It’s been said that there won’t be any sustainability in business until someone can make a case for them that makes financial sense. Of course, it also used to be the case that companies viewed their sustainability initiatives as side shows, and refused to invest the capital in them that they needed to really return actual results.
The same old adage applies in business as much as it does everywhere else, you get out what you put in. Ultimately, a business has to be willing to invest money into their sustainability programs, departments, or initiatives, or else the results will be minor or nonexistent.
Luckily, this outlook is starting to change. A recent article from The Guardian has discussed how money is no longer the “dirty word” it used to be in corporate sustainability. Companies like General Mills are spending upwards of $100 million on renewable energy and running an efficient company.
This seems like common sense. The more you invest in sustainability, in improving the lives of your workers, the more money you make, right? But it has taken a shockingly long time for business to come around to this, and many businesses still focus on minor CSR initiatives that are purely for image and not really about helping anyone.
The idea still exists that the way something has always been done is the best way, and that’s simply not the case anymore. The truth is business has an even more important role to play in shaping the future of the world, its peoples, and its environment. Millennials already expect the companies they work for to demonstrate care for the environment and social goals. Generation Z, the ones after us, expect companies to not only care about the environment, but to make decisions on profits factoring in environmental and social issues.
Once, a business could wait for government regulations or consumer pressure before making a decision. Today, the only way for a business to survive in a rapidly more competitive market is to outpace competitors and be able to provide more value to consumers, value that can often be added to by sustainable programs and demonstrating to consumers that all stakeholders are important and valued. Transparency, sustainability, and value are the keywords that will separate those that will survive and those that will not.
Great post Collin, I couldn’t agree more. I think we (Generation Y consumers) have reshaped the value companies place on sustainability. It just shows how companies are willing to invest in the change, if the value in the consumers is there (hence General Mills $100 million investment). I can only hope that this upward shift towards sustainability initiatives will continue to increase. We need to shift our perspective to what we (the consumers) can do instead of what companies can do. I think if we communicate our values, companies will do anything/everything they can to accommodate them. I think we are on the right path to communicating our values regarding sustainability. I think it’s only looking uphill from here!
Hey Collin I definitely agree that there is more emphasis being put on the environmental aspects of a business, I think this could also be because the effects of the degradation of our environments has been more prominent in the past few years. This includes the quality of the water we drink and the air we breathe. In the past few decades due to the push for infrastructure and the push for production and the emphasis on GDP growth most companies have ignored the impact they had on the environment. However, I am glad that there are more companies on board to make a change.
Thanks for the post Collin! This is one of my favourite topics related to sustainability – the link between a business, sustainability, and finances. Of the three key words transparency, sustainability, and value, I think the most important one heading into the future is value. These companies, as “green” as they may be, can’t survive unless they add some sort of value. If a company sells a sustainable good and another one sells the same good that isn’t sustainable for a little cheaper, I find it difficult to believe that the first company will be successful! I think the concept of shared value is a pivotal aspect of future sustainability!