Sunday, July 18, 2010

Business Sustainability - The Holistic View For Your Business


I often get confused when I see the words "Business Sustainability" written in an article. Is the author referring to businesses in general or to each business individually?

Mostly I find that Business Sustainability is referred to in the context of either environmental sustainability, social responsibility, ethical behaviour or economic impact. And while all these issues are good and correct and doing the right thing etc. they seem to miss the very important reality faced by every owner, executive and manager on a daily basis; keeping the business going.

After all, to have a sustainable business, you must have a business to sustain.

I support the triple bottom line approach of creating a positive environmental, social and economic impact that ensures a sustainable future for generations to come. What I do not support is the pressure being put on business to adopt "sustainable practices" and adopt them now; don't think just do.

In Australia, all levels of government are doing their best to force change; major corporations are pressuring their supply chains to comply with their environmental imperatives; environmental and social groups are playing the guilt/evil card. And on the other side, we have sceptics telling us that it is all a load of rubbish.

This is not rubbish however:
  1. Resources are finite
  2. Attitudes and laws are evolving
  3. Every business needs to change
If you accept these three simple points, the only question a business has to ask is; what do we change and when? If you want a meaningful answer, start by looking at the question in terms of the holistic view of the business.

To me, business sustainability is about addressing the short term challenges while planning the achievement of long term ambitions. In other words, it is about living in the real world of today while making sure your business survives and thrives into the future. It is about taking a long term view and taking steps to get there.

A holistic view of business relates to how each area and decision is seen in the context of every other area and decision as well as in the context of the long term ambitions. A holistic view of the business also accepts that environmental, social and ethical considerations are part of the business.

What business owners and managers must not do is think that they have to change overnight. This kind of reactionism will harm the business as much as non action.

Start by looking at the business through a more holistic lens taking environmental, social and ethical issues into account. Understand the need for compliance, the activities and requirements of your customers and suppliers and the attitudes (and potential contribution) of your staff.

Plan, over time, to incorporate sustainable practices into the business in a practical way and soon the idea of business sustainability will become the way you do business.

And the real benefit of that paradigm; staff, customer and supplier engaged in continuous improvement. If that's not a recipe for a sustainable business I don't know what is.

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