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How does corporate sustainability affect the organisational process?

Highly sustainable businesses distinguish themselves through their deep integration of sustainability principles throughout the organisational process. But exactly how does sustainability impact and influence key operational decisions within companies?

First of all, let’s take a closer look at how this kind of business actually functions with sustainability as part of its core values. And how it differs from other companies within the same markets, who haven’t made the same drive towards achieving ambitious ESG goals.

Sustainability-driven companies are far more likely to tick some if not all of the following boxes:

  • They have developed processes for broader stakeholder engagement

Typically, highly sustainable businesses will have an enhanced level of stakeholder engagement and collaboration across the organisation. This often leads to benefits such as improved growth and innovation. Through the building of common trust across the organisation and ‘buy-in’ from stakeholders, business leaders are able to encourage participation and promote excitement around initiatives and targets.

  • They are long-term oriented and holistic in their approach and vision

Businesses with a commitment to corporate sustainability will have a ‘bird’s eye’ approach that will consider all relevant environmental, social and economic factors when making key strategic and organisational decisions. They see the three as intrinsically linked, part of integrated strategies within a ‘Venn-diagram’ style of approach.

  • They have established far better tools and ways of measuring and assessing non-financial information, compared to those for whom sustainability is not a priority.
  • Areas such as supply chain management, innovation and R&D will all be at the core of the businesses

This is essential in developing far more effective and forward-looking performance management processes. It’s also important for future-proofing the organisation against any future shocks, helping it to adapt and diversify.

All of these processes, tools and approaches will be obvious to employees as well as stakeholders and other external parties.

So in summary, highly sustainable businesses build their objectives into their DNA and the culture of their people.  It becomes core to everything they do.  Unfortunately though,  many organisations today still see sustainability and ESG as a distraction, or a trend perhaps not worth investing in.

But this couldn’t be further from the truth. Evidence is beginning to show that organisations that hard-wire sustainability into organisational processes come out stronger and more resilient on the other side. After all,  the sum of all parts is greater than that of the individual. There are myriad benefits to embracing and embedding sustainability into corporate culture, and the opportunities are virtually limitless.

If you need help hiring for executive-level roles, get in touch with our expert team here at Bailey Montagu.

Andrew Linger