STRATEGY FOR ACHIEVING ECOLOGICAL SUSTAINABILITY WHILE IMPROVING BUSINESS PERFORMANCE: A FIELD STUDY IN TEXTILE & CLOTHING INDUSTRY

Abstract

World is focusing its attention on corporate environmental responsibility than ever before. Expanding economic activities has been accompanied by growing concerns about global warming, climate change, energy security and scarcity of natural resources. While industries are showing greater interest in environmentally benign manufacturing and are undertaking a number of corporate social responsibility initiatives, a quantum leap in improving environmental performance cannot be observed, due to the incompatibilities between expected business performance & initial investments needed in achieving such a goal. These incompatibilities may serve as obstacles for corporations? response to ecologically sustainable business practices. Ecologically sustainable manufacturing results cost efficiency and productivity; delivery of market innovation through new market opportunities and differentiation for profitability; and creating competitive advantage through compliance with regulatory bodies. To survive, thrive, and to be distinct in a competitive business environment, industry must be restructured and existing and breakthrough technologies must be more innovatively applied to realize green growth. This should involve a paradigm shift in the business scenario and integrate ecologically sustainable business practice efforts into the corporation?s overall business strategy. This is the most effective way to address these concerns while maximizing growth and returns for the corporation. In the case where integration does not take place, industry may lose its market value. This scenario was observed in the Sri Lankan textile & clothing industry, which has not completely unleashed, its immense potential to obtain the rightful place in global economic space.