Sustainability is defined as:

"An increase in productivity and/or reduction of consumed resources
without compromising product or service quality, competitiveness,
or profitability while helping to save the environment."

Sustainability is fast becoming a business strategy that is being embraced by many industries and organizations. Based on all of the Environmental issues our planet is facing, creating a mindset of corporate social responsibility (CSR) makes sense.  The question on many small to mid-sized business owners’ minds is, “It makes logical sense but does it or can it make good business sense?”  Early on, many companies who adopted a strategy of sustainability were large companies like Walmart (click here to learn how Walmart has saved $10 million+), Nike, Heineken, Adidas, and P&G just to name a few.   You can go to each of their websites and find dedicated communication about their sustainability initiatives, objectives, action steps, and measurable outcomes.  Many have created an independent sustainability department dedicated to accomplishing its initiatives with a chief sustainability officer to lead the charge. To those organizations that have made this level of commitment, kudos! Congratulations on achieving phenomenal results.

However, according to the SBA, over 90% of the businesses in the United States that are categorized as small to mid-sized and are looking at examples of sustainability through the lens of companies like Walmart and others become overwhelmed.   Most small to mid-sized companies barely know how to define what sustainability means to their company, let alone how to commit the resources to implement a plan of attack.

Sustainability means different things to different companies. Size of company and industry will most definitely play a role in the definition. However, there are commonalities to sustainability that apply to every business, and it is a strategy that has proven to be profitable. It can create a competitive business advantage while positively impacting the Environment.

When the core components of an organization are aligned, it leads to profitability, loyal customers, long-term growth, and systems thinking—all measurable business outcomes.  The core three business components include: People, Process, and the Environment.

When the components are not aligned, and the People area stands alone, companies have a tendency to focus on solving problems, putting out fires, and reacting to challenges as they present themselves. When Processes are not aligned and there is no strategic focus, a departmental mentality starts to bubble to the surface. Variation starts to creep in and each department tends to focus on their own self-interest in lieu of Process alignment. When organizations focus on Environmental issues apart from their strategic direction, they are often focused on compliance and therefore Environmental issues are often viewed an expense. 

However, as the components start to align you can see how People and Process create innovation, begin to prevent problems, and foster interdepartmental teams who produce results quickly. As Process and Environment begin to intersect, departmental alignment is generated. More efficient relationships with the supply chain are created while creating an Environment of systems thinking. As People and Environment come together, it creates employee engagement, proactive decision making, and reinforces that sustainability is part of the organization’s culture.

Are the core components of your business in alignment? Putting sustainability aside for a moment, if your business is currently out of alignment you are already leaving business and money on the table. Can you imagine what business outcomes and rewards you would achieve if your business was consistently operating in the black?

 People + Process + Environment = Profit

Depending on your business, the opportunities for enhanced business by embracing a strategy of sustainability can be multiple. In a recent study by Boston College Center for Corporate Citizenship and the Hitachi Foundation (released in 2010), they verified several business opportunities generated by sustainability initiatives. It is the only research to provide a comprehensive view of small, medium, and large sized US businesses.

• 72% of the companies surveyed are reducing costs through improved materials efficiency.
• 58% are manufacturing or sourcing domestically/locally.
• 53% are increasing brand awareness as “green” or socially responsible.
• 52% are designing and offering sustainable products/services.
• 50% are providing customers with more information about products’/services’ social and environmental impacts.
• 48% are offering more energy efficient products/services.
• 46% are providing frontline employees with business training to broaden and improve commercial awareness.
• 22% are using sustainability as a market differentiator.

Would you like to know how sustainable your organization is today? To find out, please contact us to take our Sustainability Business Assessment.

To learn more about our work in helping organizations become sustainable, please contact Betsy Allen at 239.560.2101 or Betsy@GainingResults.com     Ms. Allen is a certified founding member of The Institute for Sustainability.