The Definition of Sustainable Business Practices

As more consumers demand products and services that do less damage to the environment, companies are adding “sustainability” to their core operating principles. Investors are also pushing corporations to be more sustainable, leading to a more unified understanding of what this means.

Understanding how to create sustainable business practices will not only help you impress customers and clients, but it can also help you attract more committed employees who are looking to work for socially responsible businesses.

Corporate Social Responsibility

Sustainability falls under the umbrella of corporate social responsibility. CSR refers to business practices that promote fairness and assistance in local communities and countries where they operate. Examples of fairness include diversity in hiring and promoting employees, and selecting vendors and suppliers. Examples of assistance include donating money to local charities, helping employees get healthier and reducing a company’s impact on local environments and the overall planet, as well.

Sustainable Business Practices

Sustainable business practices are those that allow companies to reduce their negative impacts on the environment while still allowing the businesses to make a profit, according to the University of North Florida’s Center for Sustainable Business Practices. Sustainable business practices can be internal and external.

Internal efforts might include beginning an in-office recycling program, reducing energy use at an office or factory, switching to natural gas or electric fleet vehicles, or mandating that purchases (such as paper products and fleet vehicles) give preference to “green” options (such as recycled paper and electric cars).

External sustainability efforts might include switching materials used to create products to those that cause less damage to the environment, based on how they are mined, made, fished, grown and the energy needed to produce them. In addition to choosing green vendors and suppliers who have green products and services, companies can award production contracts to businesses that have green internal business practices.

Benefits of Sustainable Business Practices

Sustainable business practices can help you reduce your energy costs, improve your brand image and customer preference among specific buyers, generate positive media coverage for your company and help you attract workers who want to work for businesses that practice CSR.

In some cases, you might be able to get loans or grants from government or private organizations, or get tax credits or rebates. For example, adding solar power or a green roof to your building might qualify you for local or state tax credits or other monetary deals.

Environmentally friendly brands also can become suppliers of choice to other businesses or government agencies that are seeking to purchase more green products and services.

How to Go Green

Even small businesses can make significant strides to becoming more sustainable, explains The Thriving Small Business. Invite your gas and electric utility providers to visit your place of business and conduct an energy audit. Adding energy-efficient light bulbs, ceiling fans, low-flow toilets and programmable thermostats can help you reduce your energy use.

Reviewing your regular purchases can identify products you can buy that offer green options. Starting a recycling plan is simple, low- or no-cost and helps employees feel they are engaged. Environmentally friendly organizations often offer to pay all or part of commuter passes to encourage employees to reduce their commuting impact on the environment.