I come across a range of reactions to business sustainability. While people who belong or intend to belong, or have faced sustainability challenges, seem to have a somewhat positive outlook, the majority from a conventional business paradigm react with terms like abstract, confusing, devilish, irritating, useless, and greenwashing, and phrases like Why do we need it when we have laws? What does it really mean? Mere theory, no practice! Too difficult to achieve! Too good to be true!, and so on.
It is a challenge to define business sustainability. First, the term has emerged in the last few decades. It is not like music or mathematics, with years of intense theory and practice that make it accessible and easy to understand. It is new and will take decades of effort to deepen, mature, and merge with the language of the masses. Second, it takes a long-term perspective. For instance, it is based on accepting climate change, which is perceived to affect the next generation, even though we are already seeing the impacts. For those engrossed in daily matters like catching the bus or securing a lower berth on a train, sustainability is not an urgent priority. Third, there is a plethora of terms related to sustainability, such as CSR, circular economy, green business, ESG, CSV, and so on, making it difficult to define. Even after having taught business sustainability, I was flabbergasted when I appeared for an interview, because I had expected to discuss research, innovations, and applications, and they typically asked me for the definition. Honestly, I could not define it properly. Eight years later, I think I have found a way.
So, I've tried to conceptualize the Business Sustainability Spectrum. If you ever struggle with explaining business sustainability, though it shouldn't matter, then you may refer to it; you may also apply it if you are building a sustainable enterprise.
To begin with, let's break down the term: the first part is business, and the other is sustainability. Business involves buying and selling goods and services for profit, whether it is a sole proprietorship, a partnership, or a company. Sustainability literally means to continue over the long run. But through the sustainable development lens popularized by the Brundtland Commission report (1987), sustainability began to be defined as a three-dimensional idea. The closest concept is Elkington's Triple Bottom Line approach, which holds that, to sustain profits, a business must manage its social and environmental impacts. Theoretically, this makes sense. But how does this translate into business operations? What is a sustainable business? By reading the tagline or a hashtag, the vision, mission, or even the report, one cannot really identify - one must dive deeper. Here comes the spectrum. I use the word 'spectrum' because it is a continuum rather than being compartmentalized into categories. There is a free flow, there may be overlap, and there isn't a suggested progression.
At the left end of the spectrum are businesses that spend time and money telling the world that they are green. They make claims, spend on Google Search, so their name appears when someone types "green business," and organize Greenathons and conferences with a large environmental footprint. Broadly speaking, these activities fall under greenwashing. However, I prefer sustainability for branding because, in some cases, companies may genuinely be doing good things and communicating them. In today's world, doing meaningful work but never talking about it is not ideal either. Branding and word of mouth help. Ultimately, the business is accountable to many stakeholders. Everyone must have a seat at the table - employees, customers, communities, investors, regulators, as well as the environment.
The second part comprises low-hanging fruit. Many companies mention saving paper, carpooling, energy-efficient lighting, and similar practices as sustainability initiatives. These are useful, sensible, and relatively easy to implement, but the impact is often limited. It is not logical to conclude that a company is sustainable simply because it has banned paper, while its computers and air conditioners run 24/7. That is not a holistic understanding of sustainability. The low-hanging fruit strategy isn't negative, but it isn't particularly positive.
The third part includes organizations that focus on their core business. Whether a business manufactures products or provides services, the real question is: how can the core offering become more sustainable? Materiality matters. A bank, for example, should think about the social impact of its decisions rather than non-material issues. Imagine a carpet manufacturer increasing the proportion of recycled material in its products, or an automobile company redesigning cars to consume less fuel, or a service organization improving access to diverse customers - that is where sustainability starts becoming meaningful. It no longer remains peripheral; it becomes about building better products and services, and ultimately, a better business.
The final part of the spectrum is when sustainability becomes the organization's DNA - no longer a side dish, but the main course. Everyone understands it; it is reflected in the purpose, strategy, the KRAs, and the KPIs. Employees come to work knowing that they are helping build a sustainable organization, not merely complying because the sustainability department has asked for data. That is a very different way of thinking and involves business transformation.
Business organizations may exist at different points on this spectrum. There is no single path. Some may focus mainly on branding, others may pick the low-hanging fruit. Some may gradually improve core products and services, while others may have sustainability embedded into everything they do. They may gradually move across the parts or occupy multiple positions simultaneously. It really depends on the organization's leadership, governance, and stakeholders' choices.
So, the next time you are looking for a reference to understand or explain business sustainability, this spectrum might come in handy. You may find it, and more, in my new book, Business Sustainability Essentials. It takes you from the core foundations to essential frameworks, and then connects to business functions. It also brings together the enabling dimensions of ethics, governance, and leadership, as well as evolving regulatory frameworks. Every chapter goes beyond theory through examples, activities, quizzes, and case studies. Also, there are instructor resources, including presentations and templates.
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