The Importance of Business Sustainability: An Organizational Report

This report delves into the critical aspects of building a sustainable organization. It begins by defining business sustainability and its importance, emphasizing the advantages it offers, such as improved brand image, cost minimization, regulatory compliance, and tax benefits. The report then explores the organizational capabilities essential for adapting to a changing environment, including leadership, collaboration, creativity, and innovation. It highlights how these capabilities contribute to achieving organizational goals, fostering a positive work environment, and driving long-term profitability. The conclusion underscores the significance of sustainability and organizational capabilities in navigating the evolving business landscape, emphasizing their combined role in ensuring both environmental responsibility and business success. The report utilizes examples from companies like Tesco, Unilever, and Sainsbury to illustrate the practical application of sustainable practices.

Building a Sustainable
Organization

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK-A......................................................................................................................................3
TASK-B......................................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Business sustainability is defined as doing business operations without negatively affecting the
society. Sustainable business has mainly two categories which are- how environment and society
is affected by business. Businesses take part in sustainable business practices and every business
use different strategies to expand and grow in the marketplace (Elia, Margherita and Petti, 2020).
Business sustainability provides various benefits to organizations which are essential for better
performance in the marketplace. This report discusses about the advantages of business
sustainability which helps a business to grow. Further it discusses about the organizational
capabilities which helps a business in changing environment.
MAIN BODY
TASK-A
Business sustainability is the ability to compromise the resources for the future generations. In
addition with natural resources, social and economic resources also need to be saved.
Sustainability is the prevention of the depletion of resources, so that they can be available for the
long term, for future generation. There are various advantages of business sustainability which
are -
 Improves brand image- Business are competing for the same consumer base, but the
enterprises which keep innovating and inventing something new in their products can
stand out in the market and grow sustainably. The businesses can retain customers by
providing them with the best quality products at reasonable rates. This helps a business to
improve the brand image and reputation. For example- TESCO is a multinational
company which deals in retail industry. The company offers its customers with variety of
products under a single roof. This makes the customers to keep coming back and shop at
TESCO.
 Minimize costs- The overall business goal must be to become sustainable. Businesses
can use eco friendly products which reduces the wastage of resources and the material
can be recycled. In this way the business can minimize the cost by recycling, and using
the material again. It helps a company to expand without utilizing extra resources. For
example- Unilever is recycling the sachets, and use the same material to make new

sachets. In this way Unilever is cutting costs on raw materials and and is fully utilizing
the resources by making the business sustainable.
 Makes it easy for the enterprises to obey with regulations- There are laws which
prohibit businesses to waste resources or utilize them in a illegal way. So if businesses
make full use of their resources, without wasting them and harming the environment,
they can ensure that no law is breached (Khan and et. al., 2021). Government has
introduced several regulations to operate business without harming environment. For
example- Sainsbury has reduced the usage of carbon discharge material in their business
operations and have increased the use of renewable energy. In this way they are
protecting the environment and are not breaching any law.
 Tax benefits- Companies can get tax benefits, subsidies, savings, low interest rates,
while operating as a green company. Eco-friendly business activities are cost cutting for
the businesses, and enables a business to build a sustainable environment by utilising
resources.
TASK-B
Organizational capabilities can be anything which an organization possesses to get work done.
Organizational capabilities include advanced technology, talent, human resource, which helps an
organization to do the operations successfully. It helps a business to establish organizational
goals and objectives. Also the capabilities allow a business to adapt in changing environments,
and creating a good organizational culture. Organizational capabilities which help a business in
changing environment are-
 Leadership- It is the capability of an individual which helps in motivating and inspiring
the employees and team members. Leadership involves giving instructions and directing
the employees in accurate direction to achieve organizational as well as personal goals. It
can affect the performance and can change the organizational environment. Change can
be positive and negative, bad leadership can lead to toxic attitudes from employees which
creates a negative environment in the organization. So managers must follow positive
attributes of leadership to create a positive environment in an organization.
 Collaboration- It is the ability of individuals to work together in a team. Collaboration
allows to allocate complex tasks to a group of people, so that they can be completed

effectively and efficiently (Krumdieck, 2019). It improves the manner a team works
together and solves problem. Collaboration can lead to more efficient operations,
innovation, and better communication skills. So it is important among employees to have
collaboration, which will motivate the workforce and allows them to perform in changing
environments.
 Creativity- Creative thinking helps individuals to promote new ideas and thoughts. It
helps managers and employees to overcome the challenges they face in performing
business operations. Creative thinking helps an organization to innovate or create new
products and services for customers, which are different from their competitors. It opens
up more opportunities for businesses, as new products will attract more customers which
will help in bringing long- term profits to the enterprise.
 Innovation- Company needs to constantly bring new products and services in order to
attract more customers and retain old customers (Mohapatra and Sahu, 2018). Businesses
should innovate their products constantly, this will allow change in the organizational
strategies and operations. Consumers tastes and preferences are changing rapidly, so the
businesses are required to change their products according to the needs of customers.
Also innovation allows the businesses to overcome the challenges and adapt to new
technologies. Thus the businesses need to focus on innovation process, to reduce wastage
of resources and increase profits.
CONCLUSION
From this report it is concluded that sustainability is important for the future generation.
Individuals depend on natural resources for their daily activities, businesses and for survival, so
utilising natural resources in a correct way is important for the environment as well as for
humans. Businesses make use of resources in their operations and activities, so it is important for
businesses to utilize resources to make them available for future generation. Businesses are also
getting benefits from recycling their waste, this helps in reducing the cost and improve the
reputation. Also there are various organizational capabilities which helps in changing

organization environment, like leadership, collaboration and innovation. They help in managing
resources and meet the needs of customers. They also help an organization to change their
operations according to changing environment. Thus both sustainability and capabilities are a
important part of an organization in changing environment.
REFERENCES
Books and Journals
Elia, G., Margherita, A. and Petti, C., 2020. Building responses to sustainable development
challenges: A multistakeholder collaboration framework and application to climate
change. Business Strategy and the Environment, 29(6), pp.2465-2478.
Khan, S.A., Alkhatib, S., Ammar, Z., Moktadir, M.A. and Kumar, A., 2021. Benchmarking the
outsourcing factors of third-party logistics services selection: analysing influential
strength and building a sustainable decision model. Benchmarking: An International
Journal.
Krumdieck, S., 2019. Transition engineering: Building a sustainable future. CRC Press.
Mohapatra, M. and Sahu, P., 2018. Building a sustainable talent acquisition model in a dynamic
business environment. International Journal of Human Capital and Information
Technology Professionals (IJHCITP), 9(3), pp.42-52.