Partner Article

Taking your business into the community

Many people associate commercially successful businesses with ruthless practices that damage people and communities around them, but this is not always the case. In fact, business practice can play a positive role in a wider context by building inner resilience, actively anchoring themselves in their communities and supply chains, and leveraging their unique capabilities to address complex global challenges such as climate change.

Whilst researching for my latest book The Key, I discovered a number of examples of businesses that are both meeting their profit targets and doing good for the world around them. These companies are not just meeting their CSR targets or helping out a few local causes, but actually making protecting the environment part of their business models.

One organisation that modern businesses can learn from is Natura Cosméticos, a Brazilian company that produces eco-friendly cosmetics, fragrances, and personal hygiene products. Since its creation, 40 years ago, the company has integrated environmental and social interests into its business plan, and using sustainable practices is key till this very day. Their environmental focus has strengthened the business – Natura is one of the largest cosmetic companies in the world, with a market share of 23 per cent in its Brazilian target market and revenues of US$2.31 billion.

Another big business name with sustainability on its business agenda is Unilever. When Paul Polman joined the company as their CEO in 2010, he set a sustainability target that by 2020, no less than 40 per cent of the corporation’s total energy requirements would come from renewable sources. At the same time, he also committed to Unilever’s shareholders and employees that the business would double its revenues by 2020.

Big organisations such as these can be good role models for small and medium sized businesses. If companies consider social and environmental factors in their strategies from their early stages, they can create positive futures for their shareholders, but also the communities around them.

We will continue to see corporations play a powerful role in creating a more sustainable world. As I argued in The Key – it takes courage to resist short- term market pressures, focus to leverage corporate assets, and passion to excite and engage people. But when courage, focus and passion are brought together the results can be extraordinary.

Lynda Gratton is the author of The Key, winner of the Management Futures category at this year’s Chartered Management Institute Management Book of the Year Competition.

Lynda completed a PhD at Liverpool University before embarking on a career in management consultancy. She has since been voted as one of the 100 most connected women by The Daily Telegraph, and is considered to be the leading voice globally in human resources.

This was posted in Bdaily's Members' News section by Lynda Gratton .