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Benefits of Sustainable Business

In: Business and Management

Submitted By santazeidaka
Words 399
Pages 2
Benefits of being Sustainable Business?
- Reputation Management (This management of reputation enhanced by social responsibility can lead to growth in both brand value and equity. )
- Financial Performance (social responsibility should be viewed as an investment in a strategic asset.)
- Risk Management ( The investment community increasingly considers a strategic approach to social responsibility as a proxy indicator of good quality management.)
- Employee Satisfaction ( People tend to work for good aims so they have better motivation.)
- Innovation ( these business drivers need to be integrated into the strategy of an organization and develop to result in superior financial performance.)
- Customer Loyalty ( Customer loyalty is built on trust, service and values. Highlighting an organization's commitment to responsible business practices can maximize the role of Cause Related Marketing to gain competitive advantage.) Disatvantages:
- Converstion Expense (it can be costly for a corporation to go green initially. for example, the switch to solar power will create the need to install solar panels at business facilities.)
- Costlier products ( in some cases, the switch to using green materials can lead to more expensive product for consumers.)
- Lack of Support ( there can be an "entrenched bias" against companies that want to go green, as evidenced by some laws and regulations)
- Going Paperled (If companies do not properly back up their computer files, a system crash could prove disastrous.
- Customer Backlash ( if consumers become aware that a company is engaging in greenwashing, the company may suffer harm to its credibility.)

Benefits of social responsibility?
- stronger financial performance and profitability through operational efficiency gains
- improved relations with the investment community and better access to capital
- enhanced…...

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