WHAT IS SUSTAINABILITY ?
SUSTAINABILITY or sustainable development is a principle for fulfilling the development goals of human society while maintaining the ability of natural systems to provide natural resources and ecosystem services, upon which the economy and society depend. It takes into account the needs of future generations. It represents a long-term approach to the development of society, the economy, and environmental protection, aiming to keep all three areas in balance.
SUSTAINABLE BUSINESS represents a modern entrepreneurial approach that aims to ensure long-term balance between economic growth, environmental protection and a positive impact on society. Its goal is to create value not only for shareholders but also for a broader group of stakeholders – employees, customers, suppliers, communities, and future generations. Sustainability in business means that companies strive to minimize the negative impacts of their activities on nature and society, while seeking innovative solutions that allow them to be both competitive and responsible. Sustainable business is therefore an integral part of the broader concept of responsible business. This concept includes not only environmental and social aspects but also the ethical dimension of doing business – the effort to act fairly, transparently and with regard to the consequences of corporate decisions. Responsible business involves the conscious behavior of companies toward their surroundings: from fair working conditions and community support to environmental protection. It is not just a set of activities but a strategic setup that reflects the values, principles, and expectations of society. This approach is further defined through two major concepts: CSR (Corporate Social Responsibility) and ESG (Environmental, Social, Governance).
CSR concept focuses on ethical and voluntary corporate behavior. At its core is the effort to “do the right thing,” which means voluntarily integrating social and environmental considerations into the everyday operations of the company.
ESG represents a quantifiable and strategically integrated framework for assessing and managing non-financial risks and opportunities. It is based on three key pillars: Environmental (impact on nature), Social (social responsibility), and Governance (corporate governance and management). This concept arose in response to the need of investors, regulators, and financial markets to evaluate the impact of business not only in terms of returns but also in terms of sustainability and long-term risk. Unlike CSR, ESG is closely linked to a company’s performance, reputation, and its ability to attract investment. It requires transparent reporting, audits and measurable indicators.
The main difference between CSR and ESG lies in the degree of formalization and the target audience. CSR primarily addresses employees, customers, and communities, ESG is a tool for investors, regulators, and managers who need to systematically evaluate non-financial risks.
BENEFITS OF SUSTAINABLE AND RESPONSIBLE BUSINESS
Responsible business brings numerous advantages in terms of managing relationships with customers, business partners, and investors, as well as in risk management, access to capital, innovation potential, energy efficiency and waste valorization. It also contributes to a greater ability to attract talent, retain employees, and support the long-term sustainable growth of the company. At the same time, it is a concept that has a positive impact on people, society, and the entire planet.
Why is environmental responsibility a strategic advantage ? In the era of a global transition toward a carbon-neutral and sustainable society, the role of companies and organizations is crucial – not only in achieving climate and environmental goals but also in shaping an entirely new market environment that favors sustainable products and services with demonstrably low carbon and environmental footprints. The increasing pressure from customers, governments, financial institutions, and the entire market will be best managed by suppliers who take environmental responsibility seriously and integrate it into every decision.
Sustainable and responsible business is therefore not just a “nice bonus” – it is becoming a key condition for competitiveness and brand credibility. In times of climate crises, social inequalities, and growing expectations placed on companies, the shift from declared responsibility to measurable sustainability is a challenge that shapes the future of business.
Is sustainable business regulated by the state?
The state and international institutions play a key role in regulating sustainable business. They introduce various tools to support the development and measurement of sustainable processes, particularly in the areas of environmental and climate protection. To ensure consistent and transparent sustainability reporting by companies, the European Union has introduced the EU Taxonomy and the CSRD (Corporate Sustainability Reporting Directive). These aim to ensure that companies clearly and comparably communicate their impacts on the environment, society, and corporate governance. The obligation to report according to the new ESRS (European Sustainability Reporting Standards) has applied to large companies since 2024, and it is expected to gradually extend to smaller businesses as well.
Although the CSRD primarily applies to large corporations, its impact extends beyond them. In practice, the requirements for responsibility and transparency will also be passed down to suppliers and partners, which means that the directive will indirectly affect the entire market. Sustainability is thus becoming not only a moral imperative, but also a regulatory and business necessity.
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