In recent years, concepts such as sustainability and corporate social responsibility have gained ground in the business field. Regardless of the nature of the business, what is called sustainable or responsible, among many other similar meanings, seems to have permeated company boards of directors as something necessary in terms of competitiveness and profitability.
In other words, companies can no longer look back in terms of sustainability.
And it is that the transformation and transition towards sustainability is something inevitable for the survival of any company in the long term. But first we have to understand what we mean when we talk about sustainability, in order to understand the weight this has on business competitiveness.
What are we talking about when we talk about sustainability?
Perhaps one of the most complex challenges facing companies and states today is finding a transversal definition of sustainability.
But the lack of a conclusive regulatory framework to delineate the parameters of sustainability does not have to be a decisive obstacle on the way to good business practices.
In technical terms, sustainability refers to the fact that meeting current needs does not compromise the future of subsequent generations. That is, progress must be marked both by current needs and by the care and protection of future ones.
It is about acting in such a way that present economic activities can exist in the long term without compromising social and environmental well-being. Likewise, it is also about improving the current market conditions in its relationship with people and the planet.
Sustainability and competitiveness
The commitment to sustainability, as we have just described, can help a company to better position itself in the market.
It is important to remember that responsible decisions do not fail to take into account the purely financial aspects of the company, since these are immovable to its nature. However, sustainability can become a fundamental pillar to promote the purely economic in perfect harmony with society and the planet.
According to a recent study on the sustainable development of SMEs in Spain, carried out by the General Council of Economists in Spain, there are several benefits that emanate from sustainability. Among those surveyed are Spanish companies from different sectors and sizes that conclude that sustainable business practices positively affect company performance.
Among the benefits, the study highlights the improvement of the corporate image and reputation, customer satisfaction, greater motivation among employees, or an increase in competitive advantages.
Due to their relevance, these are some of the competitive advantages offered to companies by having a sustainable approach:
- Innovation and opportunity: Good practices based on social and environmental responsibility can be a determining factor when creating new opportunities. In the implementation of initiatives with a positive impact, new and increasingly complex challenges arise. But it is precisely these challenges that can become market opportunities; either in such a way that they allow to cover new emerging niches in it, or attract impact investment or Socially Responsible Investment (SRI).
- Growth and profitability: The economy is changing, and social and environmental goals are becoming more demanding. Companies must face the need to redesign an economic system compatible with the prosperity of the society in which they operate. It is essential that the various economic activities align with social responsibility objectives if they want to ensure their profitability in the future. In addition, sustainable proposals can help the efficiency of the entire value chain, thus boosting economic growth. Likewise, sustainability allows companies to be able to opt for socially responsible financing.
- Motivation: Employee motivation is a great ally of business sustainability practices. A determining factor that helps the worker perform their tasks more efficiently by feeling satisfied with their work and their contribution to the company.
- Strength and confidence: The market begins to consider sustainability as something necessary, and society is no stranger to this fact. A sustainability plan not only positively boosts the reputation of a company, but also creates trust and loyalty among the different interest groups. In addition, it is worth noting the strengthening of the team of employees by uniting around the same purpose and business culture based on values of social well-being. Values that therefore have an impact on their lives, as well as on the society in which the company operates.
There is no profitable future without sustainability
In recent years we have been able to see how redefining our idea of progress has radically changed the way forward for states, companies, societies, and even at an individual level.
The future is no longer marked by economic growth, on the contrary: economic growth is inevitably conditioned by an uncertain future. A future that we must protect and care for if we want to ensure the economic, social and environmental prosperity of our societies.
There are no profitable companies in a fragmented society and a depleted planet. That is why the competitiveness of a company is immovable from sustainability and good practices.
In DoGood we want to change the world with small actions in an innovative and measurable way.
In addition, we help our clients to generate a better ESG impact, to create reputational value based on corporate sustainability and to increase commitment by promoting a sustainable culture and values.
If you want to know more about how we work to create a positive social and environmental impact, click here.
