Benefits of sustainability initiatives in the KSA

Essay, 2018

7 Pages, Grade: 87.00


Benefits of sustainability initiatives in the KSA

Sustainability initiatives advocates for a universally collective vision of evolvement towards a civilization that is impartial, nonviolent and viable for humanity. In addition to environmental maintenance and protection, the concept of sustainability enterprises recognizes the urgency required to enhance the quality of life via strategic practices that facilitate the socio-economic development and address a wide range of issues affecting the contemporary society (Asif, 2016). The Kingdom of Saudi Arabia (KSA) outlines the regulatory requirement on sustainability programs through the 2030 Vision along with the National Transformation Program (NTP) 2020 objectives. These goals show KSA commitment towards the attaining sustainable socioeconomic development that cuts across the contemporary civilization, in the midst of growing focus on sustainability initiatives (Alshuwaikhat & Mohammed, 2017). Nonetheless, the importance of sustainability initiatives has provoked renewed interested within the corporate management due to perceptions that these programs are linked to decreased operational costs and improved revenues. Modern research has supported these assumptions as successful sustainability strategies are believed to have a positive impact on the corporate value (Iwaro & Mwasha, 2013). In this regards, the paper seeks to analyze how organizations in KSA are advantaged by sustainability initiatives in the contemporary organizational management.

Sustainability initiatives are business products, programs, strategies and practices that largely focus on environmental and socioeconomic considerations. In particular, sustainable organizational practices that focus on environmental concerns are often designed to enhance energy, water, and environmental conservation (Alyousef & Abu-Ebid, 2012). The KSA economy primarily depends on oil and gas exploitation, which makes it highly susceptible to environmental pollution. As a consequence, environmental conservation and protection are increasingly gaining awareness within the kingdom. Organizations with environmentally conscious business models are increasingly focusing on energy and environmental conservation. This means that such companies are likely to have structures that demand less energy along with other building materials that emit fewer pollutants to the environment. Such companies are also likely to develop an organizational culture that is more concerned with efficiency needs in attempts to reduce wastage and increase effectiveness (Zaharani, Al-Shayaa, & Baig, 2011). Eventually, the energy conservation and effectiveness culture reduce the cost of business management, as most resources that go to wastage due to inefficient electricity and business management practices. This increases the profitability of the company as a result of reduced operational expenses that increase the profit margins. Business entities with increased profitability patterns are likely to withstand intensive competition in the contemporary market environment (Taleb & Sharples, 2011). This illustrates that sustainability initiatives in KSA improve organizational profitability, which is paramount for business survival.

The world is increasingly focusing on ways to curb climate changes. Climate change concerns are also reflected in KSA, especially through the kingdom's 2030 Vision and NTP 2020 objectives, in which environmental conservation is one of the major goals. As a consequence, KSA has ratified several declarations compelling organization operating within its jurisdiction to comply with environmental decrees (McCullough, 2014). Failure to comply with these regulations attracts legal and ethical sanctions, which attract legal proceedings and public condemnation. Legal proceedings at the local and international jurisdictions are time-consuming and require financial resources. Attracting public condemnation is fatal as it damages the image of the company, which negatively impacts on marketing strategies. However, centering sustainable initiatives around major and routine organizational decisions allow companies to gradually comply with environmental regulations (Farook et al., 2011). This saves business organizations from legal and ethical sanctions in KSA. Businesses are also rescued from potential fines, government sanctions, and other repercussions as outlined by sustainability decrees. It also results in improved business ties with the KSA government and the public, which is paramount in complementing marketing campaigns. Companies with robust sustainability initiatives also qualify for tax incentives attributed to environmental regulations (Alshuwaikhat & Abubakar, 2008). This plays a central role in enhancing the financial performance and organizational productivity. Starting a business based on sustainability initiatives allow organizations to gradually comply with the prevailing and imminent sustainability regulatory frameworks in KSA.

A positive public image and good working relationship with the KSA's authorities improve the performance of publicly traded companies in the stock exchange markets. The millennials and most investors are attracted to positive organizations as the society is increasingly becoming aware of the significance of corporate social responsibilities and global warming (Zaharani, Al-Shayaa, & Baig, 2011). In the wake of observable climate change effects, people are more concerned with conserving the environment. Besides, technological advancements have intensified magnitude of business competitiveness that cuts across all industries and market niches. Companies are now seeking strategic and innovative ways to attract high-quality employees and more investors. Sustainability initiatives are one of the areas that companies strive to improve to attract competent employees and investors (Taleb & Sharples, 2011). In other words, companies with strategic and innovative sustainability initiatives are more likely to attract highly competent workers. These initiatives also improve the investment attractiveness from investors (Alshuwaikhat & Abubakar, 2008). Businesses with robust sustainability initiatives are more likely to qualify for financial aid arrangements from the public and private institutions. As a result, the performance, productivity, and market forces endurance of companies with sustainability initiatives improves. This shows that that complying with sustainability initiatives improves the organizational performance and productivity due to employment and investment attractiveness.

As previously mentioned, sustainability initiatives are centered around collaborative efforts that integrate environmental and socioeconomic considerations. Therefore, these initiatives involve collaborative inputs, in which the workforce work hand-in-hand with the management to identify and execute sustainability programs (McCullough, 2014). The resulting process fosters a culture of teambuilding and continues developments. Employees are more likely to be more productive when the collaborate and engage in activities that generate positive reviews from the society, the management, and other collaborators. It also fosters a strong relationship between the employees, their respective companies and the society. Such relations are important as they encourage the employees to invest in organizational success, which promotes retention of the employees (Farook et al., 2011). This is also likely to attract highly qualified and competent workers in the labor market. Furthermore, the emphasis on the significance of sustainable improvements and contributions facilitates in the creation of a positive organizational culture, which is paramount in improving the morale and motivation of the human resources (Alshuwaikhat & Mohammed, 2017). These factors are essential in enhancing the productivity of the employees. Promoting sustainability initiatives facilitated the development of a favorable working environment, which takes into the account of the workers' health and safety welfare. This reduces the susceptibility of the workers to health issues, injuries and damages, as the company strive to comply with health and safety regulations (Iwaro & Mwasha, 2013). As a consequence, workers are in a position to work without fear of their safety or health due to the presence of favorable workplaces. This indicates that organizations benefit from sustainability initiatives as it promotes the workers’ morale, motivation, and retention, which is fundamental in promoting the organizational performance.


Excerpt out of 7 pages


Benefits of sustainability initiatives in the KSA
Catalog Number
ISBN (eBook)
File size
443 KB
Quote paper
Leonard Kahungu (Author), 2018, Benefits of sustainability initiatives in the KSA, Munich, GRIN Verlag,


  • No comments yet.
Read the ebook
Title: Benefits of sustainability initiatives in the KSA

Upload papers

Your term paper / thesis:

- Publication as eBook and book
- High royalties for the sales
- Completely free - with ISBN
- It only takes five minutes
- Every paper finds readers

Publish now - it's free