Do the words Growth, Profit, and Expansion Mix with Sustainability?

Wednesday, September 29, 2010 by Julie Urlaub
image: brain twisterThat's quite a mouthful and somewhat of a brain twister.
 
Growth, from a traditional business mindset is the goal.  Bigger is better, more! On the contrary, the general consensus among those in the sustainability camp would possibly argue, growth is bad - evil - must be stopped.  However, as the pendulum swings from one side and then to the other, it rest in the middle.  And similar to the pendulum, as our world resets itself from the growth mindset, perhaps there is an equilibrium that allows for growth to have its place in a sustainable world.  Perhaps it just shows up differently.
 
How so you might ask?  Well, consider the basic essence of business sustainability: “it is a strategic approach to business to enable a business to meet its goals of profitability, growth, and revenue. It provides a path to creating significant, durable, business value." ~Gil Friend.  Simultaneously, it takes into account for social and environmental impacts. 
 
Growth going forward allows business to prosper but doing so differently than in the past.  Sustainability concepts coupled with innovation is driving manufacturers and suppliers to use renewable sources and achieve current standards with fewer resources.  Expansion viewed from a different context includes community engagement and partnerships.  Think NGO's and businesses working together.  Is that not expansion? 
 
The post, How Chocolate Can Save the World asks, "Is there a world where growing bottom lines and sustainable ecosystems can coexist — and even reinforce each other?" "When big business can align its focus on the bottom line with its need to ensure the sustainability of ecosystems, the world wins. Daimler, for example, used to rely largely on plastic fillers for its Mercedes-Benz headrests but began adding coconut fiber in its place. Recently, the company partnered with the South American environmental organization, POEMA to help coconut farmers improve their farm management by promoting sustainable mixed-use agriculture. The farmers' production of coconut fiber has increased four-fold. With less risk of input shortages, Daimler has now stopped using plastic fillers entirely, realizing five percent savings in the process. Less cost, less plastic, more sustainable farming."
 
Ultimately, a business sustainability framework offers a reshaping of the business lens.  The words growth, profit, and expansion do fit with sustainability- it's all in how you look at it.
 
Thank you to @treecare for the inspiration for this post.

Comments for Do the words Growth, Profit, and Expansion Mix with Sustainability?

Thursday, October 28, 2010 by Mark Stevenson:
Hi Julie, A great post in many parts. It is refreshing for someone from within the business community to have such an open view on the issues of growth and sustainability. The key raised issue is that growth just by itself is not fundamentally unsustainable. This we can see in natural systems. Organisms grow, reproduce and expand into new territories all the time. This process is an entirely natural phenomenon and is a big driver of many natural systems. Yet in the natural world growth is fundamentally tied to the resoruces. Natural populations are tied to their environment in an intimate way, when there is plenty their is growth and when there is not there is decline and mortality. This is the key nature of sustainable ecosystems, they do not show unlimitted and constant growth. The fundamental business paradim is one of constant growth, our economy in all parts macro and micro must continue to grow without limits. Until there is a paradim shift and (as you point out) change and transitions replace expansions (as in some steady state economy theories), the constant demmand of growth will overrule sustainability. I totally agree with you that the concepts of sustainability offer a chance to alter the way business conducts itself, I just think its a bigger shift than you think. Mark Stevenson Queen Mary University of London

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