Sustainability: business, life, environment

In a 2007 survey by McKinsey & Company, 400 CEOs cited that not fulfilling sustainability obligations would lead to declining market shares and loss of talent.  When asked which stakeholder group will have the greatest impact on the way their companies manage societal expectations:

• Surprisingly employees ranked highest (48%),
• Customers followed closely behind with (44%)
• Local communities, regulators, media and NGOs, all ranked (mid-20%)
• Investors scored the lowest (16%).

Companies are beginning to see the value in providing employees, middle management, and executives with education, tools and support necessary to champion sustainable development in their organizations.  Business sustainability is becoming a key concept in recruiting and retaining top talent.

“Our store partners (employees) are creating relationships with our customers everyday.  We believe it matters greatly that they feel Starbucks is a great place to work, and a company that cares not only about there well-being but also about the world we live in.”   -- Jim Donald, Starbucks

CEOs across all industries realize the economic value of incorporating sustainability concepts into product development and marketing.  Focusing on customer’s eco awareness and shifting preferences is creating new market segments and opportunity for business growth.

“Our goal: offer our customers an increasing volume of affordable, sustainable products that help them live better every day.” -- Lee Scott, Wal-Mart

Executives recognize that transparency and accountability is no longer limited to a company’s financials.  Corporate sustainability plans are providing company disclosure on regulatory compliance and risks.

“A commitment to sustainability recognizes that our company is not measured by financial results alone. We must also be responsible stewards of the environment and responsive to the changing expectations of our stakeholders.”  –Jim Rodgers, Duke Energy

Investors are expecting more from companies.  Business sustainability is now being integrated into traditional investment evaluation process, and this is having real impact on company financials.  Company success and sustainability are becoming more closely linked.

We recognize that opportunities for growth bring real social responsibility challenges. When society changes, business must be proactive in changing along with it. We are doing so, moving beyond dialogue to action.  -- Jeffrey R. Immelt, GE 

Today’s business environment is changing and leading companies are responding.  Recognizing the need for change and taking action can get you on the track.