Green Business: Is it Enough?
Recently intensified concerns related to the rising threats to the global environment due to climate change has influenced and significantly challenged the world’s business community. As meteorologists keep tracking the records in the rise of average global temperature, developed countries initiate international programs, agreements, and new guidelines to mitigate the adverse impact of particular industries on the planet (McKibben, 2012). Such a shift toward green business is the only viable method of preventing the planet from the ongoing climate change by reducing unsustainable industries and investing in renewable ones.
Several new sustainability trends have been observed in business throughout recent years. Large, medium-, and small-sized companies shift toward renewable energy resources in production, minimization of energy use, initiating green investment, and making “climate commitments” (Makower & GreenBiz.com, 2018, p. 17). Another trend entails carbon pricing initiatives to reduce the volumes of carbon dioxide emissions produced by large industrial companies, limiting oil and natural gas extraction, and contributing to water crisis prevention.
Global agreements are the driving forces of sustainable green business development. The operations of large companies are aligned with the agreements’ guidelines and aim at achieving “global goals to transition human civilization toward sustainability” (Makower & GreenBiz.com, 2018, p. 18). Notably, the rise in technologies sets the trend for new business models that are environment-friendly. Indeed, “artificial intelligence and synthetic biology are being deployed in the name of a more sustainable world” (Makower & GreenBiz.com, 2018, p. 10). These efforts are being funded to enhance the scope of their capacity in the nearest future.
Scientists and sustainability-oriented business leaders argue that global changes in business management and individual behavior can prevent the climate crisis on the planet. Long-term goals and climate commitment require successful businesses to employ corporate responsibility policies that prioritize planet wellness and environmental benefits (Makower & GreenBiz.com, 2018). In such a manner, the new sustainability and green business trends shift from niche to mainstream, becoming a new standard that will lead the business world in the green future.
Despite such efforts that have shown significant benefits, some scientists consider green business initiatives non-viable in the face of the level of an environmental threat already encountered. Indeed, according to McKibben (2012), straightforward math demonstrates that the volumes of fossil fuels in assets of large corporations five times exceed the limits for planet survival. Since “those reserves are their primary asset, the holding that gives their companies their value,” the corporations are unlikely to abandon fossil fuels and lose money (McKibben, 2012, para. 20). Therefore, skeptics do not believe that mere business reforms will be enough to save the planet.
These assumptions are reasonable and evidence-based; however, they cannot deny the benefits that green business is already producing. The change in individual behavior and business patterns is the only feasible solution to the global environmental problem. Even if the arguments of McKibben (2012) are rational, Fields and Atiku (2019) state that engagement in collective creativity may produce new opportunities for sustainable green business development. Through awareness-raising, standard-imposing, and global commitment, the shift to green business will be viable to save the planet.
Case Study in Sustainability
Sustainability is one of the key factors of successful business in the contemporary environment-focused business world. The trends in green business lead companies of all sizes toward new business models that allow for creating value through sustainable production, green innovation, and commitment to climate and the environment. Tesla Motors is one of the prominent businesses that build their competitive advantage on sustainable efforts and largely contribute to the global community by investing in the future of the automotive industry and setting trends.
Tesla Motors is a large US-based public company that produces electric cars and distributes them globally. In addition to designing and building environment-friendly electric vehicles for mass usage, the company works in the solar energy generation sector. Having become a global brand, Tesla enjoys the benefits of being a leader of the sustainable automobile manufacturer that produces a new trend to follow and popularizes environment-friendly business approaches.
The reasons why Tesla Motors is better in terms of sustainability than its competitors are many. In addition to implementing sustainable production, the company has incorporated “sustainability into its entire business model” (Aybaly et al., 2017, p. 545). The overall corporation’s image is based on the cultivation of a green economy, renewable energy source utilization, and the promotion of sustainable products for consumers on a global scale.
Moreover, Tesla Motors managed to make a social change by investing in the manufacturing of non-luxurious designs of electric cars through innovative solutions. The company engaged in the “diffusion of its innovation, making it socially accepted by consumers all over the world” (Aybaly et al., 2017, p. 545). Thus, social acceptability contributes to brand recognition, product popularity, as well as the willingness of other industry entities to implement sustainable efforts to match Tesla’s trends.
To maintain the leading position of Tesla as a sustainable leader in the automobile industry and improve its triple bottom line, the CEO might make several decisions. Firstly, in terms of people, Tesla might enhance its corporate policies for workplace equality. Secondly, the profit part of the triple bottom line might be addressed through investment in renewable energy sources and materials. Finally, planet-related business efforts should include the promotion of sustainable car manufacturing through collaborations and partnerships.
Conclusively, Tesla is a global electric care manufacturing leader whose business model is based on sustainability. Since the company already implements effective triple bottom line efforts, it is advised to maintain them and enhance the obtained results. The company promotes green business trends and sets new social and economic eco-friendly standards for endurable industry growth. Thus, the implemented sustainability efforts demonstrate beneficial results and contribute to a positive global change.
References
Aybaly, R., Guerquin-Kern, L., Manière, I. C., Madacova, D., & van Holt, J. (2017). Sustainability practices in the luxury industry: How can one be sustainable in an over-consumptive environment?: Sustainability in the automotive world: The case of Tesla. Procedia Computer Science, 122, 541–547.
Fields, Z., & Atiku, S. O. (2019). Collective green creativity and eco-innovation as key drivers of sustainable business solutions in organizations. In Green Business: Concepts, methodologies, tools, and applications (pp. 415-439). IGI Global.
Makower, J., & GreenBiz.com. (2018). State of green business. Web
McKibben, B. (2012). Global warming’s terrifying new math.Rolling Stone. Web.