SUSTAINABILITY AND BUSINESS By Mansur Boydaş, Mansur Boydas Vahdi Boydas

SUSTAINABILITY AND BUSINESS By Mansur Boyda, Mansur Boydas Vahdi Boydas

By Mansur Boyda Mansur Boydas Vahdi Boydas

Humanity has reached an era during which the irresponsible use and disposal of natural resources is no longer possible. Since businesses and corporations play a big role in this damage to the environment, it only makes sense that they take social and moral responsibility to make some of the reparations needed to eliminate the erosion of nature. Specifically, business operations must play an active role in the removal of harmful substances that have been placed in nature as well as finding more sustainable ways to function. All the while, maintaining quality and profit margins. This is the challenge faced by business that in the 21st century.

The question as to whether a business ever be truly environmentally sustainable, presents an interesting quandary. All species have a deep survival instinct. They do everything they can to secure their own chances of survival. It has been realized that the human survival instinct has somehow got buried in the pursuit of ever greater material prosperity. To generate that prosperity we are literally laying waste to the ecosystem, by tearing down forests, damming the rivers, polluting the air, eroding top soils, warming the atmosphere, and covering the earth with human activities. As we humans live and depend upon the earth we must use the things around us, i.e., that which makes up our environment. To sustain the environment we must either recycle all that we use or find other ways to use only those parts of our environment that can regenerate themselves. The viability of a business depends upon a profit margin which is not always compatible with the exploitation of the environment and hence we must take into consideration both the profit and the use of our resources to balance the equation.

Governments and many branches of industry realize this situation and by means of studies and scientific experimentation have devised laws and regulations to lessen the impact on the environment. In our examination of these regulations and the effort of everyday businesses we may determine a method whereby businesses can indeed be profitable and preserve and replace our resources, both natural and man made. However, pressures on the environment resulting from development are steadily increasing. Therefore, it is necessary for citizens and the business community to ensure that their activities and operations are environmentally responsible. Today, environmental sustainability has become an objective both in our public policies and our business strategies. In order to best practice environmental sustainability, the problems need to be understood by business people, environmental activists, public administrators and regulators.

"Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs" (Brundtland, 1987). Brundtland created a new thesis that economic and environmental considerations had to be integrated in a new global compact that would build toward greater equity. While sustainability has become a pervasive concept for the business enterprise, sustainable development means adopting business strategies and activities that meet the needs of the enterprise and its present stakeholders while protecting, sustaining and enhancing the human and natural resources that will be needed in the future. Small businesses can play a major role in protecting and preserving the environment in many communities. It can fulfill this role while still maintaining their competitiveness. As a member of a community, a business can assume a leadership role by becoming more environmentally friendly and participating on local environmental projects. The task of business leaders is to ensure that the organizations under their control can play their part in the move towards a sustainable global economy.

Becoming an environmental steward in the community may preserve the natural resources and our environment for future generations. However, the role of business in contributing to sustainable development remains indefinite. Some believe the principal objective of business is to be making money and others recognize in a broader social role. From a broader perspective, however, it is clearly in the interest of business to operate within a healthy environment and economy. It is equally plain that, on a global basis, growing and sustainable economies in the developing countries will provide the best opportunities for expanding markets.

"Before individual employees and businesses can contribute to sustainability, they must understand its three components: economic growth, environmental protection, and social well-being". Integrating these three components into a business strategy requires a fundamental change in thinking. Industry, and all sectors of society, must shift from the old standard of independence to a new standard of interdependence. (John Browne, 2001).

In the past companies, firms and even nations were competitive if they had access to lowest cost inputs - capital, labor, energy, and raw materials. For example, industries heavily dependent on natural resources were competitive if there was an abundant supply of local raw materials. Because technological change was slow, a comparative advantage through low cost inputs was enough to achieve a competitive advantage. Now, it is no longer enough simply to have resources. Most large companies can out source low-cost inputs and with new technologies overcome many of the obstacles in the cost of inputs. Facing high labor costs at home, for example, a company can automate, replacing the need for unskilled labor. Facing a shortage of a raw material, a company can find an alternative raw material or create a synthetic one. Milton Friedman, the Chief Executive of, the University of Chicago, School of Economics, points out that "The business of business is business the key to success is often strategy". We can create not only for the environment, but also for economic advantage and social equity, for eco-efficiency. Doing so requires careful consideration of the entire production of a product, from raw materials through manufacturing to final waste products after use. It calls for an evaluation of both process designs, which focuses on the "how" of manufacturing, and product design, and looks at the "what" of manufacturing. For example, closed-loop systems - such as at Dow's Fort Saskatchewan plant - can ease a plant's dependence on local river water. Manufacturing scrap can be collected and reused to avoid sending waste to the local landfill.

Eco-efficiency looks at the total amounts of raw materials, energy, fuels, or utilities consumed during a product's production. The goal is to identify the parts of the process that have the highest resource intensity, and then redesign the product to yield significant energy savings.

Once we accept the new standard, the challenge is to take action and lead cultural changes within each organization. Imperative to the process is the integration of environmental and business decision-making. We cannot make decisions about either the environment or our businesses in a vacuum. "Sustainable business strategy means taking the goal of sustainability and working in such a way that human society will be possible for generations to come" (Kenneth, 1995). Today managers must consider the environmental and social impact of business decisions as well as the economic impact of environmental investments.

It is widely accepted that the current style of regulation and legislation in the United States or Canada cannot lead us toward sustainability. We need to pursue alternative approaches to setting goals and achieving ever-higher levels of excellence. Why? Because it doesn't make economic sense to follow the command-and-control path. The protection and safeguarding of our environment by enterprise management is one of the most important issues in today's society.

This translates into strong economic incentives for business to voluntarily prevent pollution. We will always need laws and regulations to set overarching performance- based goals and targets. However, market and economic incentives must speak business language. If we listen, we can indeed uncover significant profit opportunities in pollution prevention.

Business opportunities often lie disguised as environmental challenges. Shrewd executives will watch for changes in individual and societal needs for environmental quality as we seek sustainability. Market opportunities will unfold, and industry will be called upon to provide eco-efficient goods and services. An example of a growth opportunity that complements the goals of sustainability is Dow's newest business platform, called Dow Environmental. This business was launched in 1994 to offer environmental systems and services to the global marketplace. One Dow Environmental service is Strategic Chemical Management (SCM), which leverages Dow's expertise in chemical handling, storage, use, and disposal. Likely customers for this business are large manufacturers who use a lot of chemicals but whose primary expertise is not handling or managing the chemicals to reduce environmental impact. Because society today places a value on such a service, the new business has a good chance of success.

Technology is the most obvious contribution industry can make to sustainable development. Innovation is the foundation of the world's most successful corporations. Few argue that business must lead the creation of cleaner technologies, more efficient processes, and alternative, eco-efficient products. Industry's responsibility is to fulfill this expectation. The marketplace offers powerful incentives for businesses to invest resources in continuous process and product improvements. Each company also must accept a responsibility to seek alternative technologies that draw upon fewer resources, maximize efficiencies, and create less waste. There are now widespread supports for sustainable environmental development principles within the business community. However, for that support to grow internationally, it will be important to recognize and reward initiatives that are being taken to turn the concept into reality.

Reward Employee Action:

A company is only as strong as its people. A strong environmental ethic takes root first among employees, then branches into business strategies and corporate culture. Businesses must encourage and reward employees who take the initiative to protect the environment - whether on or off the job. If employees see that such action is valued, it will spread beyond a small core to a broader base. Environmentalism is local. Manufacturing sites often attract local people with a vested interest in the region's economic, environmental, and social well-being. Substantive change happens when these employees act upon their values and take on the role of champions. If given support and recognition, they can go far to change a company's culture.

Seek opportunities for Growth:

Business opportunities often lie disguised as environmental challenges. Shrewd executives will watch for changes in individual and societal needs for environmental quality as we work toward sustainability. Market opportunities will unfold, and industry will be called upon to provide eco-efficient goods and services.

Sustainability:

Sustainability is an attempt to provide the best outcomes for the human and natural environments both now and into the indefinite future. The goal of our endeavors is one which, as in the past, satisfies society's needs and wants, but realizes that these now include sustainability as a matter of priority. The need for sustainable development, that is, economic development towards satisfying the world's unmet needs within a clean and stable environment, in practice satisfies existing needs while using resources wisely. To maintain relations with the natural environment development strategies must be based on clean technologies, recycling or renewal of resources and repairing damage.

An environmentalist, John Elkington, writing in the magazine Tomorrow states that "we are seeing the birth of corporate environmentalism. In fact the main impetus for sustainable development in the future will probably come from business". As example of electric and gas companies representing many Canadian provinces established, The Green House Emission Management Consortium (GEMCo) in 1996, as a non profit Canadian corporation. The aim of this corporation is to demonstrate industry leadership in developing voluntary and market based approaches to greenhouse gas emissions management. Limiting the greenhouse gases emissions presents both political and environmental challenges for all nations around the world. The members of this consortium employ over 60,000 workers in Canada. They also own and operate 80% of Canada's natural gas transmission and distribution infrastructure; over 90% of Canada's independent power production capacity and over 50% of Canada's electricity generating plants. They also control similar operations in 11 other countries around the world. This spreads their influence internationally. It also highlights business's dependence on human and natural resources. Therefore, it emphasizes that economic activity must not degrade or destroy these natural and human recourses. This is intended to help business directors apply the concept of sustainable development to their own organizations. However, it is very important to emphasize that sustainable development can not be achieved by a single enterprise or the entire business community but that it is obligation of every participant in the global economy including consumers and government, if we try to meet today's needs without compromising the ability of future generations to meet their own. Protecting sustainable development is a well accepted business principle as it helps to develop an effective management frame work for sustainable environment. Many of these potential benefits would be a great deal more substantial if all the organization's leaders who are beginning to exert real pressure to make sustainability the new international watchword also understand that changes in the global operating environment will be essential.

"Can business ever be truly environmentally sustainable" remains a quandary. Because of man's inherent nature we will continue to do that which we find most pleasing regardless of the cost to our environment. There is no reason why business can not be environmentally sustainable except we have not reached that stage where our traditions and habits make it a priority. Much will depend upon how much influence organizations for environmental preservation will have in stirring our consciences to action. There are many influential people, such as, Al Gore (former vice president of US), and many others writing and speaking in order to make the public aware of the situation. The answer can be yes if we continue to make strides in the developmental process to sustainability.

Mansur Boydas

Vahdi Boydas

Mansur Boyda

POST COMMENT

COMPETITION AND SUCCESSFUL BUSINESS By Mansur Boydaş Business Loans-Here anyone can activate his business dreams Finding the Right Business Name and Tag Line The Business Gold Mine of Forums Getting Free Marketing for Your Watch Bands Business Use Round Stickers For Small Business Promotion How to Get a Craft Business Up and Running Amerisciences Scam? Lean the Facts about the Amerisciences Business Business Bestsellers Review Doggie Day Care At Home Business Opportunity With Pet Food Products What You Need To Know About Offline Marketing For A Web Based Business Getting Your Business to Stand Out Brent Paynes We are Avant part time home business