What Bar Should We Set For Small Businesses In Terms of Sustainability?

Article Written by Helen Dorothea Jorgensen

The traditional paradigm of business tells us that only profit matters, echoed by Milton Friedman in his infamous quote,“The business of business is business.” However, this idea that businesses have no social responsibility to the public or society is no longer applicable in the modern era of concern for garment workers’ rights and increased awareness of unsustainable materials. When I began my research into sustainability and how I can adjust my lifestyle to a more eco-friendly one, there was one piece of advice that I found in almost every source: buy from small businesses. Up until recently, I have blindly followed said advice without a true understanding of greenwashing and the mechanics of what it takes for a small business to be sustainable aside from producing less waste.

 I follow on Instagram @thesustainablefashionforum, a page that focuses on “educate[ing], empower[ing], and inspire[ing] our community to reimagine the future of fashion by fostering conversation about the intersection of fashion and sustainability.” A few weeks ago, I came across one of their recent posts: 

Inspired by this Instagram post, I will be exploring the questions prompted, hopefully giving a better idea as to what it truly means for a small business to be sustainable, and allowing you as the consumer to know what to look for when you are shopping.

 Small businesses are inherently more sustainable because they produce on a smaller scale but if that’s all a business does can they truly call themselves sustainable?

If all a small business does is produce less waste and then label themselves as ‘sustainable’ then they are absolutely not sustainable. According to Harvard Business School, sustainability in business addresses two main categories: the effect the business has on the environment and the effect business has on society. One could argue that since a small business is producing less waste and not polluting the environment to the same extent that larger businesses do such as Zara and H&M, they are addressing the former of the two categories, and therefore can call themselves sustainable. But in order for sustainability to have an impact on our environment and society, we need to set higher standards-than just simply producing less waste-for what it means for a small business to be sustainable.

It is important to acknowledge that it is harder for a small business to make sustainable efforts because it requires a much greater initial investment. From sustainable packaging to purchasing ethically produced and organic materials, small businesses need to have the financial means to make the investment in the first place.

With all of this in mind, what it means for a small business to be sustainable is to make efforts-to the best of their ability-be sustainable, from the materials they use, to treating their employees properly, and simultaneously be transparent regarding their efforts as well as acknowledge in what areas they are not so sustainable, and how they are making adjustments to improve on those areas.

 Is that a form of greenwashing?

  For a small business to call themselves sustainable without taking action and making conscious efforts to be sustainable, and not being transparent, the result is a gap between the values of sustainability and action that is necessary for sustainability to have positive impacts on the environment and society. This gap is otherwise known as greenwashing: a business using the values of sustainability to make their products more attractive to their customers, the watering down of sustainability to just an aesthetic.

 Greenwashing is unfortunately very common among businesses, and very easy to spot among larger ones as they are usually held accountable by the media and consumers. H&M, for example, has a page on their website dedicated to sustainability and has an eco-friendly clothing line; however, the Clean Clothes Campaign  has brought to light H&M’s poor treatment of their garment workers, including not paying them after cancelling orders during the pandemic. However, since small businesses don’t usually receive the same amount of media attention it’s much more difficult to find out if a small business is seriously dedicated to sustainability if they are not being transparent on their website. My advice for shopping at small businesses is to not be afraid to ask questions. Small businesses that are serious about sustainability will have no problem going into detail on how they are sustainable.

Should small businesses have to do more? How can small brands better incorporate sustainability into their business model?

 Ethically speaking, all businesses should be working towards being more sustainable. Furthermore, if a business is going to call themselves sustainable, but not put the effort into actually being sustainable, then not only are they greenwashing, they’re lying to their customers.

 Two suggestions I have for small brands to incorporate sustainability into their business has to do with packaging and sourcing of materials. Firstly, investing in sustainable packaging is an easy way to become sustainable for any business. Packhelp is well-known for their range in eco-friendly packaging that you can customise for your brand! Also, focus on having minimalistic packaging as it will not only reduce unnecessary costs but also the amount of waste your business creates. Secondly, try to source your materials from your local area. Not only can it reduce your business’s carbon footprint, you can ask the business owners questions on where their materials come from and be able to be transparent to your own customer base on how your materials are sustainable.

   As our society shifts to valuing businesses that are taking on sustainability as a true pillar to their business practices over maximising profit, we are shifting from larger retailers to small businesses. For sustainability to be taken seriously and have an impact on our society and environment, we need to set the bar higher, including among small businesses where the bar is higher than just producing less waste. The effort to be sustainable for small businesses is much greater, but it is their responsibility especially if they want to label themselves as such. What is most important is that a small business is taking steps to begin sustainable to the best of their ability, being transparent, and setting goals to constantly improve in being sustainable. In my next article on sustainable small brands, I will be sharing a few of my personal favorite small business and their respective business practices that will hopefully give you all a better picture of how to know if a small business is truly sustainable or simple greenwashing.