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Pratiksha Gaikwad

Specialization : MBA Fin

2K181075

Article Review on

A STRATEGIC APPROACH TO SUSTAINABILITY

This article mentions about the impact of human industrial process on the environment. In
order to gain sustainability in the environment to maintain the balanced life organizations
these days rely on triple bottom line to disclose the sustainability report and very less number
of organizations includes detailed assessment environmental impact. The business
community has seemed to be slower to embrace environmental sustainability partly due to the
way it has been presented which fails to take account of how senior managers see the world.

This article shows how senior managers might choose to address the challenge of
environmental sustainability not just for the sake of being a moral imperative but to perform
their fiduciary responsibilities and to prepare their companies for the disruptive changes that
the future holds.

Strategic approach to sustainability in the environment can be studies through focusing on


various issues such as – the nature of business in the society, the logic of business, different
priorities, business risks, the limits of responsibility, the interplay between technological
innovations and the environment and many more.

Given the gulf between how senior managers perceive the world and hoe activitist, journalists
and legislators see it the path towards better environmental performance is likely to be an
arduous one for many companies. While there are no easy solutions the author suggests six
strategic options and an equal number of steps to bolster the chances of choosing the right
path.

The six strategic options are as follows:

1. BREAK THE LAW – The option of deliberately choosing not to comply with certain
legal norms is not to be recommended or endorsed.
2. TAKE THE LOW ROAD – This would be doing the absolute minimum required to
comply with the laws in each of the countries and territories in which your company
operates.

3. WAIT AND SEE – Management chooses not only to comply with the basic legal
requirements in force today but also seeks to prepare the firm to adapt the changes in
legislation, consumer behaviour and competitors strategy.

4. SHOW AND TELL – This strategic option presumes that your company is making
progress on environmental issues but might not be publicizing its activities.

5. PAY FOR PRINCIPLE – The board may decide to sacrifice certain financial metrics
in order to meet the ethical or environmental standards of key shareholders.

6. THINK AHEAD – The final approach requires going beyond what is needed today
not just based on reasons of principle but also on hard business logic.

Bringing it all together the analysis of the firm or organization is important which should
compulsorily include analysis of firma past, present and future in terms of region, industry
and groups.