The social, economic, and environmental crises of the two past years have raised people’s expectations about the role of corporate leaders in solving global problems: everyone is holding businesses to a higher standard. As stakeholders demand that sustainability be put at the heart of every organisation, ideas around what it means to be a leader are shifting.
As noted in Accenture’s , “Organisations are building sustainability into the fabric of their operations – and making social responsibility sustainable.” Or at least they’re trying to. Because research also found that while executives and investors appear to be overconfident about sustainability progress in their operating models, employees, and customers tend to disagree.
Organisations are building sustainability into the fabric of their operations – and making social responsibility sustainable.
This is a serious (and important) consensus gap. And it will further widen if CEOs don’t work to embed sustainability in the DNA of their organisations. As well as the positive environmental and societal outcomes, becoming purpose-run and . But to unlock the rewards of operating sustainably, companies first need to build strong, trusting and authentic relationships with all stakeholders, and not just their shareholders.
It’s time for leaders to start moving the sustainability needle
So, how do companies better meet society’s expectations and go from having good intentions to delivering on them? Modern, purpose-run CEOs can close the consensus gap by proactively engineering purpose into the core of their operations. Here are a few suggestions:
—Embrace the leadership lessons that came out of the pandemic. Employees expect more from employers. They favour companies and jobs that facilitate that. Listen to the people you’re recruiting, employing and developing. Design your culture and your talent strategies to lead and develop people better. Create meaningful experiences grounded in care for your people. As you adapt in all of these dimensions, you will see an acceleration in business performance.
—Rethink what success means as CEO. Executives and stakeholders value different leadership qualities: while executives and investors place strong emphasis on technology and innovation, consumers and employees have a far greater interest in leaders with a highly developed mission, purpose, emotion, and intuition. Responsible leadership becomes real when it learns from those it serves. So, unless CEOs modify their leadership qualities, they will struggle to meet the expectations of most of society. Modern CEOs should show their humanity and focus on building employee trust as much as creating shareholder value.
—Build sustainability management practices into your organisation. Companies with the most deeply embedded “” – meaning management practices, systems, and processes that facilitate equitable impact, societal value and corporate behaviour – outperform their peers in terms of profitability, as well as positive environmental and societal outcomes.
Great leaders create cultures of sustainability that meet the expectations of employees, consumers, and investors.
When your very purpose is rooted in becoming a sustainable organisation, that vision will inspire your people to work toward shared goals and behaviours. How the CEO embraces this sustainable purpose is key for the entire enterprise. Great leaders create cultures of sustainability that meet the expectations of employees, consumers, and investors. In other words, they create multidimensional value.
Sustainable purpose is the future of business
Organisations today have the opportunity and an obligation to drive growth in tandem with positive social and environmental outcomes. It starts at the top. The responsible CEO is a human-centred and mindful global leader who meets the long-term expectations of shareholders while developing the best talent and making the world a better place: driving value while honouring values.