Beyond Green: A Multi-Dimensional Approach for Sustainable Business Success

October 24, 2024 thehrobserver-hrobserver-sustainability

When people think of sustainability, they often envision terms like green, planet, eco-friendly, energy, emissions, net-zero, and the familiar mantra of ‘reduce, reuse, recycle’ often dominates the conversation. While these are vital, true sustainability transcends merely ‘going green.’

It encompasses a holistic approach that integrates every facet of modern business—something today’s organisations must embrace.

In this article, I’ll break down how sustainability applies across four key dimensions to grow your Quadruple Bottom Line: Profit, People, Purpose, and, of course, the planet.

The term ‘sustain’ means to maintain something at a certain rate or level, and this is what forward-thinking leaders must consider for every facet of their organisation. From ensuring financial health and fostering a culture that sustains both employees and customers, to preserving and promoting the company’s purpose and extending efforts to protect and conserve the environment. 

With mounting pressures from stakeholders, advances in technology, shifting customer and employee preferences, regulatory changes, and increasing competition, businesses today must implement unique strategies that not only sustain operations but also create meaningful impact which is essential for staying competitive and relevant.

When organisations focus on a larger game plan with a multi-dimensional approach and a fresh perspective on sustainability, they build resilience and future-proof their business against a broad spectrum of challenges.

What Does It Truly Mean to Sustain a Business, and How Does This Drive Your Quadruple Bottom Line?

  1. Profit: Ensuring Financial Resilience for Sustainable Growth 

Sustaining a business starts with ensuring its financial health, viability, and resilience, allowing it to grow, seize new opportunities, and remain stable in uncertain times. Businesses that focus on sustaining their finances aren’t just reacting to today’s demands; they’re preparing for tomorrow.

The key lies in implementing long-term commercial and operational strategies that don’t just ride the curve but stay ahead of it. This includes generating consistent revenue with healthy margins, adopting agile methodologies, anticipating consumer behaviour and maintaining a competitive edge through innovation. It’s also about diversifying revenue streams, impact investing, expanding into new regions, developing new verticals, optimising costs, and keeping your business competitive and innovative by anticipating the need for new solutions.

Financial sustainability generates revenue to fuel development and lays the foundation for any business to manage and scale cash flow, weather economic fluctuations, outpace new entrants, and leverage emerging business practices.

Success Stories:

  • Amazon: By investing in AI and automation, Amazon optimised its supply chain and operations generating over $574 billion in revenue in 2023 and expected growth for AWS of 20%- 21% in 2024. 
  • LVMH: The selective retailing branch which includes Sephora earned €17.9 billion, up 25%, with a 76% profit increase, driven by adapting to consumer trends, product lines and enhancing customer experience.
  • Unilever: In 2023, Unilever’s revenue hit €59.6 billion, with its sustainable living brands growing faster than the rest of the business, proving the link between sustainability and profitability.

2) People: Cultivating a thriving workforce and loyal customers 

People are the backbone of every organisation, encompassing both employees and customers. Nurturing this fundamental element and exploring creative, strategic ways to drive engagement is crucial.

Throughout my career, I’ve often encountered discussions where employee happiness was regarded as a minor metric, limited to team-building initiatives and well-being programs. However, it’s much broader than that and represents the soul of a business, directly influencing consumer experiences and the bottom line. Valued, appreciated, and invested-in employees are 202% more productive, driven, and committed, yielding tangible results.

Fostering an inclusive work environment, encouraging personal growth, and implementing people-centric strategies create a formidable moat around your commercial aspirations. This stronghold of invaluable resources not only protects your business but also drives sustainable success through the effective execution of the vision set forth by leaders and CEOs.

Additionally, developing strategies to enhance consumer happiness and scaling brand value propositions are imperative in today’s evolving landscape. Customer preferences, service delivery, product quality, and innovation play critical roles in shaping growth plans. Investing in sustainable practices, authentic marketing campaigns, responsible sourcing, and synergy with target audiences fosters loyalty, repeat business, referrals, and a compelling brand narrative.

Success Stories:

  • Marriott International: Their “Spirit to Serve” program emphasises training, community engagement and employee empowerment, resulting in 93% of staff being proud to work at Marriot that consistently outperformed in terms of RevPAR.  
  • Apple: With over 2.2 billion users globally and an estimated NPS of 61 and eNPS of 18, Apple prioritises people over profit by listening to both consumers and employees, with a strong focus on innovation, sustainability, and integrating accessibility features across its ecosystem.
  • Microsoft: Places a strong emphasis on diversity and inclusion, with 54.8% of its 230,000 employees being racial and ethnic minorities and 31.2% women. The company has achieved record-high retention rates due to its supportive culture, which also includes mental health programs that 90% of employees actively utilise.

3) Purpose: Driving impact through a meaningful mission

Purpose-driven organisations are defined not just by what they do, but by why they do it. Sustaining this purpose ensures that a company remains true to its values while evolving. It provides direction for teams and resonates with customers, guiding decision-making, enhancing brand reputation, and overall business longevity. As Simon Sinek famously states, “People don’t buy what you do; they buy why you do it.”

If you were to casually ask employees to recite the company’s mission or vision statement, could they do so from memory? While they may understand the company’s beliefs, it is the purpose—the “why”—that truly matters. Employees today seek more than a paycheck; they desire alignment with their values and a meaningful sense of purpose.

Customers are also more inclined to choose your products or services over competitors if they believe in your values. This alignment fosters resilience and sustainability in the face of disruption. Building a purpose-driven business model enhances employer branding to attract, retain, and nurture talent while positively impacting market brand performance, ROI, and customer acquisition.

Success Stories:

  • Netflix: With over 270 million paid subscribers, Netflix delivers content that resonates with diverse audiences, with more than 80% of shows viewed based on personalised recommendations. This focus on audience engagement reinforces Netflix’s purpose of providing meaningful entertainment that fosters a sense of connection.
  • TOMS: Operates on a one-for-one model, donating a pair of shoes for every pair sold, positively impacting over 105 million lives. The company also gives one-third of its profits to grassroots initiatives, appealing to socially conscious employees and customers.
  • Tesla: Tesla’s focus on sustainable energy drives environmentally conscious consumers, resulting in over 4.97 million vehicle sales. In 2023, customers helped prevent more than 20 million metric tons of CO2e emissions, reinforcing their shared commitment to a greener future.

4) Planet: Committing to environmental stewardship and responsibility

A truly sustainable business must address its impact on the planet. Responsible stewardship of resources, minimising harmful effects, and making a positive difference are essential for sustainable practices. With ESG and CSR initiatives gaining momentum, businesses need to invest in short-, mid-, and long-term solutions that are sustainable and scalable. Although these may appear as heavy upfront costs, they often lead to significant savings and ROI in the longer term. Depending on the industry, scale, and resources available, a multitude of creative and innovative solutions are emerging in today’s evolving landscape.

Conservation and preservation extend beyond environmental concerns to encompass culture, heritage, and society. This approach fosters a genuine sense of responsibility that should resonate within corporations and individuals alike. As Robert Swan stated, “The greatest threat to our planet is the belief that someone else will save it.”

Success Stories:

  • IKEA: Reduced its climate footprint by 24.3%, recycled 75.9% of its operational waste, and sourced 79.2% of its energy from renewable sources and 45.1 million products were given a second life. Ingka Group plans to invest EUR 7.5 billion in sustainability initiatives and aims for 100% circularity by 2030, with customer loyalty driven by sustainable products.
  • Coca-Cola: Its “World Without Waste” initiative aims to recycle a bottle or can for every one sold, achieving over 62% recycling of its packaging globally by 2023. This commitment enhances brand reputation and resonates with sustainability-focused consumers.
  • The UAE government: Is taking on a leading role in global sustainability by pursuing a strategic initiative to achieve net-zero emissions by 2050 and climate neutrality by 2045. This plan includes creating 50,000 green jobs and mobilising investments of AED 150-200 billion, driving the transition toward a more sustainable future.

Shifting from a linear to a holistic approach

Adopting a new lens on sustainability means recognising that the four dimensions—financial, purpose-driven, people-centric, and planet-focused—are interdependent. Financial sustainability provides the resources necessary to invest in growth initiatives, while a purpose-driven company attracts the talent and customers essential for success. A people-centric business fosters loyalty and productivity, and a commitment to the planet reinforces the importance of giving back to the environment, ensuring long-term viability. 

By fostering a multi-dimensional strategy that aligns these four critical elements, organisations can not only survive but thrive in a rapidly changing business landscape. Sustainability is not just a buzzword; it’s a transformative approach that can unlock unprecedented growth and resilience. Embrace it, and your business will reap the rewards for generations to come.

Practical steps for leaders to foster holistic sustainability

To embrace this broader, multidimensional approach, business leaders can implement the following steps:

  1. Integrate Purpose Across All Levels: Embed your organisation’s purpose in every aspect of the business, from strategy to operations. Align your mission with employee roles and customer interactions, creating a cohesive narrative that resonates.
  2. Optimize Profit with a Holistic Approach: Focus on long-term financial resilience rather than short-term gains. Implement business models that create value for all stakeholders, balancing profit-making with ethical practices and sustainable growth.
  3. Empower and Develop People: Foster an inclusive workplace culture that prioritises employee happiness, diversity, and collaboration. Invest in training and development programs that enhance skills and promote a sense of belonging, driving engagement and loyalty.
  4. Commit to Planetary Stewardship: Move beyond traditional environmental practices by integrating sustainability into product design, supply chains, and community engagement. Encourage initiatives that not only minimise negative impacts but also actively contribute to environmental restoration and social responsibility.
  5. Measure Impact Across Your Quadruple Bottom Line: Develop comprehensive KPIs to evaluate success across the four Ps. Track not only financial performance but also social and environmental impacts, ensuring a balanced approach to assessing overall business health. Regularly report on progress related to sustainability goals.
  6. Engage Stakeholders: Encourage collaboration with stakeholders—employees, customers, suppliers, and the community to understand their perspectives and integrate their feedback into sustainability strategies.
  7. Foster Innovation: Create an environment that encourages innovative thinking around sustainability. This could involve hosting workshops or hackathons focused on sustainable solutions.
  8. Promote Cross-Department Collaboration: Encourage collaboration between departments to ensure that sustainability efforts are cross-functional, communicated and integrated across the organisation.
  9. Collaborate with Experts: Work with industry experts and consultants to guide your sustainability journey. Their insights and experience can provide valuable direction, helping you navigate complexities, optimise resources and implement effective strategies tailored to your organisation’s unique needs.
Author
Sita Sahu

Founder & Management Consultant

Related Posts