Sustainability is
the topic of the century. It’s an important issue for people across the globe,
and as climate change continues to affect our lives, we are constantly trying
to find new ways to increase our sustainability and do our bit for the planet.
What does
Sustainability in Business Mean?
Business sustainability means to operate without negatively impacting the local and global environment, community, or society as a whole.
For leaders, business owners, and administrators, sustainable corporate practices are becoming imperative. Industry form a big part of the climate change discussion due to its reliance on land, resources, fossil fuels, and non-stop production and consumption. The first step to business sustainability starts with businesses being mindful of the issue and understanding how and why they need to make changes.
To be environmentally mindful, a business needs
to consider more than just profits. A sustainable business observes what
is known as the triple
bottom line. Accordingly, a business makes its profits by
being socially accountable and protecting our use of the globe’s
resources.
Why is Sustainability
Important for Business?
Beyond helping to battle global challenges, sustainability can drive business success. Research shows that companies with high Environmental, Social, and Governance rating have a lower cost of debt and equity, and that sustainability initiatives can help improve financial performance while fostering public support (Spiliakos 2018). In this circumstance, ‘doing good’ and ‘doing well’ go hand in hand.
How will Sustainability
Benefit Business?
Being a more
sustainable business can support to become more efficient, improve brand value
and reputation, provide a platform for innovation, help attract and retain
staff, achieve better growth, cut costs and strengthen stakeholder relations (Sustainable
Business Network 2020).
Two gaps to be mindful of – In order to address sustainability appropriately, organisations
need to bridge two critical gaps:
- ‘The knowing-doing gap’: one study found that, where 90% of executives find sustainability to be vital, only 60% of organisations actually integrate sustainability in their strategy. And only 25% have sustainability incorporate in their business model (Haanaes 2016).
- “The compliance – competitive advantage gap’: nevertheless, more organisations are seeing sustainability as an area of competitive, only 24% act on the knowledge. However, all organisations should to compliant, and these topics would be addressed separately (Haanaes 2016).
How Human Resource
Management Could Contribute to Sustainability in Business
Amongst
other functions, Human Resource (HR) management is critical in supporting a
business to:
- Improve the effectiveness of policies and procedures.
- Manage corporate governance and ethical issues
beyond economic performance.
- Support the realignment of the company’s future
direction.
HR can be a corporate’ moral scope by
promoting policies and best practices that are sustainable for both people
(in and outside of the company) and the environment.
These goals aren’t easy to achieve, but good HRM can facilitate communication between managers and employees, as well as contribute to culture change within the organisation.
Human resources link ethical principles, CSR, and HR
functions together, creating a map to sustainability. HR professionals can
support and embed sustainability in ways such as:
- Engagement techniques focused on open and
transparent communication.
- Motivational theories based on extrinsic and
intrinsic values.
- Regular meetings in accordance with the
principles of respect and understanding.
- Applying analytical capability
to best align them in the direction the organisation is
headed.
The aim
is to embody a sustainable environment that doesn’t just focus on economic
factors, but also on HR and their relationship with the surrounding
environment. Therefore, the aforesaid people-focused skills are vital to a
sustainable business.
Conclusion
Sustainability is a key focus area for modern business world. The HR Management is one of the most important functions in the organization to deliver a sustainable business.
Reference
- The Economist. (2009). Triple bottom line. [online] Available at https://www.economist.com/news/2009/11/17/triple-bottom-line [Accessed 01 May 2021]
- Spiliakos, A. (2018). What Is Sustainability in Business? | HBS Online. [online] Harvard Business School Online Blog. Available at: https://online.hbs.edu/blog/post/what-is-sustainability-in-business [Accessed 01 May. 2021].
- Sustainable Business Network. (2021). Why should my business become more sustainable?. [online] Available at: https://sustainable.org.nz/guide-to-sustainability/ [Accessed 01 May. 2021].
- Haanaes, K. (2016). Why all businesses should embrace sustainability. [online] IMD business school. Available at: https://www.imd.org/research-knowledge/articles/why-all-businesses-should-embrace-sustainability/ [Accessed 01 May. 2021].
Human Resource is critically supporting an organization to improve effectiveness, manage issues and realign organizational vision with its new operating ways. Human Resources can use tools like engagement techniques, motivational theories, inspiring meetings and analytical ability to embed and support sustainability of a business.
ReplyDeleteGood article. You have mentioned that HR Management is one of the most important functions in the organization to deliver a sustainable business. True. I would like to mention that sustainability in HRM ensures that there is a positive culture in an organization. Such behaviors and cultures stem from human resource where diversity and inclusion programs are integrated. The organization can encourage a positive culture towards pay equity, workforce inclusion, diversity etc. through sustainability. Such insistence in educating and maintaining new employees makes them instill significant practices that consequently become the culture of the organization as a whole.
ReplyDeleteSustainability is the concept of managing an organization by considering environmental, social and a broad range of economic factors.
ReplyDeleteBusiness sustainability from the point of view of human resource management (HRM) is a management and leadership philosophy about how people are most enable to contribute to success at their work by minimizing the negative impactof their work on the environmental and social factors and at the same timeimproving the financial factors in the organizations
ReplyDeleteMost organizations are given high recognition for sustainability. Leadership is important in building a sustainable environment for business activities to succeed within an organization. Sustainability encompasses a lot activities leadership, production efficiency and improving compliance to environmental and international laws.
ReplyDeleteGlobalization and technological improvements have created dramatic changes in businesses in recent years, changing Human Resource Management (HRM). The increased emphasis on Corporate Social Responsibility (CSR) and the pressures on organizations to be more agile and flexible have had a direct impact on HRM strategies and practices.
ReplyDeleteReally good article Tania. The organization's sustainability emphasis must be matched by sustainable HRM structures, processes, and practices. However, in most organizations, sustainability is seldom a part of their HR strategies or strategic HR activities. As a result, Human Resource Management for Organizational Sustainability presents a new approach by examining human resource structures and processes through the lens of sustainability.
ReplyDeleteSustainability in a business has a variety of topics to speak about. As your article states human resource management has a lot to do with sustainability of a business. It is a duty of an HR manager to help to develop the sustainability of a business. He can also sustain the business by retaining the best employees in the business and recruiting the most ideal employees into the business too.
ReplyDeleteHuman resource management is important in assisting the organization to develop effectiveness, to maintain corporate governance and ethical concerns beyond economic performance, and to encourage the realignment of the organization’s future orientation and vision of new ways of operating.
ReplyDelete