Barriers and Benefits Towards Sustainability Driven Business Models

Abstract

Social sustainability is manifested in corporate culture, organizational behavior, and functional practices of companies. In order to create and measure the impact of sustainable business models on environment, society, economy, and other key stakeholders, collaborative and longitudinal approaches over phased time-span work better. Successful businesses in manufacturing and service sectors tend to understand the challenges and opportunities linked to business transition towards sustainability in a society today. They create considerable awareness on the environment and green consumption practices in the society. Business model innovation with focus on sustainability has the philosophy of giving more for fewer returns, unlike investing in business for profit and creating sustainable consumption behavior in the society. Sustainable consumption pattern can be developed as an outgrowth of social innovation, involving non-governmental organizations in consumer education and production process. However, political, financial, and technological limitations are found to be the principal barriers in managing sustainable social development. Therefore, sustainable development as a concept of societal development encompasses some problems that need to be addressed carefully. This article discusses the process of developing sustainability driven business models in manufacturing companies, and contributes to research on sustainable business model innovation, design and experimentation. It argues the need for developing sustainable social development projects understanding ecosystems of different business models.