Sustainable Business is Now a Corporate Responsibility
Sustainable business practices used to be a way for companies to differentiate themselves in the marketplace. The demand for sustainable business has only increased, as companies face intense scrutiny from consumers and regulators over the waste in their operations.
Sustainability is quickly becoming standard in the business world, and many analysts now view it as a corporate responsibility. The challenge for organizations is determining how they can achieve sustainability even as they manage hundreds of vendors and supply chains that stretch across the globe.
Here's how companies—and the procurement department—can approach sustainable business moving forward.
Sustainable Business as a Corporate Responsibility
Sustainable business goes far beyond a single green initiative or a charitable giving campaign. It requires companies to work toward an operational model in which they have minimal or no negative impact on the environment. Ideally, sustainable businesses should eventually have a net positive impact on the environment.
Some leaders struggle to adopt sustainability as a corporate responsibility because it seems like they are being forced to accept additional costs. The reality is that sustainability may require costs and it may take some time, but it can pay dividends if it is part of a long-term strategy.
Eventually, sustainable business is good for the bottom line. Companies that embrace sustainability can save money on energy costs and reduce their waste. Sustainability initiatives are also an opportunity for companies to analyze their existing operations and identify areas of inefficiency or bloat.
More importantly, however, is the fact that sustainable business is critical to the Earth. Private companies have played a significant role in producing the pollution and excess carbon that are now harming the planet, and many agree that they should play a role in driving solutions. Society needs companies to lead the way in reducing greenhouse gas emissions and preserving resources, as they have the capital and infrastructure to make the biggest difference.
Finally, sustainable business is important to our society. Sustainable business can create jobs and improve the quality of life for workers. Meanwhile, sustainable technology development will be a key driver of economic opportunities in the coming years.
The Role of Sustainable Procurement
The procurement department is in a unique position to help organizations adopt sustainable practices. As the gatekeepers of company spending, procurement professionals can ensure that vendors meet sustainability requirements and that products are environmentally friendly.
But sustainable procurement is more than just cutting waste and reducing costs. The sustainable procurement process should be integrated into the larger supply chain management strategy to ensure that products are sustainable at every level of production. Sustainable procurement can also help organizations identify new opportunities for sustainable business, such as diversifying their vendor base to include smaller vendors with sustainable practices or helping other organizations with sustainable initiatives.
At the same time, sustainable procurement is a two-way street. Vendors must do their part to reduce waste and preserve resources in order for sustainable procurement to be effective. Organizations that rely on sustainable vendors but fail to implement sustainable practices themselves will struggle to meet sustainability goals—and may not even realize they are falling short.
Moving Forward with Sustainability
Sustainable business is now a standard practice and a corporate responsibility. The procurement department must lead the way in helping organizations adopt sustainable practices, partner with sustainable vendors, and identify new opportunities for sustainable business.
When suppliers and vendors also do their part to reduce waste and preserve resources in order to make sustainable procurement effective, every party can collaborate to build a more sustainable future.
Sustainable travel procurement is set to be a hot topic at the next ProcureCon Travel conference, happening from June 13th to 14th at the Omni Rancho Las Palmas, in Rancho Mirage, CA. Download the agenda today.