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1.discusses the importance of business sustainability;
2.discusses the role of stakeholders in business sustainability;
3.critically evaluates the importance of stakeholder-partnerships in business sustainability.
Should use appropriate examples to illustrate your arguments!
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Business sustainability: role of stakeholders and stakeholder-partnerships
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Business Sustainability 2
Introduction
Over the past ten years, there has been a significant evolution in the approach that
companies take towards sustainability. Traditionally, the pressure by stakeholders and
compliance with the laws in place were to factors that forced companies to embrace
sustainability as part of their efforts. However, modern-day firms have embraced sustainability
due to the commercial benefits that results from embedding sustainability as part of the strategy.
As a result, there has been a reduction in the emission of carbon, an improvement in human
rights, the development of more eco-friendly products among others. Although most companies
claim to prioritize sustainability in their activities, it is still not incorporated into their core
strategies. Clark, Feiner, and Viehs. (2015), argue that those companies with strong sustainability
practices display better operational performances which finally translates to increased cash
flows. As such, it is conclusive to state that responsibility and profitability are entirely
complementary. For instance, prudent sustainability practices result in a positive influence on
investment performance. Based on this, it then follows that investors and top managers should
have sustainability as one of the focus areas during the decision-making processes.
Some of the strategies that businesses incorporate in sustainability include corporate
social responsibility, environmental, social, and governance issues as well as sustainable
responsible investing (Lawrence and Weber 2014). These strategies are key in solving global
challenges that the public and other sectors are facing worldwide. The strategies also help in
delivering enormous benefits to a business and all its stakeholders. For this to be successful, all
the stakeholders must collaborate and work actively towards integrating sustainability in the
companyās strategy. As such, companies need to resolve the challenge facing sustainable
development initiatives. For instance, to date, there lacks a clear definition of what sustainability
Business Sustainability 3
means as well as what activities should be regarded as sustainable. Other challenges facing
sustainable development in organizations include the high cost associated with sustainable
development efforts, and reluctance by shareholders to embrace sustainable development. Some
of them are made to believe that sustainable development is unnecessarily expensive.
The Importance of Business Sustainability
Business sustainability plays a crucial role in creating a competitive advantage for a
company. This is achieved through a wider orientation towards stakeholders such as
communities and customers, and shareholders. Consequently, sustainability helps to create a
positive image for the company in the public eyes while also serving the interests of the groups
above (Lozano and Haartman 2018). Since it is impossible to meet the interests of all the
stakeholders simultaneously, the management is tasked with the responsibility of balancing the
needs and demands of the major stakeholders. This approach is aimed at balancing the requisite
financial value for the company and the societal value which serves its interests as wel...
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