Sustainability in Business & its intersection with stakeholder capitalism
Steve Sanders
Strategist, market developer, ecosystem leader, deal shaper and mindset shifter. IOD Fellowship. Social mobility exemplar and mentor. Value Delivery Mechanisms for breakthroughs from ideation to impact WITH stakeholders.
I have noticed a lack of understanding and foresight among business peers when it comes to sustainability and its role in stakeholder capitalism. In a rapidly changing world, this lack of comprehension can be a precursor to failure. In this article, I invite you to explore the true meaning of sustainability in business and how it intersects with stakeholder capitalism.
Understanding Sustainability:
To gauge the level of understanding regarding sustainability in business, I conducted a survey. The survey included the following multiple-choice options:
The survey results revealed that 60% of respondents only partially grasp the true meaning of sustainability. The correct answer, option 3, emphasises the connection between sustainability and stakeholder impacts.
Going Beyond Climate and Plastics:
While climate and plastics are important aspects of sustainability, they are merely the tip of the iceberg. Viewing sustainability as a "me-too" game or a regulatory demand is shortsighted. True sustainability encompasses all impacts on stakeholders, as outlined in the UN Sustainable Development Goals.
Unveiling Stakeholder Capitalism:
Many people still have a limited understanding of stakeholder capitalism. Some view it with confusion, associating it with socialism, while others recognise its potential. Stakeholder capitalism represents a paradigm shift, where profit for shareholders is maximised by solving the hopes and fears of all stakeholders better than competitors.
Differentiation and Competitive Advantage:
To differentiate effectively, we must move beyond inward focus and tracking competitors' actions. Instead, we should excel in the difficult qualities that stakeholders value. Stakeholder capitalism necessitates solving stakeholders' needs and desires, leading to operational differentiation and resilience.
Translating Principles into Purpose:
To achieve success in your ecosystem, consider the factors that will magnetise companies to yours and identify the values, ethics, and combination of Sustainable Development factors that matter to people. Translate these factors into a purpose and differentiator, shaping the competitive dynamics of your market.
At Business Growth Mechanics (BGM) and with our partners, we specialise in guiding businesses through the complexities?of gaining profitable competitive advantage through?stakeholder connection and sustainability. We understand that these explorations are often anything but easy, as this level of stakeholder connection is not typical or expected yet. However, we firmly believe that this is precisely what businesses need to explore to unlock their true potential.
Our expertise lies in bringing clarity and strategy to businesses that are ready to embark on this journey. We help them navigate the intricacies of stakeholder capitalism, identify meaningful connections with stakeholders, and develop sustainable practices that align with their values and goals.?
领英推荐
The journey always begins with asking ourselves a fundamental question: "How can we truly stand out?"
To find the right answer, we must shift our focus away from internal factors and tracking competitors' actions. Instead, let's embark on a journey to understand and excel in the difficult qualities that stakeholders hope for.
Stakeholder Capitalism, our new reality, goes beyond mere profit maximisation for shareholders. It entails solving the hopes and fears of all stakeholders in a way that surpasses our competitors. To gain a deeper understanding of this concept, we invite you to watch our video here.
As you embark on this exercise, consider these three essential questions:
By engaging in this exercise, you can gain valuable insights and begin shaping your journey towards meaningful differentiation. At BGM, we are here to guide you through this transformative process, offering clarity and strategies that align with stakeholder capitalism.
A useful starting point:
If you're seeking a useful starting point to delve deeper into the concepts of stakeholder capitalism and sustainable differentiation, I recommend the Five Horizons book. This book serves as a valuable resource to gain insights and expand your understanding.
Whether you prefer reading the book or listening to the audiobook, it is available on all Amazon sites globally. You can find it on Amazon.co.uk here and on Amazon.com here. To learn more about the book and its contents, visit the official website at www.fivehorizonsbook.com.
By exploring the insights shared in the Five Horizons book, you can equip yourself with the knowledge and inspiration needed to embark on a purpose-driven journey towards stakeholder capitalism and sustainable differentiation.
Join the Discussion:
If you are interested in delving deeper into this topic and believe you can influence change within your company, I invite you to join me for an online group discussion on Friday, June 16th. If that date doesn't work for you, alternative dates in the coming months are also available. RSVP for the event here.
Conclusion
In a world where stakeholder capitalism and sustainability are becoming increasingly crucial, embarking on an exercise to explore meaningful differentiation can set your business on the right path. Let Business Growth Mechanics (BGM) be your trusted partner as we embark on this journey together.
BGM Website:?businessgrowthmechanics.com
Selling into the UK Market | UK New Methods | New Markets | New Business | Digital Marketing | Business to Business | Part-time Sales & Marketing | Strategic Marketing | SME | Corporate |
1 年Great piece! I love it Steve Sanders This is an important topic that many businesses must address in order to be successful in the long term. Sustainability is vital to not only the health of the planet but also to the success of businesses. It's important for businesses to understand their responsibility to the environment and society as a whole, while also considering the interests of their shareholders. This article provides a great opportunity to explore the intersection of sustainability and stakeholder capitalism, and how businesses can effectively integrate sustainable practices into their operations. Thank you for sharing!