Profitability for sustainable businessThe page was last modified:
Sustainability for a business is basically a matter of understanding how to make money long term. Profit and profitability are a prerequisite in order to have capacity and resources to implement change and make investments. But this does not need to be at the expense of employees, customers, the environment or society as a whole.
You need to generate profitability in a sustainable way to maintain your credibility because customer requirements, consumer awareness and legal requirements are going to increase moving forward.
Increasing the profitability of your business by cutting costs is sustainable if it involves physical resources, such as saving on power or raw materials. Profitability can also be increased through long-term investments, such as installing solar panels, or investing in electric vehicles or energy-efficient machinery.
Strengthening profitability in this context can also involve developing a product or service to satisfy customer needs in a new and more sustainable way.
Training your staff to be more mindful of their choices within their work role can strengthen both self-awareness and performance.
Questions to consider
- What can you do to ensure your business makes more efficient use of resources?
- Is there a need to develop more sustainable products or services in your industry that satisfy customer needs in a better way?
- Can you charge a higher price for your product if you clarify the value that the customer receives?
- What can you do to ensure your employees are happy, have the chance to develop and remain with the company?
Responsible: Swedish Agency for Economic and Regional Growth