In an ever-increasingly competitive global marketplace, we find ourselves now having to reconsider our previous overreliance on financially driven metrics, and instead focus on broader key performance indicators, which more deeply reflect the values and sensibilities of a progressively environmentally and ethically conscious society.
In this month’s Hot Topic, we are talking sustainability, and how the adoption of a more sustainable organisational culture may well hold the key to unlocking a much-needed competitive advantage, whilst also positively enhancing our reputation as a service provider who are motivated by ethics as well as profit.
Managers, Morals, and Markets
True organisational sustainability is built on a solid moral foundation. As managers and leaders, we must endeavour to personify the positive change we wish to see within our surrounding environment and culture. Recent research suggests that sustainability requires a strong ‘moral manager’ – an individual with the ethical fibre required to resist immoral temptations and live up to ethical norms (even if this means foregoing profits) when attempting to drive forward a culture of sustainability. Nonetheless, whilst the enduring quest for morality is an undoubtably noble pursuit, true sustainability is dependent on the adoption of processes which far exceed solitary managerial actions.
From employees to investors, we must not be afraid to question how each of us can contribute to the advancement of a sustainable organisational framework, through the adoption of processes including:
1. Codes of conduct: Provide specific legislation which articulates your company’s explicit commitment to high sustainable standards. From an internal governance perspective, it is imperative that the broader economic, environmental, and social benefits associated with sustainable business practises are clearly signposted to ensure buy in from key stakeholders.
2. Collective commitment:. Drawing upon practises undertaken by the international coffee industry, we must put competitive rivalries aside (at least temporarily) to consider how our wider industry can enhance its commitment to shared sustainability. By working to create specific industry rules and standards, we can improve the quality of our professional services whilst helping to maintain a level playing field.
3. Complete corporate transparency: A commitment to sustainability should be clear for all to see. From where we source our materials to how distribute our final products, there should be no secrecy.
Avenues of Sustainable Innovation
Sustainability in business can take many forms. Drawing upon practises undertaken by large scale organisations such as BMW, Heineken, and Proctor & Gamble, below we explore some potential pathways we may wish to traverse in our pursuit of economic, environmental, and social sustainability.
Economic Sustainability
The Organsation: Conduct internal research and development initiatives to improve ecological product production, minimise waste, and reduce costs.
The Supply Chain: Engage in learning and knowledge sharing with supplier and seek to retain long-term relationships built on a foundation of sustainable practices.
The Ecosystem: Actively seek collaboration with SMEs and individuals seeking to drive forward sustainable policy changes.
Enviornmental Sustainability
The Organisation: Prioritise sustainable production of new and emerging products and services, through exploring renewable energy and reusable materials.
The Supply Chain: If your current suppliers are unable or unwilling to adopt a ‘greener’ approach, explore new relationships based on sustainable and environmental performance.
The Ecosystem: Start researching on green technology through collaboration with universities and research institutions.
Social Sustainability
The Organisation: Start with the needs of others. At the early stages of product and service design, consider your organisation’s corporate social responsibilities.
The Supply Chain: Explore beyond the traditional supply chain and work to facilitate fair trade partnerships and improve ethical sourcing standards.
The Ecosystem: Advocate involvement from a broader range of key stakeholders, encourage opinion on social media, and champion collaboration with social enterprises.
Action Point
Consider how your working teams can work towards enhancing the quality of sustainable business practises within these three key areas.