Sustainability Strategies and Beyond

Abstract

Sustainability strategies are choices available to managers to align environmental and social investments with the generic strategy of the company. Such investments are similar to others in business: only a few will generate private profits. In the same way that an athlete fit to win the marathon has a slim chance of also winning the 100 meters, a company fit to apply for an eco-label may not be suitable to compete in the bio-polymers markets or become the leading organization in setting up a Green Club. As strategy entails choice, adequate competences require some level of specialization. Companies have good reasons to generate public benefits by going beyond compliance and reducing the environmental impacts of processes, products and services as much they can (to be fit). For some, however, the possibility of generating competitive advantage out of eco-branding, for instance, is higher than from other sustainability strategies (to be the best). Hence, while addressing stakeholders’ expectations, managers should not be distracted from the most appropriate strategic focus for their companies. By choosing to focus on a particular sustainability strategy based on solid business principles, they are also addressing shareholders’ expectations. They are investing in the areas that will generate public benefits with the best chances of creating competitive advantages or new market spaces for the firm.