THE IMPACT OF ENVIRONMENTAL SUSTAINABILITY ON CORPORATE BUSINESS STRATEGY

Abstract

What is really important in the strategy that determines business operations in a company today is environmental sustainability, and this is because every company faces a kind of reality in relation to its operations that is global, regulatory, and consumer. Businesses that really make sustainability part of their strategic framework develop their corporate reputation and, in a sense, end up with a more innovative approach to competition, but really reduce costs and risks associated with climate change and resource constraints. Long-term profitability of the organization is based on sustainable practices, such as green supply chain operations, energy efficiencies, and eco-friendly product designs, as these address the concerns of all stakeholders. And now the influence of environmental sustainability in corporate decision-making, such as ethical governance and responsible resource efficiency, is reflected while those adopting sustainable business models enjoy efficient operations, confidence increasing from investors, and customer loyalty further. Regulatory compliance and respect of international sustainability standards refresh the necessity of businesses integrating environmental aspects into their strategies. Unquestionably, however, there are problems such as high costs for the transition to sustainable operations, resistance to change, and needed technological improvements. To work in favor of organizations that are early adopters of sustainability, the very obstacles mentioned above provide a competitive advantage to the organizations with respect to the ability to exploit new opportunities in green markets and regulatory incentives.