The business case for Corporate Sustainability
The trend towards adopting sustainability and social responsibility programmes is growing rapidly. A recent KPMG survey reported that 62% of companies surveyed have now got a strategy for corporate sustainability up some 12% within 2 years - and that despite a challenging business climate.
Importantly too, half the business managers interviewed as part of the same survey considered that corporate sustainability would definitely improve the profitability of their companies.
Identifying the key business factors influencing the drive to adopt corporate sustainability varies from industry to industry, but an aggregate from a number of surveys would suggest the following - rated according to business value:
1 Brand value
Producing innovative and distinctive low-impact products as well as adopting sustainable values, standards and processes throughout a company's operations will serve to strengthen brand identity and differentiate it from competitors.
2 Employees and future workforce
Through increasing employee motivation, productivity, satisfaction, retention, engagement and loyalty, responsible business practice will improve the lives of employees as well as improve the ability to attract and hold onto talent.
3 Operational effectiveness
Improving sustainable and responsible values and standards results in more effective operations and higher levels of efficiency.
4 Risk reduction and management
Incorporating sustainable standards and values into a company's framework and strategy can significantly reduce exposure to risk from environmental and corporate responsibility issues within the supply chain.
5 Direct financial impact
Activities induced through the adoption of corporate sustainability can have a direct benefit to the financial performance of an organisation through, for example, improving access to capital, reducing costs and improving shareholder value.
6 Organisational growth
A company can grow from opportunities created from being a sustainable business - whether through new product development, new technology, new customers or new partnerships.
7 Business opportunity
Being a sustainable company can lead to business opportunities where for the first time stakeholders and company work together successfully on an issue to solve it. The outcome can result in a win-win situation for all involved. This opportunity is particularly apposite for companies operating with overseas supply chains - well-designed collaboration can result in benefit both to suppliers and their workforces as well as lowering risk in the chain.
The trend towards adopting sustainability and social responsibility programmes is growing rapidly. A recent KPMG survey reported that 62% of companies surveyed have now got a strategy for corporate sustainability up some 12% within 2 years - and that despite a challenging business climate.
Importantly too, half the business managers interviewed as part of the same survey considered that corporate sustainability would definitely improve the profitability of their companies.
Identifying the key business factors influencing the drive to adopt corporate sustainability varies from industry to industry, but an aggregate from a number of surveys would suggest the following - rated according to business value:
1 Brand value
Producing innovative and distinctive low-impact products as well as adopting sustainable values, standards and processes throughout a company's operations will serve to strengthen brand identity and differentiate it from competitors.
2 Employees and future workforce
Through increasing employee motivation, productivity, satisfaction, retention, engagement and loyalty, responsible business practice will improve the lives of employees as well as improve the ability to attract and hold onto talent.
3 Operational effectiveness
Improving sustainable and responsible values and standards results in more effective operations and higher levels of efficiency.
4 Risk reduction and management
Incorporating sustainable standards and values into a company's framework and strategy can significantly reduce exposure to risk from environmental and corporate responsibility issues within the supply chain.
5 Direct financial impact
Activities induced through the adoption of corporate sustainability can have a direct benefit to the financial performance of an organisation through, for example, improving access to capital, reducing costs and improving shareholder value.
6 Organisational growth
A company can grow from opportunities created from being a sustainable business - whether through new product development, new technology, new customers or new partnerships.
7 Business opportunity
Being a sustainable company can lead to business opportunities where for the first time stakeholders and company work together successfully on an issue to solve it. The outcome can result in a win-win situation for all involved. This opportunity is particularly apposite for companies operating with overseas supply chains - well-designed collaboration can result in benefit both to suppliers and their workforces as well as lowering risk in the chain.