Where sustainability used to be a “nice-to-have” for businesses, these days it’s a must-have. Consumers want to know that their money is going to companies that align with them on environmental and social issues, and they’re more likely than ever to forego businesses without sustainable practices or with what they perceive to be insincere sustainable practices. To succeed, business leaders must embed sustainable practices into their organizations and demonstrate leadership in this area. But what does authentic leadership in sustainability look like? Read on to learn about why sustainability matters in business and what you can do to prepare to be a sustainable business leader.
It’s no secret that consumers care about where they spend their money. Surveys show that shoppers are willing to spend more and switch where they shop in order to buy more sustainable products. The ripple effects of these behaviors are simple—companies with sustainable practices can establish brand loyalty by meeting consumer demand and establishing themselves as businesses that meet the environmental and ethical concerns of their buyers. Sustainability isn’t just good for the world; it’s good for business, and the companies that don’t recognize that are quickly falling behind.
It’s not just consumers who want businesses to align with their concerns. Studies in recent years show that employees, especially millennials and Generation Z, actively seek out jobs at sustainable companies to the point where they are willing to accept a lower salary to work for an organization they view as environmentally or socially responsible. Additionally, employees are more engaged with their work at sustainable organizations and more likely to stay in their roles for longer. Today’s job seekers prioritize sustainability, and by embedding it into their organization’s culture and practices, leaders can ensure that they’re attracting and keeping top talent.
Although the reputational benefits of sustainable business are significant, sustainability extends beyond that to a more successful organization overall. Sustainable businesses are more resilient and innovative, and foster the flexibility required to adjust to external issues. For example, a company that utilizes a circular economy where it recycles and reuses its resources is less likely to be heavily impacted by interruptions in an external supply chain. Additionally, facing the challenges of creating more sustainable practices head-on can encourage innovation and systems thinking, as members of the organization utilize new ideas to deal with these challenges. Embracing sustainability as a core tenet of a business enables people within the organization to rethink their approach, which in turn creates a culture where individuals challenge themselves to find a better way.
What does an effective leader in sustainable business look like? They are proactive, innovative, and communicative, both within their organization and in the larger world. Sustainable leaders not only know what changes they should make to create more responsible businesses, but they also excel at developing change management processes to make those changes successfully. They understand that fostering sustainability in business requires the involvement of stakeholders at every level, and they collaborate with people involved to drive engagement. Great sustainable leaders are committed and consistent in the face of challenges, and they are driven to create a business world that is not only profitable but also understands the importance of positively shaping the world around them.