Increasingly, we have realized the importance of promoting sustainability in corporate activities, which leads us to the question: why is sustainable management important in companies?
In the midst of the various problems caused by the environmental crisis to society, there is a growing concern for a sustainable development of economic activities at a global level.
Indeed, these are times when companies that are not aligned with the need for sustainable management are strongly liable to fall behind. If, on the one hand, the implementation of sustainable policies in the field of business management can be a great challenge, on the other hand, it also represents a flagrant social obligation.
What few realize, however, is the great strategic value that these practices add to a business – after all, a solid internal culture focused on sustainability can favor the company's revenue and the brand's perception before an increasingly attentive public. the procedures adopted by the companies.
Throughout this article, we will explain why sustainable management is important in companies – ensuring a good reputation and a competitive advantage for your company. Good reading!
What is corporate sustainability?
The concept of corporate sustainability is directly related to a strategic management that understands the need for a solid and conscious alignment between the company's processes and the preservation of natural resources, so that its economic growth is enhanced without causing damage to the environment.
Indeed, sustainability aims to establish methods capable of supplying the main needs (collective and individual) consciously, preserving and renewing the resources used, so that later generations can also have their own demands met.
By valuing the use of sustainable methods for longer term escalation, instead of promoting massive and insane growth based on obtaining the maximum profit within a short term, these practices promote a significant reformulation of the company's internal processes, implementing a practice policy based on social, environmental and economic criteria.
And why is sustainable management important in companies?
For some time now, sustainable management in companies has ceased to be a simple attraction or a mere differential, but an extreme necessity in every possible way.
First, it should be noted that, contrary to what many imagine, the impact of sustainable management on the company's performance and results is extremely favorable.
Sustainable actions promote the well-being of employees; eliminate spending on water, energy and other natural resources; and reduce the environmental impact. All these factors are strategically decisive for establishing a real competitive differential, in addition to increasing productivity and profits.
No wonder that, already in 2016, it was estimated that the implementation of sustainability in business models could generate up to 380 million jobs per year, promoting exponential growth in society and the economy – including worldwide.
In addition, the adoption of environmentally correct practices plays a fundamental role in raising awareness in society, since it leaves positive examples for employees, customers and partners – thus disseminating the importance of sustainability in everyone's life.
Not forgetting that, since corporate activity drives a significant part of the planet's economy and social development, it becomes clear that the way in which this activity is conducted is of decisive value for the preservation of the planet and its resources.
Today, the largest organizations on the planet understand that sustainable management is extremely necessary – otherwise, there will be no activity possible in the not so distant future.
The other layers of society are also much more aware than before, in order to demand an affirmative environmental positioning from the main brands in the market. In other words, the world is changing and anyone who doesn't keep up with this change doesn't go very far.
Reaffirming the relevance of these factors, the ESG concept has been increasingly applied in the management of companies around the world. The acronym, which stands for Environmental, Social and Governance, covers a whole set of practices and prerogatives that comprise the sustainability of a business far beyond the financial aspect. As the name suggests, ESG is divided into three pillars, considered the tripod of corporate sustainability: Environmental, Social and Governance.
E - Environmental
Environmental is nothing more than the environmental criterion, which covers the guidelines regarding the reduction of the direct impact that the activities carried out by a given company can cause on the environment, such as, for example: management of waste, gases and pollutants, recycling and many others.
S - Social
The second pillar considers the impact of the company's activities on people – from employees and customers to local communities. Here, management is conducted according to principles of ethics, diversity, human rights, accessibility and equal opportunities.
G - Governance
The third criterion exists to manage the company's activities towards economic growth that respects cultural, social and environmental parameters. To this end, it considers the importance of responsible management of resources and transparent and honest communication with employees, the public and society in general.
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What benefits can sustainable management offer companies?
Sustainable management practices are able to deliver several benefits to companies that adopt them. Below, we highlight the main reasons to implement sustainability in your business.
1. Reduction of production costs
Although, many times, the migration of practices to a sustainable way may demand a certain investment, in the medium to long term, the financial results are extremely significant. The introduction of sustainable energy sources and operational solutions can significantly reduce the burden on an organization's budget, as well as avoid problems with fines and other legal penalties.
2. Crisis management
Sustainable management favors facing possible crises, since sustainability helps to keep the economy stable and allows the company to remain functional.
3. Preservation of the planet
The main objective of a sustainable attitude is to maintain the integrity of the planet. By reducing environmental impacts, society's quality of life as a whole is guaranteed, while natural resources are preserved and guaranteed for responsible and lasting use.
4. Strengthening the business image
Sustainability, applied to corporate practices, generates a good impression of the organization. Customers, partners and shareholders feel motivated to deal with a company with firm and ethical values, which mirror their own ideals.
It is even estimated that a large part of the public is willing to pay more for a particular product or service when the responsible company operates in a sustainable manner.
Likewise, companies that invest in sustainable development are also positively perceived by the market, which is usually reflected in the appreciation of their shares on the Stock Exchange.
5. Team satisfaction
Sustainability is also beneficial from the point of view of people management, as it provides a good work experience for employees – which is vital for promoting employee motivation, productivity and retention.
How to apply sustainable management in my company?
Sustainable practices can be adopted by any company, from large multinationals to small business. Here are some valuable tips for you, who want to implement sustainability in their management and still don't know where to start.
Reduction in consumption of disposables
Reducing the accumulation of garbage and waste emissions is a fundamental attitude for a sustainable practice in your company.
To this end, a good start is to eliminate the use of certain materials, such as disposable plastic, in your company's day-to-day activities. Choose cups, bottles, plates and cutlery that can be washed and reused, as disposable plastic can take up to a few hundred years to decompose.
Selective collect
Establishing collection points for the selective collection of garbage ensures correct disposal of your waste. Separate garbage into categories and colors, so that each one is collected at the correct destination: blue for paper, red for plastic, green for glass, yellow for metal and brown for organic waste.
Conscientious use of water and light
When we talk about sustainability, the waste of electricity and water is one of the biggest and most frequent problems. However, there are small measures that, if disseminated correctly, can make a big difference, such as:
- use of led lamps;
- the habit of turning off electronic equipment;
- the use of automatic faucets;
- keep the lights in the spaces off when they are not in use.
electronic documentation
The expense involved in printing and copying documents is gigantic, not only from a financial point of view, but also from a sustainable one. With electronic documentation, the volume of paper going to waste will be significantly reduced. Nature thanks you – and your pocket too!
Now that you know why sustainable management is important in companies, how about we continue the subject with our article on how to use an environmental management system in companies? Just click here and happy reading!
