What is economic sustainability in companies?

A company that seeks economic sustainability must combine profits with initiatives in favor of the environment and the community

Gone are the days of seeking financial gain at any cost. Today, both financial market like the consumers They are keeping an eye on companies that have sustainable practices. 

But do you know what is included in the concept of economic sustainability? We explain below, in addition to showing its importance, examples and how iFood promotes practices in favor of economic sustainability. 

What is economic sustainability?

Economic sustainability is a set of financial and administrative practices to promote the economic development and financial health of a company while respecting the social and environmental dimensions of its surroundings. 

Economic sustainability involves generating profits and dividends linked to environmental and natural resource preservation and community development.

Social aspects involve fair labor practices It is inclusive, pay equity, equal opportunities, gender equality and affirmative actions. 

Environmental aspects concern the protection of ecosystems, the rational use of resources and the mitigation of the greenhouse effect and the global warming

Economic sustainability is incorporated into Sustainable Development Goals (SDGs), which provide a roadmap for sustainable development. 

What is the goal of economic sustainability?

The goal of those who follow this concept is to balance economic growth and profitability with the generation of positive socio-environmental impact for everyone. And the Triple Bottom Line, which is based on the tripod of people, profit and planet. 

When making decisions for a company or country, there are three factors that must be taken into account: economic, social and environmental. 

Companies must, therefore, in addition to being economically healthy and profitable, measure the social and environmental impact of their activities. 

The importance of economic sustainability for companies

This topic becomes relevant because it brings responsibility for the company's financial health, with profit generation combined with environmental and social practices. 

The balance between financial, environmental and social issues in companies' decision-making is responsible for promoting economic sustainability. 

Economic sustainability allows for greater financial savings in the medium and long term, improved efficiency of products and processes, improved company image in society and competitive advantage. 

Furthermore, consumers prefer a company focused on sustainability, as research shows Trend of sustainability and healthiness of Brazilian consumption, 2020. 

For 49% of the consumers interviewed, concerns about the environment are the main reason to buy ecologically correct and sustainable products. 

What is the relationship between economic and social sustainability?

The relationship with social sustainability is complementary, because, for economic sustainability to be complete, there must be social sustainability. 

Social sustainability is linked to a stable pattern of growth with better income distribution and, consequently, a reduction in social differences. 

Quality of life, income distribution and equal opportunities are crucial points for social sustainability to exist in a company or country.  

Examples of economic sustainability

Some examples are prioritizing low-impact economic development and creating innovative and less expensive systems.  

This can be done through the use of renewable energy, circular economy, reverse logistic, more efficient supply chain and rational use of resources.  

These and other measures are part of iFood's day-to-day operations, which promotes a series of initiatives, such as the program Chef Perks and the iFood Regenerates

Vantagens do Chef offers registered establishments benefits such as discounts on products and services and savings on day-to-day expenses. 

The program ranges from collecting used oil for soap production to actions to reduce water consumption and implement clean energy. 

With the iFood Regenera program, the company aims to reduce both plastic pollution and greenhouse gas emissions during deliveries. 

What are the challenges for economic sustainability?

The challenges for the future of economic sustainability in companies have to do with legislation, unmet targets and lack of corporate governance. 

The lack of laws on the implementation of a circular economy or legislation that classifies sustainable economic activities These are challenges to be faced. 

Non-compliance with sustainable development goals are also challenges to economic sustainability, as in the BrThesil in 2021, when there was a setback. 

Corporate governance This is another challenging point when talking about economic sustainability. This is because the lack of governance is a obstacle to innovation

Innovation is a strong ally of economic sustainability, since innovative practices can also promote new and sustainable forms of business management. 

5 tips on how to have a more sustainable company 

A company can implement economic sustainability in different ways and at different operational levels. 

We selected 5 tips from the ebook economic sustainability, from Sebrae, on how to have a more sustainable company. 

Monitoring and control

The company must constantly manage its financial routine, using tools that help in this process. 

Eco-efficiency and waste reduction

To minimize environmental impacts and use of resources in the company's operations, it is necessary to adhere to an ecologically correct production model that is less polluting and consumes fewer natural resources. 

Relationship with suppliers

Choosing good suppliers who are committed to social and environmental issues is a way of promoting economic sustainability. Therefore, having a transparent, honest and sincere relationship with suppliers is essential. 

Personnel training and qualification

More capable employees tend to innovate more, improve processes and make fewer mistakes. Training develops skills, which generates positive results, such as increased productivity and quality of work, excellence and personal satisfaction in contributing to the company and becoming a specialist. 

Promoting social improvements

Investing in social and environmental projects aimed at improving the community where it operates is a way for the company to become economically sustainable. 

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