Why Is Sustainability A Key Value For Businesses | PGDM

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Why Is Sustainability A Key Value For Businesses

10 Nov 2022
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What Is The Importance of Sustainability In Business?

Organizations operate in complex and dynamic environments and look to create long-term value through initiatives that are recognized by communities to be harmonious with the ecosystem. Strategies that recognize and are built around ecological, social, and economic considerations foster organizational longevity. The latest trends in environmental, social, and governance (ESG) issues are being recognized to play a major role in generating shareholder value for organizations in the foreseeable future. Thus, sustainability has, and is assuming critical importance across businesses.

Sustainability entwined with business operations tend to have a positive impact on the environment and society at large. A sustainable business strategy has the potential not only to drive corporate value but also helps to address issues that plague the society and environment. Some of these are internal to organizational functioning while others pertain to extraneous issues. The general thought is for organizations to understand, display their responsibility through their actions, and drive initiatives that could address these issues in their way. Some sustainability issues for businesses to consider are –
- Climate
- Addressing Income inequality
- Human rights
- Fair working conditions
- Pollution
- Racial discrimination
- Gender inequality
- Corporate Governance
Sustainably in the business is not something that is purely selfless. For organizations to follow a sustainable path, it is important that they are successful. In that sense, organizational success is not solely dependent on sustainability. In fact, success and sustainability are closely connected.

Therefore, organizations are increasingly looking to adopt an approach that is built around sustainability and takes into consideration its positive impact on “profit, people, and the planet.”

Sustainability entwined with business operations tend to have a positive impact on the environment and society at large. A sustainable business strategy has the potential not only to drive corporate value but also helps to address issues that plague the society and environment.

Also Read: What Is The Future Of Design Thinking In Business?

What Benefits Organizations In The Pursuit of Sustainability?
- Competitive Advantage – Most consumers perceive that sustainable practices and responsibility drives their decision while choosing a brand. Internally, sustainability provides a purpose to the business which helps in talent acquisition by attracting a motivated and skilled workforce .Thus, being recognised as a sustainable business can improve brand awareness and help attract consumers. Besides, a sustainable strategy protects the environment, workers, and the organization itself from any damaging incidents.
- Increased Investor appeal and attracting transformational investments – The sustainability paradigm is witnessing a transition from compliance to impact and value. A holistic approach that spans the entire investing value chain helps investors to achieve superior returns and create a sustainable world. In fact, most investors look at sustainability or social responsibility as major factors in the investing chain. Transformative practices that are built on sustainability tend to attract investor interest as they perceive them to be building resilient businesses that are ready for disruption and new opportunities.
- Increased productivity and cost reduction – Contrary to the popular belief that sustainable business practices come at a cost, they actually lead to efficient operations, resource conservation, enhanced employee productivity. This in turn leads to cost reduction over the long run. Those efforts having greater overall impact will likely be more expensive to implement, but the long-term results justify the investment.
- Increased ability to handle compliance and regulatory requirements – As governments focus on sustainable development goals and expand regulations, there is increased pressure on corporations to stay ahead of the curve. Implementing sustainable solutions to meet regulatory requirements on a continual basis will help businesses to position themselves to be ready to handle changing regulations in a timely manner.
- Sustainability fosters Innovation – Transitioning to sustainable practices requires organizations to relook at products, processes, or systems. This could encourage innovative and creative practices within the organization and could benefit the culture of the organization in the long run.
Summary

Here’s what benefits organizations in the pursuit of sustainability-
- competitive advantage.
- attracting transformational investments.
- increased productivity and reduced costs.
- increased ability to handle compliance and regulatory requirements.
- sustainability fosters innovation
What Is The Importance of Sustainability In Management Practice?

There is no defined blueprint for the practice of sustainability in businesses. The goal for managers is to build a structure that provides insights, facilitates decision making, and builds accountability within management functioning. Sustainability is a cross-functional initiative that requires inputs and alignment across the business. Every decision across reporting lines, cross-functional partnerships, and accountability is dependent on the manager’s view of sustainability and its path to progress.

As societal demands rise and the regulatory processes become complex, it becomes key for managers to act in a coordinated and informed manner. Major stakeholders- internal and external are concerned about this issue. Failing to act in the right manner could lead to risks that could alienate one or more of these groups.

The emergence of social responsibility centers and the responsibilities of organizations towards consumers and communities are leading a paradigm shift towards sustainability and with this, a new focus on business education. The realization has led organizations to expect and demand that modern managers are keyed on and understand the importance of sustainability in business as they go about creating value. No wonder then that business school programs are developing curricula, pedagogy, and delivery methods that integrate this crucial practice in management education. There is no doubt that managers that possess a range of perspectives and competencies that integrate socially responsible business practices will be in greater demand.

Sustainable business practices can be promoted through education and training. Top B-Schools in India are integrating sustainable development into their educational programs to communicate to future professionals their role in building tomorrow’s sustainable society. Management professionals need to integrate sustainability into models of traditional growth and profit optimization. The recognition that societal goals, particularly those concerned with sustainable development, e.g., environmental protection, social justice, and equity are equally important for organizational survival and success.

Sustainable business practices can be promoted through education and training. Top B-Schools in India are integrating sustainable development into their educational programs and to communicate to future professionals their role in building tomorrow’s sustainable society.

Also Read: The SOIL Scholarship Program

Learning Sustainable Business Practices At SOIL

The PGDM MBA course at SOIL is a one of a kind that provides integrated education to serve the purpose of building the well-being of one and all. The teaching methodology followed by SOIL looks at creating the ‘Leaders of tomorrow’. The emphasis on the 5 pillars – Sustainability, balance, compassion, diversity, ethics helps to build character, competence and enthusiasm; developing inspired leaders that create and contribute to sustainable organizations of consequence.

The Two year MBA course PGDM, the full form of which is Post graduate Diploma in Management is an amazing opportunity for any student to experience a real-time practical reflection of what is being taught in class and beyond. This is in line with the school’s focus on imparting practical knowledge rather than theoretical knowledge.

SOIL’s Two year MBA delivers a transformational program that enables students to work for “human-centered innovation” based on an interdisciplinary curriculum that combines liberal arts, design thinking and management education. In the modern era, the rise in globalization, technological advancements, and shrinking boundaries between countries have made it imperative for students to get an advanced understanding of humans and their behaviour across cultures.

The experiential immersions at SOIL have been designed for the students to get a deep understanding and a real-time exposure to people, business and environment. The PGDM program at SOIL integrates immersive experiences with conventional management education. Each of these is designed to create awareness amongst students, inculcate a sense of social responsibility, and foster sustainability in business practice. Some of these experiences are Global Immersion, Himalayan Retreat, Social Outreach, India Train Journey, and Innovation Festival.

Social Innovation Program (SIP) – The business community has been placing greater emphasis and focus on development and social inclusion. This makes it essential for any business leader to fully understand and appreciate the ground realities of development. Without the full involvement of future leaders, this development will remain one-sided, insufficient, and incomplete. With this intent, SOIL has incorporated the Social Innovation Program into its curriculum as an integral course.

The SIP is an academically-driven program designed for creating innovative solutions for pressing social problems. Against the context of real-life challenges faced by local communities & organizations, students act as external consultants in proposing and implementing ideas for impact. This initiative provides the perfect opportunity for applying their classroom knowledge to real life. Students also enhance their networking, project management and crisis-handling skills.
- The Social Innovation Program (SIP) at SOIL involves a team of students working closely with a non-profit organization working towards community development
- SOIL NGO partner from Delhi NCR and our students spend one day every week working with these partners
- Every team chooses a project that they can contribute meaningfully to by building business plans for income generation activity, developing case studies as marketing collateral, creating innovative fund-raising initiatives, etc.
The Two year MBA – PGDM in Business Design is a bold and radical step in changing management education. The program aims at creating business leaders who excel at problem-solving and creativity – with a sustainable bias.

The experiential immersions at SOIL have been designed for the students to get a deep understanding and real-time exposure to people, business, and the environment. The Two Year MBA at SOIL integrates immersive experiences with conventional management education.

FAQs
What is the importance of sustainability in business?

Sustainability entwined with business operations tend to have a positive impact on the environment and society at large. A sustainable business strategy has the potential not only to drive corporate value but also helps to address issues that plague the society and environment. Some sustainability issues for businesses to consider are:

Climate

Addressing Income inequality

Human rights

Fair working conditions

Pollution

Racial discrimination

Gender inequality

Corporate Governance

What benefits organizations in the pursuit of sustainability?

Here’s what benefits organizations in the pursuit of sustainability-

competitive advantage.

attracting transformational investments.

increased productivity and reduced costs.

increased ability to handle compliance and regulatory requirements.

sustainability fosters innovation

What is the importance of sustainability in business practices?

Sustainable business practices can be promoted through education and training. Top B-Schools in India are integrating sustainable development into their educational programs communicating to future professionals their role in building tomorrow’s sustainable society.

How does SOIL contribute to sustainable practices in the business world?

SOIL has incorporated the Social Innovation Program into its curriculum as an integral course.

The SIP is an academically-driven program designed for creating innovative solutions for pressing social problems. Against the context of real-life challenges faced by local communities & organizations, students act as external consultants in proposing and implementing ideas for impact. This initiative provides the perfect opportunity for applying their classroom knowledge to real life. Students also enhance their networking, project management, and crisis-handling skills.

What significance do the experiential immersions at SOIL have?

The experiential immersions at SOIL have been designed for the students to get a deep understanding and real-time exposure to people, businesses, and the environment. The PGDM program at SOIL integrates immersive experiences with conventional management education.

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Summary

What is the importance of sustainability in business?

What benefits organizations in the pursuit of sustainability?

What is the importance of sustainability in business practices?

How does SOIL contribute to sustainable practices in the business world?

What significance do the experiential immersions at SOIL have?

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