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News&ViewsreportWhy corporatesustainabilitymattersBy Maja Blažević, TPA HorwathWe all must play our part in conserving and protecting ourprecious resources for future generations, as there is only one Earth.Companies should make a contribution by acting responsibly and bybeing conscious of how their operations impact the environment. Thiswould ensure the sustainability of our businesses in the years to comeand, of course, it is the right thing to do.More and more people are talking about corporate sustainability,but many do not understand exactly what it means. Corporatesustainability is a business approach that creates long-term shareholdervalue by managing risks deriving from economic, environmentaland social development and embracing opportunities. It is abusiness approach that creates consumer and employee value bynot only creating a greener strategy aimed towards the natural environment,but also taking into consideration every dimension of how abusiness operates in the social, cultural, and economic environment.One of the most quoted and well known definitions on sustainability isthe UN definition, which says of sustainable development: “Meetingthe needs of the present without compromising the ability of futuregenerations to meet their own needs”. Pretty simple and to the point.Businesses of all sizes and various industries are feeling increasedpressure lately from employees, customers, and the marketto act in an environmentally responsible way and to develop an effectivecorporate sustainability strategy, whose benefits can be significant.One of the biggest benefits of corporate sustainability forthe businesses is an improved brand image. When companies gothrough this process they end up saving money. There are also costsavings to be realized from things such as using less electricity, andsustainability can give a company an advantage in a very competitivemarketplace. Finally, as workers gain pride from working for acompany that is doing the right thing for the environment, increasedemployee satisfaction is also a benefit.A key factor that a business needs to focus on when approachingsustainability is top management commitment. It can bevery difficult to push the initiative throughout the organization andto get employees to buy-in without that commitment from the top.After that, employee buy-in is crucial. A company that is willing toimplement the corporate sustainability concept should find the rightleader for the initiative, who must put together a sustainability team.››› Maja BlaževićThey should be driven and passionate people that can pursue theopportunities. Without that passion and drive all the effort is likely tofail. Sustainability should flow throughout the organization and notbe separated into an individual division. The company’s goal shouldbe to completely integrate sustainability issues into its core businessstructures and processes.The easiest way for companies to start implementation isto start small and take baby steps that will reap small successes,which will bring encouragement to continue their efforts. For example,a huge worldwide manufacturing company started its sustainabilityinitiative by examining its product design and discovered how muchwaste it actually had in the process. By reducing that waste, it wasable to realize cost savings, but it was also an environmentally goodthing because a great deal less material ended up in the landfill.Businesses looking to implement a sustainability program forthe first time can face a number of challenges: determining priorities,setting goals, measuring results etc. A company can begin thesustainability process on its own or it can consider outside help. Itcan be quite difficult to identify issues from inside the company, soit might be a good idea to have someone from outside the companycome in and help the company develop a strategy. An outside firmcan help assess and respond to the risks and opportunities integralto achieving strategic business objectives. So by consulting with aprofessional firm, a company can take full advantage of sustainabilityopportunities to help the environment, improve its image and improvethe bottom line.The concept of sustainability has been around for a longtime, but it is only in the last couple of years that people are realizingmore and more that sustainability is becoming the key to future businesssuccess.2/2012 ISSUE 23