Is sustainable business practices worth implementing in small to medium enterprises? Is all the good-intentioned changes worth it in the end? These are some of the questions that entrepreneurs might ask themselves. Going green is often used as a marketing strategy for big corporations who want to show customers that they are human too, but sometimes, this greenwashing doesn’t seem to have actual changes. Small businesses can easily wonder if that is their future too if they implement similar strategies, but there is a strong argument that it is possible to achieve when a company is small.
Small businesses are slow to adopt sustainable business practices. Surveys have shown that this is due to a lack of funding, knowledge or skill. However, implementing these changes has cost-saving benefits, creates a competitive edge and enhances both skill retention and attraction. Furthermore, it helps create a culture of constant improvement and innovation while reaching new markets and improving brand loyalty. Additionally, these practices align with ESG principles and the United Nations’ Sustainable Development Goals.
It is easily misunderstood that sustainable practices are only about the environmental impact a business has, yet they serve as a strategy to ensure a business is viable long-term. According to IBM, sustainable business practices are a megatrend that profoundly affects the long-term survival and competitiveness of businesses.
Examples of Sustainable Business Practices
Sustainable business practices refer to a business’s strategy towards reducing the impact that it has on the environment and society, particularly relating to how it operates. The organisation, whether small or medium, for-profit or non-profit, can grow its sustainability by implementing an array of ideas. Furthermore, adhering to a sustainable business practice policy can potentially assist you should a client require you to meet certain requirements.
1. Build Partnerships with Non-profit Organisations (NPO)
Small businesses that want to build their sustainability in a quick, cost-effective way can partner with non-profit organisations. This helps to become involved with charity events that promote your sustainability values. Furthermore, these more experienced NPOs can assist with creating a sustainability plan for your enterprise.
Causes to get involved with don’t need to focus on environmental issues. It can include gender or racial equity, labour concerns, youth projects or any other social issue.
2. Educate Your Employees
Educate employees about the issues that you care about and include them in the process. This increases buy-in throughout the organisation and empowers staff through active participation.
Strategies to consider are the language (wording) you use during company addresses, organising lectures or creating lunch-and-learns.
3. Scrutinise the Supply Chain
The supply chain is a vital part of the business operation – without access to supplies, how will a business function? By looking at the supply chain and the links within it that prioritise sustainability, a business can easily see where it stands on the sustainability scale.
Look at the following factors:
- Are materials sourced responsibly from vendors?
- Is the over-utilisation of natural resources restricted where possible?
- What are the carbon emissions levels?
4. Environmental Policies
- Reducing energy consumption with efficient lighting or solar energy systems or switching to alternative energy sources.
- Better waste management by reducing, reusing and recycling.
- Enhancing water efficiency: Companies can save water by using water-efficient fixtures and appliances, recycling greywater, or collecting rainwater.
Steps to Implementing Your Strategy
If you are considering implementing a strategy for sustainable business practices, there are a few steps you can take.
Step 1: Build Partnerships
Reach out to experts in the business sustainability field. They can guide you on what is possible and necessary for your business.
Step 2: Gain Experience
Use the advice you acquired to assess the sustainability of your business. Take the time to have informed conversations with your suppliers and customers about sustainable practices.
Step 3: Find Information
Deepen your knowledge and understanding of the topic at hand. Seek information from expert sources, books, legislation and other relevant media.
4. Formalise Commitment
As the final step, you will need to formalise your commitment. This can take the shape of implementing internal policies, creating awareness campaigns and aligning your brand messaging across your channels.
Whether it is to improve your sustainable business practices, grow your market reach or new product development, applying for funding through the SME South Africa Funding page is simple. Try it now.
