The MIT Sloan Management Review released a must read report that points out the difficulties businesses are having integrating “sustainability” into their operations. This is the first in a series of three responses to the meaning of this report.
Mired in Compliance
The business leaders surveyed acknowledged the relevance and need for addressing sustainability issues, however, most of them are still trying to wrap their heads around what “sustainability” is and how to go about addressing it. Some significant findings from the report include:
The majority of sustainability actions undertaken to date appear to be limited to those necessary to meet regulatory requirements.
More than 70 percent of survey respondents said that their company has not developed a clear business case for sustainability.
Also, what is clear from the report is that the majority of businesses surveyed are still firmly rooted in the earliest levels of sustainability, Compliance & Conformity:
- 67% of organizational leaders surveyed identified government regulation and legislation as the most significant influence on their business.
- 58% cited consumer concerns as potential major sustainability related “impacts.”
- 56% of these leaders also acknowledged that employee concerns around sustainability could also potentially “impact” their business.
What these responses reveal is a leadership mindset and/or organizational culture that is cautious, conservative and, largely, still reactive in terms of approaching business sustainably. They are still focusing on what they need to do comply with existing and upcoming regulatory issues as well as conform to consumer expectations and changes in the values of their workforce. From the report:
Many of their actions seemed defensive and tactical in nature, consisting of a variety of disconnected initiatives focused on products, facilities, employees, and the greater community. While these efforts might be impressive on some levels, they largely represented only incremental changes to the business.
The above is to be expected from organizations in Compliance, Conformity and, even, Cooperation. Simply, in relation to sustainability without a real sense of who they are, their place in the greater community and the opportunities available to them in their value chains and, more broadly, the Value Web it is difficult for any organization, any leader to engage with sustainability coherently.
Email
