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November 27, 2005
Corporate Social Responsibility
Environmental issues and sustainability are becoming increasingly common aspects of business. How close to "the tipping point" are we? How strong a notion is corporate social responsibility?
There are five signs, according to Green@Work Magazine, that sustainability is close to its tipping point (check out the book "Tipping Point" by Malcolm Gladwell that explores the concept). There are indications that the corporate mind set is starting to shift. The article on the Green@Work site is written by Bob Willard, author of "Five Signs that Sustainability's Tipping Point is Close" and "The Sustainability Advantage: Seven Business Case Benefits of a Triple Bottom Line".
This shift is partially a result of a convergence of forces, not just one big event. The five points Mr Willard sees as indications that the corporate world is starting to look at sustainability as a legitimate business issue include:
1. Financial markets are getting involved in sustainability as capital investors, financial products developers encouraging sustainable development, and stakeholders shying away from environmental risk. Stated more simply, "retail and institutional investors are waking up." Business, including the hospitality industry, had best follow if it wants to stay in business.
2. Sustainability reporting is becoming business as usual. The concept of sustainable development became a more common phrase after the Rio de Janeiro Earth Summit in 1992. That's when business reports started including wider community issues and sustainability reports, alongside environmental and health and safety reports. Or as Mr. Willard opines, "As sustainability reporting becomes as commonplace as financial reporting, stand back!"
3. Business schools shape the thinking of current and future business leaders, and they are legitimizing sustainability strategies. Business schools are incorporating environmental stewardship and social issues into their degree curriculum, as electives and extracurricular activities.
4. ISO (International Standardization Organization) is developing a new standard for social responsibility. ISO 9000 standards gave a big boost to quality and ISO 14000 standards gave environmental management systems a big boost too. Will sustainability get a similar boost as quality and the environment have? If it does -- "stand back!"
5. Lifestyles are changing. There are six social movements in the U.S.; environmentalism, planet ecology, civil rights, peace, social justice, new spiritualities, and organic food and/or holistic health. Given these movements, it's no wonder that as people seek healthier lifestyles, sustainability is a big element of that -- and their choices. And what consumers want, they usually get. Their shopping -- and that includes buying services from the hospitality industry -- will be effected by that increasingly often.
As Bob Willard succinctly states, "Consumers are waking up. Stand back!" I suggest you get tuned in and act -- NOW! That's the ECOnomically Sound approach to business.
Posted by Kit Cassingham
