SUSTAINABLE DEVELOPMENT - BEYOND THE RHETORIC

BEYOND THE RHETORIC - SUSTAINABLE DEVELOPMENT


Corporate sustainability and social responsibility increasingly appear as front page business issues, while greater social and environmental activism is pushing the standards for Australian businesses ever higher. Yet this debate is simplistic and fails to link sustainable development with long-term business strategy, according to a new report.

Sustainable Development and Business Success is the latest research report from business think tank, the Australian Business Foundation. The research involved interviews with Australian companies, varying from large corporations to small privately-owned firms, as well as with industry associations.

Authored by Professor Danny Samson and Suzy Goldsmith from the University of Melbourne, the report argues that companies should recognise that sustainable development is more than simply reacting to a single stimulus like managing compliance or protecting reputation.

"With this research we are moving the debate beyond the simplistic case for sustainable development for business – doing the bare minimum to avoid going to jail or being shamed in the community", said Narelle Kennedy, Chief Executive of the Australian Business Foundation.

"Rather, a stronger argument for sustainable development rests in companies pursuing a coherent set of high quality practices that are closely aligned with their specific business strategies", she said.

Corporate philanthropy as seen in recent months after the tsunami crisis should be applauded, but sustainable development for business does not begin and end with "doing good".

"Leading companies are proactive and innovative in leading stakeholder expectations and adopting sustainable development principles accordingly. Their motivation is not born of altruism or charity. In fact, the motivation for adopting sustainable development practices hardly matters", said Professor Danny Samson, project leader of the research.

The report found that sustainable development practices are more likely to contribute to long-term business success when they are:

• Strategically congruent with the business – specifically, by contributing to the business strategic requirements of stakeholder support, efficiency and market edge.
• Deep practices that achieve genuine improvements in sustainable development outcomes, rather than superficial tick-a-box efforts.
• Mature, leading edge approaches that offer the best available value proposition for the business.
• Well integrated with other business practices, thus promoting efficiency and effectiveness in implementation.

The Australian Business Foundation, sponsored by leading industry organisation, Australian Business Limited, is an independent business research think tank founded in 1997 in response to concerns about Australia's declining position on world competitiveness benchmarks and fuelled by the urgency for fresh insights and practical intelligence to boost Australia's capabilities and global competitiveness.

Sustainable Development and Business Success – Reaching Beyond the Rhetoric to Superior Performance launch dates: