The following two (2) paragraphs are intended to provide a context for the discu

Question

The following two (2) paragraphs are intended to provide a context for the discussion questions for this module.

The terms “sustainable” and “sustainability” (Hollingsworth, 2009, para. 2) have become part of management vernacular. However, just how many organizations weave sustainability into their long-term strategy? Hollingsworth noted, “The First Standard & Poor’s Index, featuring 90 major U.S. companies, was created in the 1920s. The companies on that original list stayed there for an average of 65 years. By 1998, the average anticipated tenure of a company on the expanded S&P 500 was 10 years” (para 18). Although it is expected that when companies fail, financial failure is seen as the cause; ethical breaches and fraud (think WorldCom and Enron) resulting from leaders who failed to create sustainable business models contributed to companies that fell from Standard and Poor’s 500 index within the last 10 years. Organizations that understand the relationship between a sustainable organizational strategy and organizational sustainability position their companies for the changing landscape of the global marketplace.

Implementing an effective, sustainable corporate strategy built on an ethical foundation focused on enhancing business growth and profitability is the role of senior leaders. Foresight is practiced, and outdated management practices are abandoned. Spears (2010), although speaking about a distinct quality of servant leadership, noted the importance of a strategic leader possessing the characteristic of foresight. “Foresight,” Spears noted, “is a characteristic that enables the servant leader to understand the lessons from the past, the realities of the present, and the likely consequence of a decision for the future” (p. 29). All members of the organization from human resources to senior leadership need to be engaged in supporting strategy development as well as leadership development. Leadership development within an organization supports that knowledge and best practices are also sustained as part of ongoing strategy development. Fulmer, Stumpf, and Bleak (2009) have said that a sustainable strategy integrates leadership, organizational culture, values, practices, and business development to foster a culture that goes beyond short-term gains, is transparent, and embraces all stakeholders in ensuring a sustainable, ethical, organizational future.

Questions:

Successful companies need a sense not just of where they are but also of where they are heading. This demands a subtle appreciate of human relations and an awareness of the challenges that are inherent in developing a culture that understands the importance of their organization’s sustainability within a global context.

What is your definition of a successful, sustainable organization? Why is it important that modern leaders understand that having a sustainable corporate strategy that includes corporate social responsibility is essential?

Consider both economic sustainability and the impact of the organization on all its stakeholders, the community in which it exists, and the planet. Provide an example of an organization you think has a culture that understands both a sustainable strategy and a sustainability strategy, and discuss why you believe this to be so.

References

Bonn, I., & Fisher, J. (2011). Sustainability: The missing ingredient in strategy. Journal of Business Strategy, 32(1), 5-14.

Fulmer, R., Stumpf, S., & Bleak, J. (2009). The strategic development of high potential leaders. Strategy and Leadership, 37(3), 17-22.

Hollingsworth, M. (2009). Building 360 organizational sustainability. Ivey Business Journal. Retrieved from http://iveybusinessjournal.com/topics/global-business/building-360-organizational-sustainability#.Uxe9MuddW-s

Spears, L. (2010). Character and servant leadership: Ten characteristics of effective, caring leaders. The Journal of Virtues and Leadership, 1(1), 25-30.

Explanation / Answer

The concept of sustainability has its roots in what might be called “the crisis of development,” that is the failure since World War II of international development schemes intended to improve the lot of impoverished peoples around the world.

An organization without purpose manages people and resources, while an organization with purpose mobilizes people and resources. Purpose is a key ingredient for a strong, sustainable, scalable organizational culture. It’s an unseen-yet-ever-present element that drives an organization. It can be a strategic starting point, a product differentiator, and an organic attractor of users and customers.

Here’s how a few organizations have used purpose to achieve great results, and what other organizations can learn from their success.

Improving sustainability does not mean you have to create a whole set of new procedures. It’s often about identifying the areas that need updating and planning how to incorporate your sustainability focus into existing procedures.

Here it provides 20 ideas that can be used to help create a sense of urgency.

Ideally this is not a one-off or stand alone process. To be effective your workforce planning should:

1. BE AUTHENTIC, NO MATTER WHAT

A company’s purpose cannot simply be a pretty set of words. As the adage goes, actions speak louder than words. Seventh Generation walks the talk of its purpose—and its employees and customers notice. The company encourages consumers to line-dry clothes instead of machine drying, at the risk of cannibalizing its dryer sheet product. They are using their business to start a movement that will change an industry. This authenticity, potentially at the expense of their bottom line, inspires loyalty that no lip service will create.

2. BRING IN THE RIGHT PEOPLE

The organization doesn’t simply ask interested candidates to submit a résumé and cover letter; Acumen also asks candidates for responses to a series of short-essay questions that relate to the position. Anyone who doesn’t have a good answer for that probably would do better elsewhere.

Spend some time thinking about the range of values and purposes that fit into your company, and create a process that allows you to gather that data before making a hiring decision. Hiring is difficult; firing is even more difficult.

3. CREATE SHARED VALUE

Economic value and social value are not mutually exclusive. Today’s sophisticated business leader recognizes the concept of shared value: creating economic value while addressing social needs and challenges.

4. COMPOSE A CLEAR, COMPREHENSIVE NARRATIVE

A compelling narrative eliminates a lot of the ambiguity that accompanies normal business functions—everything from creating a new product to on boarding a new hire.

Sustainability organizations seek to implement sustainability strategies which provide them with economic and cultural benefits attained through environmental responsibility.

Corporate social responsibility strategy and competitive advantage are important issues for the contemporary discussion on corporations in society when taking into account social and environmental impacts. Empirically, we can see that social responsibility strategies are associated with competitive advantages, such as attracting valuable employees as well as enhancing the company image and reputation. This paper presents a theoretical review that demonstrates the association between social strategy and competitive advantage through the formulation of social strategies that influence and are influenced by opportunities, resources, skills, corporation merits, industry structure and stakeholders.

CSR goes hand-in-hand with a smart brand strategy. Consumers vote with their wallets, supporting companies that demonstrate concern for employee welfare, community development, environmental sustainability, and human rights.

The success of a business depends on its relationships with the external world—regulators, potential customers and staff, activists, and legislators. Decisions made at all levels of the business, from the boardroom to the shop floor, affect that relationship. For the business to be successful, decision making in every division and at every level must take account of those effects. External engagement cannot be separated from everyday business; it must be part and parcel of everyday business.

Essential Components of Corporate Social Strategy

The modeling of the essential components of social strategy is a necessary element for characterizing such strategies.

Four components of the strategy formulation and decision, which are:

(a) Market opportunities;

(b) Corporate resources and skills;

(c) Values and aspirations; and

(d) Knowledge of obligations to society and shareholders.

Social corporate strategy therefore needs to be linked to the following four elements:

(a) Structure of industry

(b) Internal resources of the firm

(c) Corporation ideologies and values; and

(d) The relationship with stakeholders.

Success steps:-

Small businesses are simply not equipped to manage every aspect of a CSR program on their own, nor should you try. Attempting to do so will simply deplete program resources, along with the energy and enthusiasm your employees have for the program. Let the experts help! Choose a partner nonprofit that naturally aligns with your company’s core mission and services.

Become a one-time project rather than a sustainable program. Look for ways to blend financial support with volunteer service or in-kind contributions. Consider how your customers or clients will be involved. Don’t limit involvement to simply donating a percentage of your annual profits. Consider sponsoring a “day of giving” in the community, where customers, clients, and employees can work together to complete a volunteer project aligned with your CSR.

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