Make a Stronger Business Case for Sustainability
MIT Sloan Management Review|Fall 2024
When greener products and processes add costs, managers can shift other levers to maintain profitability.
Karel Cool, Atalay Atasu, and Nathan Furr
Make a Stronger Business Case for Sustainability

LEADERS CAN'T ESCAPE THE GLOBAL imperative to reduce the contributions businesses make to environmental degradation, but deep down, many harbor doubts: Can a profit-driven organization also be sustainable? Pressure to grow revenue and control costs is constant. How can a leader feel confident in pursuing more sustainable choices and defending them to boards and shareholders sensitive to the often higher costs of greener approaches?

The dueling pressures to do business sustainably and to maximize profits leave many leaders stuck, unsure what to do. Many falsely categorize sustainability as a compliance issue, taking a wait-and-see approach and aspiring to do the minimum. But they miss new opportunities and are less prepared for the energy transition away from fossil fuels. As with any major disruption, companies that take smart steps forward can carve out an advantage and avoid being left behind.

Some CEOs may succeed at rallying stakeholders to support green initiatives based on principles alone. But the practical reality for many leaders is that they must build a business case for sustainability. We believe that focusing on the classic economic levers of the marketplace can give leaders a framework for thinking creatively about how to find a path that does right by both the business and society. We'll explain how our framework provides three pathways to profitably and sustainably creating new value for society, customers, and companies.

Frame the Sustainability Opportunity in Economic Terms

هذه القصة مأخوذة من طبعة Fall 2024 من MIT Sloan Management Review.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة Fall 2024 من MIT Sloan Management Review.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من MIT SLOAN MANAGEMENT REVIEW مشاهدة الكل
Avoiding Harm in Technology Innovation
MIT Sloan Management Review

Avoiding Harm in Technology Innovation

To capitalize on emerging technologies while mitigating unanticipated consequences, innovation managers need to establish a systematic review process.

time-read
10+ mins  |
Fall 2024
Make a Stronger Business Case for Sustainability
MIT Sloan Management Review

Make a Stronger Business Case for Sustainability

When greener products and processes add costs, managers can shift other levers to maintain profitability.

time-read
9 mins  |
Fall 2024
How to Turn Professional Services Into Products
MIT Sloan Management Review

How to Turn Professional Services Into Products

Product-based business models can help services firms achieve greater scale and profitability. But the transformation can be challenging.

time-read
10 mins  |
Fall 2024
Do You Really Need a Chief AI Officer?
MIT Sloan Management Review

Do You Really Need a Chief AI Officer?

The right answer depends on the strategic importance and maturity of AI in your company.

time-read
10+ mins  |
Fall 2024
Where To Next? Opportunity on the Edge
MIT Sloan Management Review

Where To Next? Opportunity on the Edge

Doing business in regions considered less stable or developed can pay off for companies. But they must invest in working with local communities.

time-read
10 mins  |
Fall 2024
Make Smarter Investments in Resilient Supply Chains
MIT Sloan Management Review

Make Smarter Investments in Resilient Supply Chains

Many companies invest in resilience only after a disruption. Applying the concept of real options can help decision makers fortify supply chain capabilities no matter the crisis.

time-read
10+ mins  |
Fall 2024
The Three Traps That Stymie Reinvention
MIT Sloan Management Review

The Three Traps That Stymie Reinvention

Organizational identity, architecture, and collaboration can be either assets or liabilities to pursuing growth in new sectors.

time-read
10+ mins  |
Fall 2024
What Makes Companies Do the Right Thing?
MIT Sloan Management Review

What Makes Companies Do the Right Thing?

Vaccine makers varied widely in their engagement with global public health efforts to broaden access to COVID-19 immunizations. Ethically motivated leadership was a dominant factor.

time-read
10+ mins  |
Fall 2024
Build the Right C-Suite Team for Your Strategy
MIT Sloan Management Review

Build the Right C-Suite Team for Your Strategy

CEOs can foster a more effective leadership team by understanding when to tap senior executives' competitive instincts and when to encourage collaboration.

time-read
10+ mins  |
Fall 2024
A Better Way to Unlock Innovation and Drive Change
MIT Sloan Management Review

A Better Way to Unlock Innovation and Drive Change

A strengths-based approach to building teams can win employee commitment to change and foster an inclusive, agile culture.

time-read
10+ mins  |
Fall 2024