Sustainable and responsible business practices influence long-term profitability through creating enhanced innovation, increasing productivity via employees, efficiency gains and new collaboration opportunities.
Another area that has been examined through the lens of effective CSR is the short-term investment in environmentally sustainable production and operations that has led to long term savings and increased profit margins. Findings in a 2015 BAM Ireland / GMIT study showed that contractors have the potential to increase their profitability by up to 14 per cent with resource efficiency. In 2012, Accenture examined businesses internationally to question executives as to whether they view sustainable practices as an investment or a cost. The research established the following views:
The high levels in the emerging markets (97%) that consider CSR an investment rather than a cost outlines an upward trend towards sustainable business operations. This means that existing businesses and the current markets need to re-examine their attitude towards CSR and work towards effective engagement in CSR best practices if they are to remain competitive in present and future economies.
This article is an extract from our new publication, The Business Case for being a Responsible Business.
To receive a free copy, please contact Joe O’Donnell at firstname.lastname@example.org