THE RETURN ON INVESTMENT (ROI) OF SUSTAINABLE BUSINESSES

The Return on Investment or ROI of a Sustainable business is different from that of a new business & the main reason is behind the advantage that sustainability gives to a particular business. Something which comes with time, as sustainability & corporate intelligence can't be achieved in a matter of days or even months. These are two things that are merged for mutual results.

The customers, the employees, the partners, the communities, the shareholders & many other stakeholders all benefit from a commitment to sustainable business practices which seek to protect the planet. Secondly, treat the employees with respect and community engagement highly positively. A positive ROI & Sustainability go hand-in-hand, as many sustainable business practices save lots of money. This is apart from creating a competitive advantage, opening up new markets as well as attracting customers & the employees.

HOW SUSTAINABLE BUSINESS PRACTICES ARE A SOURCE OF COMPETITIVE ADVANTAGE?

Sustainable business practices are a substantial source of competitive advantage. An advantage that helps in the long run for the sake of a company's growth & its vision. CSR or Corporate Social Responsibility values are a significant part of sustainable business practices. Especially for the sake of creating a competitive edge & the desired competitive advantage.

These business practices include creating corporate values and environmental best practices, which include recycling, green practices & many other sustainable practices for the sake of creating a culture of sustainability & green practices. Waste Management practices are part of the environmental sustainability practices in an organization. A massive question that you need to ask yourself is, when did you last analyze your waste expenses? Have you trained your employees & made them aware of ways to reduce the costs involved in waste management?

At the end of the day, all these practices, while creating goodwill, also help in taking a competitive advantage.

THE FINANCIAL RISK OF NOT BEING SUSTAINABLE:

Lacking sustainability in these current times is a huge source of creating financial risks. There is significant company risk in not being sustainable, both to the planet & also to the businesses. Climate change has been linked to carbon emissions, yet another reason for businesses to change due to the natural issues that include COVID-19, which has created a huge disturbance all around the globe. For these reasons & similar ones like COVID-19, a business strategy that includes sustainability is key to building resilience, improving the profits & finally reducing the risks. The later part, i.e. the risk reduction strategies, is summed-up to be the most vital part indeed.

INCREASING THE ROI VIA SUSTAINABLE SUPPLY CHAINS:

Increasing the Return on Investment (ROI) via sustainable supply chains is an active part of most companies' agendas. In fact, there are some companies whose preferences are to do business only with sustainable companies. Even if the requirement is not a formal one for a company, today's vendor selection processes often include sustainability & corporate social responsibility as a vital part of the decision criteria. Not being sustainable & green certified may actually become a cause of a business loss as well as loss of customers at the same time. Simply winning a few large contracts based on your sustainability can pay for your investment in sustainability.

customers & competitive differentiation. As part of the improved reputation benefits, the companies that are greener or green companies tend to be perceived as more ethical, reliable & highly responsible.

Green businesses will surely introduce new customers & new clients. Especially the consumers and companies who seek out sustainable businesses, products & services.

Next, it's competitive differentiation, which is a huge sustainable benefit. It allows you to stand out when competing for business. In fact, it's common today to see requests for proposals, also called RFPs requiring sustainability information from competing vendors bidding on a contract.

Finally, it's the elevated brand, as nothing is more important for you than your brand, off-course. Letting the people know that your businesses care about the environment & society will surely associate "GOOD" with your brand. Apart from this, it will also improve your brand identity.

All these theories obviously deduce that it's better not to take financial risks due to lacking sustainability practices. Most companies, especially new ones & multinationals, regard these practices as 'Best Practices.' The best practices have a role to play in the vision of the company that revolves heavily, or one must revolve heavily, around 'Sustainable business practices.' Links heavily with the modern theories of green marketing &