Sustainability

Approach to Business Growth and Profitability :

We probably have forgotten that resources are limited and depleting

fast
SUSTAINABLE STRATEGY

 The firm’s strategy describes how it will create and sustain value for its
current shareholders
 Shareholders – individuals or companies that legally own one or more shares of stock
in the company
 Stakeholders – individuals or organizations who are directly or indirectly influenced
by the actions of the firm
 Adding a sustainability requirement means meeting value goals without
compromising the ability of future generations to meet their own needs
 Triple bottom line – evaluating the firm against social, economic, and
environmental criteria

2-3
TRIPLE BOTTOM LINE

2-4
TRIPLE BOTTOM LINE CONTINUED

 Social responsibility: this pertains to fair and beneficial business practices toward labor, the community,
and the region in which a firm conducts its business

 Economic prosperity: the firm is obligated to compensate shareholders who provide capital

 Environmental stewardship: this refers to the firm’s impact on the environment

2-5
 Natural System
Constraints
Natural System
Constraints Social
System
Zone of Demands
Sustainability
Business Social
Growth System Business
Aspirations Demands Growth
Aspirations

Dominant Perspective Realistic Perspective

Concept of Sustainability/ Green Operations

‘Sustainable Operations’ can be defined as operations that meet the present needs without compromising
on the ability to meet future needs. 

Business sustainability is often defined as managing

the triple bottom line –
• process by which companies manage their
financial, social and environmental risks
• obligations
• Opportunities

Green Operations

These three impacts are sometimes referred to as profits, people and planet. Sustainable businesses are those
businesses that can survive shocks because they are intimately connected to healthy economic, social and environmental
systems. These businesses create economic value and contribute to healthy ecosystems and strong communities. 
 Avoidance

HOW TO CREATE Reuse Reduction in

Use

SUSTAINABILITY ?

Extended Renewable
Use Resources
DESIGN FOR SUSTAINABILITY
Remanufacturing

Remanufacturing is "the rebuilding of a product to specifications of the original manufactured product using a
combination of reused, repaired and new parts\It requires the repair or replacement of worn out
or obsolete components and modules. Parts subject to degradation affecting the performance or the expected
life of the whole are replaced.
Remanufacturing is a form of a product recovery process that differs from other recovery processes in its
completeness: a remanufactured machine should match the same customer expectation as new machines.

https://www.youtube.com/watch?v=eylhn22c7gw
Reverse Logistics

Reverse Logistics
https://www.youtube.com/watch?v=FPPSn-M3JQk
 HOMEWORK

 Sustainability Reports of Nokia and ITC