These seem as basic criteria to start from, but things become more complicated when this is analyzed over a longer period of time. Some of the positive effects of sustainable business development are not immediately translated into quantifiable elements. A program that the business might launch in the community could have perceivable benefits in the not so near future or not at all, if factors do not come into play.
On the other hand, some of the companies can exercise a proactive approach by using risk identification and assessment factor methodologies that would be able to reveal for the decision factors in the organization the societal impact of the business development and whether this is socially sustainable or not. The risk identification and assessment factor process would include a clear analysis of the community in which the business is present, of its main activities and areas of development and of the domains where the company can make a different. The risk identification phase would let the company know whether its development, at any point, might have a negative impact for the community of which it is a part.
In the end, the business will be evaluated not only by the shareholders (who, as shareholders, are looking primarily towards profit maximization), but also by all stakeholders. Several relevant issues should be discussed here. First, even the shareholders move away from a simple, plain evaluation based solely on profits. They understand that a socially sustainable business development feeds, in the medium and long-term, into the company's profits, with all financial implications deriving from that.
If one looks at the stakeholders, as a larger group that includes the shareholders, the customers are likely to play an essential role in the evaluation of the company. As pointed out...
One such scope is to identify and benefit from new markets, such as nanotechnology or solar energy (Kulongoski, 2010). Many companies have become more and more aware of the fact that sustainability is not necessarily a new trend that will go away, but rather a new concept that more and more individuals are likely to embrace. With that in mind, companies look to sustainable business development as a way
The complaints centralized in the documentary reveal high degrees of discontent at the level of stakeholders both within the firm, as well as outside it. Within the company for instance, the employees pin point to a wide array of uncompetitive and demotivating practices. Within the external environment, complaints are forwarded by customers, local farmers and various other members of the communities in which the firm operates. All in all, it becomes
In such cases, specialists advise that SMEs should focus on the factors that significantly influence the successful implementation of these standards (Baxter, 2004). These factors are represented by cost reductions, risk management, marketing opportunities, interested parties, and others. Cost reductions can be achieved by resources and waste consumption. Environmental management systems help companies develop programs intended to reduce resources consumption, to monitor and control this process while working towards reaching
The benchmarks used in evaluating investments' performance are represented by overall indexes like NASDAQ, or industry specific indexes. Business practice has revealed that economic performance is significantly influenced by environmental and social performance. Therefore, it is important that companies include this indicator in their sustainability reports to stakeholders. Production costs This indicator is of great interest to stakeholders like investors, awarding authorities, banks that finance companies in different projects they develop, project
Sustainable Tourism Development The aim of the essay is to gain an understanding of the rational and different approaches to tourism planning and development, sustainable tourism, current issues and impacts of tourism. The aim is to increase awareness of the need to plan and manage tourism destinations within an international, national, regional, and local framework. Investigate current trends in planning for tourism development in a range of destinations. The stages in the
However, in combination with other resources and capabilities, they can enable a firm to realize its full competitive advantage. In conclusion, states Barney, sustained competitive advantage depends on the unique resources and capabilities that a firm brings to competition in its environment. Managers must look inside their firm for valuable, rare and costly-to-imitate resources, and then exploit these resources through their organization. What this means is that a company has to
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