INNOVATION

Sustainability and Innovation Audit Framework

Sustainability and Innovation Audit Framework

Introduction

Many of the companies still believe that the efforts to become sustainable are only a financial burden for the organization. Moreover, the benefits for the organization do not come quickly. Companies in the United States of America as well as in the United Kingdom, feel that they are at a competitive disadvantage when it comes to making their operations sustainable or green. This is so because, for some companies, the suppliers are the partners from the developing countries, and they do not share the same green vision of the organization. This means that the production processes will have to change for them to be able to provide environmental friendly supplies. Hence, most businesses think that need to become sustainable is one of corporate social responsibility and should remain separate from the operations of the business (Nidumolu, 2009, p. 12). The government impositions on the company have made it compulsory for businesses to make their business operations green. Creative businesses do not even see this as an obligation, but they also see it as a means of opportunity. Hence, in today's age sustainability has become a major driver of innovation.

The trends in sustainable innovation

According to a World Wildlife Fund report, published in the year 2007, there are six trends which have been identified as the principal reasons behind sustainable innovation. These are listed hereunder (FONA, 2008, p. 9).

Inclination to make use of natural resources

Unequal distribution of income

Growth in the level of population

Changes in the demographics of the world population

The constant movement from the rural to the urban areas and others

Changes in geographic and political rules and regulations as applicable on the company

Hence, companies are moving towards responsible innovation. However, this has to be managed. The model for sustainable development is given as follows (University of Exeter, 2012):

From the above model, it is evident that any businesses whether a manufacturing concern or a service organization should first ask itself why is there a need for innovation and what is expected of it. The company needs to decide and align the innovation objective with the goals and objectives of the organization to remain sustainable. This should be coupled with effective planning and implementation. In the words of Peter Drucker, “Innovation can be successfully managed if one knows where and how to look.” (Francis & Bessant, 2004, p. 171).

Sources of Innovation

There are four major sources of information. These are any unexpected occurrence, a change in the need for processes, a change in the marketplace or a change in the way the businesses in the industry operate, and incongruities. It is the need for new knowledge and a change in the demands of customers that lead to some of the most significant innovations. IBM is one of the perfect examples of innovative business enterprise. The first ever accounting machine was developed and designed by the ...