Note: The following article was included in the July 2014 intercultures e-newsletter. Email the Editor to receive our next monthly edition in your inbox well in advance of website postings. We offer fresh, intercultural information and insights monthly.
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The organization credited with having coined the phrase, “Triple Bottom Line[i],” has for the past 20 years published a report outlining so-called expert opinions about leading business sustainability practices. The annual Sustainability Leaders report is a collaboration between SustainAbility[ii] and GlobeScan[iii]. Stakeholders surveyed for the report include “leading sustainable development experts and practitioners from 5 sectors: Corporate; Government (including multilateral organizations); NGOs [non-governmental organizations]; Institutional (e.g., academia); and, Service (e.g., consultants, media)”. In the first quarter of this year, 887 expert stakeholders across 87 countries were polled online for their opinions. A total of 68% of those polled for the current year report have more than 10 years experience working on sustainability issues. The resulting report presents subjective opinion on the part of experts about which high-performing companies worldwide are thought to be sustainability leaders. According to publishers of the report, the subjective nature of the report is what makes it “profoundly interesting.” Indeed, we know in business and in life that perception is oftentimes reality.
Sustainability: The Capacity to Endure[iv]
The practice of “sustainability” has been most traditionally associated with the preservation and growth of our shared, natural environment. In more recent times, a matrix of connections have been made between environmental sustainability and the social, political, business, educational and other aspects of the human experience. More and more, big business—and businesses in general—is identifying with the cause of a three-dimensional concept of sustainability. The adoption of the Triple Bottom Line (3BL or TBL) by the business sector reflects this shift. Simply put, 3BL highlights three elements that are thought to be key to business success and sustainability: Profit, People and Planet. It measures financial, social and environmental performance in quantitative and/or qualitative terms.
For related ideas on sustainability, see also, “Book Review: Leading from the Emerging Future.”
“In the Black”: Invest in Your People Account
Basic business practitioners have the goal of running their profit and loss accounts “in the black” (with a profit). Better business practice includes identifying real connections between investing in the success of people and investing in overall business success. How are you ensuring that your “People Account” runs a profit? As yet, the conversation about the health of business does not regularly enough include the topic of intercultural dynamics in doing business. As many know, these supposedly “soft” skills can influence the loss of hard numbers in a company’s P&L account.
Highlights For You from the 2014 Sustainability Leaders Report: Regional Leadership Performance
The regions specified in the report include Asia; Africa/Middle East; Europe; North America; Oceania; and Latin America/Caribbean. For all world regions, expert stakeholders polled held the opinion that three sets of players far outperformed other sectors as sustainability leaders: a) social entrepreneurs, b) leaders in the scientific community and c) NGO leaders. After these three leading sectors, the following sectors were thought to be next in line as sustainability leaders: d) leaders of multinationals, e) corporate leaders and f/g) locally and nationally-elected government officials. It’s curious to consider that—though regional contexts are difficult to compare—corporate leaders received approval ratings in the 20th percentile for all regions—with one exception. Oceania was the exception, where less belief was held in corporate leaders. Asia experts rated their corporate leaders slightly better than others.
Highlights For You from the 2014 Sustainability Leaders Report: Companies Seen as Sustainability Leaders
What’s trending now? According to the report, “regional diversity in corporate sustainability leadership appears to be shifting toward general recognition of a few dominant players [worldwide].” In past years of the report’s publication, regional players were more varied. This year—and for the fourth year in a row—Unilever, an Anglo-Dutch multinational consumer goods company (that sells food, beverage, cleaning supply and personal care products) was ranked the topmost corporate sustainability leader. Expert stakeholders in all regions cited Unilever as a company where leaders were integrating sustainability practice into their business strategy.
In addition to Unilever, the following companies were also noted by experts in each region as sustainability leaders:
- Asia — Nestlé and Tata Group
- Africa and the Middle East — Nestlé, Coca Cola and Walmart
- Europe — Marks & Spencer, Patagonia and Interface
- North America — Patagonia, Interface, Nike and Walmart
- Oceania — Westpace, Interface, GE and Puma
- Latin America/Caribbean — Natura, Nestlé, Interface and Puma
Highlights For You from the 2014 Sustainability Leaders Report: What Characterizes a Sustainability Leader?
Characteristics of a sustainability leader listed in the report included (in order of most to least important):
- Sustainable products/ services;
- Including sustainability as part of the core business model;
- Executive leadership having strong sustainable development values;
- Demonstrated results;
- Management of environmental/ waste/ water;
- Transparency/ communication;
- Stakeholder engagement;
- Supply chain management;
- Innovation/ Research & Development;
- And, a commitment to sustainable values that were integrated with ambitious targets/ policies into business practice over the long-term.
Highlights For You from the 2014 Sustainability Leaders Report: Corporate Heroes & Technology
Over the next 5 years, expert stakeholder believed that corporations and technology will play a significant role in advancing sustainability. Their confidence in both corporations and technology increased by a significant margin since the first Sustainability Leaders report was published in 1994. Experts polled observed only marginal progress towards the goals of the 1992 UNCED[v] Agenda 21 and three Earth Summit conventions held in Rio de Janeiro in 1992. These activities were anticipated at the time to be significant drivers for future sustainability. “Today,” according to the report, “experts see technology and the private sector holding the most promise to advance sustainability.”
What are your perspectives and questions about sustainability in a global business context?
The full 2014 Sustainability Leaders report is publicly accessible and available for download.
Sources:
- 2014 Sustainability Leaders Report
- GlobeScan website
- Sustainability: Can Our Society Endure?, SustainAbility website
- Triple Bottom Line, The Economist (Nov. 2009)
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