Most businesses now understand that their sustained global success depends upon the economic, social and ecological contexts in which they operate. The problem is, the stability of those contexts can no longer be taken for granted: the physical environment is becoming increasingly unpredictable; our interconnected global economy is altering social conditions; and technological innovation is transforming the nature of both consumption and production. As a result, corporate sustainability has evolved significantly, and now involves addressing critical business issues involving a complex network of strategic relationships and activities. The authors show how companies like Intel, BASF, Walmart and Stonyfield are partnering with other organizations-including Greenpeace and the World Wildlife Fund-to find solutions to sustainability challenges in their communities.
This is an MIT Sloan Management Review article. In the 2014 Sustainability Report, new research by MIT Sloan Management Review, The Boston Consulting Group and the UN Global Compact, shows that a growing number of companies are turning to collaborations -with suppliers, NGOs, industry alliances, governments, even competitors -to become more sustainable. Our research found that as sustainability issues become increasingly complex, global in nature and pivotal to success, companies are realizing that they can't make the necessary impact acting alone.. Authors: MIT Sloan Management Review, The Boston Consulting Group and the United Nations Global Compact.
Emerging economies are often thought of as environmental laggards; they're perceived to be focused more on addressing poverty than on protecting the planet. But when the Boston Consulting Group and the World Economic Forum went looking for the best sustainable business practices in the developing world, their researchers uncovered many visionary enterprises that defied that stereotype. These organizations show that in markets where resource depletion is most keenly felt, conservation efforts can be a wellspring of innovation--and a source of competitive advantage. Some of these enterprises pursue sustainability out of pragmatism; some out of idealism. But all have consistently generated above-average (and in some cases, astounding) growth rates and profit margins. They've achieved them by following one or more of three general approaches: (1) taking a long view and investing in initially more-expensive sustainable operating methods that eventually lead to dramatically lower costs and higher yields; (2) bootstrapping--making small adjustments that generate big savings, which then fund purchases of advanced technologies; and (3) extending their sustainability efforts to the operations of their customers and suppliers (and in the process, devising new business models). Collectively, these companies demonstrate that there need be no trade-off between sustainability and financial performance. Rather, the pursuit of sustainability can be a powerful path to reinvention for all.
This is an MIT Sloan Management Review article. Despite the economic downturn and tenuous recovery, more than two-thirds of businesses are strengthening their commitment to sustainability, according to a new global study by MIT Sloan Management Review and the Boston Consulting Group, as reported in this article. The study found that 69% of companies surveyed plan to step up their investment in and management of sustainability this year. Just over one-quarter (26%) plan no change, and only 2% intend to cut back on their commitment. The study also found that a two-speed landscape is emerging, with a gap between sustainability "embracers"-those who place sustainability high on their agenda -and nonembracers or "cautious adopters,"who have yet to focus on more than energy cost savings, material efficiency and risk mitigation. Embracers are significantly more confident about their competitive position than nonembracers are. Seventy percent of embracers said they believe their organizations outperform industry peers. By contrast, only 53% of cautious adopters described themselves as outperformers, and 14% admitted to lagging behind peers -more than twice the percentage of embracers who made the same claim (6%). In addition, nearly three times as many embracers (two-thirds of them) as cautious adopters said that their organization's sustainability actions and decisions have increased their profits. "What's fascinating is that these findings depict a business landscape in general that's tilting hard toward where the embracers already are,"says Michael Hopkins, editor-in-chief of MIT SMR and a coauthor of the report. "So the embracers have handed us a kind of crystal ball. Their insights and behaviors suggest a blueprint for how management practice and competitive strategy will evolve." The report identifies seven specific practices exhibited by embracer companies, which together begin to define sustainability-driven management.
This is an MIT Sloan Management Review article. MIT Sloan Management Review's second annual Sustainability & Innovation survey -exploring the current and projected sustainability-related practices of organizations and executives -was fielded during a year of bad public news for sustainability advocates. Between last year's much-publicized delay in reaching an international agreement on climate change in Copenhagen and the continuing economic malaise, it was hard to predict how sustainability would fare as a management priority. Would companies begin to scale back their efforts to adopt more efficient business practices and become less focused on sustainability-related issues? Would they put existing programs on hold? What assessments would they make about the implications for managers of the changing sustainability landscape, and how were their strategic plans for competing in the future being affected by sustainability concerns? This article is a first look at the results of the 2010 Sustainability & Innovation Executive Study -focusing especially on 12 top-line observations drawn from the survey data and separate in-depth executive interviews. The survey respondents included more than 3,107 managers and executives, representing every major industry and region of the world. This article offers answers to such questions as, Where does sustainability now fit on top management's agenda? Do top-performing companies see things differently? Who drives the agenda within companies? What does the C-suite think? And how do top managers go about making sustainability-related investment decisions when tangible information for weighing costs and benefits is often lacking?