Business and Sustainability: Doing Well By Doing Good

Organisations are increasingly being assessed not only on ‘profit’ achievement but also the costs incurred in achieving that result. They are increasingly being rewarded and/or punished for the positive and/or negative impacts that their activities have on the environment and the wellbeing of society.

Investors, suppliers, customers and the community are increasingly looking at, such things as an organisation’s environmental impact, its labour and employment practices, supply chain practices, community contributions and broader governance practices.

Some organisations have already, or are in the process of changing, as reducing these environmental and society costs align with their essential purpose as an organisation whilst other organisations are starting to change for self interest. Either way, is okay, provided change takes place.

3 Steps that will assist organisations in bring about change?

(1) Executive reward and remuneration should align with the minimisation of adverse costs that impact environment and the wellbeing of society;

(2)   Governance structures within the organisation should align and support the minimisation of any adverse costs on the environment and the well-being of society; and

(3)   The organisation should ensure that there is increased transparency around its efforts and achievements in minimising adverse costs on the environment and the well-being of society.   For example, the preparation of a sustaintability or ESG Report will assist.

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