Page 5: Benefits of taking responsibility for sustainability
Sustainable practices are often the best business options for a company. As corporate reputation becomes more important and more companies are adopting ethical stances, taking responsibility for sustainability is increasingly important both to ensure reputation and also to satisfy the demands of a range of stakeholders.
The benefits of taking responsibility for sustainability include an enhanced reputation which, in turn, leads to greater customer loyalty. The benefits can also be seen in terms of efficiency, with businesses using fewer raw materials, less power and more recycling. Both of these have an impact on profits and shareholder confidence.
Taking responsibility for sustainability is one way for Tata Steel to compete, by differentiating it from those competitors who are not able to promote such a positive stance. Moreover, taking these ethical and sustainable approaches helps the company to leverage its position and encourage sustainable decisions in others. This can help to promote its own products.
The benefits are also felt by employees, who are better motivated to work for a company that they perceive as ‘doing the right thing’, including working with governments and regulators to help achieve environmental targets.