Key Elements For A Sustainable Business
Identity and cultural model for business to be sustainable
A growing number of companies consider sustainability as the necessary strategies to be competitive. “High sustainability” business adopted ethical environment and political policies have outperformed those underestimate the strategy with 4.2% higher in stock market performance (Eccles, Perkins & Serafeim, 2012). Thus, it is not surprising why businesses start to adopt environmental and social strategies to enhance financial performance.
Before executing and formulating sustainable strategies, businesses must ask themselves:
How will I establish sustainability into my business’s value and process?
What are the sustainability crucial elements I need to consider to stand out from the traditional business?
Eccles, Perkins & Serafeim (2012) had formulated an identity and cultural model comprising the two questions for businesses that are new to the “sustainability” term.
- Reframing the company’s identity
Step 1 requires leader commitment and external engagement. The combination of two elements acts as a stepping stone for businesses to codify a new identity. The top-level executive who has the ability to pursue a wide vision and tolerate risk pressure will integrate sustainability into the business decision process better. Equally important, leaders need to share employees with a clear demonstration of the sustainability strategy and allowing time for employees to embrace the new concept.
Interface Inc., one of the world’s largest carpet companies, established a goal of having zero impact on the environment. Transitional change comprises of moving from paper-based receipt to a digital receipt system or utilize solar energy instead of fossil fuel.
A business learns sustainability strategy by using external resources and from partnering with a different market organisation to advance their goals and seek challenges mitigation. Pepsi invites suppliers to the annual meeting to discuss sustainability practices, reduce energy consumption for an example.
2. Codifying the new identity
The second step supports employees engagement with the new strategy while proceeding the mechanisms for execution. For employees to embrace the strategy, they have to know the changes are necessary and worth it. Enforcing employees effort related to their emotional attachment to the company and appreciation of their roles. Cross-functional communication and morning briefing are excellent ideas to keep employees excitement and interest.
In order to execute sustainability, businesses need to set clear sustainable objectives, a global environmental management system, and an accurate valuation model.
For an instant, a business wants to reduce expenses by adopting digital receipts. Their environmental friendly method decrease wastage of paper receipt and results can be measured through their expenses changes and customers’ impression of the business’s product.
So, are you ready to start a sustainable business? Why not start with eliminating your paper receipt? Let 1receipt help you in this regard. Contact us now!