Literature Analysis Concerning Challenges In Developing Sustainable Business Strategy

For a wide range of reasons, companies have begun to pay much more attention to the consequences their business practices brings to the environment, humanity, economy or to be more precise its future consequences. However, the sustainability aspect is not just limited to business only and consumers, stakeholders, government, investors; politicians are also a key part of it. Similarly, being sustainable just not only mean philanthropy in the field of health, education or religious activity, but also extend to economic, social, political and ecological areas. Literature analysis which revolves around challenges in developing sustainable business strategy, consumers and stakeholders’ role in pursuing it, what actions SMEs, macro and micro-enterprises take to resolve issues related in going green has been studied here.

Undoubtedly, Corporate Social Responsibility (CSR) is not only a rule to be dealt with; it is an obligation for businesses to be tightly bound by nature and to mitigate the harm done by their actions. Under the umbrella of CSR, (Schrempf-Stirling et al.2016) evaluated the manner in which contemporary administrators deal criticism on past corporate activities or how the past activities of an organization impacts legislation part of current practices. In addition to that specifically for Indian context, (Baroth and Mathur 2019) studied the enactment of Companies Act, 2013 (Clause 135) formally mandated CSR for Indian industries that emphasized on conservation of biodiversity. It is a fact that greater numbers of businesses have a comparatively higher reliance on natural resources, thereby rising their ecological footprint. Hence, efforts towards protecting biodiversity will not only make businesses more competitive, it will also add prestige and economic opportunities to them. In a similar vein, (Vidaver-Cohen and Bronn 2015) examined the relation between CSR and corporate reputation for Scandinavia. It was evident from their analyses that corporate accountability is a primary indicator of corporate credibility. Also, it plays a significant role in encouraging positive role of stakeholders towards the company. As stakeholder is an integral and vital part of any organization (Horisch et al. 2014) addressed how to strengthen sustainability from the viewpoint of stakeholders and suggested three mechanisms: education, regulation and sustainability-based value creation. Firstly, knowledge regarding sustainability will not only provide requisite expertise and relevant skills, it will also raise understanding of pressing environmental issues. Secondly, regulators and norm setters need to establish a system of clear opportunities to promote sustainability. Lastly, sustainability-based value building for stakeholders creates economic interest by leading to sustainability. Likewise, (Roper et al. 2015) explored the reasons and mechanisms for a dynamic multi-stakeholder partnership directed at the long-term economic growth of the Lake Taupo. Here, the various stakeholders are farmers, forestry, tourism and many other private firms. These all collaborated to resolve the pressing environmental issues of the region.

Furthermore, (Bohnen and Hennies 2018) attempted to advocate for Corporate Political Responsibility as Trump, Brexit, Alternative fur Deutschland and broken free trade deals are just a few notable examples that have shattered a political consensus on the general value of democratic markets and a globalist perspective. Specifically, they envisaged four CPR areas of operation that affect the entire supply chain of a business.

Moving to the challenges faced in establishing sustainable strategies for business, (Agathou and Schuite 2015) investigated the principle challenges microfinance institutions (MFIs) face in going green, with absence of information at the senior-administration level among the most noteworthy. The Green Performance Agenda system takes into consideration an examination of current and future green execution status without a top-down solution of execution guidelines. This altogether expands the upfront investment of MFI ranking directors and staff as the regions for development distinguished by looking at present and future execution are chosen by ranking directors and staff themselves. Involvement in MFIs in the eastern and southern Africa districts demonstrates that they are in a situation to show essential strides towards working up their natural the executives profile. Be that as it may, the striking end for most ranking directors who utilized the GPA system was the need to fundamentally improve their natural execution to at any rate middle of the road level. Some unique presentation designs were additionally watched relying upon the size of the credit portfolio and the land area of the MFI. MFIs are keen on better understanding what they can do as far as accepting their ecological obligations. In any case, the fundamental test MFIs face is in distributing assets (both money related and human) in further executing an ecological administration framework.

Not all MFIs have the aspiration to be the most elite in executing their green motivation. As a rule, for instance, both their present and future scores were at the middle of the road level. For these MFIs it is satisfactory to proceed with what they do as to ecological main concerns. Be that as it may, for the greater part of MFIs in southern and eastern Africa there is a reasonable hole that should be tended to.

At the end of the day, the principle driver to improve their ecological presentation was access to capital. To a lesser degree, MFIs are keen on taking part in the GPA for showcasing (open picture) reasons.