ISBN: 978-93-94174-93-1

The Dark Side of Sustainability: Hidden Costs and Trade-Offs in Green Business Practices

Assistant Professor, Department of Commerce, Sree Kerala Varma College, Thrissur, Kerala, India

Many people celebrate sustainability as a catalyst for responsible businesses; however, hidden complexities exist that many people do not understand. The present research examines the Green Cost Paradox and Sustainability Trade-off Dynamics, as well as the financial and operational burdens that can be imposed on businesses when they implement eco-friendly initiatives. The present research also addresses the Eco-Efficiency Dilemma, where there is often trade-offs between reducing environmental impacts and meeting production goals, and examines Strategic Greenwashing as a possible threat to corporate credibility. The present study will encourage the use of critically informed strategies that align the goals of satisfying environmental commitments with sustainable profitability, while emphasizing the importance of Responsible Profitability Balance. This research article provides readers with an overview of sustainability strategy in the context of sustainable business practices. The author reveals some of the "dark sides" of sustainability through a critical analysis of sustainable business practices, including the costliness of implementing sustainable business practices, operational disruptions caused by sustainable practices, competing long-term and short-term sustainability objectives, and other trade offs related to implementing sustainable practices. Small to medium-sized businesses (SMEs) face disproportionate cost burdens in their pursuit of sustainability, which may ultimately impact their ability to compete effectively or generate profit. Other issues explored include greenwashing, inefficiencies in the supply chain, and the paradox where increased consumption occurs as a consequence of "green" marketing. Additionally, the author addresses the apparent contradiction between meeting short-term financial objectives and pursuing long-term sustainability. The author uses both conceptual and analytical approaches in evaluating the overall, long-term implications for SMEs of pursuing sustainable business practices and demonstrates that sustainability does not possess a universal benefit for all. Rather, sustainability is a complex and multi-faceted strategy requiring indepth evaluation of the related issues and tradeoffs when implementing sustainable practices. The study contributes to our understanding of sustainable business practices through the identification of missing dimensions, where transparent reporting, realistic policy frameworks, and alignment of strategy can reduce adverse impacts while protecting environmental objectives. The ultimate goal of the study is to move the conversation from idealistic adoption to critical and knowledgeable application of sustainable practices in business and management.

*Corresponding author; e-mail: archanavimalmenon@gmail.com

Cite this Chapter: Archana Aravindan. 2026. The Dark Side of Sustainability: Hidden Costs and Trade-Offs in Green Business Practices. In: Dr. Lubna Suraiya Dr. P. Kanchana (Eds.). Commerce Reimagined: The Future of Trade and Transactions (Vol-III). Excellent Publishers, India. pp. 152-162. doi: https://doi.org/10.20546/978-93-94174-93-1_3_10