Definition of Sustainable Business and its Concept

What is Sustainability in Business? 

      A business is built to bring profit to its owner, employees or consumers. However, in the business world, you are also familiar with a sustainable business.

Sustainable business is a goal that must be pursued. This is because in essence a business does not only bring benefits to the company and the people around it such as the staff or the consumers themselves. However, a sustainable business is certainly expected to be able to bring contributions to the environment and society.

Definition of Sustainable Business

Sustainable business has an important role in economic activities. Sustainable business is basically a term from the English language which consists of two words, namely sustainable and business.

It can be interpreted that a sustainable business is a business that has both short and long term benefits, and is sustainable, not just for a moment.

A business is said to be sustainable if the company is able to achieve the goals in its business, can increase value over the long term, and has consistency in maintaining what it has achieved.

In general, a sustainable business must be able to manage its business based on three elements which are called 3P, namely:

Profit

Every establishment of a business has the main goal to get profit. Thus, a business that continues to develop is to pursue more profits.

One of the ways to increase profits in a sustainable business is to increase production and efficiency by increasing capital costs. Meanwhile, increasing productivity can be done by improving work management.

Improvement of performance management can be done by simplifying the production process, reducing less efficient activities, and saving processes and time.

Costs can be made more effective with optimal cost reduction and the most efficient use of materials.

People

Not only looking for profit, a business also has a relationship with the surrounding community.

Keep in mind that a sustainable business is a sustainable business that provides benefits not only for business owners and their employees, but also for society.

A business will be able to develop into a bigger one if it is supported by the community. Therefore, there is a need for reciprocity between business and the community.

The community provides support for the continuity of the business, and the business helps meet the needs of the community.

Environment

Society and the environment are inseparable and both are important aspects for business continuity. The environment relates to human activities that take place, including in running a business.

A business definitely needs land as a place to stand and produce, water to drink, air to breathe, etc. To keep the business running well, it is necessary to protect and preserve the environment.

A sustainable business is a business that is able to provide benefits not only to companies and communities but also to the surrounding environment.

Sustainable Business Goals

The term sustainable business is often associated with businesses that are able to preserve nature or the environment around it. Environment is a point that is often associated with sustainable business.

The goal of a sustainable business is still related to many aspects, such as the economy, law, and consumer behavior. The objectives of a sustainable business are as follows:

Increase Profits

Building a business into a sustainable category is one of the steps to advancing the business. With a label, people will trust the business more.

And not just trust, companies can also increase the profits they get. The community will prefer to use products from sustainable business companies that are more environmentally friendly.

In order to protect the environment, companies must also prefer raw materials that are environmentally friendly and reproducible. That way, the company will indirectly benefit in the long run because it can save costs.

Maintain Good Company Reputation

One of the importance of applying the concept of sustainable business is being able to maintain a good reputation of the company in the eyes of the public.

When a company applies this principle, the public will put their trust in the company.

Thus, the company can increase its productivity in order to grow bigger and last longer.

Protecting Nature

As mentioned earlier, sustainable business is closely related to environmental issues.

A business will not be able to run well without a healthy environment and community support.

Therefore, the company must also be able to protect the environment which means keeping the business going. (wikipedia.org)

The idea of a sustainable business is as a driving force for companies to make various efforts to maintain business continuity.

Some ways that can be done to maintain this continuity are by adopting better systems or using more environmentally friendly technologies.

With the use of more environmentally friendly technologies, the negative impact on the environment can be reduced. Thus, environmental sustainability will be maintained.

Attracting Investors' Interest

One of the benefits of implementing the concept of a sustainable business is that it is easier to attract investors to invest their capital.

This is because the company has gained trust and a good reputation in society as a consumer.

The application of the sustainable business concept also makes the sustainability of the company last longer, so that investors will be more interested in investing because it is more secure.