Sustainable development of the company - what exactly is it?

You've probably noticed that more and more often there are assurances about the sustainable development of the company on corporate websites. But what exactly does this sustainable development of a company mean? We check.

Every company, regardless of size or industry, goes through different stages of development. One of the most important elements in this process is obtaining financial support, which enables further development of the business. What are the stages of company development? Where can you get support and what are the possibilities of co-financing, including how to obtain funds from the European Union?

Stages of company development - take care of your business

Every company goes through three stages of development:

– initial – in the first stage of development, you focus on acquiring customers and selling products/services.

– growth, is the next phase of development in which the company already has a stable position on the market and focuses on developing the brand, expanding the offer, as well as building a team.

– maturity, in which the company achieves high revenues and is well recognized on the market. This is the period when he focuses on optimizing processes, expanding the offer, as well as implementing innovations.

Each company has a chance to enter the next phase of development, using various forms of business development. Of course, in different phases of the company's development, there are new challenges, but also opportunities for the development of various areas. Nevertheless, even, and perhaps especially in times of crisis, it is worth developing a company. There are many definitions of company development, but always from the moment the company is founded, at every stage of business development - the point is to take care of the sustainable development of the company. This applies to both large, small and medium-sized enterprises.

Financing opportunities for the company

There are many sources from which you can obtain financial support for the development of an enterprise: banks, private equity funds, financial institutions, angel investors or also public institutions, such as the Labor Office, Ministry of Development or the European Union.

If you want to develop your business, you can choose from a wide range of various types of subsidies, grants or EU financial instruments that companies can use. For this, it is necessary to delve into the details of funding programs, as well as prepare a solid business plan that proves that your company really needs such support.

What is company sustainability?

Sustainable development can be understood in two ways, which are partly related to each other. Traditionally, it can be said that a company that develops in a sustainable manner grows steadily and in a healthy way. It is not artificially assisted and achieves success step by step.

Today, however, more is said about environmental sustainability. The planet's problems hit the headlines. The accusation of ignorance about this topic can cost you dearly when it comes to your company's image. The two ways to understand corporate sustainability described here are not identical, although they may overlap. Often times, rapid growth is detrimental to the environment or local communities.

Balanced company development – marketing or reality?

Some companies have actually changed the procedures and modus operandi to create a more environmentally friendly enterprise. However, most corporations still manufacture in China, where conditions are poor and drain the environment through their activities. There is a dispute as to whether the symbolic changes for the better have any practical effect in such companies. The fact is, however, that customers expect sustainable development (or at least such declarations) from companies. Ideally, the business should actually operate with greater care for the environment. We have already discussed this issue in our text on eco-marketing.

It is in any good tone to join the environmental revolution. Firms can order sustainability audits to see how they stack up against the competition and what they can improve. The next important step is communicating information about what may be important from the point of view of a person who cares about the environment. Or yours communication strategy does it take into account?

Sustainable development of the company - examples

Stella McCartney opened her company in the fashion industry 20 years ago. From the beginning, she did not use animal furs, skins or feathers. In 2008, she started using organic cotton, and 2 years later she gave up plastic. Today, such actions are standard, but then it shocked the fringes of the fashion world. Currently, Reserved in Poland or Swedish H&M, despite specializing in cheap fashion created in China or Bangladesh, are experimenting with organic cotton or recycled clothes. Reserved promises that the energy that powers the company's servers comes exclusively from renewable sources, and Zara communicates that no harmful chemicals are released into the environment in the production process.

Amazon starts from completely different positions. The brand is commonly perceived as having low-quality employee rights and draining local economies. No wonder Amazon has created a section entirely dedicated to corporate sustainability. The essence of this online store cannot be changed. Therefore, the focus was on introducing, in cooperation with partners, more sustainable packaging of products or parcels. Many brands are betting on today value marketingand the company's sustainability is at the top of their list.

Sustainable development worker

In 2018, Nike struggled with an internal scandal within the company. It turned out that despite the slogans and campaigns to support strong women, the opposite was true inside the corporate structures, and the employees felt humiliated and excluded from meetings. As a result of the scandal, the employee for exclusion and inclusiveness lost his job. The question here is whether hiring such a person makes sense, since it does not change the problems that plague many companies.

In recent years in Germany, France and Great Britain employment by 48-66 percent. more people in positions of sustainability and diversity than before. Such people often fall under the HR or marketing department, although sometimes completely new structures are created for them. The LinekdIn Business report shows that the largest number of such people, proportionally to the number of employees, are employed in education, public administration and security. The fastest growing number of such positions is in trade, law firms and IT.

Sustainable development of the company as an element of employer branding

Today more than ever, employees want to work in companies that are not like all of them. A soulless corporation is not very high on the list of dream employers, as opposed to companies with "heart" that care about the environment and employees. Hence the sustainable development of the company as employer branding it is often a decoy.

Employees appreciate:

• ecological charity initiatives;
• symbolic gestures, such as garbage segregation or beehives on the roof;
• workshops and bonuses, such as making eco-cosmetics or learning meditation;
• sustainable corporate culture;
• employee initiatives, such as cleaning forests or beaches;
• a good example of a board that, for example, runs charity marathons or adopts animals from a shelter;
• taking into account their suggestions, e.g. changing procedures to be more sustainable.

As you can see, the slogan of sustainable development of the company covers a lot - from meditation workshops to waste segregation. Most of these activities are associated with higher expenses than before. Some changes can also help to increase the company's profits.

Does it pay off?

Business owners often treat the need to adapt enterprises to new requirements as an unpleasant obligation. Meanwhile, you can benefit from it! In recent years, along with the increase in demand, many new solutions have appeared. Some allow you to save on the production, transport or sales process.

Note that many companies have recently announced a reduction in the use of plastic in packaging, the abandonment of paper bags, or the introduction of returnable packaging. Besides, it's a great marketing move and therefore sales support, often thanks to this they simply save on plastic or paper! It may turn out that giving up the adhesive tape in packages sent from your store will be not only a good marketing move, but also a business one.

Subsidies for company development - use external sources of financing

Before taking full financial responsibility for the development of your company, consider using external sources of financing. Subsidies for the development of the company are one of the possibilities that can help accelerate the development process, improve the financial condition and strengthen the market position. It is a form of support that does not require repayment and can come from both domestic and foreign sources.

Receiving such a grant requires commitment, but it is worth a try, as it can bring benefits for many years. Use the help of experts in obtaining grants to increase your chances and get money to grow your business.

Without financial support, the development of the company would be impossible. That is why it is so important to know the various sources of financing and funding opportunities that will allow you to develop your company while going through the next stages of development. European funds, EU subsidies - you have many options to contribute to improving the functioning of your company.

In the article, we have presented basic information that will certainly be useful to any entrepreneur who wants to modernize his business and develop it in accordance with his goals. Remember that the key to success is not only a well-prepared business plan, but also understanding the various options for financing your company and knowing the sources from which you can raise funds for its development! Think about it when starting a business.