18 Jan Business sustainability?

The word sustainable, today, is one of the most mentioned nowadays, however, it could be said that it is not fully understood. Especially when it comes to companies.

For most of the people, sustainable means green, but they are only 33 percent right.

In recent years, many companies have been accused of maintaining irresponsible practices in their value chain, such as abusive hours with their employees, excessive pressure, quasi-slave labor, child labor, etc.

As mentioned in the previous article, the sustainability of a company must respond to three concepts: environmental, social and economic. This is called the triple bottom line or the famous 3 P’s: People, Planet, Profit.

In this sense, if a company produces environmentally safe goods, but has child labor in its value chain, it is not sustainable. Similarly, if a company produces environmentally safe goods and has a value chain with social justice and labor practices but lacks a market or its products are not capable of producing any profitability, it is not sustainable either, because it fails on the economic side. 

Hence the importance of understanding that these three P’s works together and if one of them is not practiced in a company, it would not be sustainable.

Many years ago, business profitability was considered the most important factor in the results of a company, however, today companies have had to expand their thinking in this regard. Beyond what is seen at the end of the year’s accounts, a company that is committed to the triple bottom line will try to evaluate the economic value it has contributed to the local and global economy through its work. It is clear that profits need to keep doing a good job in the company.

So, this can be summarized in that only those companies that are environmentally safe, socially just, and profitable, can be called sustainable… or what is the same, sustainable, because they can be sustained over time. 

It is also important to understand that, within this framework, not everything green is sustainable, but everything sustainable is, by definition, green.

Finally, for a brand or company, applying these concepts will help it in different aspects: improvement of the reputation and value of the brand, decrease of risks, exploitation of opportunities, loyalty of the clients and collaborators, innovation and creativity, reduction of costs…

In short, sustainability represents an opportunity for the company and helps to improve our planet and society.

Source: https://fundacionhombrenaturalezablog.wordpress.com/tag/3-ps/#:~:text=La%20sustentabilidad%20debe%20responder%20a,%3A%20People%2C%20Planet%2C%20Profit.