Doing Well by Doing Good

We live in one world. A world that is changing more rapidly than ever before. A world that is getting smaller and faster. Information can be shared at the push of a button. When something happens in one part of the world, the rest of the world knows about it almost immediately. The deadly Indian Ocean tsunami of 2004 was on TVscreens halfway around the world within minutes of it striking the Asian coast. The generous response of the global community took governments by surprise and shamed some of them into action.

The population of the world, already at 6.3 billion people, is growing rapidly, but not necessarily equally. People in developing countries are striving for basic necessities that most of us take for granted-clean water, food, shelter, health care and jobs. More than 530 million people live on less than $1 dollar a day.
We are also running out of resources. The underlying natural systems that support human economies-forests, fisheries, soils, ecosystems and climate-are all in a state of decline.

Fortunately, a new catalyst for change is on its way.

The Concept of the Sustainable Enterprise

A new catalyst for change is on the way. Corporations are recognizing the role they have to play in resolving some of the world"s most pressing issues. As social and environmental catastrophes increasingly affect the competitive landscape of business, a new approach to capitalism is emerging, one that recognizes the benefits of a "triple bottom line": financial profitability, environmental integrity and social equity. It is a new private sector approach that creates profitable enterprise by combining the ecological integrity of the planet with a community-based approach to social equity.

The first signs of companies repositioning themselves around a sustainable agenda are already in place. Increasingly, people want to work for organizations that share their values. Competition for skills is fierce and sustainable working practices are critical for companies looking to attract talented employees. Customers also have a choice and they increasingly prefer to buy from companies that are not abusing the environment, communities or suppliers. As such, industry must adjust, or risk losing shareholder value.

Responding to the Call: Examples From Industry

Nike got a wake up call some years ago when campaigners urged customers to boycott the company runners on grounds of social justice, after it was revealed that Nike runners were made by very cheap labour in poor countries.

Interface, the world"s largest manufacturer of carpet tiles, is actively growing market share by publicly reducing its environmental impact and adopting sustainable practices.

British retailer Marks & Spencer has launched a campaign called "Look behind the Label" to demonstrate ethical and sustainable sourcing as a differentiator in the market place.

Patagonia, a leading designer of technical outdoor clothing, now uses recycled polyethylene terephthalate (PET) bottles as ingredients in the manufacture of fleece jackets and has pledged 1% of its sales to the preservation and restoration of the environment.

A Brighter Future

By re-engineering their operational processes and restructuring their business propositions, smart companies are creating real differentials between themselves and the competition, which then has no choice but to follow in their footsteps. As a result, a different kind of company is emerging. A company that is re-engineering itself around three strategic imperatives:

People

Recruiting, developing, involving and retaining talented people.

Planet

Social and environmental best practice for the sustainability of our communities and the planet.

Profit

Creating profitable growth and development.

*Footnotes