A2.5.5.2 Increase Revenues


Increase revenues by improving the environment and benefiting the local economy

There are many opportunities to increase sales by improving the environmental impact of production processes and by taking action which helps local economies. Successful approaches have been to innovate and develop new products, and to view ‘wastes’ as potentially saleable by-products. Improved processes can also make existing products more attractive to concerned customers. Recognition as a responsible producer (informally or through formal certification) can also open the door to some markets in developed countries. Action which helps develop local economies, such as local recruitment, using local suppliers and providing finance and telecommunication facilities, can boost sales and may also have important public relations benefits for companies that are seen to be integrating into the community. Local small and medium sized enterprises themselves are involving their communities and finding innovative ways to grow sales, both locally and abroad, e.g. through ecotourism and organic farming. Together, these actions provide opportunities to:

  • develop new products;
  • sell more of existing products because:
    • they are more attractive to customers
    • local supplies have increased
    • greater local prosperity means more spending power;
    • earn a premium selling price for products with positive environmental or social attributes;
    • find markets for by-products or waste;
    • gain or improve access to markets because of sustainability credentials.


Local economic growth

Building linkages with local businesses and employing local residents is key to local economic development and can also increase revenue for the companies involved. A clear link has also been established between poverty reduction and business growth.


Local economic growth

This is about how companies can share the benefits from their investment activity with local businesses or provide tools for economic growth to local communities. Companies can transfer skills and technology to local residents and businesses, use and pay fair prices to local suppliers, help develop and support local SME suppliers and service providers, and provide microfinance and telecommunications facilities to local communities.