Business Ethics

Week 5 Topic:
Sustainable Business Enterprises
 What is Sustainability?

➢Sustainability refers to the ability to maintain or support

a process continuously over time.

➢In business, sustainability refers to doing business

without adversely impacting the environment,
community, or society

➢Sustainability in business is important to ensure

responsible, ethical & ongoing success of the business
What are the 3 Principles of Sustainability?
➢ The idea of sustainability is often broken
down into three principles: Environment
environmental, social and economic – (Planet)

also known as " planet, people and

profits"

➢ This means that in order to be

Business
considered sustainable, a business must Sustainability
be able to conserve natural resources
(environment/planet), support a healthy Social Economic
community and workforce (People) (Profits)
(social/people), and earn enough
revenue to remain financially viable
(economic/profits) for the long-term.
Benefits of Business Sustainability
1. Improving the environment
➢ cutting emissions, lowering energy usage, sourcing products from fair-trade
organizations, ensuring their proper waste disposal

2. Improving the welfare of the people and the community

➢ a sustainable company retains and attracts employees, customers and
investors because they positively affect the society/community

2. Financial benefits
➢ using resources sustainability can improve the long-term viability of a business
concern, just as cutting waste and pollution can also help a company save money
➢ For example, using more efficient lighting and plumbing fixtures can help a company
save on utility bills, as well as improve its public image. There may also be
government tax incentives (reduction in tax payments) for companies that adopt
certain sustainability practices
What Activities Promote Sustainability?
1. Environment
• using renewable energy
• 3Rs: Reduce, recycle, reuse
• “Go Green” and other environmental-friendly practices (preventing pollution, using
sustainable materials, etc.)

2. Social
• promoting fairness in the workplace and observing fair labor practices
• promoting the health, safety & wellness of the employees
• enacting policies that benefit the local community

3. Economic/Financial Aspect
• making sure the business meets the following economic indicators: employment,
increasing sales, income stability and profitability
• “Doing well and doing good” (achieving financial success and at the same time
behaving in a socially responsible manner)
Some Steps to Follow for a More Sustainable
Business Strategy:
1. Review the problem and define specific objectives/goals
2. Create the company’s mission
3. Create the company’s strategy
4. Implement the strategy and evaluate results

What is Financial Freedom?

➢ It is an objective/goal for most companies and even individuals
➢ It means having enough savings, financial investments, and cash to afford
the kind of life we desire for ourselves & for our families
➢ Take care of your belongings—maintenance is cheaper than replacement—
most importantly, take care of your health.
References:
Grade 12 PIVOT 4A Learner's Packet (LeaP) Week 5 –
Business Ethics and Social Responsibility

https://www.investopedia.com/terms/s/sustainability.asp