In what ways can the sustainable growth model highlight conflicts between a firm's competing objectives?

Asked on by lscrivy

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readerofbooks | College Teacher | (Level 2) Educator Emeritus

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This is a very sophisticated question. Sustainability is a great model for any and all companies. However, in the short term this can cause conflicts on a few levels. Let me give you three examples. 

First, sustainable growth is a long term goal. So, at times this long-term goal may cost the company time and money to create. This, in turn, can hurt the short-term objectives of a company. 

Second, a company in its present state might not be set up for sustainable growth. This may require a great amount of reshuffling. This can cause the ire of some people, the need for new investments, and restructuring. All of this can be initially slow and expensive. In light of this, there might some resistance. Some people may see this as competing against some of the companies objectives. 

Third, of course, some elements of a company may have to be cut out to achieve sustainable growth. This is the nature of the business. When this happens, we can say that one interest is against another. 

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