Organizational Sustainability

Not all organizations believe that sustainability can add value. Most direct their environmental capital expenditures toward downstream end-of-pipe pollution controls or clean-up technologies. This can seem expensive which is why many non-sustainability focused organizations view environmental management as simply a cost center and seek to minimize the expenses of complying with regulations.

Interface’s experience, along with a growing stream of data from other sources, strongly suggest that the adoption of sustainability measures can be cost neutral or may even turn environment management into a profit center.

Initial investment costs may be (but are not always) required the return on sustainability-oriented investments can often be rapid and large. Small and mid-sized businesses can also benefit from adoption of sustainability measures.

Growing evidence suggests that, when sustainability measures are adopted through a wise and efficient process, they may be cost-neutral or even reduce costs and become a major source of value.

Just as sustainability measures can cut costs and raise shareholder value, environmental and social liabilities can reduce shareholder value. Growing evidence suggests that the more that directors and CEO’s fail to assess report and address environmental risks, the greater the potential for shareholder suits over breach of fiduciary duty.

Shareholder value can decrease because of:

• violations of environmental law

• lack of preparation for environmental regulations

• inadequate disclosure of environmental liabilities

-Companies that leave environmental and labor problems off the books are hiding potential major financial costs and committing clear violations of the law.

The adoption of sustainability measures can prevent the loss of shareholder value. Firms that fail to proactively reduce their risks are likely at some pint on the future to be punished by the market, investors and regulators.

More than just the private sector can benefit economically from the adoption of sustainability measures. The government can also save money. It has been shown through numerous examples that, even at a national scale, sustainability programs can certainly not hinder, and may even benefit the economy.

In addition to providing competitive advantage, the evidence suggests that the application of sustainability measures benefit employees, community wellbeing, and native cultures. Reports have shown that sustainable practices in the workplace can improve the health and productivity of workers directly by making the workplace and the community a healthier place to live. To be sustainable, true social equity means that the way one nation industry or community makes its livelihood must not undermine options for others to make theirs. There are three options-increase wages and living conditions abroad while cutting costs and producing innovative new products and services at home.

Sustainability product methods can create jobs in a wide array of industries. As environmental pressures grow along with the need to reduce operating costs, smart entrepreneurs will find ways to produce goods and services to meet the world’s growing need for environmental and socially responsible products. The business and job opportunities that sustainability offers are endless-restrained only by the imagination and poor governance and leadership.

The core elements of sustainability and the economic data suggest that a number of pervasive forces provide ample evidence of the need and benefits of adopting sustainability development measures. However, other than a few early adopters, few organizations in western societies have successfully adopted these measures.

The primary reason why TQM, strategize planning, re-engineering and downsizing programs fail to achieve