 healthy economy cannot be sustained without a healthy society or environment. From the small-scale economy of a single business, up to the larger-scale global economy, all financial facets are at the mercy of social and environmental factors, and it is the environment that ultimately deals the trump card.
The next part of this article outlines case studies to show the sustainable business model and its interacting three principles, in real-life scenarios.
Case studies for sustainable business
Sustainable business case study one: The collapse of cod fisheries
The year 1993 saw the commercial extinction of the Northern Cod.
Commercial extinction is the depletion of a species population to the point where not enough can be caught and sold to earn a profit.
Technological advances, like ocean-trawling and pinpointing fish using radar and electronic navigation systems, meant the number of fish caught in Canadian catches dramatically rose. Peaking in the 1970s and 1980s, the economic success of Canadian fisheries skyrocketed with the overexploitation of our environmental resource.
This success was, however, short-term.
Negative repercussions soon prevailed in 1992 as the cod species projected towards extinction. The environmental resource was not sustained.
The Canadian cod fisheries consequently collapsed. 35,000 fishermen and fish plant workers lost their jobs in the largest industrial closure of Canadian history. A non-sustained environmental resource resulted in adverse social and economic repercussions. Displaced workers were given financial aid and provided with retraining programs, all at a cost to the Canadian economy.
Sustainable business case study two: 2015 Indonesia fires
In February 2015, 5,000km of Indonesia burned under a thick smog. The vast palm oil monocultures, which provoked this catastrophe, were reduced to ash.
Torching a wonderland rich in endemic species to clear the way for plant monocultures of palm oil had always imposed a hazard. In 2015, which was a warmer year than usual, that hazard spread like wildfire over Indonesia.
Again, activities that did not account for sustaining nature caused a delayed backlash that whipped havoc over Indonesia’s society. Accounting for both direct deaths from the blaze and indirect deaths from the lingering smokey haze, 100,000 people were estimated to have died from the disaster.
The economic impacts were just as cutting. The estimated cost of these fires for Indonesia, due to humanitarian aid and loss of productive land, was around $1.6 billion.
Sustainable business case study three: Dhaka garment factory collapse
On April 24th, 2013, the factory known as Rana Plaza in Dhaka cracked and shuddered under the weight of its workers and machines. The Bangladeshi factory, serving the fast fashion industry, had its workers stitching and sewing over twelve hours a day, to take home as little as ~$50 a month each.
Structural cracks in the eight-story commercial building were reported, causing the closure of shops in its lower floors. The garment factory owners ignored warnings of potential collapse and ordered workers to continue as normal. Only hours after the cracks appeared, the entire building crumpled, killing 1,138 workers and injuring 2,600.
The world’s attention turned to the human cost of cheap, fast fashion. Brands associated with the Rana Plaza such as Mango, Primark, and H&M suffered both financially and in reputation.
By short-cutting their business’ social responsibility, these fashion companies paid an economic price in the long-run, having to fork out $21.5m to the Rana Plaza Trust Fund. The disaster brought about a campaign concerning fashion retailers and the often unfair treatment of their workers.
Sustainable business case study four: Patagonia’s “Don’t Buy This Jacket” campaign
As counter-intuitive as this advertisement may seem, the crux of Patagonia’s message is strong: do not take unless you truly need.
Founded by Yvon Chouinard, a strong environmental activist, Patagonia puts the environment at the forefront of its business operations. The social impa