Sustainable Business Management: Risk, Opportunity and Sustainability

This report provides an overview of sustainable business management, emphasizing the coordination of environmental, social, and financial demands for long-term organizational success. It identifies risks and opportunities for companies in the marketplace, analyzing environmental sustainability strategies and their importance. The report also includes social and economic sustainability strategies, highlighting the role of corporate social responsibility and optimum resource utilization in achieving business and economic goals. The analysis underscores the need for ethical practices, stakeholder engagement, and adherence to environmental regulations to foster sustainable growth and maintain a positive brand image. This document is available on Desklib, a platform offering a range of study tools and solved assignments for students.

Sustainable Business
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Risk and opportunity for the case of company ...........................................................................3
Environmental sustainability ......................................................................................................4
Social Sustainability....................................................................................................................5
Economic Sustainability .............................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Sustainable Business Management can be termed as a process of coordinating as well as
collaborating of environmental, social along with financial demand in order to ensure
responsible, ethical and ongoing success of an organization (Baumgartner and et. al., 2017). It
benefits organization in improving their brand image and gaining sustainable competitive
advantage in industry when compared to other competitors. Sustainable business practices aids in
increasing productivity and reducing costs of different business operations. People like to
associated with who have positive brand image and have sustainability in their operations, hence
it increases customer engagement as well as access of investors in business. Sustainable
management is not only used for reducing waste and cost but it also helps in earning increased
profits which results in satisfied shareholders. It also assists in organisation in retaining best
talents for longer period of time by providing effective training programs to maintain
sustainability of workforce. This project report aims at identification of risk and opportunity of
company faced in market place. It analyse environmental sustainability strategy and its important
for company. It also includes social and economic sustainability strategy along with its important
for company.
TASK
Risk and opportunity for the case of company
Strength Weakness
 Patagonia is an organisation which is
popular among customers due to its
innovation in their organisation and its
sustainable resources consumptions
(Bellucci and et. al., 2020). It is
adopting sustainable practices in their
organisation due to which is create
positive image in minds of their
consumer.
 Eco conscious clients are increasing
 Patagonia is an organisation which is
lagging in techn0ological sector and
create impact over economic plan of
company. As a result it lags in some
case and require fund for technology.
 There is involvement of company in
politics as business executive of
company may includes in critics of
policies of political parties.
 There is over dependence of company

which make Patagonia to use it as their
preferences and allow them to spend of
percentage of sales of company for this
reason. It increase profit of company
and also develop its image as green
store logo.
 This organisation is conducting fair
treatment with their employees which is
important in order to fulfil their
corporate social responsibility of
company.
over their suppliers as operation of
company is largely depended on Asian
suppliers (Carvalho and et. al., 2017).
Opportunity Threat
 Patagonia has opportunity in market for
renovate their product like by providing
different wear options as it is providing
vesture and outdoor products and can
extend business like by offering regular
apparel and sportswear and second
hand clothes (Egan and et. al., 2018).
 It can also offer most places for
purpose of expanding its business
operation by swollen its into varies in
foreign market.
 Patagonia is providing products in an
unpredictable environment and can be
crafted from herbal substances like
wool, cotton and other things that
create be impacted with susceptible
weather change.
 There are various compet6itors present
in this retail market which create
impact over profitability and marketing
share of company.
Environmental sustainability
It is recommanded to managers of Patagonia to follow all regulation or policy of
government related to sustainable environment. There are various reason behind choosing of this
strategy for company as it assist company to develop positive image of company in minds of
government which limits interference of government in operation of company. It also provide
different subsidies and concession in tax to company which helps them for reducing cost of their

operation. It can be identify with researching different alternatives, curriculum, carbon emission
from building of university, biodiversity and other things. It provide different benefits to
company as it allow them to protect environment which is important in order to meet future
needs of consumers (Mahsud and et. al., 2017). It is good initiatives made by corporate
organisation which provide benefits to both consumer as well as company and also allow
company to utilise resources of company. Adoption of these government regulation of
environment also helps company to reduce waste by reducing wastage of resources at workplace.
It is important for a company to adopt this strategy as it helps them to fulfil corporate social
responsibility of company towards different members of society which is important as it allow
them for protecting them from pollution and other hazardous gases. Adoption of these
government regulation relation to environment not only helps company to enhance physical
health of people but also allow them to improve mental health of people. It is not only good for
their customers but also for health of their employees. Employees with good health helps
company to improve their performance which is important in order to get success and growth. It
is better alternatives that is adopted by company as it allow them to also build goo image of
company in minds of consumer as there is increase environmental awareness among people of
UK which provide benefit to their organisation. Adoption of this approach can also create
problems for company as focusing on environmental regulation and developing environmental
friendly product increase cost of company. As development of organic cotton products increase
cost of operation of Patagonia, it results in increases in prices of products of company
(McDonald, 2018). At initial level, this organisation is producing products which are based on
conventionally grown cotton but company later on adopted sustainable practices and adopted
organic cotton for purpose of production of their products as conventionally grown cotton create
negative impact over environment.
Social Sustainability
In order to develop different social consequences and challenges, it is major role of
management of Patagonia to deal with different strategies. In order to develop social
sustainability at the marketplace it is essential duty of management to select the best available
strategy. Patagonia will select corporate social responsibility strategy which is a major tool of
social development. The company will lead the marketplace by using a significant share from the
profit to develop social welfare (Nawaz and et. al., 2018). Reason behind choosing this strategy

is, it helps in development of weaker sections by providing them food, shelter and cloths. It is
better to choose corporate social responsibility as a strategy to achieve all business and economic
goals. The main issue behind choosing this strategy is development and enhancement of weaker
sections of the society. It is the main responsibility of a business to significantly contribute at
least 5% of the total turnover to the CSR. The CSR will also help in increasing living standard of
general public in the economy which will automatically increase country standard. CSR not only
provide benefits to society but in turn to company as it increase satisfaction of their employees as
company is fulfilling their responsibility towards their employees. It will boost motivation their
employees and allow them to work with full of their efficiency. The main issue related to CSR
of a company is allocation of funds and ethics. It should be major role of management of a
company to maintain honesty while doing welfare of the society. In the corporate world, it is not
compulsory for the companies to perform CSR related operations but it is ethical responsibility
of a business to develop CSR in a more precise manner. The company must take into account
advice of top level and strategic management in order to perform major CSR operations. The
application of CSR in a business also helps in increasing competitive strength of company which
is major in development of whole business firm. Another issue related to CSR is allocation of
funds in correct operations and functions. The CSR fund allocation should be done by
professional financial management and top level management in order to utilise provided
resources. Patagonia should hire highly skilled and trained staff in CSR management for the
growth and development of company (Thurman, 2020). It is also a key role of financial
management to calculate and produce a good amount of revenue in order to facilitate different
operations related to CSR.
Economic Sustainability
The optimum utilisation of resources is the major economic sustainability strategy which
can help a business to develop ethical practices. If the company will utilise all resources in an
optimum manner then it can also create or increase profitability. In the recent times, importance
of utilising resources in an effective manner is increasing which also mainly impact business
functions. The Patagonia has chosen this strategy in order to develop resource utilisation for
better and effective business growth (Wagner and et. al., 2017). Patagonia should also develop a
specific framework which is beneficial in increasing competitive strength of major operations.
The main issue while selecting this approach will be, requirement of professional operations

management. Business organisation should focus on developing all major practices which are
beneficial in increasing approach of a business entity to utilise all the resources in a precise
manner. This will help the business of Patagonia to increase turnover ratio within a short period
of time and will also lead to develop a brief strategy for the future. In the economic
sustainability, a business should include engagement of all employees in the corporate practices
to provide profit for future generations. Adoption of ethical practices create positive image of
company in minds of customer which is important for them in order to get success in market.
Patagonia has developed positive image of company through their ethical practices which make
them popular among customers and provide them success in market. It is also one of the major
responsibility of a business to deal with all financial issues with the help of top level financial
management in order to grow at the marketplace. The business entity like Patagonia should also
focus on developing key resources for the business with sustainability in order to develop good
example at the marketplace. The international and national companies in the marketplace should
focus on analysing key goals and objectives related to economic development for business
welfare. Companies should also focus relatively higher on optimum utilisation of resources in
order to develop cost leadership. It is also one of the major goal of a business to maintain
sustainability throughout the financial year for development in major operations. This strategy is
better than alternatives in order to formulate and achieve all economic and financial goals on
time.
CONCLUSION
The above stated report concludes that it is very much essential for a company to develop
ethical and sustainability practices in order to gain marketplace growth. This project also
concludes the application of sustainable planning for an organization in saving the environment.
In order to develop all the organizational objectives related to sustainability, a business entity
should take assistance of strategic and top level management. The business should follow major
policies which are related to environment in order to develop ethical business at the marketplace.
This report concludes the importance of professionalism in the company to develop sustainability
related marketing goals.

REFERENCES
Books and Journals
Baumgartner, R.J. and Rauter, R., 2017. Strategic perspectives of corporate sustainability
management to develop a sustainable organization. Journal of Cleaner Production, 140,
pp.81-92.
Bellucci, M., Bini, L. and Giunta, F., 2020. Implementing environmental sustainability
engagement into business: sustainability management, innovation, and sustainable
business models. In Innovation strategies in environmental science (pp. 107-143).
Elsevier.
Carvalho, M.M. and Rabechini Jr, R., 2017. Can project sustainability management impact
project success? An empirical study applying a contingent approach. International
Journal of Project Management, 35(6), pp.1120-1132.
Egan, M. and Tweedie, D., 2018. A “green” accountant is difficult to find: Can accountants
contribute to sustainability management initiatives?. Accounting, Auditing &
Accountability Journal.
Mahsud, R., Imanaka, J.L. and Prussia, G.E., 2018. Authenticity in business sustainability:
overcoming limitations in strategic management constructs. Sustainability Accounting,
Management and Policy Journal.
McDonald, P., 2018. Sustainability management: research insights from social cognitive
neuroscience. Business Strategy and the Environment, 27(8), pp.1355-1367.
Nawaz, W. and Koç, M., 2018. Development of a systematic framework for sustainability
management of organizations. Journal of Cleaner Production, 171, pp.1255-1274.
Thurman, P.W., 2020. Not just for business: sustainability curricula at Columbia University.
In The Innovative Business School (pp. 103-105). Routledge.
Wagner, M. and Schaltegger, S., 2017. Mapping the Links of Corporate Sustainability. Managing
the business case for sustainability: The integration of social, environmental and
economic performance, p.108.