Sustainability is a growing trend for businesses large and small. The International Organization for Standardization stated that sustainable development was added to the international political agenda after a 2002 conference in Rio De Janeiro. The main agenda of being a sustainable business is the reduce its carbon footprint. However, many business take different approaches to achieving this goal. If a new small business wants to become sustainable, it should focus on internal consistency and external credibility.
The Small Business Association stated a few ways to implement sustainable business practices. It recommends preventing air pollution, using less paper, reducing waste, conserving water, employing renewable energy and designing a green building. While all of these are methods of becoming sustainable, not every business can check every box on the list. For instance, a software company cannot make a huge impact on conserving water and using less paper as everything it might utilize on a daily basis will not fit in those categories. This does not mean that small efforts do not matter, however. Any effort to help the environment counts.
Internal consistency
Rather, according to the International Institute for Sustainable Development, the first step for a business to establish a sustainable policy would be to prepare a mission statement that incorporates a green initiative. This will ensure internal consistency in what the business offers. An electronics manufacturer may want to provide car companies with inexpensive, long-lasting products. This kind of business could emphasize its sustainable policy of protecting the environment by refusing to use plastic, for example.
The next step will be to measure and report on business sustainability. This is for the company's customers, as well as its employees. By measuring the impact an enterprise has on the environment, it can reinforce that internal consistency and mission statement. The IISD stated that large corporations issue reports annually detailing their environmental performance. Some businesses call these corporate social responsibility reports. It builds brand trust and recognition which supports a business's internal and external credibility. Employees would rather work for an eco-friendly company, according to a recent Nielsen report. It stated that 67 percent of employees want to work for a business that accepts social responsibilities.
External credibility
A small business will also need to focus on external credibility. A CSR report is a good start, but the business needs information and statistics to put into the report. The IISD recommends working with corporate associates that care about the same issues. It stated that the Business for Social Responsibility is a good eco-entrepreneur. Its focus is on human resource issues, environmental performance, community relations and resolving international problems. The IISD stated that it is comprised of 1,400 members and companies that pay to be a part and receive advice on increasing social and environmental performance. This boosts consumer confidence and improves a business's credibility. The Nielsen "Doing Well by Doing Good" report found that 49 percent of consumers will volunteer for or donate to organizations that engage in social and environmental programs.
While the Business for Social Responsibility is one method of gaining external credibility, another option is to work with non-profit organizations. These are sometimes referred to as non-government organizations, or NGOs. According to IISD, NGOs can help suggest eco-friendly product lines, evaluate the merits of items and make recommendations on marketing strategies. An Accenture consumer study stated that 77 percent of those between the ages of 18 and 34 are loyal to brands that promote their CSR policies, whether that be on the product's label or through media marketing. By partnering with an NGO, a business's revenue can increase as it does good deeds for the community. Another idea proposed to the IISD is for a company to create a marketing slogan for its sustainability efforts. The IISD reported that a Wisconsin printing firm created a tagline for its recycling program and it promoted the tagline with a mascot.
Another method for small businesses to achieve a level of sustainability is to partner with its local government. The Accenture consumer study also found that 85 percent of people believe that businesses are accountable for improving their lives, while 86 percent of respondents put that burden on government. By working with local officials, that weight can be shared and used {o the small business's benefit. The enterprise can also attach its name to environmental projects and the community will view it as a company that cares about improving its local communities. The Nielsen report stated that 42 percent of consumers support a company that undertakes development projects that benefit the communities around its offices or factories.
Once a small business creates a corporate statement, CSR report and marketing campaign centered around one sustainable policy, it can try to work on other methods of becoming eco-friendly. Every little effort counts towards internal consistency and external credibility.
