A model of sustainable business is the one within which there is an alignment in the environmental benefits and motive of earning profit. A formulation of case will be done in order to discuss the main reason with regard to why businesses are not able to become sustainable. For an instance, in a number of businesses (Woodd 2007):
Profits are mostly earned by the increase in the consumption of services and goods
Investors tend to increase the short term pressures
A low price for purchases may be attractive for the customers
However, the low price may be initiated at the cost of product quality and sustainable design and externalities. For an instance, certain household items are designed in a way that they cannot be recycled
The advantages and benefits for consumers of having improved design, such as low energy bills, are not initiated by the manufacturers or construction company
A business which is sustainable will be making profits over the long duration of time whilst not causing any damage to the environment (Syse 2010). The model of sustainable business helps in providing a competitive advantage by the alignment in environmental objectives and profit. The table below provides a description on the building blocks of business with sustainability.
In order to initiate sustainability, businesses must consider respecting individuals and nature along with the environment being considered as an integral element of all functions and operations (Woodd 2007). Profits are formulated by meeting the demands and needs of the customer and decreasing the adverse impacts of environment. This can perhaps be done by more efficient methods of production or by altered, reduced patterns of consumption. Fundamental towards sustainable development is the freedom of taking decisions for the long term advantages of the business, for instance, providing investment in efficiency of energy with comparatively long periods of payback (Syse 2010). This needs trust amongst investors and managers along with sound models of finance that help in demonstrating the benefits and advantages of sustainable businesses.