By Hemant Rehani
For starters, a sustainable business is one that has the capability to perform well over a long timeframe while having positive impacts on the environment and society. Becoming a sustainable business requires us to focus on the triple bottom line comprising economic, environmental, and social measures of success. The sustainability agenda has moved forward from being driven by social activists to being driven by corporates, and from seminars & reports to becoming a core part of the business strategy & operations.
To make an authentic attempt at embracing sustainable business practices, we must make the sustainability culture a part of the business DNA. Sustainability initiatives should become part of business reviews where they are at the front and center of the growth pathway and not just a peripheral vision that is part of a few marketing campaigns or public relations talking points. When we include sustainability in our mission, it should not just make changes to the presentations and posters, it should drive changes in every decision we make – from which snacks we order for employees, to what vehicles we use, and what kind of buildings we operate from.
A growing number of consumers are interested in values that a brand stands for when they make their purchasing decisions. Brands with higher integrity and inclusiveness in their approach have a higher connection to consumers. Companies also command higher premium pricing for brands that have better connection to social responsibility and environment protection. Doing business in the new way, where social and environmental aspects are cared for, is not just good for reputation but also good for the bottom line in the long run.
The pandemic has forced many changes in personal and professional lives of people. It has been a catalyst to drive a deep thinking about personal values and purpose. As people’s thoughts are changing, companies are also changing the way they think and operate – since companies are led by the same people who live in the same society. People have an inherent desire to feel valued and be their authentic selves at the workplace. The purpose statement at an individual level is increasingly more inclusive and responsible towards social and environmental aspects of sustainable living. Companies whose purpose aligns closely to the purpose of their employees have a bigger probability of long-term success.
With sustainability becoming mainstream, companies leading the pack have one thing in common that they encourage all employees to get involved in the initiatives focused on improving the sustainability metrics. When every employee is engaged with sustainability initiatives – as a decision maker, evangelist, contributor or just for awareness, it contributes immensely to the long-term profitability goals. It also improves employee retention and engagement as per the Stanford Social Innovation Review.
In addition to the Environment part of the sustainability agenda, employees are also interested in the Social and Governance aspects. Gartner research shows that 65% of employees want to work for organizations that have a strong social conscience. Unlike past where organizations used to stay mute on political and current issues plaguing societies, the ones that remain silent today risk ability to retain and attract the best employees.
Activating employees to apply the sustainability lens, in everything they do, leads to driving changes, which do not require a complex change management program. Employees, that connect with the sustainability mission of the organization, work on developing products that keep the environment goals in mind, they service customers with a social belongingness and fairness, they make supply chain decisions considering the network impacts for the entire business and they become the brand ambassadors of the organization’s brand in every interaction they do.
Being a sustainable business is not easy, but it is possible by just making a few tweaks in the processes, tools and skills used to manage the business, and most importantly by connecting and aligning the purpose of employees and the organization. The toolkit used by businesses for development of strategy, operating model and capabilities remains pretty much the same. The trick is to use the additional lens of sustainability for every decision when we track progress and measure performance. We live in a world where thoughts and actions towards sustainability can achieve change at scale. This change is not only desirable, but much needed. Until the move to another planet becomes a reality, our only choice is to help protect what we have by indulging in real actions towards building sustainable businesses.
Author: Hemant Rehani, Chief Corporate Services Officer, Writer Corporation
