MANAGEMENT & SUSTAINABILITY
What Are the Fundamental Concepts in Management and Sustainability?
Business strategy consists of identifying a clear purpose, vision, mission and set of core values. Today, successful leaders and companies integrate sustainability into corporate strategy to ensure it is a core commitment with clear goals and metrics.
Sustainability issues–from food security to fresh water to climate change–cross all kinds of geographic, cultural and sectoral boundaries. Today, successful leaders and companies are skillful in meaningfully and effectively engaging a wide range of stakeholders–not just shareholders.
Sustainability both reinforces and challenges notions of great leadership. On one hand, successful leaders must continue to inspire, develop those around them, and lead by example. On the other hand, sustainability requires a new set of leadership qualities and skills to create organizations able to work at the intersection of global ecological crises, inequality, and advanced technology.
Every sustainability issue is an issue of equity and justice. Sustainable Development Goals (SDGs) like gender equality and zero hunger are obvious equity issues, but every environmental SDG such as climate action also is shaped by issues of social and economic disparities. Environmental issues are not shared equally. Race, class, and gender play a huge role in who is affected and how. Therefore, successful sustainability leading companies must also lead in diversity, equity, inclusion and justice.
Effectively integrating sustainablity into core strategy and business functions requires a new kind of talent, training, compensation, and performance management programs. Human capital and human resource professionals are uniquely positioned to help embed sustainability in organizational culture.
Sustainability challenges the fiduciary role of Boards of Directors. If there was ever a time when fiscal responsibiity was a tidy, clear charge to the board, that is no longer the case. Sustainability calls for a longer-term view and a broader definition of value and financial performance. Successful boards are, and will be, more diverse and include social and environmental value creation in decision-making processes.