The Harvard Business School defines sustainability in business as the effect that a business has on the environment and the society. Mostly, the issue of sustainability has been viewed as a privilege and a preserve of big companies. However, small businesses also have to think about the impact that they have on the environment and the society. Here are five reasons small businesses must seriously consider sustainability issues.
1. Enhances Environmental Conservation
Small businesses should work hand in hand with national and global partners in promoting the welfare of the environment. Moreover, planet earth is facing a plethora of challenges and the present and future generation is affected.
Therefore, taking part in environmental conservation is a noble thing to do. For example, small businesses can reduce their carbon print by using energy efficient products, inkjet printers and recycling practices.
2. Gives The Company A Competitive Advantage
Clients want to be associated with businesses that promote sustainability practices. Consequently, the higher the number of clients that the business is able to attract, the higher the revenue and the better the future of the company.
For example, the Green Corner Store in Little Rock, Arkansas has been able to acquire a constant stream of customers. Its competitive advantage is promoting a healthy lifestyle and promoting eco-friendly products.
3. Higher Profit Margin
Generally, customers don’t mind paying higher prices in order to contribute to sustainability practices. In addition to that, cross-selling leads to a higher return on investment and higher profitability.
Therefore, having a green output alone can convince customers to subscribe as loyal customers. For example, a number of clients always buy toys from Luke’s Toy Company in Connecticut because of the following appealing features:
- It uses clean polypropylene
- It uses pressed color and not a painted product
- Plus, it recycles its sawdust
4. Promotes And Benefits From Diversity
The concept of diversity, as far as sustainability practices are concerned, emanates from the phenomenon that the US is a country of immigration and diversity. Most importantly, most Americans see diversity as an asset and not a liability.
Hiring based on diversity introduces a set of skills and experiences that the company can benefit from. If a small business appears to promote diversity, it will attract endorsement from leaders and the public.
5. To Meet Government Regulation
To state the obvious, businesses operate in the context of the eyes of the government. The main role of the government is to protect consumers. If certain sustainability policies are set by the government, then a business does not have an option but to follow them.
For example, it’s a government policy that pollution should be either prevented or reduced at the source. Antagonizing the government by sidestepping its laws could lead to long, time-consuming and expensive lawsuits.
Conclusion On Sustainability Issues
Sustainability and efficiency go hand in hand. Consequently, businesses that employ sustainable behavior tend to be more efficient and more appealing to clients.
Again, small businesses ought to take part in solving national and global problems such as environmental degradation. Therefore, small businesses need to have an actionable plan towards sustainability.