Global sustainable enterprise: Balancing profit with positive impact

Businesses are recognizing their responsibility to balance profit-making with contributing positively to the planet and society. Global sustainable enterprises are at the forefront of this shift, embedding environmental, societal, and economic sustainability into their operations. This comprehensive approach ensures long-term viability and a meaningful legacy. 

“It is at the intersection of the environment, societal and economic where true sustainability lies,” said Shirley-Ann Behravesh, assistant professor of global sustainable enterprise at Thunderbird School of Global Management at Arizona State University. 

“We cannot make decisions that are purely economic without considering the other two domains. If we are, then we are leaving out some important factors.”

But what exactly does it mean to run a global sustainable enterprise, and why is it critical in today’s world?

The three pillars of global sustainability

“We think about sustainability in the realm of the environmental, the societal and the economic,” Behravesh said. “As an entrepreneur, someone who runs a business, you need to understand how each one of these three things works for you.”
 

1. Environmental sustainability: Preserving the planet for future generations

Environmental sustainability focuses on minimizing harm to ecosystems and ensuring the planet’s resources remain viable for future generations. It’s about balancing resource consumption with ecological preservation.

“When it comes to the environmental sector as an organization, we depend on natural resources,” Behravesh said. “All organizations, all societies, depend on natural resources.”

Important practices include:

• Biodiversity preservation: Protecting and restoring habitats, reducing pollution, and responsibly sourcing raw materials can help safeguard biodiversity.
• Carbon offsetting: Some businesses invest in carbon offset programs, such as reforestation or renewable energy projects, to neutralize their emissions while transitioning to greener operations.
• Renewable energy adoption: Transitioning from fossil fuels to renewable energy sources like solar, wind, and hydroelectric power is crucial. This reduces carbon footprints and mitigates climate change.
• Waste reduction and circular economy: Sustainable enterprises prioritize reducing waste through recycling, reusing materials, and designing products that minimize environmental impact. Circular economy principles focus on keeping resources in use for as long as possible.
• Water conservation: With water scarcity affecting many regions, sustainable enterprises adopt water-saving technologies, reduce wastewater, and invest in systems that recycle water.

2. Societal sustainability: Empowering people and communities

Societal sustainability ensures that businesses respect and enhance the well-being of employees, communities, and society as a whole. This pillar acknowledges that people are as important as profit.

“It's thinking about the well-being of the people within the organization, the well-being of the people outside the organization, and the natural resources that we are connected to,” Behravesh said.

Key practices include: 

• Community engagement: Enterprises can support local communities through philanthropy, education initiatives, infrastructure development, and small business partnerships.
• Employee well-being: Offering benefits such as mental health support, flexible work options, and career development opportunities ensures happier, more productive employees.
• Ethical labor practices: This includes providing fair wages, ensuring safe working conditions, and preventing exploitation at all levels of the supply chain.
• Human rights advocacy: Businesses operating globally must uphold human rights, avoiding child labor, forced labor, or discrimination in their supply chains.

3. Economic sustainability: Building resilient and profitable enterprises

Economic sustainability emphasizes creating a business model that is financially viable while fostering shared prosperity. The goal is long-term stability rather than short-term gains.

“We want our businesses to do well at the end of the day,” Behravesh said. “That's why they exist. They function as a part of society.”

Notable practices include:

• Fair trade and ethical sourcing: By working with suppliers who prioritize sustainability, businesses support ethical practices while securing stable supply chains.
• Innovation and efficiency: Sustainable enterprises invest in new technologies and processes that reduce waste, improve efficiency, and drive cost savings.
• Local economic development: Supporting local suppliers, hiring locally, and investing in regional infrastructure boosts the economies of the communities where businesses operate.
• Risk management: Economic sustainability includes preparing for risks associated with climate change, market volatility, and global supply chain disruptions.
• Sustainable product design: Products designed for durability and recyclability not only reduce environmental impact but also create cost efficiencies and brand loyalty.

The role of global enterprises in sustainability

• Addressing climate change: Global enterprises are uniquely positioned to lead the fight against climate change. Through innovative technologies and scalable solutions, they can reduce their carbon footprints and influence supply chain partners to do the same. Many have adopted science-based targets to ensure their commitments align with the Paris Agreement.
• Reducing waste: Enterprises that implement circular economy principles—such as reusing materials, eliminating single-use plastics, and designing for durability—help to close the loop on waste production. These efforts are crucial in tackling the growing global waste crisis.
• Fostering inclusive economic growth: Global sustainable enterprises often work to uplift marginalized communities by creating jobs, supporting small businesses, and investing in education and infrastructure. These initiatives help address systemic inequities and ensure that economic growth benefits all.

Transitioning to a sustainable business model is not without its challenges. High upfront costs, resistance to change, and navigating complex global regulations can pose barriers. However, the opportunities far outweigh the hurdles. Sustainable enterprises gain competitive advantages, including customer loyalty, operational efficiency, and resilience against environmental and social risks.

The future of global sustainable enterprise

Global sustainable enterprise is more than a trend; it is a necessity for the survival and prosperity of both businesses and the planet. By integrating environmental, social, and economic sustainability into their core operations, businesses can thrive while leaving a lasting positive impact.

Global sustainability management is a key part of disrupting the cycle. This course teaches, among other points, how to tackle these problems.

Behravesh says a competency called System Synching is key to the future.

“It just pervades all sustainability problems,” she said. “The idea is that no problem sits in isolation. When we have one single problem, be it related to natural resources or to society, it’s tied to all other problems. It’s also tied to many different stakeholders.

“No one organization can solve this by themselves. This is a concerted effort. We all need to work together.”

As part of the Intermediate program of the Najafi 100 Million Learners Global Initiative, the Global Sustainability Management course can help you gain insights on:

• The three pillars of sustainability
• The roles of leadership and technology in advancing sustainable initiatives
• Strategies for integrating socially responsible practices into organizational operation.

Learn more about sustainability and its relevance to business practices in the 21st century.