Business Model Concepts in Corporate Sustainability

Question: Discuss about the Business Model Concepts in Corporate Sustainability. Answer: Introduction: After engaging in several studies, I have come to conclude that sustainability is the act of a business taking care of all the involved stakeholders plus the environment instead of just focusing on profits. In my understanding, I view the business stakeholders in a summary of triple P, 3Ps that stands for planet, people and profit or the triple bottom line framework ("Triple bottom line," 2017). In accordance to my understanding of Triple Bottom line is that it is comprised of six forms of capital. The consideration of these forms of capital in a business ensures business sustainability. Most organizations prioritize on the financial form of capital, which comprises of securities, money, and financial instruments. This particular type of capital has been given much attention as it occupies the bigger part of the Triple Bottom Line. In other words, the focus of TBL mostly revolves around how businesses make or raise this form of capital. In my view, financial capital is what maintains the financial sustainability of the business (Phillis, Kouikoglou, 2009). The second form of capital is the social capital, which counts as a part of running a sustainable business. A strong social capital helps the business influence decisions or obtains favors, which is fundamental for business sustainability in the society. This capital is linked to politics, the business and social organizations. The intellectual capital is also considered as a knowledge asset in a business setting. Every business intellectual capital is what ensures its success as well as its resilience. The attainment of this form of capital is usually influenced by the financial and social capital. The capital ensures the sustainability of business through innovations. Experimental or human capital is the form of capital that is accumulated through organizing a community project. The human capital is usually blended with intellectual capital. The capital helps the business perform its activities through offering their time and skills in exchange money. These employees ensure the sustainability of the organization through the continuity of the business activities (Nolan, 2016). Also, natural capital is an important part of the TBL, this form of capital focus on the sustainability of the natural environment to ensure that a business thrives without depleting of having negative impacts on the environment. This capital is taken care of through sustainable construction, proper waste management, and tree planting. Finally, material capital is the form capital that has been made by the business in the process of striving for economic, social and organization sustainability. The material capital comprises of the distribution networks, the products, and services offered by the business. This form of capital ensures that the business has something to offer as well as the means to offer, in exchange for financial capital that ensures the sustainability of the business (Ldeke-Freund, n.d.). After an organization has identified these forms of capital, the next stage is to identify the six phases of organization sustainability. The following are the stages The first stage is the rejection phase in which the organization activities affect the environment negatively, and the organization makes no effort to modify its operation to mitigate future ecological degradation. In the second phase, the environmental considerations are not relevant as relevant while making strategic decisions and strategies. Environmental resources are viewed as subsidies, which aid the production and profit making activities of the organization. Opportunities, threats, and costs relating to the environment do not account for anything at this stage (Graedel, Voet, 2010). Compliance phase has technological factors are still the most dominating factors on the business strategies. The management views the organization as a body that observes the legal requirements. Factors relating to the community are only addressed in times when the organization faces a possible prosecution or chances of damaging the publicity of the organization (Benn, Dunphy, Griffiths, 2006). During the efficiency phase, the organization sets measures that reduce the cost of operations by integrating the functions of the human resource. The organization starts considering the input from the employees and sets standards that enable them to tap their potential by using them effectively in the best way possible. Also, the management is keen on observing the total quality environmental management ("Business Sustainability Definition from Financial Times Lexicon," 2017). Strategic proactivity is competitive strategies that can be aligned with the environmental sustainability to provide business opportunities to the organization. Also, provision of environmentally friendly, products and processes gives the business a competitive leadership. The final stage is when the organization becomes a sustainable corporation. In this phase, the sustainability of the environment becomes a key consideration for the organization, and it makes efforts to bring others on board by influencing the key participants in the business industry as well as the society (Benn, Dunphy, Griffiths, 2014). I have studied a lot of articles that are written on business sustainability and I have come to realize that not every organization has embraced the importance of sustainability. However, I have come across organizations that have incorporated the Triple Bottom line as follows. Employee management- I have come across General Electric Company, which has used the human resource department to integrate a culture of sustainability into the company, which runs from training to the wellbeing of employees. Water stewardship- The Coca-Cola Company has also not been left behind as it has efficiently improved in the use of water by 20% and involved a third party in evaluating this approach. Supply chain management- Ford Motor Company has set requirements to suppliers to enforce its environmental and social expectations throughout the supply chain. Biodiversity- the PGE company policy requires that habitat and species be protected Building and facilities- The Bank of America has channeled its resources to in energy and environmental design certified buildings. Sustainable agriculture- General Mills Company has prioritized on the production of oats wheat and corn through sustainable sourcing commitments (Ldeke-Freund, n.d.) References Benn, S., Dunphy, D., Griffiths, A. (2006). Enabling Change for Corporate Sustainability: An Integrated Perspective.Australasian Journal Of Environmental Management,13(3), 156-165. https://dx.doi.org/10.1080/14486563.2006.10648683 Benn, S., Dunphy, D., Griffiths, A. (2014).Organizational change for corporate sustainability(1st ed.). Abingdon, Oxon: Routledge. Business Sustainability Definition from Financial Times Lexicon. (2017).Lexicon.ft.com. Retrieved 13 April 2017, from https://lexicon.ft.com/Term?term=business-sustainability Graedel, T., Voet, E. (2010).Linkages of sustainability(1st ed.). Cambridge, Mass.: MIT Press. Ldeke-Freund, F. Business Model Concepts in Corporate Sustainability Contexts: From Rhetoric to a Generic Template for 'Business Models for Sustainability'.SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.1544847 Nolan, J. (2016). Corporate Accountability and Triple Bottom Line Reporting: Determining the Material Issues for Disclosure.SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.975414 Phillis, Y., Kouikoglou, V. (2009).Fuzzy measurement of sustainability(1st ed.). New York: Nova Science Publishers. Triple bottom line. (2017).The Economist. Retrieved 13 April 2017, from https://www.economist.com/node/14301663