2minutes time for speaking. #essay on strategies for ensuring long-term sustenance of the environment is purely a business deal. plz! it is urgent plz plz !!!!!!!!❗⁉‼‼‼
Answers
Economic sustainability is often the first type of sustainability companies strive for. How can company revenues cover costs with enough left over to grow the business and satisfy shareholders? However, it is not always a key consideration for socially-orientated organizations or businesses which rely on government subsidies to survive. The problem is that the communities employed and served by these organizations are at risk if the organization runs out of funds, and a grant-supported business, in the long run, perpetuates a false understanding of the value of goods. Hence, economic sustainability is rightly an important consideration.
Even if a business is not particularly socially driven, each company has an obligation to its employees and customers to mitigate economic risks. No sustainability discussion can occur without taking into account economic sustainability. And yet so many discussions led by third parties leave this component out, despite it being at the top of executives’ priorities, given their short-term pressures.
One drawback of being a public company is the legal obligation companies have to stakeholders to increase profits every quarter – a short-term horizon which may not favor ‘sustainable’ decisions. In the interests of using business as a vehicle for solving larger social problems, an increasing number of US states and countries are providing the option of registering as a benefit corporation (B-corp), or as a social business. Countries are also in the process of designing a stock exchange exclusively for social businesses, or businesses whose main aim is not solely profit-generation. Companies which are not public but still want to avoid them at times the short-term pressure of banks and private equity funds may learn from the example of one family business, which has positioned itself for long-term financing through annuity funds.
The challenge is not to prioritize one type of sustainability over another, but to make fully conscious decisions, knowing the long and short-term repercussions.