Sustainable business models

As awareness of the environmental threats associated with human activity and the social consequences of conventional business increases, so too does consumer demand for more sustainable products and services. The same applies to (potential) employees that prefer working for companies which take a responsible approach to the planet and its inhabitants indiscriminately, as well as to the well-being of their employees and the communities in which they operate. Therefore, if an entrepreneur wants to bring something innovative to the market today, a one-dimensional approach will not be adequate.

Here comes the time for sustainable business models. Doing business today means looking at the impact a company has or can have on the environment and society and how it creates value for society. It is necessary to understand that a company is not just its owners, products and customers. It needs to include other affected stakeholders: employees, suppliers, communities, governmental and non-governmental organisations... Once we are able to perceive their values and interests, we understand how value creation is directly tied to broader environmental, social and economic impacts.

In order to understand the linkages a company creates in its activities; it is essential to understand its position in a particular value chain.