KU Business faculty experts discuss: Sustainable business practices
Sustainability in business is no longer just an afterthought; it’s a necessity for all companies, both big and small. Companies that integrate sustainable practices help the environment, drive innovation, create social responsibility and ensure long-term resilience.
Beth Embry, assistant professor in the Management and Entrepreneurship academic area, explores how both startups and established companies can drive meaningful change.
Embry has a doctorate in entrepreneurship and strategy from the University of Colorado Boulder, an MBA in international business from Saint Louis University, a Master of Public Health in global health from Boston University and a bachelor’s in investigative medical science from Saint Louis University.
Her research primarily focuses on entrepreneurial opportunities to address current social issues, specifically innovations that can approach climate change.
What does it mean to be sustainable as a business?
The term “sustainability” has a diverse set of meanings that are based on the notion of something continuing to exist in the future. At the surface level, every business wants to be sustainable because they want to last, but we need to be specific about the term.
For a business to operate to its fullest potential, it needs not just financial sustainability, but also social sustainability — taking care of its employees (think beyond just safe working conditions, and livable wages to supporting, to supporting different employee needs like nursing parents and fostering individual capabilities) as well as supporting the community where the business is embedded, and then environmental sustainability — minimizing or even better, eliminating damage to the natural environment, using recycled/repurposed goods, decreasing or eliminating waste or byproducts, and minimizing carbon footprint.
All of these have positive benefits to business, overall, and are good for the world as a whole.
Why should businesses, both big and small, work toward sustainability?
We are now at a point where the impact of climate change is being felt across the planet, and “sustainability” is no longer just a nice thing to do; it is a necessity. Government and nonprofit organizations cannot be the sole drivers of addressing these grand challenges — we need all hands on deck.
The COVID-19 pandemic increased awareness in the business world about how these societal issues can have lasting impacts on their organizations and employees, but we also saw the role businesses played in helping to address problems that arose. Business owners had to pivot their work, use different resources and be creative in ways that they hadn’t imagined.
Moving forward, we need all businesses to move from being a part of the problem to actively being a part of the solution. Discussions now are increasingly stating that sustainability is not enough, and we need to consider how companies can become net zero and create circular economies. We must consider how companies can minimize waste, find ways to repurpose materials and produce energy without pulling it from the grid.
How can business owners combat climate change and promote sustainability within their business practices?
It’s not just a catchy phrase to “think global, act local”; it really is the first place for businesses to start. A first step is to localize as much of their supply chain as possible to use native or local materials, minimize transportation footprints and minimize single-use materials. It does not mean that every business needs to do a massive overhaul immediately (although that would be ideal) but rather take intentional steps to think about where materials are coming from, how much is being wasted and what can change first.
I highly recommend that people read Ray Anderson’s book “Mid-Course Correction” to learn about his company and how he revolutionized the carpeting industry by starting with simple questions about how they could minimize waste. One of the many results of his work was transforming the norm from large rolls of carpeting to making the simple switch to carpet squares, minimizing the need for large carpet replacements and supporting sustainability efforts.
How can entrepreneurs specifically help mitigate the impacts of climate change through local solutions?
Entrepreneurs are uniquely positioned to address climate change, as the current solutions are not enough. We need new ideas, innovation and change. That means leaning into uncertainty and trying things in a new way.
Existing companies don’t have the risk tolerance or flexibility that entrepreneurs do, so they have to be a part of the solution. Addressing climate change requires an all-in approach, and that includes entrepreneurs and small businesses.
How can businesses support the environment and their communities in the case of natural disasters?
First and foremost, businesses need to ensure that their employees are safe and have the resources they need to navigate disasters and recover from any damage — both the physical and the mental health ramifications. Then businesses can think about what they have to offer. This can be as simple as offering their building space as a shelter for those in need of a safe space. For example, here in Kansas, many office buildings have strong internal rooms that are good for protection from tornadoes.
Simply mobilizing the resources that a business has available such as using fleet cars or vans to help deliver supplies in the community. In the field of entrepreneurship, we refer to it as “effectuation” — starting with the resources you have around you, and adapting to local needs to solve problems or meet the needs presented.
By Lauryn Zebrowski
