At the present sustainable growth is a high priority in business development. Through sustainable development entrepreneurs aim to show their commitment to contributing to society. Sustainability, in other words, leads to added value, both for the business and society.
Entrepreneurs that engage in sustainable development get a change to make an important contribution to the development of their community. That is why sustainable development is often referred to as socially responsible development. A socially responsible entrepreneur goes beyond what business regulations dictate and tries to address social issues in the community. Social issues important to sustainable development include climate change, employment, economic growth, poverty reduction, human rights, and preventing child labor.
Business, Social and Communal Values
A socially responsible business is sensitive to its environment, and socially responsible entrepreneurs typically combine business aspects with caring for the environment and its inhabitants.
A phrase that has been growing in popularity in the last few years is "people, planet, profit", also referred to as the triple bottom line or the 3Ps. The 3Ps essentially stand for social equity, economics, and environmental factors. By operating the 3Ps entrepreneurs achieve a balance between the desired financial results of the business and its impact on social and communal values.
People
The first P is a measure of how the business performs on a social and ethical level. In other words, how the business treats its personnel and the community it operates in. Themes addressed under the first P include human rights, child labor, diversity, male to female ratios, and discrimination.
Planet
The second P assesses how the business affects the environment. It looks at whether the entrepreneur is doing enough to counter pollution. Important issues that fall under the second P are cleaner production, environmental protection, sustainable technology, and eco-efficiency.
Profit
The third P may stand for profit, however, this profit isn't limited to the financial earnings of the business. The last P covers all economical aspects of the business. Important themes here are employment, location policy, outsourcing, sponsorship, and employee participation.
Business Process Mapping
Any entrepreneur who wants to get involved in sustainable development first needs to map out the processes by which the business works. The action of business process mapping will reveal all major interest groups. Now the entrepreneur will be able to determine which themes from the 3Ps he or she wants to give attention to. The chosen themes are then used to start sustainable business projects.
The key to success in sustainable entrepreneurship lies in the complete commitment of all key people in the business. Communication is crucial in this approach.
Stakeholders, whose interests may be affected by the activities of the business or who exert influence on the interests of the business, are the driving force behind any innovation. Close cooperation with stakeholders enables entrepreneurs to explore new markets and to discover and guard against risks.
© Zawya BusinessPulse 2014
