The word sustainability can quickly become a buzz word or a platitude in your company. Do you want to move from words to action? Do you want to make a difference? Do you want to do something that really matters?
A study from NHH in January 2021 shows that companies that focus on sustainability will get more new customers and increased loyalty from existing customers. Taking clear social responsibility will therefore be profitable for you and your business.
How does sustainability become profitable?
Future generations are concerned about sustainability and will have higher expectations of their workplace and that it is run in a sustainable way. By taking greater responsibility for the world, your company will appear attractive to job applicants. Your reputation will be strengthened. You will also appear attractive to customers, investors and partners, and your chances of winning public tenders will increase.
Not least, it will create commitment, motivation and pride within the company, which in turn will contribute to loyal employees. In a time of frequent workplace turnover, this should be a priority. But companies' actions must reflect the sustainability promises they make, otherwise they lose credibility internally and externally.
"In addition to being the ethically and morally correct perspective, sustainability must be financially profitable. It must be adapted to the business model of the company and be profitable. Otherwise, it quickly becomes pure party speeches and greenwashing".
Knut Arild Fjeldvik Evensen
Chairman of the Board FRONT Leadership & Sustainability Certified
Sustainability strategy - how do you get started?
9 out of 10 companies say that sustainability is important and that it is on their agenda. But it must also pay off financially, otherwise sustainability will lose out to profit. Sustainability and corporate social responsibility must be anchored in the board and linked to the company's business goals and strategy. This creates an indirect sustainability focus.
- Analyze your situation, map your value chain and look at how your services and products impact the world. Where is the greatest risk if sustainability is not complied with, and what are the possible consequences of this?
- Choose the SDGs that are right for your company in light of the analysis. Set clear strategic goals some time in the future. Engage your employees in the work.
- Define actions under each of the goals that you will work on.
- Invite committed employees to a workshop and map out the activities you will carry out that are linked to the goals.
- Create a plan for how the strategy and associated measures will be measured and reported.
- And remember: Clean your own house. Can you minimize waste, improve your energy use, use green transport or have more digital meetings? Think circular economy. Could environmental certification be relevant?
Long-term value choices will create value for the company
As a leader, you must dare to make some long-term and important value choices. Involving your employees in sustainability work will help to strengthen the internal culture, and your employees will feel that they are doing something meaningful and value-creating. How can you and your company innovate, find good concepts and contribute to the effort? Think outside the box and be innovative.
Many companies have "give-back" programs where they contribute to the local community and employees are given a set number of hours to spend on charity.
Today, more Norwegian companies are taking responsibility and recognizing their role in society.
In 2021, Jernia was named branding contribution of the year by Sustainable Index Norway, when they encouraged customers to support local restaurants instead of buying a new frying pan for "uncle" for Christmas. On the roof of the PwC building in Bjørvika, 150,000 honeybees buzz around three beehives, because if the bees disappear, the humans die. Amesto offers salesforce certification, workplace training and careers to young adults who have fallen out of society. You can find more good examples in the book Sustainable Business.
Remember that helpfulness is contagious. Talk about what you do both internally and externally, and it will inspire others to help. When you involve your employees in your sustainability work, they will gain useful experience, expertise and references. And they become positive ambassadors for your company.
Sustainable management is sustainable
As a leader, you have the opportunity to shape the workplace and influence the culture. How can you become a sustainable leader?
- Sustainable leadership requires a change in mindset and priority from senior management and the board.
- Take the UN Sustainable Development Goals as a starting point and ask yourself the question: How can my company benefit from contributing to a more just and sustainable world?
- Start with the SDGs that are closest to your company's core business and where you can benefit from your company's expertise.
- Embrace sustainability as an opportunity for gain and profit, rather than an obligation or cost.
- Involve employees in the sustainability strategy and the work related to it. Involvement in defining goals and measures, and regular information about results and benefits will create commitment, ownership and pride.
- Prioritize the measures that have the greatest impact and that give the company value in return. Value can be measured in monetary terms, but other variables such as reputation, expertise, references, assignments, customer satisfaction, risk reduction, pride, commitment, etc. can have even greater value.
- Ensure that there is one person responsible for sustainability in the company and that you have sufficient expertise and the right attitudes overall
How do we at FRONT Leadership work with sustainability?
We work actively with our sustainability goals in various areas:
- We include sustainability as an element in all our programs. We believe that everyone deserves to have a great leader so they can realize their full potential in a meaningful way at work. This is how we contribute to increased sustainability every single day.
- We offer free membership in our own leadership development network for all aid organizations. This is to help raise leadership skills in the field where they may be needed most and increase the impact of every aid dollar. This increases the value experience, engagement and loyalty of our paying members, while providing the network with increased expertise and experience. Read: Network with a focus on leadership development
- We offer a separate aid management program for managers in aid organizations, which is linked to a percentage of total revenue. When revenue increases, the number of places on the aid program increases, and this leads to some customers choosing us over our competitors. This in turn leads to more places on the aid program, and that we get a win-win.
- Our leadership development programs are mostly digital, so course participants don't have to travel, saving the company travel expenses and the environment emissions. Digital courses save time and participants don't have to be away from their families and employees.
- Our head office is located at Oslo Central Station, with access to trains, subways and trams, as well as walking distance to many customers and partners.
- Newly established a Smart studio where we can hold large digital conferences and unprecedented opportunities for digital communication.
Sources:
Sustainable business, by Maria Peltokangas, Runar Heggen and Tone Lise Forbergskog
United Nations Global Compact
PwC
