Sustainability is a topic of growing importance today in all walks of life, including organizational life. Businesses and managers are increasingly considering ways to change their identity and incorporate a balance among the sustainability pillars – economic, ecological, and social into their business models. Researchers have confirmed that sustainability and environmentally responsible strategies are crucial for achieving superior competitive advantage and financial performance. While reflecting on this matter, this essay intends to provide greater insight into:
● The Importance of Sustainability
● Defining Sustainability
● Implementing Sustainability
● Sustaining Sustainability
The Importance of Sustainability
There has been a dramatic increase in organizations opting to change and become sustainable which is consequence of the mass media coverage surrounding sustainability highlights that not only demands from the public but also governments after the global crisis to change organizations and how they conduct themselves as it is having a detrimental impact on future generations. The importance of social issues and the natural environment to governments and companies has dramatically evolved in the last 50 years as a result of the global carbon dioxide emissions that is continually on the rise. It suggests one crucial challenge which governments face, that current production and consumption, are without a doubt, not sustainable. However, it is promising to witness a growing number of companies that understand the significance of sustainability and stress the social and environmental goals of their organizations. Leaders have overcome their traditional financial expectations and developed their long-term plans and goals. Research has also confirmed that at least over a reasonable timeframe, high sustainability organizations can outperform their competitors in terms of financial measures, as well as in terms of the environmental concerns more traditionally associated with the concept of sustainability.
There is no one definition for sustainability, however, it is suggested that in terms of business it is an approach that considers economic, environmental, and social issues in balanced, holistic, and long-term ways that benefit current and future generations of concerned stakeholders. The organizations that have a purpose to be sustainable, need to reshape and reassess their economic performance, social equity, and ecological preservation.
An organization’s identity is a combination of its leadership’s commitment and external engagement. Managers should connect with different external teams that convoy the opinion of the civil society, for example, investors and NGOs. Significant viewpoints from outside teams cannot occur without the motivation or encouragement of leadership. An organization can begin to incorporate sustainability and create a sustainable identity. It is also critical that your team is also onboard with this new identity by engaging your employees and reviewing the methods of execution. All these elements of a company leadership, external and internal engagement of employees, and with other combined efforts are the driving force to this significant necessary change. A culture in favor of sustainability will increase the effectiveness of leadership commitment, external engagement, employee engagement.
After discussing the importance of this matter, sustaining it is as crucial and necessary as changing the identity of your organizations. Research has proven that the role of stakeholders and firm’s disclosure practices for maintaining sustainability in organizations. It is apparent that financial institutions for example bank, insurance companies, and institutional and private investors, are key factors in maintaining sustainability, and that role they play is not unknown in research.
Ultimately, with reasonable doubt, organizations have been changing their traditional approaches and adopted a new sustainable identity where their focus is long-term success. There has also been compelling evidence that this method is also in the long term and is more beneficial, but only if it sustains. However, there remains many organizations not conforming to the new developed and modern way of life, and more research needs to be carried out to understand sustainability in more depth in all of its complexities