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Organizations should ensure that their activities are sustainable. An organization should ensure that there is a balance between profits, people, and the planet. People refer to the social environment of the organization. These include employees, shareholders, and customers.
On the other hand, the planet refers to the physical environment. It is unethical for an organization to put more emphasis on profits while disregarding people and the planet. It is vital for an organization to ensure that as it succeeds, the society also succeeds. Businesses that put more emphasis on their long-term stability usually ensure that their current activities do not jeopardize their future operations.
Therefore, it is vital for businesses to use scarce resources wisely. In the contemporary world, organizations should not measure well-being only in terms of money. Social and ecological factors also determine the well-being of organizations. Information, incentives, infrastructure, and investment are some of the factors that critical in sustainability.
It is vital for people and organizations to possess information about how their activities affect the environment. Governments should also play a critical part in ensuring the sustainability of business operations. The government should provide incentives to organizations that would like to engage in sustainable activities.
The government should also provide the infrastructure that would help in environmental protection. Also, it is vital for governments and organizations to ensure that a sizeable proportion of investments help in environmental protection.
Corporate social responsibility (CSR) is one of the major activities of organizations. In the contemporary business environment, it is vital for organizations to engage in CSR activities. Companies may engage in various CSR initiatives. Sustainability is one of the major CSR initiatives of various companies. Companies ensure that they engage in sustainable activities. Sustainability helps in environmental protection.
Sustainable companies ensure that they operate ethically and legally. Such companies do not put their profits before business ethics. Also, sustainable companies ensure that they provide good working conditions. Sustainable companies also ensure that their actions do not lead to environmental degradation.
Finally, sustainable companies ensure that they are good corporate citizens. Being good corporate citizens requires companies to be responsive to the needs of society. This may require companies to engage in activities that help in improving healthcare, education, or the living standards of the community.
Sustainability helps in improving the long-term stability of an organization. It ensures that organizations spend only what they can afford. However, this may be detrimental to the short-term performance of the organization — however, the long-term benefits of sustainability warrant organizations to engage in sustainable activities. Sustainable organizations create a good working environment for their employees.
This ultimately leads to improved productivity of the employees. This may have great financial benefits to the organization. Engaging in ethical activities enables an organization to avoid expensive lawsuits.
On the other hand, engaging in unethical activities may tarnish the image and reputation of an organization. Therefore, companies that engage in ethical activities avoid the costs of running campaigns to improve their tarnished image and reputation. Sustainable companies are good corporate citizens. Corporate citizenship requires companies to engage in various activities that improve the welfare of the community.
These activities are not usually income generating. Therefore, various parties may oppose this move since it reduces the dividends of the shareholders. However, good corporate citizenship helps in improving the image and reputation of a company. It may be more effective than running expensive advertising campaigns.
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