Mgt 393 Sustainable Business Practices

Sustainable Business Practices

Elizabeth Dufeck

University of Wisconsin- La Crosse

MGT 393

Spring 2017

Introduction

As public awareness concerning sustainability has grown, more companies are feeling the pressure to switch to more sustainable business practices.  Sustainability and corporate social responsibility (CSR) have become powerful and strategic priorities for many businesses across the United States.  In the business world, sustainability is often associated with CSR and the triple bottom line: people, planet, and profit.  Sustainability is more than just "going green", it's about "meeting the needs of the present without compromising the ability of future generations to meet their needs." (Heizer, 2017, p.195).  There are many reasons why companies should adapt to sustainable business practices.  Adapting to sustainable business practices can reduce energy bills, cut down on waste and increase efficiency, it can create a healthier work environment, can improve brand image, and many more advantages.  More and more companies are discovering the benefits of adopting to more sustainable business practices. Businesses must develop a strategy for sustainability if they want to be viable and competitive.

Saving Money

One major advantage of adopting to more sustainable business practices is that it not only helps the environment, but it can also reduce a company's energy bill.  Simple things like turning lights and equipment off, taking advantage of natural sunlight, and installing energy-efficient light bulbs can reduce business energy costs.  Lighting accounts for almost "20% of the electricity used in U.S. commercial buildings" (Stahley, 2017), so these are very easy things businesses can start doing to reduce their energy bills and save money.  Businesses can also reduce their energy bills by installing motion detector lighting, purchasing energy-efficient office equipment, and using commercial renewable energy sources.  Adopting to more sustainable business practices can potentially save a company thousands of dollars each month.  

There are other ways adopting to more sustainable business practices can save businesses money and help the environment at the same time.  Converting to a paperless office will save businesses money on paper and printing.  Recyling is another simple and environmentally way to reduce costs.  One company in particular, PepsiCo, has worked to a develop a diagnostic tool for understanding and reducing in-plant water and energy usage called Resource Conservation (ReCon).  This diagnostic tool has resulted in a costs savings of $2.7 million (Heizer, 2017, p. 200).  PepsiCo has also sent about 7% of their waste to landfill (93% diverted).  By recycling and reusing 90% of their waste, PepsiCo has saved approximately $3.5 million compared to 2009 (PepsiCo, n.d).  If other businesses followed PepsiCo's lead, then they can become more sustainable and reduce their costs.