Environmental Sustainability – It Takes Real Organizational Change

As a management consultant I have helped many large corporations and public-sector institutions manage technological, strategic, and operational change. These organizations will develop business cases for various initiatives, and they will often tout success that is predicated on the realization of some set of quantifiable benefits. The problem is that business transformation and benefits realization are often defined using short-term quarterly profit driven standards that serve only the short-term.

It is not enough to incorporate new business processes into an operation. Diversity of race, gender, thought, religion, and sexual orientation are requiring organizations to develop substantive plans to include all employees. This digital age has cultivated a global society where people expect personal and customized experiences. Generic commerce is no longer acceptable. Public and private organizations are also getting pressure from customers, regulators, shareholders, and other community stakeholders to prioritize environmental stewardship. Incorporating environmentally sustainable business practices ultimately overlaps with an ever-changing diverse and digital world.

The point is that environmental sustainability and social responsibility are inextricably linked to the financial bottom line. Starbucks CEO Howard Schultz has been in the news frequently for emphasizing environmental sustainability and his support for gay marriage. Many may not see the connection to selling coffee. They may be right because taking such a stance is much bigger than selling more medium roast coffee beverages. He has been on record saying to major shareholders that creating the right culture is the best business decision for the long-term.

Leadership sets the tone for any organization. This is true for a football team or a multi-national conglomerate. Much of our progress in the 20th century came at the expense of our environment. The legacy of 21st century business leaders will hinge on global economic development that fosters the protection of our environment.