Modernization has not been as kind to Mother Nature as we all know it. What good is development if it means destroying our means of existence? This is why many companies are looking for a greener approach to doing their business. It turns out that there are a number of economic benefits behind sustainability.
Many companies have their own reasons and motives to build a sustainable brand, but here are some of the common benefits of the most sustainable companies out there.
1. Reduced Costs And Increased Productivity
If you opt for preventive measures for your equipment, not only will they be in good working conditions, but they will also be able to last longer. You can prevent them from future damage and deterioration. Seeing as how this is more efficient and green, there will be fewer costs of production involved in this.
Company operations will be more streamlined and efficient from here on out. You will also be able to conserve resources and as we said, reduce costs. You can cut off extra energy charges by turning off insulating walls with geothermal cooling and heating systems as well as unnecessary lights and appliances.
These changes may be expensive to make, but they will have the best long-term results
2. It Will Improve Your Brand Image And Competitive Edge
In their consumer research of surveying over 58,000 consumers, the Natural Marketing Institute (NMI) has found that 58% of the consumers consider the impact of companies on the environment whenever they are looking to purchase goods and services, either it is textile product or an Essay Writing Service. They would much rather purchase their products/services from places that practice sustainable approaches.
For the past 40 years, there has been a subculture movement by the name of “Cultural Creatives” that has been moving for this kind of change and is now gone commercial. According to NMI, this demographic consists of 68 million American adults, who make their purchasing decisions based on their social, personal and environmental values.
The Cause Marketing Forum goes on to say that these consumers will also favor companies that support their communities, which is that business does well by doing good. With the act of “doing good”, it will boost brand awareness. This is the cornerstone of Colgate’s public awareness ads when the Super Bowl was promoting water conversation.
The BBMG Conscious Consumer Report claims that nine out of ten Americans say the words “conscious consumer” describes them well and are very likely to buy from companies that manufacture energy efficient products (90%), promote safety and health benefits (88%), support trade and fair labor practices (87%) and commit to eco-friendly practices (87%), if products are of equal price and quality.
3. Attract Investors And Employees
Nowadays, people want to be more associated with the younger generation who are deeply motivated to protecting the environment. They no longer wish to have anything to do with companies who are on the verge of ecological calamity and promote social welfare scandals.
If you can show that your company can care for the sanctity of the environment and that too of your employees, then perhaps you can attract the right kind of workers that will give you the funds you need to further your business into the future.
4. Improve Investment And Financial Opportunities
Investment and financial analysts have now gotten the notice of companies that have chosen the most eco-friendly approach to their businesses, which includes the reduction of environmental impact and energy efficiency.
A study by Goldman Sachs reads that companies in six industries have acknowledged that leaders of environment social and governance policies have done a better job general stock market by 25% with 72% of those companies that have done better than their peers since August 2005.
Another study by CFO Research that surveyed over 175 top finance executives claimed that more than half of them believed that their companies can increase their revenue with powerful sustainability initiatives.
5. It Will Improve Business Ability To Heed Regulations
After all the talk about the depletion of energy resources, climate change, and the impact all of that has on the environment, the state, and federal government agencies are beginning to open up to the frustrations of the community and developing laws that are aimed at protecting the environment.
Change won’t happen overnight, but if companies are to work on integrating these regulations into their business, they will be able to position themselves into saving the environment.
6. Decrease Waste
The very idea about sustainable approaches is to reduce harmful chemical and other kinds of waste onto the environment. It all comes from recycling empty cans to reducing the waste piled by paper (in order to preserve the trees and forests).
It also includes developing new ways of making products and commodities that use less raw materials as well as changing incandescent lights for the sake of LED lights.
7. Boost Employee Engagement
Many a times companies talk about how their employees are the ones that drive sales and the workload of the business, but there are very few that actually care for the employee morale and culture of their workers or even regard them as partners for an organization's success and its future.
A 2007 survey by international HR company Adecco shows that 52% of employed adults feel that the companies they work for should contribute more to protect the environment. On the other side, companies also want their employees to be loyal and ethical to the places where they work at.
In accordance with the Global Study of Business Ethics by the American Management Association, one of the top five internal practices to ensure a company opts for a more ethical corporate culture is to develop corporate social responsibility programs.
Those employees who are passionate about their products and the company itself are the most important people when it comes to preventing threats to a brand image. It can all work out if there were a mutual means of communication between the employees and the higher ups.
If a company is able to work on their social responsibilities, they can also work on talent retention to ensure that they keep a hold of their star workers.
With all the benefits listed above, you can rest assure that your company will even better as well as protect the earth from a greedy character.