Don’t you hate when you are told you can’t get what you want? Every day the world gives you a message that you cannot have it both ways. It’s either fuel guzzling super car or a fuel-efficient daily use car; healthy food or fast food; maximizing profit or increased cost to save the planet for the future generation. Somehow when issues are framed this way, we tend to accept we cannot get what we want. Through this article, I am attempting to make a case that the businesses around us are changing their strategies owing to the growing needs of consumers who are demanding both ends of the spectrum.
Sustainable development is usually associated with terms such as climate change, reducing poverty, human rights among others. According to the 1987 Brundtland Commission Report, the term sustainable development refers to the development which meets the needs of the present without compromising the ability of future generations to meet their own needs. Unfortunately, few businesses around us use the term just to green wash their image. Sustainable development leading to sustainability is often seen as a good to have cost to avoid controversies, reputational damages, and as a marketing tool. Does that mean being sustainable and looking out for the benefits of the people and planet jeopardizes the economic benefits of a business? Why can’t we look at sustainability as an investment and as an opportunity that can be inculcated as a part of a company’s business strategy that is good for the people and the planet, and that increases the valuation of the shareholders by driving innovations leading to better products and solutions, increasing the consumer base and thus resulting in increased bottom-line?
Think about the incident when your car manufacturer falsified the emission data and got caught in the act. In 2015, the company reported the biggest annual loss since its establishment after the emission testing scandals were made public.
A popular food brand declared a decline in 30% of its profits after the scandal of using illegal anti-biotics and expired meat surfaced in 2012.
A large well-known sporting brand had a huge negative impact on its sales after the news of promoting sweatshop culture at its manufacturing facilities emerged.
The examples of such unsustainable business practices are plenty. I care, you care, we all care about these issues. Sustainability factors are fundamentally changing the course of business; some companies will adapt and succeed while others will fail. The winners will not only be going to survive in this rapidly changing environment but also, they will find ways to thrive. They will figure out the socio-environmental problems and pivot their strategy accordingly well before it’s too late. They will find ways to reduce their costs and risks on one hand and to invest in corollary opportunity to innovate and grow on the other.
Some of the smartest are integrating such factors in their business strategies not only because customers are demanding good corporate citizenship, Government is enforcing regulations or Global Not-for-Profits are demanding action, but it is also about greater greed. This gives businesses an opportunity to think about where the greater greed intersects with the greater good.
Trillions of dollars available today: the enormous amount of capital may be stuck with the mentality that sustainability is an obstacle to making money. Whether you care or not, in the future to come, a rising standard of living for you, for your children and your grandchildren, and for all the billions of people around the world expected to enter the middle class in the next decade will lead to increased demand of future comforts such as vehicles, fast food and smartphones. In the future, we do not have to pit profit versus the planet. If you imagine the future of vehicles of yours, there are existing companies who are working to meet your demand for cars that are fast and fun to drive at the same time being less polluting and more fuel efficient than they are today. As you read this article, some of smartest companies are making an investment today for their long-term sustainability in their own economic self- interest so that they can compete for your loyalty and your money tomorrow.
Hopefully, you now believe in the AND and not the OR. It is time we eradicate the notion of the trade-off. You can have it both ways.
“Plan for the future as that’s where you are going to spend rest of your life”- Mark Twain
Disclaimer: The article is completely informational and in no ways intended to hurt any individual and/or organization. While writing this article, I have referred to and used materials from various publicly available information including and not limited to videos (TED and others), research papers, scholarly articles, journals, audio books. In case there of any questions or concerns, please do reach out to me. Read on Linkedin