Environmental sustainability is becoming a key driver for business innovation and new business models. First movers can exploit business opportunities and gain a competitive advantage. Policy makers can foster sustainable development. But what are the roles of policy makers in a transition economy like Belarus? And how aware are Belarusian companies of this new opportunity? In developed markets the business case for sustainability is relevant from a theoretical and practical perspective. Transition economies have many additional economic challenges and many executives perceive sustainability requirements to be a burden and too expensive. What kind of regulation and incentives are available for CEOs, policy makers and other stakeholders in Belarus to improve innovative processes for sustainable development? Based on survey results and empirical analysis we identify the main obstacles that hinder sustainability orientation in Belarus: weak awareness among key stakeholders regarding the potential benefits of and incentives for a sustainable business model; the absence or failure of environmental social and governance factors in strategic and operative plans; and uncertainty over how future economic policy can contribute to sustainable development. Experience from developed countries shows that a possible way to achieve high innovative activities for Belarus and other transition countries is to promote sustainable business models combined with regulatory measures. The essential benefits and measures of this transformation are also considered in the paper.
USBESDA