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Society and business have an interactive two-way relationship. It is well known that successful businesses lead to enhancement of quality of life and ultimately lead to economic development of a nation. However, businesses can thrive only in context of society. According to United Nations Environmental Program (UNEP, 2004), in the twenty-first century, no business can successfully operate in an economic and social vacuum, but must look towards meeting the needs and the expectations of all key constituents: customers, investors, employees and the greater society. The theme of sustainable business model is about enhancement of customer and value of business by addressing societal and environmental needs through the way business is done. Business models need to consider impact of business on the environment, society, economy and other key stakeholders. Historically, environmental regulations-based approach was used to control significant environmental impacts of organisations. Regulations are outcomes of government policies to reduce health and ecological risks, but command and control techniques adopted by regulatory bodies to minimise risks often resulted in a reactive approach to environmental management. Reactive approaches are mostly concerned with legal compliance and often do not have active participation from top management. Proactive corporate environmental practices in contrast go beyond compliance by emphasising corporate pollution-prevention activities, higher order learning and redesign of existing processes (Kim, 2018). |
