Sustainable Business Model: The Impact of Sustainability White Paper

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Sustainable Business Model: The Impact of Sustainability on Shareholders

The objective of this study is to consider the need for adopting sustainability as a business model and to present evidence both for and against sustainability as part of the company's business model.

Sustainability

The Economist writes that the phrase 'the tripe bottom line' was first stated by the founder of a company called SustainAbility in 1994, John Elkington. Elkington posited that companies needed to compare three bottom lines including the first for measuring traditional corporate profit, or that of the profit and loss account and secondly, that of the company's "people account" which measured the level of social responsibility of the company. Finally, the third bottom line was stated as the company's level of environmental responsibility. (Paraphrased, 2009) These three formulate the triple bottom line of "profit, people, and planet." (The Economist, 2009, p.1) Alex Steffen states that while society is successful there are major flaws in the footprint society leaves on the planet. Presently, there is an unsustainable level of footprint left on the planet in that we are using the one earth at the level 10 planets would be utilized.

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This is unsustainable. While some have more than enough, others do not have enough to survive. The global population density is the primary reason for lack of sustainability. It is necessary that society formulate a sustainable way of living. Presently the knowledge needed to build a sustainable society is not possessed by people today. Steffen states that the way that we live in cities needs to be addressed by creating denser and more livable cities. Leave aside "what is natural to be natural." (Steffen, 2005) Transit systems need to be reformulated as well as do buildings for living including those that generate their own electricity and use recycled water. Included in this are what Steffen terms 'green roofs'. Sharing means using less, for example car pools is one way of becoming more sustainable. Knowing and monitoring the amount of energy used is one way of becoming more sustainable. Methods….....

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