firms assess the economic performance via assessment of financial measures that include profit margins, costs of material and sales. In the contemporary world, businesses take a wider view and consider their relationship with the society and environment. Through effective relationships with the environment and the wider society, firms are in a position to assess fully the actual and potential effects on their businesses.
Based on the context of the triple bottom line of economic, environmental and social sustainability, this essay provides an understanding of sustainability, and, why modern managers should establish a culture of sustainability in organisations. The essay contends that a culture of sustainability is very useful in all areas of business operations, particularly in sustainable development and finance. Defining Sustainability People have recognised that profitability is one component of the long-term success of businesses.
While the profitability of a firm is essential for its sustainability, the future of the planet and humans also accounts in the sustainability of a business (Longoni 2014). The triple bottom line entails the interrelationships of economic, environmental and social development. For a business to be sustainable, it must integrate economic, social and environmental goals. The triple bottom line expands the definition of sustainability to include not only profits but also the plant and people. Therefore, the triple line bottom line of profit, people and plant take into account environmental and social effects of a business in search of profits.
This implies that sustainability entails the improvement of human wellbeing besides ensuring social equity for future and present generations while protecting the life-supporting ecosystems of the planet. Based on the triple bottom line, sustainability for business implies attaining economic prosperity without damaging society. A business cannot attain sustainability without the consideration of people, planet and profit. Therefore, sustainability is attainable through an effective balancing of social, economic and environmental sustainability elements. Laasch and Conaway (2014) assert that the sustainability of a business is measured through assessing the impact of the business on environment, society and economy. Pillars of Sustainability Sustainability holds three pillars that include economic, social and environmental considerations.
According to Longoni (2014), the economic aspect of sustainability is described as having the capacity to generate adequate cash flow to ensure liquidity and offer an importunate long-term return that includes achievement of the economic requirements of a firm and its stakeholders. Economic sustainability entails the direct economic impacts, long-term competitiveness and success of a business triggered by the number of sales, profits and market share.
Besides shareholder profits and wealth, businesses need to consider the long-term benefits of a firm to attain economic sustainability. With respect to environmental sustainability, Longoni (2014) asserts environmental sustainability in business is attainable when a business uses natural resources at a rate below their natural regeneration or utilises substitutes. A firm attains environmental sustainability through limiting emissions of greenhouses gases or through involvement in activities that do not degrade the ecosystem. With respect to the triple bottom line, firms attain environmental sustainability by lowering the impact on their processes and product to the environment.
The processes entail all the stages in the supply chain that include purchasing, production and delivery of products. Environmental sustainability touches on key areas of a business that include purchasing policies and supplier partnership, eco-design and product innovation, pollution prevention and logistics processes.
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