Sustainable Business Practices: Ethics and Sustainability

This article discusses the importance of sustainable business practices and ethics. It explores the conflict between economic growth and sustainability and the need to balance current needs with future ones. The article also presents an alternative point of view based on the economic principle of free markets. Finally, it concludes with the importance of investing in studies to quantify and project the effect of a possible strategy inclination towards sustainability.

Sustainable Business Practices 1
Ethics and Sustainability
By
Course
Tutor
University
Location
Date

Sustainable Business Practices 2
Introduction
Businesses are known to have the primary aim of making profits. They add value to
inputs that they then make available to a consuming party at a fee from which a portion is
expected to be profits. The human economic system is reliant on the nature to provide key
resources as well as the enabling platform for societies to thrive economically and socially.
There has been a consensus that economic activity leads to negative environmental outcomes
(Schwartz 2017). Businesses have become increasingly faced with the challenge of
conducting operations ethically and sustainably and at the same time answer to stockholder’s
demand for returns on their investment.
Point of View
From my point of view, a business is supposed to cater to the needs of all
stakeholders. These stakeholders range from employees, customers, the community, the
environment to shareholders. A business that fails to meet one of these stakeholder's needs is
laying the foundation for its death. With regard to ecological systems, humanity has traveled
the length and breadth of the world and has been able to quantify some of its primary
attributes. With this capability, the acknowledgment of nature's slow-paced processes and
human's fast-paced orientation conflict occurred (Doppelt 2017). A crisis between nature and
man leads to crises among human beings.
Furthermore, businesses have the needs of other human stakeholders to take care of.
These needs are related to human rights, labor integrity, and community participation. By
taking care of these needs, the business will be acting in sustainable ways. Sustainability
relates to the long-term orientation of balancing current needs with future ones. Some
businesses find it difficult to embrace ethical and sustainability behavior as they perceive
economic growth and sustainability to be mutually exclusive. In this approach, the economy

Sustainable Business Practices 3
is such a large pillar of sustainable development that focuses on the pillars of society and
ecology will lead to less significant outcomes in the economic component (Ni & Van Wart
2015).
Alternative Point of View
An alternative point of view relies on the economic principle of free markets. In
perfectly liberal markets, resources are allocated to the areas where they provide the greatest
output (Crane & Matten 2016). In the relationship between nature and human systems, this
concept can be applied to make agents that generate the greatest satisfaction from profit seek
it. In this case, all externalities ought to be identifiable and valued. As such, any economic
agent has to internalize all externalities. The internalization will provide resources for the
various institutions that care for the environment. In this case, it will be essential to have a
strong legal framework to enforce the internalization rules as well as powerful incentives to
comply and avoid unethical practices.
Conclusion
Although most businesses are aware of sustainability concerns, implementation of
sustainable strategies remain a key challenge. As a business leader, I would invest in studies
to quantify and project the effect of a possible strategy inclination towards sustainability.
Studies have shown that sound sustainability standards add value to a business. The
allocation of resources towards sustainable practices may have lagged positive impacts on
assets as well as the specific stakeholders. Nonetheless, short-term gains for long-term losses
is always the wrong choice.

Sustainable Business Practices 4
References
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Ni, A. and Van Wart, M., 2015. Corporate Social Responsibility: Doing Well and Doing
Good. In Building Business-Government Relations (pp. 175-196). Routledge.
Schwartz, M.S., 2017. Corporate social responsibility. Routledge. Retrieved from
https://www.cambridge.org/core/journals/business-ethics-quarterly/article/corporate-social-
responsibility-a-threedomain-approach/0655292E11AC9C9CA33ACD433417518C