The business of sustainability: McKinsey Global Survey results. More companies are managing sustainability to improve processes, pursue growth, and add value to their companies rather than focusing on reputation alone. Many companies are actively integrating sustainability principles into their businesses, according to a recent McKinsey survey, and they are doing so by pursuing goals that go far beyond earlier concern for reputation management—for example, saving energy, developing green products, and retaining and motivating employees, all of which help companies capture value through growth and return on capital. In our sixth survey of executives on how their companies understand and manage issues related to sustainability, this year’s results show that, since last year, larger shares of executives say sustainability programs make a positive contribution to their companies’ short- and long-term value.
On the whole, respondents report a more well-rounded understanding of sustainability and its expected benefits than in prior surveys. Looking ahead. The Comprehensive Business Case for Sustainability. Today’s executives are dealing with a complex and unprecedented brew of social, environmental, market, and technological trends. These require sophisticated, sustainability-based management.
Yet executives are often reluctant to place sustainability core to their company’s business strategy in the mistaken belief that the costs outweigh the benefits. On the contrary, academic research and business experience point to quite the opposite. Embedded sustainability efforts clearly result in a positive impact on business performance. Drawing from our own research and our colleagues’ research in this area, we have created a sustainability business case for the 21st century corporate executive.
Hoping to alleviate their concerns, this article also provides concrete examples of how sustainability benefits the bottom line. Driving competitive advantage through stakeholder engagement Traditional business models aim to create value for shareholders, often at the expense of other stakeholders. Sustainability is not a buzzword. It’s the future for Canadian business. This column is part of Globe Careers’ Leadership Lab series, where executives and experts share their views and advice about leadership and management.
Follow us at @Globe_Careers. Find all Leadership Lab stories at tgam.ca/leadershiplab In 2014, the Network for Business Sustainability assembled the leading Canadian companies committed to business sustainability and asked: What are your greatest challenges? What we learned was both surprising and exciting. The Network for Business Sustainability is a community of managers and researchers that work together to advance the process by which firms manage their financial, social, and environmental risks, obligations and opportunities – or, in simpler terms: profits, people and planet. Based at the Ivey Business School, we have assembled the top sustainability companies for the last seven years to brainstorm about the issues that are the top of their minds.
Leading Canadian companies now realize that sustainability cannot be tackled alone. Sustainability Practices in Business. That business has a role to play in improving the environment and dealing with climate change is certain. What is much less so is how to do that, and for some, whether to try. After all, companies feel comfortable doing business as usual, and few want to threaten their competitiveness in favor of green virtue. Our point is that this is not an either or question. A growing number of examples—from diverse industries—show that sustainable business practices can be good for business from the bottom-line up.
For example, Unilever UN has developed washing-up fluids that use less water—and sales are growing fast, particularly in water-scarce markets. Here are a few examples that McKinsey has been involved with that prove the point. . ⦁ A major brewer identified some 150 possible improvements that could reduce GHG emissions—while saving $200 million over five years. The larger point is this. To think of sustainability as a niche gets it wrong. HR’s Emerging Role in Human Governance | TLNT. Investors are shifting the goalposts for business accountability beyond the traditional quarterly reports on revenue, profit and growth. As well as traditional reporting, forward-thinking investors now want to see how a business maximizes its human capital without creating any associated harm or risk within the organization or in the wider community.
This new focus is called human governance, and over the next few years it’s set to become as important a measure of corporate performance as traditional reporting has been over decades past. Human governance manifests itself through ensuring the entire extended workforce can maximize its own personal value, and through this, a business is able to maximize its own value. This maximization of value comes about through the broader expectations the community has for business.
This new focus on maximizing human value also has significant ramifications for the HR operation within an organization. Culture and human governance HR’s role. The Importance of Ethical Leadership | The Workplace Coach. Are you the same at work, at home and in the community? Do you have the bravery to stand against peer pressure when it comes to compromising your values?
According to the Center for Ethical Leadership, “Ethical leadership is knowing your core values and having the courage to live them in all parts of your life in service of the common good.” In our experience, ethical leadership involves leading in a manner that respects the rights and dignity of others; a concept that is at times in direct conflict with more traditional models of leadership. In the past, the main goal of leadership has been to increase production/productivity and profits. Ethical leadership requires ethical leaders. Ethical leaders are likely to be people-oriented, and aware of how their decisions impact others. Values – Ethical leadership begins with an understanding of and commitment to a leader’s core values. Ethical leadership is essential for today’s leaders. Resources for more information: Implementing an Ethics Program in the Workplace. Every organization needs a set of ethics policies and procedures to describe how the ethical values are to be implemented.
These policies and procedures are the means by which the organization communicates expectations and requirements to its employees. Once ethics policies and procedures are in place, the organization should develop measurements for determining if its ethical standards are being maintained and if those standards are yielding the desired results.
Identify and Renew Company Values Companies without a clear set of values may find themselves at a disadvantage when developing ethics programs. Ethics programs are most effective when perceived by employees to be "values-driven" rather than simply compliance-driven, and values-based programs are most effective in reducing unethical behavior, strengthening employee commitment, and making employees more willing to deliver bad news to managers. Secure Visible Commitment from Senior Managers Engage the Board of Directors. Importance of Business Ethics in Leadership Development | Business Essentials. In business today, there are countless examples to study when examining the effects of unethical business practices on the overall economy.
Fortunately, there are also many positive examples of ethics in business which underscore the importance and power of ethical considerations to drive business success. With consumers and potential clients more aware of business ethics than ever before, it is important that organizations take ethics seriously and develop a framework and workplace culture that place ethics in high regard. With the widespread use of the Internet, specifically social media, organizations have much to gain by investing in and promoting their strong business ethics.
Consumers and potential clients are savvier now and, through the Internet, take a much more detailed look at a company’s reputation, corporate values and overall transparency before investing. Companies can use this consumer trend to their market advantage. Category: Leadership. Six Ways to Create a Culture of Ethics in Any Organization. Managing for Organizational Integrity. Many managers think of ethics as a question of personal scruples, a confidential matter between individuals and their consciences. These executives are quick to describe any wrongdoing as an isolated incident, the work of a rogue employee. The thought that the company could bear any responsibility for an individual’s misdeeds never enters their minds. Ethics, after all, has nothing to do with management. In fact, ethics has everything to do with management.
Rarely do the character flaws of a lone actor fully explain corporate misconduct. Managers must acknowledge their role in shaping organizational ethics and seize this opportunity to create a climate that can strengthen the relationships and reputations on which their companies’ success depends. Prompted by the prospect of leniency, many companies are rushing to implement compliance-based ethics programs. How Organizations Shape Individuals’ Behavior An FDA investigation taught Beech-Nut the hard way.
Integrity as a Governing Ethic. Implementing an effective corporate ethics policy. When asked about their values, the vast majority of companies can provide a document they would describe as a code of ethics or conduct. However, research suggests a possible disconnect between companies’ stated intentions and the degree to which they truly value ethical behaviour. Here are five steps that companies can take to ensure that their corporate ethics policy is effective and becomes embedded in the company culture. Also included are practical examples of the various ways organisations have accomplished this task. 1 Code of ethics The essential elements of a code include assurances of support for the policies from organizational leadership, practical guidance on what is expected regarding ethical issues, commitments concerning stakeholder relationships, example Q&As, scenarios or decision trees, details of how the code will be implemented and monitored, and the consequences of misconduct. 2 Communication and awareness campaigns This is a continuous process.
The litmus test. Ethical Decision Making In the Workplace | PM eZine. Darnell Lattal, Ph.D. Download PDF As applied behavior analysts, Performance Management (PM) consultants and practitioners, we are not moral philosophers, nor are we ethicists, yet we are concerned about the ethical practice of our technology. Applied behavior analysis is neutral; it helps us observe and describe the current state. It provides tools of learning that help us understand what people say and do and under what conditions.
It helps us use a systematic and data-driven approach to increase or decrease specific behaviors. Values are based on rules of conduct, the shoulds and oughts, that society assigns to behavior but, in general, behavior analysts are troubled by such should and ought statements as sufficient explanations for behavior. There can be a self-righteous sanctimonious quality to talking about ethics or values in the workplace. Utilitarianism defines “ethics” as the greatest good for the greatest numbers. Creating an Ethical Framework The business world is pragmatic.
Ethical Issues Within a Business. What Are the Major Ethical Issues Business People Face? Corporate Social Responsibility: Definition and Examples. Credit: Kokliang/Shutterstock Corporate social responsibility (CSR) refers to business practices involving initiatives that benefit society. A business's CSR can encompass a wide variety of tactics, from giving away a portion of a company's proceeds to charity, to implementing "greener" business operations.
There are a few broad categories of social responsibility that many of today's businesses are practicing: Environmental efforts: One primary focus of corporate social responsibility is the environment. Businesses regardless of size have a large carbon footprint. Liz Maw, CEO of nonprofit organization Net Impact, noted that CSR is becoming more mainstream as forward-thinking companies embed sustainability into the core of their business operations to create shared value for business and society. As consumers' awareness about global social issues continues to grow, so does the importance these customers place on CSR when choosing where to shop. Curing Ethical Blindness. This article appeared previously Association of Corporate Counsel’s ACC Docket and is published here with permission from the journal. Virtually everyone who has ever driven a car on a busy highway has experienced the hazards associated with blind spots. Like many others, I have had several heart-stopping moments in the midst of a lane change where I’ve narrowly avoided colliding with cars that I did not know were there until it was nearly too late to avoid them.
I’m happy to report that I’ve been fortunate to avoid such collisions, but I recognized long ago that I couldn’t count on luck and the nimbleness of other drivers to avoid catastrophe over the long term. Instead, like most experienced drivers, I have deliberately developed a habit of checking my blind spots very carefully before making lane changes. As business leaders, we must do the same to avoid inadvertently driving our companies into harm’s way. 1. 2. 3. Leaders have to avoid the dangers of paralysis by analysis.