Many companies have arrived to an understanding that the “business world and the natural world are inextricably linked”. Simply, companies are aware that the natural sources required for building their products are depleting. This is not a matter of choice but a matter of necessity. Mentioned in Sandra Pham’s blog post, sustainability is being modified into a competitive advantage. Why is that the case?
It is in the companies’ best interest to lower costs and create value. Unintentionally, environmental challenges are providing favorable circumstances. For example, Walmart, who is still “overshadowed by its legacy of questionable labor practices”, is determined to redeem itself by focussing on sustainability through the following methods: reduce energy usage, “eliminate harmful emissions”, and “tackle packaging”. Currently, Walmart has managed to cover and improve a large range of sustainable practices including waste management. Dealing with these environmental risks has “lowered operating costs, and has strengthened relationships with customers”. In fact, profits are driven upwards by lowering sustainable-related costs. Therefore, corporate social responsibility is achieved regardless of direct pressure. In the long run, miniscule problems will accumulate to the point that businesses must address them because such issues shall affect their profits.
Sources:
http://www.eco-advantage.com/book.php
http://www.sustainablebusiness.com/index.cfm/go/news.display/id/24279