A Strategic Approach to the Environmentally Sustainable Business

Abstract

The global environmental crises motivated many companies to investigate and develop the concept of environmentally sustainable business. The objective of traditional business strategy is to maximize profit but, with real imagination and a fresh approach to business strategies, environmental sustainability can actually increase both annual profit and long term shareholder value. This article analyzes several examples of such strategies, not only for companies operating in a capitalist economy, but also for companies based in countries that retain a traditional economy. These strategies are illustrated by matrices that show when to apply which strategies.

About the Author

Hiroshi Fukushi is director, Ajinomoto Co. Ltd., Thailand. president of FD Green Co., Ltd., Thailand; and managing director, AET manufacturing Co., Ltd., Thailand. He manages these companies’ production technology and strategy for environmentally sustainable production. He has an MBA from Southern Queensland University, a master’s degree in Chemical Engineering from Hokkaido University, and a Ph.D. from Rushmore University.