Now that your Fall semester is complete and you have some time for holiday reading, we can give you a sneak preview of the upcoming MIT Sloan Management Review (Winter, 2012) article on the characteristics of companies that are profiting
Results from this, MIT’s third annual sustainability survey, indicate that an increasing number of managers and companies are taking sustainable business practices seriously. Two-thirds of respondents said that sustainability is critically important to being competitive in today’s marketplace. And despite ongoing economic uncertainty, many companies are increasing their commitments to sustainability initiatives. In fact, 31% of respondents said their companies are profiting from sustainable business practices. Yet, it should be noted that “green” still ranks only 8th on companies’ agendas for action.
The article also points out that sustainability comes from both internal and external drivers. External factors include regulations, green score cards and other metrics, media, climate change science, resource scarcity, and consumer demand. “Consumers today have higher expectations that brands deliver sustainable products: sustainably sourced, produced and packaged, but remaining competitively priced”, says the head of sustainability at Kimberly-Clark (maker of Huggies and Kleenex).
Yet internal drivers may be more influential than external ones. “I would say the internal drivers are 80% responsible for our sustainability efforts”, states the VP of Clorox, who sees benefits relating to operating costs, revenue growth, brand integrity, and employee engagement.
This is a good article to keep handy when you are teaching Supplement 5, Sustainability.