How to Create a Sustainable Business Model

So many of the companies seem to suck at sustainability. Or they think that implementing a band-aid solution makes them sustainable. I wonder what business.com has to say about this?

From Hendricks (2024):

"To Rex Freiberger, CEO of Superlativ Media, a sustainable business model generates value for everyone involved without draining the resources that help to create it" (Hendricks, 2024).

“'A business model meant to capitalize on a trend isn’t sustainable, for example, because the social resources that get it started won’t exist in years or even months,' Freiberger explained" (Hendricks, 2024).

"Lia Colabello, managing principal of Plastic Pollution Solutions, noted that there’s a difference between a sustainable business model — a business that will likely achieve profitable growth —  and a business model that prioritizes sustainability" (Hendricks, 2024).

“'A business model that prioritizes sustainability is one that, at a minimum, considers all stakeholders, assesses and addresses environmental impacts and is transparent and thorough in its reporting'" (Hendricks, 2024).

"What makes a sustainable business model work?

1. A sustainable business model is commercially profitable.

2. A sustainable business model can succeed far into the future.

3. A sustainable business model uses resources it can depend on for the long term.

4. A sustainable business model gives back" (Hendricks, 2024).

"Colabello noted that the most effective sustainability strategies start with an organization’s purpose. She encouraged businesses to ask the following questions, similar to what you’d ask when crafting a vision or mission statement:Why does the organization exist?What problem is it solving?How is it going to improve the world, environment and society?" (Hendricks, 2024).

"If you are thinking about implementing a sustainable business model, consider the short-term expenses you will incur. However, these costs are a small price to pay for a better future and a compelling brand value for increasingly eco-conscious consumers. In other words, sustainability sells" (Hendricks, 2024).

I think the unfortunate reality of living in this world is that everything is driven by money. If it doesn't make a profit, then it's not going to exist for very long. When this is the number 1 priority for all companies, even those that are "businesses that prioritize sustainability", it makes me wonder if there is a sustainability limit. Like, at what point does a company say that they are going to draw the line on sustainable practices because they aren't generating enough profit? Money will always be a factor in circular economies but I dread the day when it won't. "When the last tree is cut down, the last fish eaten, and the last stream poisoned, you will realize that you cannot eat money" (Wasserman), 1983).

No generative artificial intelligence (AI) was used in the writing of this work.

References

Hendricks, D. (2024, November 7). What is a sustainable business model?. business.com. https://www.business.com/articles/how-to-create-a-sustainable-business-model/

Wasserman, H. (1983). In America Born & Reborn (pp. 277). Macmillan.