Sustainable business development is a strategy that satisfies the needs of organizations while maintaining ecological balance, employee well-being, and community welfare. The concept involves conducting a business, that contributes more to the economy, environment, and society than it takes from these areas. What else do we understand by sustainable development, and what are its principles?
What are the goals of sustainable business development?
Sustainable development is an approach that considers the simultaneous fulfillment of economic, social, and environmental goals. It is a long-term strategy that dictates that businesses should operate responsibly and with future generations in mind. Economic goals involve achieving profits and financial growth, which are essential for the functioning and success of a business. Sustainable development entails that economic objectives should be achieved ethically and with respect for the community in which the company operates and the natural environment.
Social goals include taking care of employee well-being, creating high-quality jobs, promoting diversity, equality, and fairness in the workplace, and engaging with local communities. Companies should also consider the impact of their activities on customers and society, aiming to deliver valuable products and services that meet consumer needs and respect consumer rights.
Environmental goals pertain to minimizing the company's negative impact on the natural environment. Businesses should strive to reduce greenhouse gas emissions, efficiently use resources, protect biodiversity, minimize the waste and pollution, and promote sustainable energy and water management. Implementing ecological practices in a company may involve using the renewable energy, reducing raw material consumption, recycling, investing in a clean transportation technologies, and various other actions.
Sustainable Development vs. ESG and CSR - Key Differences
Sustainable development is an innovative trend and the main indicator of the direction of economic transformation. The term is often used interchangeably with ESG and CSR. They all share the same origin, which is the endeavor of a company to adhere to practices that have a positive impact on the environment. However, there are some differences between them. ESG (Environmental, Social, Governance) refers to the categories of factors, considered in evaluating and monitoring a company's performance. ESG focuses on three main areas - environmental, social, and governance. The idea aims to provide measurable indicators that enable the measurement of business responsibility. The strategy is becoming an increasingly important factor for conscious investors who want not only to invest their money wisely, but also to take actions beneficial to the environment.
ESG aims to make a company's efforts measurable, while CSR refers to voluntary actions and initiatives taken by companies to contribute to the welfare of society and protect the environment. ESG's beginning was the desire to measure, assess, and analyze CSR. In other words, without CSR, there would be no ESG. CSR is often treated as part of a business strategy that aims to benefit the company, employees, environment, consumers, local communities, and the public sphere.
Other Benefits of Sustainable Development for Companies
The main vision of sustainable development is to care for the natural environment, while simultaneously creating conditions for business and societal development. Stakeholders include all individuals within the company's value chain - from suppliers to investors and consumers. The introduction of sustainable development concepts lies with management, often supported by marketing departments responsible for the development of new products and solutions in terms of responsible resource management. Besides environmental care, employee well-being improvement, and financial performance enhancement, companies can also achieve reputational benefits. Society increasingly values companies that care about the environment, resulting in greater trust and sympathy from customers, business partners, and investors. Additionally, the implementation of sustainable development strategies can attract and retain talents. Especially, young people often seek jobs that align with their values and commitment to sustainable development.
Sustainable Development in Companies - Where to Begin?
The path to sustainable development involves not only defining a vision, mission, and goals but also focusing on dialogue with stakeholders such as employees, investors, or customers. All of this is aimed at outlining the priorities that actions should achieve. Currently, many companies encounter barriers that hinder progress in implementing sustainable development ideas. According to the International Business Report (IBR) by Grant Thornton (source), 31% of surveyed companies have not started implementing the strategy due to the lack of clarity in new regulations and requirements. Over time, the pressure on companies for innovative projects and sustainable management will increase. Consequently, modern companies will require competent employees who will take on the challenge and work on business transformation towards responsibility and sustainable development.
Individuals who want to complement or systematize their knowledge in the field of sustainable development strategies, CSR, and ESG are invited to take advantage of our educational offerings.
Postgraduate Studies in CSR: Sustainable Development Goals in a Company's Strategy are recommended for individuals who possess or will possess qualifications in implementing and executing responsible business strategies using sustainable development goals. The knowledge and skills acquired will also be useful in the further professional development of individuals interested in the prospects of sustainable development and corporate social responsibility. This direction is a continuation of postgraduate studies in CSR conducted in cooperation with Deloitte Sustainability Consulting Central Europe.
ESG and HR Training: Creating a Sustainable Workplace is recommended for HR/EB managers and specialists who want to expand or systematize their knowledge and skills in the area of ESG-compliant actions. The training program focuses on practical knowledge, experience sharing, and proposals for changes at both strategic and cultural levels.
