Modern Envioroment
In the modern environment, the companies are forced to reduce the harmful effects of their activities. For example, every corporation can face a resistance of the vast number of stakeholders of all kinds living all over the world. Therefore, it is becoming more and more important to conduct business while generating less harm to stakeholders and the environment. The reading discusses the concept of a Sustainability Sweet Spot and its importance for the modern firms.
Primarily, one should consider the term Sustainability Sweet Spot which is used to name the point when the company remains profitable while satisfying the demands of the society. According to Andrew Savitz, the firm should consider its capital to be not only the material and non-material assets belonging to it, but also the water, air, sources of energy and people. From this point of view, it should operate to get use of the available resources while not doing harm to its capital.
In the case the company is willing to find the Sweet Spot, it should examine not just immediate costs of the decision, but also the future expenses of the choice to fail to meet the sustainability demands. Subject to Savitz, quite often the firms are motivated to become more eco-friendly because this approach can ensure them greater profits in the future. In fact, the same refers to the reduction of the future costs, as ecological norms and requirements to the conditions for personnel are becoming stricter from time to time. In order to become efficient in finding the Sweet Spot, the company should determine the main claims of the stakeholders and attempt to satisfy them to the extent it can successfully operate and generate profits.
However, sometimes the managers of the enterprises do not want to look for the Sweet Spots. In fact, they consider that the main task of every business is to remain profitable and create working places. Such an approach leads to the narrow understanding of the stakeholders’