Sustainability as a tool for growth on the market
by Gianni Malerba
What is competitiveness?
The competitiveness of companies, defined as the ability to face the competition, today can no longer be defined only in relation to the price or quality of the product sold. We live in a world and in a global market in which the organization of the company - its assets, its workers, its production processes - is increasingly relevant for the public and consumers for the purposes of spending choices. A large portion of those who purchase today choose a company capable of being sustainable (with regard to the environment, people and also company profit). Here, therefore, the definition of competitiveness can be expanded to include the ability of companies to compete on the market on the basis of strategic and sustainable choices in the long term.
What is sustainability?
The sustainability of businesses, or the ability to generate profit without taking away resources from future generations, is actually a path, not a fact (nor even a definition advertised externally and not responding to reality). It is, more than a fixed rule, a value-basedand strategic approach of the company and a path that changes as the concrete situation in which the company finds itself, the reference market and the social context changes.
The term sustainability has become particularly relevant in recent years: with the worsening of climate change, attention towards the environment and its protection has grown exponentially, but not only that. Attention to safety at work, internal well-being within companies, transparency of communications and company practices are evaluated as central themes in contemporary economic realities. That is, they are issues that today are no longer negligible and the solution to these issues can no longer be postponed. Today's public, market and consumers look not only at the product but also at the way it is created and sold and choose to purchase sustainable products. This is why being sustainable, for a company, means selling more, producing more, increasing profits.
Sustainability and competitiveness levers
The concepts just stated can be defined as "competitiveness levers", i.e. the tools that allow the entrepreneur to renew his own business model in a sustainable sense and be appreciated as a solid and efficient partner in front of all environmental, social and financial stakeholders.
For a company, being sustainable means ensuring its business continuity over time, pursuing internal and external social well-being and contributing to the protection of environmental resources.
These characteristics, if inserted into strategies and corporate governance allow small and medium-sized businesses to communicate their potential to relevant stakeholders such as banking institutions, investors, institutions and consumers.
Banks, consumers, partners: the importance of corporate sustainability
When we talk about stakeholders we are referring to all those subjects connected in any way to the company and whose interest can be influenced (positively or negatively) by the performance of an enterprise.economic initiative. They are interested parties in ensuring that the company is competitive on the market and therefore sustainable.
These stakeholders in their business choices deeply consider the socio-environmental quality of the companies with which they interface and choose those capable of satisfying their needs.
Banks: they offer subsidized financing for sustainable businesses that intend to invest in paths towards sustainability.
Consumers: they look at the most sustainable companies, relying on the reputation of the brand (brand reputation) and choosing to purchase the products of the most sustainable companies. These, being able to rely on a high reputation, can apply a premium price (higher prices) on their products and services, increasing sales and consequently managing to increase their turnover.
Partners: other business entities (e.g. other companies or institutions) who choose the most sustainable companies for investments, projects, etc. Today, companies choose only partners deemed reliable by the market, banks and consumers, increasing brand reputation.
Furthermore, in addition to the reputational and financial aspects mentioned previously, a proactive approach towards ESG issues allows, over time, to reduce costs and their impact on turnover. The acronym stands for Environment (i.e. energy, mobility, waste), Social (intended as social responsibility, workplace safety, professional ethics), Governance (definable as transparency, economy, innovation).
For a company to increase its reputation, its market share and consequently its profits, it is necessary that all the stakeholders involved agree in affirming the sustainability of the company and therefore its competitiveness: this demonstrates how sustainability, competitive advantage and profits are now inseparable concepts and, if disconnected, unproductive for the company.
The path towards sustainability and advantages for the company
What we have seen so far confirms that sustainability is not a fixed rule but a path which, if undertaken in time and seriously, allows the company to grow in the long term. Although difficult to frame in a fixed rule, it is possible to outline a path, a roadmap capable of foreseeing all the steps of evolution of corporate sustainability. It is from here that it is possible to understand what, in concrete terms, the benefits and advantages are of a path towards sustainability for SMEs:
The Malerba&Partners solution
The path just outlined is complex and often companies, in particular SMEs, do not have the tools and resources to start this path. This is why Malerba&Partners, together with 33 professional and technical partnersof 23 studios throughout Italy, created EFTILIA STP Benefit.
EFTILIA is an advisory company, has the mission of spreading the culture of sustainability as a founding value for the lasting development of Italian companies. To do this, it thought of a method and a path for implementing a sustainable corporate management system within its business activity, up to the sustainability report and certification.
If you want to make your company sustainable and therefore competitive on the market, we are ready to accompany you on this path of evolution towards lasting success over time.
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