Decision Making for Profitable Business and Ecological Outcomes
Without sufficient business feasibility on the horizon, an executive can easily overlook an otherwise interesting idea. This is the case even if the idea might lead to ecologically sustainable actions, benefiting the common good and nature. Conversely, if a business idea or operation is financially profitable but does not sufficiently take sustainability aspects into account, it can hardly continue in the long run, at least not without problems.
In this way, it’s easy to think that ecological sustainability and business decision-making can collide. Is sustainability cost-efficient? Is cost-efficiency sustainable? The essential question probably is: under what conditions could both of these features be realized simultaneously?
Eco-friendly and profitable business growth based on digitalization awaits us
Digitalization provides us with new opportunities for making ideas both ecologically sustainable and business feasible. Therefore, it’s possible that some of our earlier assumptions about, for example, collecting sustainability or financial data from value chains no longer hold. By utilizing new technologies, we are able to generate new knowledge about business processes, product lifecycles, and material flows. Opportunities are constantly emerging to develop sustainable value chains and circularity, safeguard biodiversity, and prevent climate change. Why not seize them?
About the Author
Tuomas Korhonen is an Associate Professor (tenure) in Industrial Engineering and Management at Tampere University. His does research and teaching in management accounting that supports managerial work and decision-making. Tuomas is a member of DigiSus platform’s Management Board.