Commonalities between Sustainability Companies and Business Leadership
The globe has shifted its focus to corporate sustainability over the past few years. The public are no longer contented with companies that emphasis maximization of short term profits, instead they are interested in companies that are concerned with human needs as a whole. Research indicate that many companies are taking these shifts seriously and have developed strategies related to sustainability that will enable them to be highly competitive. Companies have shifted from just complying with social and environmental regulations and offering support to the philanthropy of corporates to incorporating ...view middle of the document...
Lastly, they have invested resources and time in the process of constructing a leadership platform that is interactive outside their individual companies. These companies form coalitions with other companies and their competitors aimed at confronting change obstacles.
The three levels of leadership which are mutually reinforcing avail potential for scaling, embedding, and driving business practices that are more sustainable. Nearly all attempts aimed at aligning sustainability goals with chief business activities and interests depend on top leadership of an organization (Eccles et al, 2012, p. 46). There should be commitment from an organization’s chairman, principal executive officer, and the entire executive team. However, even though this is necessary, it is not sufficient. Individual leadership requires to go to all employees of a company for it to inspire change process that is transformational. Sustainability leadership responsibility requires to be incorporated in the corporate culture of a company, and should go past values statements that are written to the individual actions which are undertaken daily. There is a recognition that is rapidly growing on new competencies and skills in business leadership which are fundamental for a company for it to align its competitiveness with challenges and risks associated with sustainability.
Leading sustainability companies are coming up with sustainability skills for their current leaders and prospective future leaders, this is done by combining on the job training, affinity groups, initiatives for volunteering, award programs, executive education that are external and learning opportunities that are experimental. These initiatives familiarize business leaders and managers who have high potentials to assignments that they are not used to, and which are field based and focused on assisting in handling sustainability and development challenges. The academic fraternity particularly business schools have a critical role to play in the development of skills for sustainable leadership. Even though there is little progress, business schools are way behind the business trends in the globe (Haigh et al, 2012, p.128). Companies need to influence great actions by academic institutions given their capacity as key funders and recruiters of students from these institutions.
Majority of the companies that are leading in corporate sustainability have established structures of institutional leadership that are dedicated. These structures are important as they enable these companies learn in a systematic way from various stakeholders and to implant the process of change firmly in their key business undertakings and corporate governance. There are four structures of institutional leadership which can offer potential to companies. The development of committees that are concerned with corporate and sustainability responsibility and ensure that environmental, public and social policy matters are embedded into...