At a time when governments and organizations attempt to drive sustainability through regulation, business has a unique opportunity to lead the charge.
In his book, Sustainable Success: How Businesses Win as a Force for Good, Sphera CEO Paul Marushka makes the case that business can provide both the spark and the machinery for meaningful change.
Business innovation in what we produce and how we act can make the world a better place to live for all. And as Marushka writes, “That’s not an idealistic fantasy. It’s a matter of good business sense.”
Business as a force for good
History shows that business often sets the global course for good. While governments and consumers play important roles, only business has the power to catalyze action efficiently and effectively at the scale and speed we need.
Business leaders throughout history have made positive changes to serve as a Force for Good.
Henry Ford, for example, revolutionized production to make automobiles affordable for the middle class while paying workers a livable wage. Ford’s guiding principle, “Make the best quality of goods possible at the lowest cost possible, paying the highest wages possible” demonstrated his commitment to innovation and social responsibility.
Unilever managed a ten-year sustainable living plan under CEO Paul Polman that set several ambitious targets for 2020, helping more than a billion people take action to improve their health and well-being, cutting its environmental footprint, and enhancing the livelihood of millions while raising revenue by a third. Across Polman’s tenure, shareholders saw returns increase by nearly 300 percent.
Similarly, Patagonia has made sustainability central to its brand by insisting on 100% recycled materials in its clothing and committing to reduce waste across its global operation. In the process it has become one of the most successful outdoor clothing companies in the world.
These companies found their noble purpose and put good intentions at the heart of their business strategies. They recognized shifting cultural expectations and took the lead, using data, expertise and technology to drive change.
The business case for sustainability
Successful businesses are moving beyond basic compliance and flourishing as a result. Consumers, in turn, buy into and support their noble purpose. People want to work for them. Investors reward their foresight.
As Marushka puts it, “These lions of industry will be the ones that survive and grow into the future. They will gain more than their share of investment capital, business momentum and talent, while the ostriches [that keep their heads stuck in the sand] that can’t or won’t adapt will find themselves cold-shouldered.”
For CEOs who aspire to be lions and avoid the fate of the ostriches, now is the time to analyze the cycle of good and identify where their businesses can lead.
Marushka believes they’ll discover that sustainability is not a cost. It’s a revenue center, a chance to find useful efficiencies, and a crucial path to business success.
A recent Gartner report shows that 86% of business leaders see sustainability as an investment that protects their organization from disruption, while more than 80% say sustainability activities creates short- and long-term value and helps optimize and reduce costs.
How to build your action plan
To make sustainability work for you and your stakeholders, consider these seven steps.
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Think from a cultural perspective
Look beyond your business or even your customer. How are societal sentiments shifting? What does society expect of your company? Understanding this broader context is key to staying relevant and responsible.
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See through the eyes of the next generation
Imagine your company’s environmental footprint as seen by the next generation of consumers. What will they value in 10 to 15 years? How will your products and practices stand up to their expectations?
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Commission a full lifecycle assessment (LCA)
Conduct a cradle-to-grave LCA of your most important products and services. Understand the full journey of your supply chain from raw materials to end-of-life. And identify opportunities to get more efficient and reduce your impact.
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Conduct a materiality assessment
Engage with stakeholders to understand their priorities. You may discover that their concerns differ from your own and that these differences reveal new opportunities for innovation and partnership.
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Embrace enterprise sustainability management
Don’t treat sustainability as a compliance burden. Use enterprise sustainability management platforms to operationalize change, track progress, and embed sustainability into everyday decision-making.
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Innovate across data, technology and expertise
Break down sustainability opportunities into three categories: data, technology and expertise. Try initiating at least one sustainability-focused change in each area to drive measurable progress.
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Take the next step
Don’t wait for the perfect plan. Start with what you can do right now. As Marushka advises, “Don’t let perfection get in the way of being proactive.”
The path to sustainable success starts with action. By following these seven steps, you can lead with purpose, create lasting value, and become a Force for Good.
