Transforming a Firms Competitive Landscape by Understanding and Using Sustainable Business Practices

Transforming a firms competitive landscape by understanding and using sustainable business practices

By Ziska Fields

Abstract

The purpose of this paper is to provide information to South Africa firms and its leaders regarding the need for and use of sustainable business practices. The paper is based on a review of relevant literature. Various strategic options are highlighted as well as important legislation regarding sustainability. The Equator principles serve as an action plan to enable firms to enhance their sustainability efforts. Seventh Generations are then used to illustrate what firms can do to ensure sustainability. The information shared in this paper can be practically applied to any firm in South Africa. The paper uses relevant information to highlight the importance of sustainability now and in the future and shows that existing business models and thinking need to be challenged and new thinking regarding a sustainable future is required to remain competitive and profitable. This will require constant focus from firms and its leaders to enhance their business operations and practices.

1. Introduction

The world is being shaped by unprecedented global trends like population growth, emerging markets and climate change. These global trends are pushing the world to the limits of its ecological system and are changing the competitive landscape in which countries and businesses operate.

Climate change research indicates that the world is highly polarized between heavy greenhouse gas-emitting countries and resource-poor countries. The rich countries of the world are predominately responsible for climate change, while poor countries bear the brunt of its impact. This polarization is due to the fact that many modern business practices have their roots in the Industrial Revolution which led to practices causing extreme destructive to the environment (Anarchist Writers, 2008:1).

The impact of climate change is already visible in treats like...