Sustainable business
Encyclopedia
Sustainable business, or green business, is enterprise that has no negative impact on the global or local environment, community, society, or economy—a business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...

 that strives to meet the triple bottom line
Triple bottom line
The triple bottom line captures an expanded spectrum of values and criteria for measuring organizational success: economic, ecological, and social...

. Often, sustainable businesses have progressive environmental and human rights
Human rights
Human rights are "commonly understood as inalienable fundamental rights to which a person is inherently entitled simply because she or he is a human being." Human rights are thus conceived as universal and egalitarian . These rights may exist as natural rights or as legal rights, in both national...

 policies. In general, business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...

 is described as green if it matches the following four criteria:
  1. It incorporates principles of sustainability into each of its business
    Business
    A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...

     decisions.
  2. It supplies environmentally friendly
    Environmentally friendly
    Environmentally friendly are terms used to refer to goods and services, laws, guidelines and policies claimed to inflict minimal or no harm on the environment....

     products or services that replaces demand for nongreen products and/or services.
  3. It is greener than traditional competition.
  4. It has made an enduring commitment to environmental principles in its business operations.


A sustainable business is any organization that participates in environmentally friendly or green activities to ensure that all processes, products, and manufacturing activities adequately address current environmental concerns while maintaining a profit. In other words, it is a business that “meets the needs of the present world without compromising the ability of the future generations to meet their own needs.” It is the process of assessing how to design products that will take advantage of the current environmental situation and how well a company’s products perform with renewable resources.

The Brundtland Report emphasized that sustainability is a three-legged stool of people, planet, and profit. Sustainable businesses with the supply chain try to balance all three through the triple-bottom-line concept—using sustainable development and sustainable distribution to impact the environment, business growth, and the society.

Everyone affects the sustainability
Sustainability
Sustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of well being, which has environmental, economic, and social dimensions, and encompasses the concept of union, an interdependent relationship and mutual responsible position with all living and non...

 of the marketplace and the planet in some way. Sustainable development within a business can create value for customers, investors, and the environment. A sustainable business must meet customer needs while, at the same time, treating the environment well.

Environmental sphere

A major initiative of sustainable businesses is to eliminate or decrease the impact made on the environment by harmful chemicals, materials, and waste generated by processes to manufacture products and services. The impact of such human activities in terms of the amount of greenhouse gases produced can be measured in units of carbon dioxide and is referred to as the carbon footprint. The carbon footprint concept branched off from ecological footprint analysis, which examines the ecological capacity required to support the consumption of products.

The Gort Cloud written by Richard Seireeni, (2009), documents the experiences of sustainable businesses in America and their reliance on the vast but invisible green community, referred to as the gort cloud
Gort cloud
The gort cloud is "a vast, largely invisible and growing 'community' that sieves, measures and exchanges information on environmental products and services." "The community includes NGOs, government agencies, certifying groups, academics, eco-tech specialists, business alliances, green media...

, for support and a market.

One of the most common examples of sustainable business initiatives is the act of going paperless. On a higher level, sustainable business practices can include reviewing processes in order to eliminate or recycle waste, making all products recyclable, and eliminating the use of nonrenewable resources via alternatives energies.

Sustainable businesses also look at inputs to determine what products are harmful to the environment and try to find green alternatives that can function at the same or a better level and, preferably, at a lower cost. Company leaders also take into account the life cycle costs for inputs of items purchased. Inputs costs must be considered in regards to regulations, energy use, storage, and disposal.

A business’s green initiatives can include conserving materials through remanufacturing, converting harmful gases into clean energy, generating greener power, and improving fuel economy. Designing for the environment (DFE) is also an element of sustainable business. This process enables users to consider the potential environmental impacts of a product and the process used to make that product.

Henry Ford
Henry Ford
Henry Ford was an American industrialist, the founder of the Ford Motor Company, and sponsor of the development of the assembly line technique of mass production. His introduction of the Model T automobile revolutionized transportation and American industry...

 was a pioneer in the sustainable business realm, experimenting with soy-based materials and ethanol during the days of the Model T. Ford Motor Company
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...

 also shipped the Model A truck in crates that later became the vehicle’s floorboard upon reaching its destination. This was a form of upcycling, a key element to DFE. Upcycling is the process of retaining high quality in a closed-loop industrial cycle.

Ford currently uses green fabrics and materials in the next generation of their vehicles—seat fabric made from 100 percent post-industrial materials, renewable soy foam seat bases, and the like. Ford executives recently appointed the company’s first senior vice president of sustainability, environment, and safety engineering. This position is responsible for establishing a long-range sustainability strategy and environmental policy. The person in this position will also help develop the products and processes necessary to satisfy both customers and society as a whole, while working toward energy independence.

Smaller companies such as Nature's Path
Nature's Path
Nature's Path is a privately owned and family operated organic food company in North America. Nature's Path is North America's largest organic cereal brand and also sells certified organic breads, cookies, and snack bars in 42 countries around the world....

, a cereal and snack making business, have also made significant sustainability gains in the twenty first century. CEO Arran Stephens
Arran Stephens
Arran Stephens is a Canadian CEO, entrepreneur and author. He hails from a farming family on Vancouver Island. He and his wife Ratana cofounded food businesses that became Nature's Path in Vancouver after he visited India in the 1960s...

 and his family members and other coworkers have made the quickly growing company's products all organic which removes many toxic chemicals from the farming process. Furthermore, employees are constantly encouraged to find ways to use less plastic and other packaging materials and sustainability is an essential part of all company discussions.

In Korea, rice husks are used as a nontoxic packaging for stereo components and other electronics. The concept of waste is diminished because of inclusive shipping in freight costs the goods would already incur. The same material is later used to make bricks.

The green and sustainability trend has manifested in pressure from consumers, shareholders, employees, partners and governments (regulations) put upon companies to embrace more sustainable and green practices. Many companies resorted to greenwashing instead of actually creating green innovations by marketing their product in a way that suggests green practices. However, there are many companies that have taken the sustainability trend seriously and are doing so profitably.

Social sphere

Organizations that give back to the community, whether through employees volunteering their time or through charitable donations are often considered to be socially sustainable. Organizations also can encourage education in their communities by training their employees and offering internships to younger members of the community. Practices such as these increase the education level and quality of life in the community.

In order for a business to be truly sustainable, it must sustain not only the necessary environmental resources, but also its social resources, including employees, customers (the community), and its reputation.

Organizations

The European community’s Restriction of Hazardous Substances Directive
Restriction of Hazardous Substances Directive
The Directive on the restriction of the use of certain hazardous substances in electrical and electronic equipment 2002/95/EC was adopted in February 2003 by the European Union. The RoHS directive took effect on 1 July 2006, and is required to be enforced and become law in each member state...

 restricts the use of certain hazardous materials in the production of various electronic and electrical products. Waste Electrical and Electronic Equipment (WEEE) directives provide collection, recycling, and recovery practices for electrical goods. The World Business Council for Sustainable Development
World Business Council for Sustainable Development
The World Business Council for Sustainable Development is a CEO-led, global association of some 200 international companies dealing exclusively with business and sustainable development....

 and the World Resources Institute
World Resources Institute
The World Resources Institute is an environmental think tank founded in 1982 based in Washington, D.C. in the United States.WRI is an independent, non-partisan and nonprofit organization with a staff of more than 100 scientists, economists, policy experts, business analysts, statistical analysts,...

 are two organizations working together to set a standard for reporting on corporate carbon footprint
Carbon footprint
A carbon footprint has historically been defined as "the total set of greenhouse gas emissions caused by an organization, event, product or person.". However, calculating a carbon footprint which conforms to this definition is often impracticable due to the large amount of data required, which is...

s. Lester Brown’s Plan B 2.0
Plan B 2.0
Plan B 2.0: Rescuing a Planet Under Stress and a Civilization in Trouble is a book, published in 2006, by environmentalist and Earth Policy Institute founder Lester R...

 and Hunter Lovins
Hunter Lovins
L. Hunter Lovins is an author and a promoter of sustainable development for over 30 years, is president of Natural Capitalism Solutions, a 5013 non-profit in Longmont, Colorado and the Chief Insurgent of the Madrone Project...

’s Natural Capitalism
Natural capitalism
Natural Capitalism: Creating the Next Industrial Revolution is a 1999 book co-authored by Paul Hawken, Amory Lovins and Hunter Lovins. It has been translated into a dozen languages and was the subject of a Harvard Business Review summary....

 provide information on sustainability initiatives.

Standards

Enormous economic and population growth worldwide in the second half of the twentieth century drove the impacts that threaten health and the world — ozone depletion
Ozone depletion
Ozone depletion describes two distinct but related phenomena observed since the late 1970s: a steady decline of about 4% per decade in the total volume of ozone in Earth's stratosphere , and a much larger springtime decrease in stratospheric ozone over Earth's polar regions. The latter phenomenon...

, climate change
Climate change
Climate change is a significant and lasting change in the statistical distribution of weather patterns over periods ranging from decades to millions of years. It may be a change in average weather conditions or the distribution of events around that average...

, depletion, fouling of natural resources, and extensive loss of biodiversity
Biodiversity
Biodiversity is the degree of variation of life forms within a given ecosystem, biome, or an entire planet. Biodiversity is a measure of the health of ecosystems. Biodiversity is in part a function of climate. In terrestrial habitats, tropical regions are typically rich whereas polar regions...

 and habitat
Habitat
* Habitat , a place where a species lives and grows*Human habitat, a place where humans live, work or play** Space habitat, a space station intended as a permanent settlement...

. In the past, the standard approaches to environmental problems generated by business and industry have been regulatory-driven "end-of-the-pipe" remediation efforts. In the 1990s, efforts by governments, NGOs, corporations, and investors began to grow substantially to develop awareness and plans for investment in business sustainability.

One critical milestone was the establishment of the ISO 14000
ISO 14000
The ISO 14000 environmental management standards exist to help organizations minimize how their operations negatively affect the environment The ISO 14000 environmental management standards exist to help organizations (a) minimize how their operations (processes etc.) negatively affect the...

 standards whose development came as a result of the Rio Summit on the Environment
Earth Summit
The United Nations Conference on Environment and Development , also known as the Rio Summit, Rio Conference, Earth Summit was a major United Nations conference held in Rio de Janeiro from 3 June to 14 June 1992.-Overview:...

 held in 1992. ISO 14001 is the cornerstone standard of the ISO 14000
ISO 14000
The ISO 14000 environmental management standards exist to help organizations minimize how their operations negatively affect the environment The ISO 14000 environmental management standards exist to help organizations (a) minimize how their operations (processes etc.) negatively affect the...

 series. It specifies a framework of control for an Environmental Management System against which an organization can be certified by a third party. Other ISO 14000
ISO 14000
The ISO 14000 environmental management standards exist to help organizations minimize how their operations negatively affect the environment The ISO 14000 environmental management standards exist to help organizations (a) minimize how their operations (processes etc.) negatively affect the...

 Series Standards are actually guidelines, many to help you achieve registration to ISO 14001. They include the following:
  • ISO 14004 provides guidance on the development and implementation of environmental management systems
  • ISO 14010 provides general principles of environmental auditing (now superseded by ISO 19011)
  • ISO 14011 provides specific guidance on audit an environmental management system (now superseded by ISO 19011)
  • ISO 14012 provides guidance on qualification criteria for environmental auditors and lead auditors (now superseded by ISO 19011)
  • ISO 14013/5 provides audit program review and assessment material.
  • ISO 14020+ labeling issues
  • ISO 14030+ provides guidance on performance targets and monitoring within an Environmental Management System
  • ISO 14040+ covers life cycle issues

Six Essential Characteristics

Dr. Tueth proposes that a mature and authentic sustainable business contains these six essentials. These essentials are rooted in many sustainability principals and are very dynamic. There is no reason in the future for essentials not to shift or adjust as we evolve our understanding of a sustainable business.

1. Triple top-line value production

"The TTL Establishes three simultaneous requirements of sustainable business activities - financial benefits for the company, natural world betterment, and social advantages for employees and members of the local community—with each of these three components recognized as equal in status." Though this is sometimes called the triple bottom line
Triple bottom line
The triple bottom line captures an expanded spectrum of values and criteria for measuring organizational success: economic, ecological, and social...

, triple top line stresses the importance of initial value rather than after the fact effects.

2. Nature-based knowledge and technology

"This biomimicry
Biomimicry
Biomimicry or biomimetics is the examination of nature, its models, systems, processes, and elements to emulate or take inspiration from in order to solve human problems. The term biomimicry and biomimetics come from the Greek words bios, meaning life, and mimesis, meaning to imitate...

-based principal involves the conscious emulation of natural-world genius in terms of growing our food, harnessing our energy, constructing things, conducting business healing ourselves, processing information and designing our communities"

3. Products of service to products of consumption

"Products of service are durable goods routinely leased by the customer that are made of technical materials and are returned to the manufacturer and re-processed into a new generation of products when they are worn out.(These products are mostly non-toxic to human and environmental health but toxic materials that are used will be kept within a closed loop type system and not be able to escape into the environment). Products of consumption are shorter lived items made only of biodegradable materials. They are broken down by the detritus organisms after the products lose their usefulness.(These are also non-hazardous to human or environmental health). This principal requires that we manufacture only these two types of products and necessitates the gradual but continual reductions of products of service and their replacement with products of consumption as technological advancements allow." See Cradle to Cradle for other thoughts on Technical(Products of Service) and Biological(Products of consumption) nutrients.

4. Solar, wind, geothermal and ocean energy

"This principal advocates employing only sustainable energy technology—solar,wind,ocean and geothermal—that can meet our energy needs indefinitely without negative effects for life on earth."

5. Local-based organizations and economies

"This ingredient includes durable, beautiful and healthy communities with locally owned and operated businesses and locally managed non-profit organizations, along with regional corporations and shareholders working together in a dense web of partnerships and collaborations."

6. Continuous improvement process

"Operational processes inside successful organizations include provisions for constant advancements and upgrade as the company does its business. The continuous process of monitoring, analyzing, redesigning and implementing is used to intensify TTL value production as conditions change and new opportunities emerge."

See also

  • B4E Business for the Environment
    B4E Business for the Environment
    The B4E Business for the Environment Summit is the leading international platform for dialogue and partnership solutions for the environment...

  • Green America
  • Bottom of the Pyramid
    Bottom of the pyramid
    In economics, the bottom of the pyramid is the largest, but poorest socio-economic group. In global terms, this is the 2.5 billion people who live on less than $2.50 per day. The phrase “bottom of the pyramid” is used in particular by people developing new models of doing business that deliberately...

  • Bright green
  • Clean Edge
    Clean Edge
    Clean Edge is a leading U.S. research and publishing firm that helps companies, investors, and policymakers understand and profit from clean technologies...

  • Clean Energy Trends
    Clean Energy Trends
    Clean Energy Trends is a series of reports by Clean Edge which examine markets for solar, wind, geothermal, fuel cells, biofuels, and other clean energy technologies. Since the publication of the first Clean Energy Trends report in 2002, Clean Edge has provided anannual snapshot of both the global...

  • Cleaner Production
    Cleaner production
    Cleaner production is a preventive, company-specific environmental protection initiative. It is intendend to minimize waste and emissions and maximize product output. By analysing the flow of materials and energy in a company, one tries to identify options to minimize waste and emissions out of...

  • Externality
    Externality
    In economics, an externality is a cost or benefit, not transmitted through prices, incurred by a party who did not agree to the action causing the cost or benefit...

  • Gort cloud
    Gort cloud
    The gort cloud is "a vast, largely invisible and growing 'community' that sieves, measures and exchanges information on environmental products and services." "The community includes NGOs, government agencies, certifying groups, academics, eco-tech specialists, business alliances, green media...

  • Green brands
    Green brands
    Green brands are those brands that consumers associate with environmental conservation and sustainable business practices.Such brands appeal to consumers who are becoming more aware of the need to protect the environment. A green brand can add a unique selling point to a product and can boost...

  • Green Globe
    Green Globe
    Green Globe is based on Agenda 21 principles for Sustainable Development endorsed by 182 Heads of State at the United Nations Rio De Janeiro Earth Summit . Green Globe Certification and Green Globe Asia Pacific deliver separate certification services and standards to the travel & tourism as well...

  • Green Standard
  • Green MBA
  • Low carbon economy
  • Net Impact
    Net Impact
    Net Impact is a nonprofit membership organization for students and professionals interested in using business skills in support of various social and environmental causes. It serves both a professional organization and one of the largest student organizations among MBAs in the world...

  • Not Just For Profit
    Not just for profit
    Not Just For Profit is a concept that captures an expanded set of values for defining and evaluating for-profit private sector organizations, not only by their ability to generate profit as is done traditionally, but also by their determination and success in driving a benefit for people and/or...

  • Renewable energy commercialization
    Renewable energy commercialization
    Renewable energy commercialization involves the deployment of three generations of renewable energy technologies dating back more than 100 years. First-generation technologies, which are already mature and economically competitive, include biomass, hydroelectricity, geothermal power and heat...

  • Renewable energy industry
  • Sustainable Business Network
    Sustainable Business Network
    The Sustainable Business Network is a not for profit organisation in New Zealand. Commonly known as the SBN, the network was created in October 2002 and is a forum for businesses who are interested in sustainable business practice and sustainable development...

  • The Clean Tech Revolution
    The Clean Tech Revolution
    The Clean Tech Revolution is a 2007 book by Ron Pernick and Clint Wilder, who say that commercializing clean technologies is a profitable enterprise that is moving steadily into mainstream business...

  • The Lorax
    The Lorax
    The Lorax is a children's book written by Dr. Seuss and first published in 1971. It chronicles the plight of the environment and the Lorax, who speaks for the trees against the greedy Once-ler. As in most Dr...

  • Worldchanging
    Worldchanging
    Worldchanging is an American non-profit online magazine and blog about sustainability and social innovation. At 19/09/2011, it was taken over by Architecture for Humanity....


External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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