I believe business sustainability is paramount and core to business continuity. There are various principles in sustainability of a business. However, one of the best principles in sustaining a business is having a good social economic and political openness that makes it easy to conduct a business. some of the principles in business sustainability include; openness, relevance, directivity and avoiding conflicts. Economic impact, environmental, social aspects are some of the fundamentals of sustainability (Cinelli, Coles & Kirwan, 2014). The broadest range of issues related to the activities of companies.
Other sustainability principle which has been embraced of late is the corporate social responsibility. I believe that helping the society by giving back increases the chances of sustainability of the business. There is a basic level – it is legislatively fixed norms. They exist all over the world and in labor practices, and in corporate relations, and in the zone of environmental responsibility. They must be kept without fail. In turn, CSR, based on these laws, sets additional higher standards. Companies voluntarily take on additional obligations, as this meets the interests of the company itself and meets the expectations of its stakeholders (Ferguson & Souza, 2016).
I am familiar with the Social Charter of Business of 2004 and the supplemented version of 2008. It reminds me of the oath of athletes before the start of an Olympic Games. But we know that all this is just a traditional ritual.
Charter – these are certain principles of responsible business conduct and sustainability. They include relationships with employees, partners, consumers and sometimes the state. To maintain an effective business, it is necessary to maintain a balance of interests, which in turn helps to reduce risks and ensure greater business sustainability.
Joining the charter means that the company shares its principles and expresses its intention to follow them. Accession to the charter is a public act, which means that for the company this is a certain reputational step (Pintér, Martinuzzi & Hall, 2018).
The idea of sustainability is only theoretical to many of us. However, sustainability affects us in our daily lifestyles in the sustainability of the ecological footprints on the globe. It is acting responsibly with the resources that the ecology accords to us and the progress towards the sustainability of the future. The choices that we make in our daily lives greatly affect the environment. We should sustain it. Non-observance of the principles of the charter does not imply any punitive sanctions, but the company’s reputation can be affected. In addition, it should be borne in mind that the principles of responsible business conduct lie at the heart of effective strategies and good management quality, which means that they correspond to the interests of the medium- to long-term companies themselves, and not just the immediate result (Sala, Ciuffo & Nijkamp, 2015).
The implementation of the provisions of the charter is a purely voluntary matter, at the same time meeting the interests of companies, and, undoubtedly, influencing their reputation. It is useful to remember that reputation, no matter how good or bad, always goes ahead of us. This involves both risks and opportunities. In the modern world it is impossible to work in a closed mode. It is important to inform stakeholders how much you are doing your business, what your strategy is, how you achieve the implementation of this strategy, what your results are, how it affects society and the environment. It is clear that these impacts can be either positive or not. In this case, it is important how you control the negative impacts, how to reduce the level of undesirable consequences (Santoyo & Azapagic, 2014).
Today, the requirements of information openness are one of the main conditions for the company’s competitiveness. Be open or you will be preferred to someone else whose activities are more transparent, who is more understandable and predictable. These trends are increasing all over the world, for companies this is also relevant. Such is the soft power of coercion.
Sustainability Concepts- Forms of Capital, Phase Model of Change and Systems thinking
Forms of capital- there are five types of capital where we derive our goods and services from to improve sustainability and the quality of life. They include;
Natural capital- where a sustainable flow of material and energy produces goods and services.
Human capital-it includes people and their health, skills, motivation and knowledge in driving
Social capital- it includes the relationships that we build such as communities, unions, partnerships, friends and families.
Financial capital- arguably one of the most important form of capital which involves the financial resources pulled together to enable a sustainable economy thriving.
Manufactured capital- comprises of fixed assets and goods that contribute to the production process.
Contains three phases in the model; freezing, unfreezing, changing and refreezing. The “Responsibility and Openness” index assesses the situation of disclosure of information in key areas of activity, analyzes 70 indicators characterizing responsible business practices, including economic, environmental, social performance indicators and aspects of corporate governance. “Vector of sustainable development” is an index of performance dynamics, which makes it possible to identify Ideas among the largest companies, the best in terms of openness and at the same time demonstrating a generally positive dynamics towards the sustainability of development. This means that the economic indicators of the companies leading in the indexes were also high (Schaltegger & Lüdeke-Freund, 2016).. By the way, from this year the RSPP indexes are included in the international rating and sustainability index base, which is used by many analysts. In the long term, we plan to expand the index line by including industry and thematic indexes (for example, the index of social investments) .Individual indexes get some kind of material encouragement? No, but they get good support for what are noted as leaders in the result of independent evaluation. Today, publicity, openness and good reputation are a significant intangible asset contributing to the growth of the company’s value.
It is putting systems and making reliable inferences about behavior and creating systems that help in business sustainability. The answer to this question requires a certain philosophical acceptance of the fact that different stakeholders (or synonyms – interested parties) see the world in their own right and have the full right to do this: for a company employee, social responsibility is a worthy pay, a guarantee of high labor standards, and for local communities – this is the company’s investment in the development of regions of presence, etc., there can be many examples, according to a wide range of stakeholders, and this is only on the one hand (Sidiropoulos, 2014).
On the other hand, one must also understand the fact that social responsibility of business is considered at various conceptual levels: it can be an instrument in the hands of business to achieve and achieve sustainable development goals, or a concept in the hands of the government, for example the EU, to determine the role and place of business in society, or the view of a sociologist who views the GSS as a kind of social institution used to achieve social homeostasis, etc.Many aspects of corporate social responsibility (CSR) are closely related to the company’s business reputation – the main factor that determines the value of a trademark. Accordingly, brand protection and business reputation development require companies to be attentive to stakeholders and issues of interest to them.
An increasing number of investors prefer to invest in organizations that demonstrate a high level of social responsibility to find a measurable coordinate system for assessing business performance that takes into account ethical compliance, social activities, environmental impact, and shows stakeholders the specific actions of the company.
In the UK, the Corporate Responsibility Index is compiled by the Business in the Community on the basis of voluntary participation and with the support of 150 companies, more than half of which are included in the FTSE 100 index (Tollin, Christensen & Wilke, 2015). The Business in the Community members are 700 companies, and another 1,600 participate in it programs. The movement determined its goal to help attract companies to constantly improve the influence on society and create appropriate incentives.
References
Cinelli, M., Coles, S. R., & Kirwan, K. (2014). Analysis of the potentials of multi criteria decision analysis methods to conduct sustainability assessment. Ecological Indicators, 46, 138-148.
Ferguson, M. E., & Souza, G. C. (Eds.). (2016). Closed-loop supply chains: new developments to improve the sustainability of business practices. CRC Press.
Pintér, L., Hardi, P., Martinuzzi, A., & Hall, J. (2018). Bellagio STAMP: Principles for sustainability assessment and measurement. In Routledge Handbook of Sustainability Indicators (pp. 51-71). Routledge.
Sala, S., Ciuffo, B., & Nijkamp, P. (2015). A systemic framework for sustainability assessment. Ecological Economics, 119, 314-325.
Santoyo-Castelazo, E., & Azapagic, A. (2014). Sustainability assessment of energy systems: integrating environmental, economic and social aspects. Journal of Cleaner Production, 80, 119-138.
Schaltegger, S., Hansen, E. G., & Lüdeke-Freund, F. (2016). Business models for sustainability: Origins, present research, and future avenues.
Sidiropoulos, E. (2014). Education for sustainability in business education programs: a question of value. Journal of cleaner production, 85, 472-487.
Tollin, K., Christensen, L. B., & Wilke, R. (2015). Sustainability in business from a marketing perspective. Journal of Strategic Marketing, 23(6), 471-496.
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