What are the Incentives for Sustainable Development

image: carrot stickThe unprecedented growth of eco awareness in the corporate world has created a more comprehensive understanding of business sustainability.  Leading organizations now realize that ‘sustainability’ is more than an environmental or social policy.   It is a commitment to action not just within their own company but across the entire value chain.  But what inspires action?  Our sustainability consulting takes a look at today’s employee incentive structures.

By integrating economic stability into the business sustainability discussion, companies are developing an expanded understanding of business sustainability, which includes the performance and success of the company’s key business relationships.  Often the stakeholders most directly affected are the organization’s front-line internal resources.

“Employee support is a crucial part of any company becoming sustainable. But engagement is easier said than done. If sustainability is truly a priority, there have to be solid incentives.”

A quote taken from the author of a recent GreenBiz post, The Pros & Cons of Linking Sustainability Successes with Bonuses, which explores employee incentives for business sustainability action. Discussing both sides of the often controversial debate, the article navigates the ups and downs of aligned sustainability performance measures.  To adequately function, the author offers the following advice:
  • A company must have a robust compensation structure that is able to easily integrate sustainability metrics with human resources systems.
  • Business sustainability performance must be carefully aligned with corporate strategy and values

Implementing business sustainability in today’s environment can be a delicate balance between planning for today and planning for the future.  While many organizations are taking more conservative action, leading businesses are reevaluating and retooling to improve their overall sustainable performance.  Our sustainability consulting agrees that aligned incentives will play a key role in this process.

Comments for What are the Incentives for Sustainable Development

Name: jjacques Datus
Time: Wednesday, January 11, 2012

Well. "Very sweet article" That would give hope to employees. But more often than not, what is missing the most: Values! Employers do what ever it takes to increase their profit margin. Take that one.You might have in a section of Siemens 20 employees, let say 20 qualified and well trained guys. The company makes them believe that there would be some improvement coming. Some fringes benefits health insurance and so on. So the company give a pink pay slip to 10 of them They are sent home. Now the same
work by 10 remaining. One of them would get home at 11 or 12
midnight and no wining or complaining, fearing to be sent away. The company is making big profit
The only thing that is taken into consideration is the gain and money for the company.