Sustainability and the future of corporations
|
Alfred W. Strigl Alfred W. Strigl is director of “plenum – gesellschaft für ganzheitlich nachhaltige entwicklung gmbh” (a company promoting sustainable development) and director of the Austrian Institute for Sustainable Development. |
Arriving at sustainability
Where is our world, where is humanity headed? How can we shape economy, prosperity and population in a way that will truly create and sustain our future? More and more people are beginning to think about these questions. The concepts of sustainability and social and ecological responsibility receive more and more attention in the media, in politics, in business and in wide circles of the general public. One thing is certain: carrying on as before could maneuver us into a dead end and leave future generations with far fewer opportunities and options than we have now.
Global warming, poverty and injustice trigger dynamics - such as rising migration from Africa to Europe - which may become hard to manage. We have suddenly become aware of our carbon footprint. Scientists tell us that we live way beyond our means. If each of our 6.3 billion citizens lived the Austrian way of life, we would need three planets Earth for survival, the American way of life would require six. Something doesn't quite add up. For the first time in human history, we are beginning to realize that the future of the whole planet is at stake.
We are in the process of questioning our attitudes and values, of decisively changing our conduct and our actions. ”Lifestyle of Health and Sustainability - Lohas“ is the term social and consumer researchers use for a lifestyle defined by health and sustainability. The Lohas mega trend caused the demand for organic food to grow by 30 percent in 2007. Sustainable investment is booming as never before. The word “ethical” describes money. New houses are actually beginning to generate energy. Fair trade has doubled sales since 2004. Fashion discounters offer organic cotton products. Soft travel is becoming a trend. To sum up: We have arrived at sustainability.
Incorporating sustainability
Modern management theories describe the phenomenon of success begetting success, meaning that those who created in the past are successful today and will shape the future tomorrow. Let us look at Lenzing with that perspective.
Yesterday: A complex legacy
Take wood and turn it into fine fabrics. The magic of chemistry. So far, so good. But that kind of chemistry was hard on the environment. Untreated wastewater went straight into lakes and rivers. Largely unfiltered fumes went straight up into the sky. Environmental activism then brought second thoughts to business management. The eighties and nineties of the past century saw substantial improvements in technology. And ‘Chemical Fiber’ Lenzing then took the lead. The company created new fibers, such as lyocell (TENCEL®) and introduced them to the market. Fact: Lenzing has been a fast learner and its investment into the environment actually turned out to be an investment into the future.
Today: The fundamentals are right
Challenges to the Lenzing Group have become more complex. Globalization demanded a choice: Live as an international corporation - or die as a regional company. Today, the company's sites in Europe, North America and Asia are benchmark and best-practice models for the industry. As I see it, the genuine innovative power - in human as well as in environmental terms - is the real strength of Lenzing.
Good managers don't rest on their laurels. While Lenzing production cooks pulp for today, Lenzing management creates tomorrow's menu: innovation in production, products and services.
Tomorrow: A bird's eye view
Right in front of our eyes, health and sustainability permeate the markets. And trend researchers tell us that this is just the beginning. Networking and interconnectivity boost this development. Individual strands of value creation will be woven into a global fabric: the cycle of forests - textile chains - consumers and recycling is being completed by Lenzing. And this is where systemic thinking sets in: It takes minds and hearts to make the right decisions.
Enterprising sustainability
How can Lenzing incorporate sustainability into its future? One answer: continue to be active and courageous, as you have been in the past years. Another answer: Enterprise health, lifestyle and equal opportunity. The thread of initiatives, such as “Botanic Principles,” must not be allowed to snap. Create future by creating facts - that should be the order of the day. Consumers are beginning to discover sustainability - and companies with sustainability will be winners. Consumers want peace of mind and peace for the world.
How to achieve that goal while keeping a balanced perspective along the road? The ancient Greeks tell us of three elements to create perfect holism - beauty, truth and goodness. These three aspects can be compared with the three dimensions of sustainability: environment, economy, and society. All three aspects have their own quality and dignity; have strength and their own logic. This entirety is unharmed if none of the dimensions dominate the others. Life is not complete without its many different unique dimensions. Just as we have learned to behold beauty through our eyes, to assess truth by our intellect and to feel goodness with our heart, we need to measure nature, economy and social life with different qualities and quantities. In doing so there will emerge multiple values, which will give back our souls hope and a sense of belonging.
Right in front of our eyes, health and sustainability permeate the markets.
And trend researchers tell us that this is just the beginning.