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Sustainable company cooperations emerge in the region and in competition

June 2, 2023

Gemeinsame Problemstellungen, regionale Verbundenheit und regulatorischer Druck durch die Gesetzgebung fördern Nachhaltigkeitsinitiativen von Unternehmen. Zu diesem Ergebnis kommt eine Studie des Institute for Business Ethics and Sustainable Strategy (IBES) der FHWien der WKW.

In general, companies that set ambitious but achievable goals and make their commitment visible to stakeholders benefit in the long term.

Sustainable commitment in the region and in the industry

An important motivation for sustainable cooperation is when companies recognize or experience ecological or social problems in their sphere of influence. In this context, their regional ties also play a relevant role. After all, if companies use their commitment to positive social influence for reputational purposes, it can be assumed that committed companies feel responsible for “their” region to a certain extent.

Another relevant motivating factor is cooperation within an industry. This is particularly the case when a solution to a common problem is to be developed that affects all involved companies. Cooperation can be particularly effective with companies that are in especially close competition with each other. However, this also requires extensive legal preparations to avoid violations of antitrust law or loss of knowledge.

Politics can foster sustainable and regional commitment

In general, engagement in environmental and social networks can help companies develop a proactive approach to sustainability. It raises awareness of opportunities as well as potential problems and identifies possible solution strategies. Policymakers can support this approach by promoting forums and platforms for knowledge exchange. Politicians can also strengthen companies’ sense of regional responsibility by providing targeted support for initiatives within a region.

Sustainable benefits with limited resources

For companies with limited resources that consider cooperative efforts too costly, alternative strategies are available. Targeted sustainability partnerships, in which all participating companies benefit from sharing financial resources and know-how, enable sustainable engagement even with limited resources. In most cases, involvement in sustainability partnerships is also associated with an image enhancement. To achieve this, companies should enter partnerships that address a specific social or environmental problem. Those who set ambitious but achievable goals can make their commitment visible to stakeholders and benefit from it in the long term.