Long-term sustainability involves responsibly managing resources to ensure a company’s survival in the future. It requires a broad perspective on the impact of doing business and considering how one company’s resources might affect another’s. While regulatory measures can be vague and subject to change, engaging in sustainable practices can demonstrate a company’s commitment to protecting assets and doing business responsibly. Ultimately, people are the most vital resource, and ensuring a livable and sustainable environment for humans is crucial for a profitable and sustainable business environment.
Long-term sustainability is a business concept that has garnered considerable attention following revelations about global warming and depleting natural resources. At its most basic level, long-term sustainability suggests that a company will improve its chances of survival in the future by ensuring that the resources used by the business are responsibly managed and maintained. According to a 2010 United Nations study, the vast majority of corporate chief executive officers (CEOs) believe that long-term sustainability is a key determinant of long-term success.
The business practices that have fueled the modern global economy were not developed at a time when environmental impacts were understood or even seriously considered. During the Industrial Revolution, when large-scale activities really began to shape the globe, science had not yet developed a widespread means of measuring environmental damage. Even though environmental science made great strides in the 20th century, low levels of infrastructure and gaps in communications meant that information about commercial and environmental exploitation in developing countries often went unreported or unnoticed for years. With the development of the global economy, so is sincere concern for the sustainable use of resources and practical management of the environment.
The simplest form of long-term sustainability is best explained with a basic example: if a logging company cuts down every tree in its range, the company will go out of business due to lack of supplies. In order to secure a future for the business, tree replanting and logging management must be incorporated into the cost of the business as an investment for the future. By guaranteeing a sustainable amount of wood, the company guarantees its supply.
Long-term sustainability becomes more complex when considering how one company’s resources might affect another’s resources. If, by cutting down trees, the logging company destroys riparian vegetation, thereby damaging waterways and killing riverine ecosystems, the freshwater fishing industry could be harmed. If freshwater fishermen then start building unsightly and polluting fish farms along a popular area of the waterfront, the tourist industry could be hurt. Long-term sustainability requires a broad perspective on the impact of doing business.
A major concern with the concept is that regulatory measures are often vague and subject to change. A logging company could invest in replanting white pine for the future, only to have a regulatory agency decide that white pine can’t be registered in 20 years. There is certainly an element of risk to long-term investments in sustainability, but proponents argue that this risk should be combated by engaging immediately in sustainable practices. By demonstrating that a company is interested in protecting assets and doing business responsibly, that company’s owners are more likely to be involved or consulted by regulatory committees that will determine future practices.
The broader point of long-term sustainability suggests that, at the bottom level, people are the most vital resource. No matter how many trees are planted, a company will die if there are no customers. Global warming is a huge threat to trade, with the potential to disrupt infrastructure and damage normally fertile areas of the planet. By ensuring a livable and sustainable environment for humans, companies hope to ensure a profitable and sustainable environment for business.
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