Corporate Sustainability

In: Business and Management

Submitted By maypra
Words 5144
Pages 21
CORPORATE

SUSTAINABILITY

&

HENKEL’S

APPROACH

There is a growing trend for big companies to use sustainable concepts as core business drivers
For decades, many companies have typically responded to sustainability challenges by pursuing incremental operational improvements. But we are beginning to see an interesting new trend – businesses using sustainability as a tactic for long-term offense, rather than just short-term defence.
Despite the uncertain economic outlook, leading international companies across diverse sectors are investing heavily in sustainable products and services. Others are making cross-industry partnerships to develop next generation products such as the elusive mass market electric car.
Some are even enhancing their business models through mergers and acquisitions that seek to address, and capitalise on, sustainability trends.
Drivers of Sustainability A number of factors are driving the adoption of corporate sustainability programmes in the global business community: * Regulatory Mandates: Growing regulatory pressures compel companies to reduce greenhouse gas emissions, industrial effluents, and other environmental hazards. * Operational Cost Efficiencies: Rising raw materials and energy prices incentivize businesses to invest in waste recycling, waste-to-energy, water conservation and related technologies. * Reputational Risks: Increasing scrutiny of corporate conduct induces managers to engage environmental, social and human resource problems that might damage the company’s public standing. * War for Talent: Intensifying global competition for talented employees boosts the value of corporate sustainability as a mechanism to attract and retain skilled workers. * Global Economic Shifts: Changes in the global economy (rise of emerging markets, demographic shifts, technological advances,…...

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