We bring up the topic of sustainability often in our business review section, as there are many perspectives one can take on the matter. Over the years, the meaning of sustainability has evolved significantly. It used to be mainly associated with a differentiation strategy and building a competitive advantage, as discussed by Michael Porter, though the meaning of sustainable business now goes beyond business performance. Many companies around the world are beginning to recognize that sustainable business practices are directly connected to the sustainability of the greater natural environment, and that there is a need to review and reshape thinking about business philosophies and strategy formulation.

Today I would like to take a look at the connection between knowledge, education and the changing views on sustainability strategy in business. My inspiration actually came from my 9-year-old son’s school project, which made me realize how uneducated previous generations were with regard to global issues at this age, and how this impacts the reasons for delaying the inevitable. The project was very simple: students were asked to pair up and choose one of the 17 UN Sustainable Development Goals they would like to help solve, then they were asked to come up with a creative solution. Miki and his friend chose Goal 14: Conserve and sustainably use the oceans, seas and marine resources for sustainable development. The boys did their research and concluded that the most important thing to do is to save fish from plastics, and created a warning system for all marine life. It was not even the topic itself that caught my attention; it was the deliberate inclusion of discussion and meaningful work of 9-year-olds on topics that many parents have not even heard about.

One may ask what this has to do with Sustainability Strategy in business - in my view a lot. It shows how big the gap is between our readiness to act on sustainability instead of just talking about it, compared to the young generation. That said, we don’t have the time to wait, so it’s up to today’s executives to drive the change.

It would be unfair not to recognize the progress that has been achieved over the years. Corporate Social Responsibility was mentioned every now and then since the industrial revolution, but it was not seriously considered. Following WWII in 1953, H.R. Bowen defined the social responsibilities of business executives as, “the obligations of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society.” Sustainability, on the other hand, according to Knut Haanaes, “is a business approach to creating long-term value by taking into consideration how a given organization operates in the ecological, social and economic environment. Sustainability is built on the assumption that developing such strategies foster company longevity.” The shift can go even further, C. B. Bhattacharya says that there is a mistaken conception in large parts of the corporate world that sustainability — the well-being of our planet and its people — is the next iteration of CSR. This is wrong because sustainability has to do with the survival of the company. This evolution of thought inspired the changes in strategy formulation, and the fact that today’s youth will be much better equipped to identify and act on necessary changes in the future shows how education at any stage can facilitate necessary change.

Reading the above can ignite a question: why was including Corporate Social Responsibility in business decisions not enough? In the beginning, CSR initiatives were not a priority for many years; browsing through different articles we can say that until the 90s it was not top of mind among business executives. In the late 90s and early 2000s, CSR initiatives started to pick up momentum in large corporations. As marketers, we saw an opportunity in leveraging those initiatives to strengthen our brands and build stronger relationships with our clients and customers and other stakeholders. We can also agree that these initiatives were important, whether we think of thousands of trees being planted, funding scholarships for gifted youth or encouraging customers to switch to paperless statements. Even if they are all valuable and important acts, they were not really part of business strategy. They were one-offs, and in many cases, companies operated in isolation, which is also problematic.

Lastly, there was no emphasis on education about CSR inside companies and employees mainly saw the work needed and little added value or personal benefit. The conversation about climate change, either economic or gender inequality , hunger, access to water etc. seemed very distant to the average person and were definitely not considered part of their professional life.

Today many of us are more aware of some global issues, climate change topping the list, and we are also much more aware of the urgent need for action. However, this knowledge is still not equally spread out, not only around the world but also among and within organizations. Unfortunately, the existing education gap still allows for risks to be ignored or disputed.

This gap can narrow by further driving the support for international organizations that push for change and activists gaining visibility in the media, like Greta Thunberg's speech in 2018. Digital media plays a unique role here as it has democratized access to information and is playing a growing role in education. The business community has an important part to play in this education process, but that can only happen if companies choose to embrace Sustainability as a strategy.

Not all see it as an opportunity; for some Sustainability still means just another level of CSR, but for others that is an opportunity for a true shift in thinking about business philosophy. The latter make sustainability part of their DNA and lead the way, like Unilever, Patagonia, Ikea and others.

The challenge ahead of companies is educating employees, not only on the importance of sustainability from the company standpoint but also to shift their own personal thinking and beliefs. This will not happen overnight, as the culture of consumerism has become a big part of today’s world, even if we would rather not admit it. Companies need to have an ongoing conversation about sustainability with their employees, empower them and also prove on a daily basis that they walk the talk.

Times have changed and we all have to face it. As the IMD’s President Jean-Francois Manzoni said,

“In the new decade, it will not only be possible to do well by doing good, it will only be possible to do well by doing good.”

Pictures @unsplash