Saturday, March 20, 2010

The Business of Sustainability

A report, titled The Business of Sustainability from Sustainable Initiative, a collaboration between the MIT Sloan Management Review and the Boston Consulting Group (BCG) finds that while the majority of companies view sustainability as a response to external pressures, some are finding profitability in its practice. In particular, the report found, the few companies that are aggressively pursuing sustainability are finding significant opportunities for profitability and competitive advantage.

The report provides a framework for the majority of respondents who reported struggling to develop a business case for sustainable value creation. In the short term, companies can—and in some instances, must—take such minimal steps as regulatory compliance and cost efficiencies. Following these steps, but also short-term considerations, are such activities as transparency and reporting.

In the long term, companies can reframe their organizational priorities to differentiate themselves competitively by such steps as product innovation. Eventually, new economic models and improved relations with stakeholders will help imbed sustainability in the corporate culture.

1 comment: