Consumers, rivals, and financial institutions are progressively exerting pressure on corporations to take action on environmental sustainability issues. This group of external stakeholders can include anyone from competitors to investors, but the underlying principles of environmental sustainability are the same for all of these parties. Business leaders must adapt the laws of the market to include the planet's key performance indicators (KPIs) and become a member of a new market economy. In the twenty-first century, sustainability has emerged as a critical business imperative, and corporate leaders must change their strategies and policies to reflect this new reality.
According to Michael E. Kirst, environmental sustainability rhetoric is focused on individual actions, with little consideration given to the influence of collective, public change. Individual actions do have an impact on the degree of pollution and deforestation in a community, but they are frequently inadequate unless they are combined with organizational and societal movements to achieve significant results. For example, environmental concerns are rooted deeper in patterns of investment and consumption that are dictated by international development strategies and commodity pricing on global markets, rather than in the environment itself. Consumers' actions, although crucial, are often ill-informed or reluctant, while governments, companies, and regulatory bodies are frequently ill-equipped or unwilling to make the choices that have a significant impact on the world's environment.
Profitability and environmental concerns must be balanced in order for a business to be sustainable. Developing goods that recycle precious materials while also adding value to the natural and human variety may be a profitable venture for businesses. This is particularly true in the consumer realm, where the vast majority of customers are unaware that their purchases are contributing to global warming via their consumption. Nonetheless, the question remains as to how business leaders can use sustainability to boost profits. Consider a few real-world instances. The Great Pacific Garbage Patch, for example, is a major source of pollution. This garbage patch is about 1.6 million square kilometers in size and is larger than the state of Texas. In addition to having an adverse effect on marine life, such as sea turtles, it has been linked to diseases such as cancer and heart disease. The difficulty, however, does not end there.
In Michael E. Kirst’s opinion, business executives are in a unique position to bring about change in their organizations. While other corporate executives can just react to external forces, they are the ones who have the power to truly alter the path of the company's operations. It is critical that they have the ability to influence policy and encourage innovation. At the end of the day, environmental sustainability is critical to a company's long-term success. So, how can you become a successful company leader?? So, what exactly is required? So, what are the qualities that a successful company leader should possess?
While the advantages of business sustainability are many, incorporating them into a company's operations is not always straightforward. However, with adequate preparation, it is possible to execute it in a corporation. It is not enough to just donate money to environmental causes. The costs and advantages of manufacturing must be carefully considered in order for a business to be profitable in the long run. Companies, for example, must weigh the costs and advantages of energy use, as well as the hazards associated with climate change and global warming. As a consequence, corporate sustainability has emerged as a critical strategic concern for businesses.
Michael E. Kirst described that business leaders may also assist the environment by implementing new rules that benefit their companies. Business leaders are collaborating with governments to phase out heat-trapping HFC compounds and establish new requirements for the efficiency of vehicles, to name a few examples. While political leaders in the United States are likely to continue to oppose environmental regulations, industry is propelling the market in a new direction, whether or not they agree with it. Different firms and state governments have already accepted responsibility for these market transformations, and the United States' exit from the Paris Agreement is only transferring leadership to nations that are already setting the pace.