WHAT ARE THE PRINCIPLES OF SUSTAINABLE BUSINESS?

There are 5 principles of sustainable business:

1. Diversity - To be robust, the company requires a diversified collection of resources,

people, and investments. While various investments are thought to consume resources
and managerial attention, a single line of business, single revenue sources, or personnel
with similar attitudes might expose the company to larger hazards. Companies can no
longer rely on sticking to their knitting.
2. Modularity- Knowledge flows are frequently perceived as being facilitated by matrixed
organizations. Such organizations, on the other hand, are not only resource intensive, but
they also expose the entire organization to shocks as they ricochet throughout the
organization. Organizations must become less connected and focus on modularity, with
functions kept separate, in order to be shock-resistant.
3. Openness- Firms that are resilient must be aware of what is going on outside their walls.
These businesses have a keen sense of impending problems. They are always keeping an
eye on the outside world and creating scenarios for conceivable futures. They hope to not
only react to, but also to shape, those possible futures. The organization's relationship
with the outside business and natural environment is crucial, permeable, and changeable.
4. Slack Resources- Slack or surplus resources are generally perceived as costly and
unproductive in an era of just-in-time manufacturing. However, innovation and
adaptation necessitate both monetary and creative investments, as well as the ability to
shift course. Storm-resistant companies must allow for a bit extra time to absorb new
ideas, scenarios, and paradigm shifts. Slack resources, both assets and capabilities, are
always seen as critical in the development of a long-term company strategy.
5. Matching Cycles- Firms frequently consider how to improve performance and get more
out of less. However, this kind of thinking puts businesses on a treadmill, forcing them to
do the same thing faster every day and putting them at risk of running out of resources.
Resilient organizations consider cyclical processes, such as growth and contraction
cycles, manufacturing cycles, and customer buying patterns cycles, rather than steady
growth. Understanding the economic and environmental rhythms will enable the
 company to meaningfully synchronize with them and avoid overreacting to what is most
likely merely a cycle.

REFERRENCES:

-https://www.nbs.net/articles/five-principles-of-a-sustainable-business-model

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