What is the use of Sustainability in Business Strategy?
Now a days, companies continue to be involved in sustainability, and to be aligned with sustainability and their overall business strategy. Sustainability is a powerful tool in business strategy. It helps companies to stay viable and successful in the future where sustainability plays a greater role in buying decisions. A sustainable corporation makes profits for its shareholders while protecting the environment and improving lives of those with whom it interacts.
According to Deloit survey, most companies invest in their sustainability issues. Because consumers are likely to buy sustainable products, and this trend will grow up in the future. In general, companies differ in terms of sustainability’s components range in their strategies. Some considers environmental sustainability and some considers social and improving of own employees work condition. (Deloit, 2010’), sustainability in business , (http://webserver3.deloitte.com.co/us_es_sustainability_exec_survey_060110.pdf)
As a bottom line, all those components of sustainability have their own impact on companies products and image.
Are your companies claiming to use “sustainability” in their Business strategy?
The DSM company claims the following sustainability component to be part of its strategy:
3 Main components of sustainability in DSM business stratery:
• Global shifts
• Climate and energy
• Health and wellness
The main factors behind these trends includes the growth in world population and life expectancy, and the growing prosperity in economies. These factors are associated with the new needs of population around the world. With innovative, sustainable solutions, DSM tries to provide those needs. DSM creates value based on its innovation by speeding up the innovation and expand to emergence markets. By contribution to society, sustainability becomes a strategic driver of growth for the company.
DSM sees sustainability as a key differentiator and a source of value in the coming future.
General goals of DSM for sustainability:
• Contribution for a better life for the people today and next generation
• All of our operations should contribute to a sustainable world
• Economic efficiency
• Environmental improvements and social responsibility
• Simultaneously value creating in areas of people, planet and profit
• Constantly looking for new ways to Improve quality of life
6.Compare the sustainability reports of your 3 companies
The following are some highlights of sustainability activities of DSM :
The DSM annual report of 2011 shows its focus on different areas, from manufacturing to sales. DSM has gained the number one position in Dow Jones Sustainability World index. This is the third time that DSM remains on its top position in the world sustainability.
DSM has established a corporate operation and responsibility care department to focus only on sustainability issues. The main focus of DSM is on three elements of sustainability, people, planet and profit. The other important areas of sustainability on which DSM is focused, is eco- innovation , green-house gas emission, employee engagement survey for high performance , and energy efficiency . in 2011 energy efficiency improved by 13% compared to previous years, from 2008 onwards. This changes resulted from the improvements in process system and production volume of the same production magnitude. The target improvement percentage for 2020 is 20%. It seems that DSM is seriously engaged in environmental sustainability trends, for instance by green house gas emission, water efficiency and energy efficiency.
The DSM “people” strategy provides better solution to improve people’s life by donations. In 2001 DSM donated almost 5million euro to different organizations who help people around the world, like WFP ,NOC and etc .
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