WHY ARE SDGS IMPORTANT FOR BUSINESS?
One common misconception about the SDGs is that only governments and the public sector are expected to establish and implement strategies according to the framework. While the SDGs are not legally binding for businesses to implement, the engagement of the private sector plays a critical role for succeeding with the goals. Businesses are sources of finance, drivers of innovation and new technology, and the engine of economic growth and employment. That being said, engaging with the SDGs benefits for-profit businesses by reducing social, economic, and ecological risks, and being considered modern and appealing by customers. This is especially relevant for small and medium sized enterprises (SME), as it improves the business’ reputation and builds trust.
According to the SDG Business Hub, the following four key pillars sum up the importance the SDGs has on your business:
- Doing nothing is a costly decision
As customers and stakeholders start paying attention and demanding businesses to take sustainable responsibility, you can turn global challenges and threats into business opportunities by aligning your business strategy with the SDGs. However, if you don’t listen to the external demand and wishes, you risk becoming an irrelevant candidate to buy from or invest in in the future.
- The prize of aligning business strategies with the SDGs
Businesses that align their actions and goals according to the SDGs, such as offer SDG-relevant technologies and solutions, positively differentiate themselves from competitors and gain trust among governments, stakeholders, and customers.
- Better information = better decisions
Transparency is key in reaching the set goals, as better information equals better sustainable decision-making. By publicly sharing your progress, both positive and negative, will not only create trust among external parts, but is also important because sharing objectives and development paths is necessary for sustainable development.
- Achieving the SDGs is beyond the reach of one company
Only focusing on internal operations is not the right approach, as reaching the goals requires looking beyond the four walls of your business. Instead, collaboration across sectors, understanding your supply chain impact, and creating innovative partnerships with governments and civil society most effectively tackles change.
So, exactly how can businesses thrive while working with the SDGs? Take a look at this video and you will have it all explained in less than three minutes!
Categorised in: Charity
This post was written by Emma-Louise Munro Wilson