Why is sustainability important in the business environment?
‘A process of change in which the exploitation of resources, the direction of investments, the orientation of technological development and institutional change are all in harmony and enhance both current and future potential to meet human needs and aspirations’. (UN WCED, 1987)
Sustainability is an ambiguous topic, however this is divided in three which are:
Environmental sustainability - for environmental sustainability is the ability to preserve over time the three functions of the environment: the role of supplier of resources, waste receptor function and the direct source of utility. Within a territorial system for environmental sustainability is the ability to value the environment …show more content…
In particular is the ability to generate income and employment for the livelihood of people. Within a territorial system for economic sustainability is the ability to produce and maintain in the territory of the maximum added value by combining the resources effectively in order to enhance the specificity of the products and local services.
Social sustainability - Social sustainability can be defined as the ability to guarantee human welfare conditions (safety, health, education) equally distributed to classes and gender. Within a territorial system for social sustainability is the ability of individuals to act effectively together on the basis of shared conceptions about the project, encouraged by co-operation between the various institutional levels.
The concept of sustainable development is embodied in an ethical and political principle, which implies that economic and social dynamics of modern economies are compatible with the improvement of living conditions and the ability of natural resources to reproduce indefinitely. Sustainability is important for business environment due to the fact that corporations operate in a market affected by social-environment and social economy. Therefore these ambiguity lead business to integrate in order to survive as an enterprise (Galea, …show more content…
For instance, the perception on the part of the interlocutors of facing a serious dialogue can be tackled since it helps minimize conflicts (or to optimize synergies) with stakeholders, whether they are consumers, local communities or subcontractors.
An additional potential benefit for the company is the possibility to improve the company 's reputation.
Partaking in the social and environmental sustainability is, in fact, an important signal to stakeholders on the reputation of the company and on the social and environmental quality of its products, in a context of asymmetric information in which consumers and citizens know little about product characteristics, the production processes of the company, the raw materials used, the business climate and social impact and the territory.
Recent empirical results show that sustainability paths in businesses generate a transfer of value from shareholders to stakeholders: the productivity of sustainable enterprises (net of all the contributing factors, the economic cycle, the enterprises) characteristics, according to many studies, it is
‘A process of change in which the exploitation of resources, the direction of investments, the orientation of technological development and institutional change are all in harmony and enhance both current and future potential to meet human needs and aspirations’. (UN WCED, 1987)
Sustainability is an ambiguous topic, however this is divided in three which are:
Environmental sustainability - for environmental sustainability is the ability to preserve over time the three functions of the environment: the role of supplier of resources, waste receptor function and the direct source of utility. Within a territorial system for environmental sustainability is the ability to value the environment …show more content…
In particular is the ability to generate income and employment for the livelihood of people. Within a territorial system for economic sustainability is the ability to produce and maintain in the territory of the maximum added value by combining the resources effectively in order to enhance the specificity of the products and local services.
Social sustainability - Social sustainability can be defined as the ability to guarantee human welfare conditions (safety, health, education) equally distributed to classes and gender. Within a territorial system for social sustainability is the ability of individuals to act effectively together on the basis of shared conceptions about the project, encouraged by co-operation between the various institutional levels.
The concept of sustainable development is embodied in an ethical and political principle, which implies that economic and social dynamics of modern economies are compatible with the improvement of living conditions and the ability of natural resources to reproduce indefinitely. Sustainability is important for business environment due to the fact that corporations operate in a market affected by social-environment and social economy. Therefore these ambiguity lead business to integrate in order to survive as an enterprise (Galea, …show more content…
For instance, the perception on the part of the interlocutors of facing a serious dialogue can be tackled since it helps minimize conflicts (or to optimize synergies) with stakeholders, whether they are consumers, local communities or subcontractors.
An additional potential benefit for the company is the possibility to improve the company 's reputation.
Partaking in the social and environmental sustainability is, in fact, an important signal to stakeholders on the reputation of the company and on the social and environmental quality of its products, in a context of asymmetric information in which consumers and citizens know little about product characteristics, the production processes of the company, the raw materials used, the business climate and social impact and the territory.
Recent empirical results show that sustainability paths in businesses generate a transfer of value from shareholders to stakeholders: the productivity of sustainable enterprises (net of all the contributing factors, the economic cycle, the enterprises) characteristics, according to many studies, it is