The Competitive Strategy for the International Construction Industry: Sustainable Business 0.1
Evaluating the role of sustainability in the international operations of Turkish ‘ENKA Construction & Industry Co. Inc.’ (ENKA) upon its economic, social and environmental activities. 0.2
For: CEM Assignments Office
From: Deniz Berkan Unsal
Moscow, Russian Federation
More than ever, today’s rigid environmental legislations oppress the business world. Additionally, the legal developments in the human rights subject have increased this pressure. Despite these negative conditions, companies manage to sustain their profits with implementing the sustainable development concept. In the perspective of the construction industry, environment and nature are indispensable partners. The success of a construction project completely depends on its adaptation to the environment and nature. This strong relationship necessitates awareness against environmental impact for the construction industry more than the most industries. Furthermore, construction companies also need to represent sustainable economic and social activities for the geographies where they desire to do business, in order to be preferable in the international area. The combination of these facts indicates the importance of sustainable business in the construction industry.
Definition of sustainability and sustainable development Sustainability is the capacity to endure. In ecology the word describes how biological systems remain diverse and productive over time. For humans it is the potential for long-term maintenance of well being, which in turn depends on the maintenance of the natural world and natural resources. (Bromley 2008) The sustainability concept arose in the last quarter of 20th century due to global industry threats against the environment. This concept was broadened and referred as sustainable development to form more extensive approach to the subject in the late 1980’s. The term, sustainable development was popularized in Our Common Future, a report also known as the Brundtland report which was published by the World Commission on Environment and Development in 1987, defined the sustainable development as: ‘development which meets the needs of the present without compromising the ability of future generations to meet their own needs.’ Brundtland report focused on three main aspects in the sustainable development: economy, society and environment.
Sustainability and its interests in business
Business sustainability is generally accepted to be a combination of environmental, social and economic performance. (Doane and Mac Gilivray 2001) In parallel with the sustainable development, Cavusgil, et al. (2011) also state that a sustainable business simultaneously pursues three types of interests: Economic, social and environmental.
2.2.1. Economic interests
Economic interests refer to the firm’s economic impact on the localities where it does business. Management considers the effect of the firm’s activities on such local concerns as job creation, wages, tax flows, disadvantaged communities, public works, and other areas where the firm can contribute positively to local economic interests. (Cavusgil, et al. 2011) 2.2.2 Social interests
Social interests refer to how the firm performs relative to societies and social justice often termed social impact. The firm with a strong social interest aims to optimize work conditions and diversity in hiring. Also it provides safe work environments, health insurance, retirement benefits and educational opportunities for employees. (Cavusgil, et al. 2011) 2.2.3
Environmental interests refer to the extent of the firm’s contribution to preserving environmental quality, commonly known as environmental impact. The sustainable firm maximized its use of recycled or renewable raw materials and environmentally friendly energy. On...
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