Higher Profit and a Better Tomorrow: Overcoming Environmental Challenges in a Sustainable Business

Chloe Cheng

Higher Profit and a Better Tomorrow: Overcoming Environmental Challenges in a Sustainable Business

Thick fog circulates around skyscraper buildings, acting as a perpetual eclipse from the sun, as gas masks become necessary for human survival. Bodies swaddled in threadbare clothing lie in their makeshift cardboard houses as passers step over them, wearing an apathetic expression. This ecologically and socially neglectful world could become the future of Earth if people aren’t willing to intervene, which is why sustainable businesses are more critical today than ever.  The idea behind a sustainable business is that corporations should prioritize three sectors in the company to ensure it continues to prosper in the corporate field in the long run: the environmental, social, and economic sectors (Chungyalpa). Environmental and social sustainability is becoming progressively important in the contemporary world where pollution and injustice reign. Nevertheless, many businesses face the issue of choosing either profit maximization or sustainability, and often companies prioritize increasing their financial gains over creating positive change. Businesses can enhance global well-being by prioritizing sustainability throughout their corporate procedures while still reaching their economic goals. A major obstacle in modern society's business sector is sustainability while obtaining profit. Similarly, sustainable businesses often struggle to invest in clean production processes without compromising profit; however, some companies overcome this by following eco-friendly production frameworks. 

Committing to a cost-effective green production process while generating enough profit is a common problem when forming a sustainable business. Investing in an affordable, environmentally friendly production process is crucial to building a sustainable business that reaches its environmental and economic goals. An example is comparing the costs of cars powered by environmentally friendly energy to traditional gas. Electric vehicles require nearly double the costs for production compared to diesel and gas cars because producing batteries requires more electricity (Kirsanovs). As a result of the large amount of electricity used to produce batteries for electric cars, the production process is not sustainable because it generates more emissions and requires higher expenses relative to the conventional car (Kirsanovs). However, in the long run, electric cars can reduce pollution emissions significantly compared to diesel or gas cars , which makes the expensive, polluting production process of batteries worthwhile because the product is highly eco-friendly. Sustainable businesses must overcome the challenge of finding a way to fund their expensive production processes while minimizing pollution. 

Another issue eco-friendly goods face is competing with the same products that are from unsustainable production processes and therefore cost less. Energy-efficient light bulbs cost around $6-20 USD, while typical light bulbs cost 75 cents (Scott). Production processes to produce sustainable good such as energy-efficient light bulbs require more money to produce which explains the higher market price compared to the normal light bulb (Scott). Consumers would most likely choose the normal light bulb over the energy-efficient ones because it functions the same way at a much lower cost. Beyond consumer preference in price, green production also faces financial challenges from the high cost of capital, or machinery and other equipment.

The high cost of new capital in the production process is also an issue for sustainable businesses. New machinery and equipment must be invested in companies to achieve sustainable production processes; this is more expensive and may not seem worthwhile for the cost in the short run. Businesses must replace their old capital which costs millions of dollars (Scott). Most companies cannot afford to replace all their capital at once to achieve sustainable production processes, so it is difficult for companies to switch to environmentally friendly factorial systems because of high costs. Financial challenges in a sustainable production process are recurring hurdles that companies need to find solutions for. 

Solutions to resolve the obstacles in green production and generate positive social impact can help businesses reach their sustainability goals. Many production process frameworks, for instance, can help businesses with a cost-friendly and sustainable manufacturing cycle. One framework that companies can use to minimize negative environmental impacts is the closed-loop production system. The closed-loop production system is a manufacturing process that rematerializes used goods to create products. This makes production more cost-effective (Kondoh). Materials such as plastic or metal can be reused in the production process to create profitable products. This production method is inexpensive and sustainable because it uses “waste” or unwanted raw materials to manufacture new goods. 

Another economical manufacturing process that businesses can use as they work towards sustainability is production on demand. Production on demand allows businesses to produce goods in small quantities. This avoids businesses overestimating the number of goods that consumers will buy, resulting in large volumes of inventory depreciating (Lu). Production on demand helps businesses produce the exact number of goods that the consumers order, leaving no leftover inventory to be thrown away. This sustainable production process is cost-friendly because corporations do not waste money on producing goods that will not sell. 

Utilizing renewable energy is another way to incorporate sustainability into the production process. A common renewable energy source is solar energy. Although there is a high initial cost to install solar panels, in the long run, it would be increasingly profitable since sunlight doesn’t cost any money (Agbaraji). In the future, solar energy will reduce companies’ fixed production costs, boosting their revenue and utilizing eco-friendly production processes to minimize environmental damage. Investing in solar panels supports sustainable production, which would reduce energy costs and pollution.

A notable challenge in building a sustainable business is reaching its economic goals while still prioritizing its environmental responsibility. Businesses should strive to be sustainable to continue their growth and profitability over the long run. By prioritizing the environmental, social, and economic factors of the firm, companies can achieve sustainability, which is important for the long-term success of firms in the modern business sector. Sustainable production goes beyond environmental responsibility; it encompasses prudent budget management and economic viability, which is why affordability in clean production is a notable hurdle for companies to overcome. 

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