What makes a strategy sustainable

Sustainability doesn't detract from business goals, and infusing your company with purpose can help attract a motivated, skilled workforce that drives financial success. In a Facebook Live discussion , Henderson noted a recent study showing that 89 percent of executives believe an organization with shared purpose will have greater employee satisfaction.

Additionally, 85 percent say they're more likely to recommend a company with strong purpose to others.

Making your company an organization that does good in the world—rather than just a place that provides a paycheck—can be a competitive advantage when attracting the best talent. A study found that 73 percent of global consumers are willing to change their consumption habits to lessen their negative impact on the environment, and sustainable product sales have grown by nearly 20 percent since Millennials in particular are more willing to pay more for products that contain sustainable ingredients or products that have social responsibility claims.

If your organization commits to sustainable products and practices, it could gain market share by converting sustainability-minded customers and increasing sales. As an individual, it can feel overwhelming, isolating, or simply impossible to effect change in a meaningful way. While governments struggle to address public goods problems, purpose-driven companies working together to address these issues have experienced great success.

For example, palm oil is cheap, versatile, and found in about half of all packaged products, including soap, lipstick, and ice cream. But palm oil production has resulted in record greenhouse gas emissions and contributed to climate change. In light of this, consumer goods producer Unilever committed to only using palm oil from certified sustainable sources in As a result, Unilever continues to be a thriving organization, and the world has reaped the environmental benefits of sustainable palm oil harvesting practices.

It is also good to be transparent about sustainability activities. Being sustainable can also improve relations with the government and the local community. It can get the company tax incentives and subsidies. With millennials becoming the largest workforce, not having a sustainability strategy can mean losing out on a lot of good talent. Being sustainable can also lead to the employees being more motivated to work because they see value in what the company is doing. Corporations that focus on sustainability will be in the best position to get valuable new business opportunities.

Corporations have heard the message very clearly, and now I've observed that there is an increase in the number of large corporations that have a chief sustainability officer CSO. Economic, social and environmental sustainability is a must in today's business environment. It has a lot of benefits as well. A corporate strategy focusing on sustainability can add brand value, meet consumer demands, increase efficiency, attract valuable talent and create new opportunities.

The opinions expressed are solely representing this position. Forbes Business Council is the foremost growth and networking organization for business owners and leaders.

Do I qualify? This is a BETA experience. Sustainable strategies present a way of changing the overall risk profile of an organisation through mitigating, minimising and designing-out potential flaws likely to act as obstacles to business success over the long term.

The tools and techniques for assessing and interpreting the strategic implications of sustainability for organisational success are either well developed or can be derived by adapting commonly used business management techniques.

The critical challenges for companies lie in understanding sustainability as a transformational driver rather than an operational issue and in communicating the financial implications of sustainable behaviour to investors and markets. Businesses are waking up to the need for action on biodiversity.

Biodiversity is one of many issues organisations should consider when developing or reviewing sustainable business …. What matters most? Many people are driven by purpose, the ethical dimension of sustainable business. But all businesses need to make money, we explore where value can be found in sustainable business. The business case for sustainability is shockingly still either not recognised strategically i. VIDEO — Building strategic resilience through sustainable business practice starts with understanding the risks and dependencies of the business within the context of a changing world.

Defining and delivering true social utility requires a fundamental perspective and approach to assessing the purpose of enterprise in the first place. For sustainability and CSR managers, understanding of how your company competes is essential to your role. By continuing to use the site, you agree to the use of cookies.

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