MIT Sloan Management Review

Trends suggest that the public is no longer satisfied with corporations that focus solely on short-term profits. A recent study comparing companies that adopted environmental and social policies with companies that didn’t supports this view.

However, few companies are born with a commitment to sustainability. To develop one, companies need leadership commitment, an ability to engage with multiple stakeholders along the value chain, employee engagement and disciplined mechanisms for execution.

Sustainability initiatives can’t be driven through an organization the way other changes can. The authors’ research indicates that successful sustainability initiatives tend to evolve through three distinct phases. Phase 1 involves making the case for change, Phase 2 entails translating vision into action and Phase 3 is about expanding boundaries. Each stage requires different organizational capabilities and leadership competencies.