SD = Profit?

As we read in the post placed by cookj111, the majority of managers adresses great importance to SD.
Why do we find so little examples of implementation?

I believe that the vast majority of companies won’t invest in a SD project, unless if it’s profitable. (either direct or by image building which should lead to more sales in the future)  The main goal for most of the companies is making money, because banks and shareholders require a good ROI.

It is possible though to make money in a sustainable way. I would like to give 2 principles I find interesting.

Conclusion: only if profitable for the company, managers will implement sustainable projects. If successful, such a project could lead to a sustainable company.

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Posted in corporate sustainability, sustainable development
4 comments on “SD = Profit?
  1. cookj111 says:

    The problem lies with the uncertainty of profitability of SD projects I think. One does not want to invest in a project without being fairly assured that it will result in profitable outcomes.

  2. karelca says:

    The good thing is that in the case of the industrial symbiosis in Kalundborg, it is possible to calculate the profit of the project in advance.

  3. crazykouts says:

    Karel – Question: Is it the competitive advantage and profits that will drive companies to change, or is it the risks associated with not taking sustainable approach?

  4. karelca says:

    In the example of Kalundborg, it’s just the competitive advantage and profits that drove companies to work together in a sustainable way. Risks associated with not taking a sustainable approach could be an incentive for becoming more sustainable (e.g.: risk of loosing customers because of growing conscience (extreme example: child labour)). Pure ideology (in the case of cradle-to-cradle) combined with a market for sustainable products can be a third drive to change. But I believe that competitive advantage and profit will stay the most powerful incentive towards sustainable development, because they perform very well in the existing economic system.

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