Tackling the culture of sustainability in ASEAN

The success of a firm is greatly influenced by its organisational culture, which is becoming more and more important as it turns towards sustainability and biodiversity. Businesses need to take sustainability into account when planning their operations, and a strong organisational culture can help them do this. The culture of a firm determines how people interact and work within it, making it a crucial component in accomplishing sustainability goals.

Businesses with cultures that support biodiversity and sustainable business practices are more likely to succeed in their objectives. Organizations can also benefit from a strong culture by bridging the divide between their current and intended cultures in order to support and progress their sustainability goals.

Ashok Miranda, (Author of "Culling Culturitis", former Disney senior executive, public speaker, and business culture thought leader) an expert in organisational culture and business storytelling, and I recently had the good pleasure to have an in-depth talk about how ASEAN organisations may adapt their corporate cultures to integrate sustainability principles and philosophies. Below are the questions/topics we discussed.

1. In your opinion, what is the importance of corporate culture transformation in the age of sustainability and circularity?

Research indicates that companies that are guided by a strong culture that is aligned around a higher purpose to uplift its people, help the community it serves, positively impact its customers’ lives and do good for the planet outperform regular companies by several folds. These companies connect with the hearts and minds of today’s savvy consumers who look at the positive social and environmental impact a business creates.

Employee research globally reveals that millennials who will form more than 75% of the workforce globally by 2025 want to work for organisations that share their values. Caring for the planet with a robust sustainability program is a big part of this.

Companies that transform their cultures to embrace sustainability practices as part of their greater good purpose have a big competitive advantage. They will attract and retain top talent who are more engaged and fulfilled and give their 100% at work, and also connect with environmentally conscious consumers. This in turn enhances their business reputation, builds brand value and drives profitability and shareholder value.

2. What are some of the key challenges you have encountered in transforming corporate culture in ASEAN to embrace sustainability concepts, and how have you addressed them?

In my culture transformation projects, the biggest challenge that I see is that companies don’t see a compelling enough reason to embrace sustainability. They perceive this as an additional thing to do in their busy agenda, or an extra expense and a drain on resources with no tangible impact on the bottom line.

Once I share a good story with evidence of how this can positively impact their people and their reputation and their bottom line, things change. Convincing companies to accept that the planet is now a key stakeholder is always a challenge.

For me what really works is telling a compelling story at the start, sharing examples of what progressive companies are currently doing and how all this positively impacts their bottom line. Leadership does eventually come around and opens up to the idea. Another point to note is that a lot of companies think they are currently doing a lot for sustainability when in effect they aren’t. Companies need to walk the talk, smart and savvy employees and consumers can see through greenwashing which again leads to a very negative perception of the company.?

3. How can corporate leaders in ASEAN be encouraged to prioritize sustainability and incorporate it into their core business strategies?

If we can demonstrate a tangible impact on the bottom line by adopting sustainability practices, then it’s an easier sell. It can’t simply be an edict or a vague concept, it needs to be a compelling story that showcases measurable value-add as an outcome.

It’s only when they see the impact on their people, their reputation, their brand value and their consumers, then they become more open to the possibility of exploring and adopting sustainability best practices.

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4. What role do employees play in driving a culture of sustainability within an organization, and how can they be engaged and motivated to do so?

Employees first need to understand why the company has adopted sustainability best practices and see how they can contribute towards this. They should be encouraged to contribute their own ideas and concepts, so they eventually ‘own the mission.’ Once people realize that what they do delivers on the planet agenda of the company, they become more engaged and true sustainability champions.

From my corporate experience and my consulting work, I see the impact of sharing sustainability initiative stories and celebrating people who exemplify and adopt sustainability best practices. Calling this out regularly at meetings, town halls and internal communication platforms, will get employees to embrace the idea of sustainability and encourage them to actively participate in achieving the company’s sustainability goals.

5. What are some effective communication strategies that can be used to raise awareness about sustainability and its importance among employees and stakeholders in ASEAN?

It begins with including the planet as a key company stakeholder. The next step is to articulate the sustainability vision and goals clearly. By this, I mean making sure everyone in the organisation understands what the company is looking to achieve from a sustainability point of view. Then it’s about bringing it to life every day. This can be done with storytelling at regular meetings, town halls, and internal communication portals. Companies can also add their ESG best practices and achievement updates in their regular employee communications.

I also advise companies to tell their sustainability story on their website, include it in their recruitment Ads and incorporate this as part of the onboarding/orientation for new recruits.

People need to see that sustainability is not just a lofty or fluff goal or a nice-to-have comms statement. When they see that it is really being practised and people are being recognised, appreciated and even rewarded and celebrated for their sustainability efforts, then it gathers momentum and becomes part of everyday work life.

6. How can corporate culture be transformed to ensure that sustainability is not viewed as a peripheral issue, but rather an integral part of business operations?

With two simple steps. First, adopt the planet as a key stakeholder and have a sustainability vision that is aligned with the company's purpose. Second, add a sustainability goal for every employee wherein they need to demonstrate their contribution towards achieving the company’s sustainability vision. In addition, regularly celebrate and reward employee sustainability efforts to send a clear signal that the company is taking sustainability seriously.

7. What are your views on Greenwashing, and its impact on corporate culture in ASEAN?

Climate change is real and needs to be taken seriously. Greenwashing is a deplorable practice which demonstrates a clear lack of accountability and transparency in corporate practices.

Greenwashing will have a negative impact on corporate culture as it undermines the trust that employees and consumers place in companies that claim to be environmentally responsible.

Companies must adopt transparent and accountable environmental practices, reduce carbon emissions and pollution, and protect natural resources. All this must be backed by credible third-party certifications and independent auditing. This will enable companies to build trust with consumers and promote a culture of sustainability and responsible business practices.

No leader in ASEAN, or anywhere in the world for that matter, would want their company to be publicly shamed or added to the list of infamous companies brought down as a result of not being true to their sustainability program.

8. Do ASEAN corporations lack the skills of business storytelling to motivate internal and external stakeholders to take action on sustainability? In your opinion, how can they improve that skills?

I believe storytelling plays a big part in convincing and motivating people to play their part in achieving the company’s sustainability goals. Stories emotionally engage and resonate with people at a visceral level. When employees hear stories of how their organisation is making a difference in people’s lives and helping heal the planet, they feel inspired and motivated to play their part.

During my corporate tenure with Walt Disney Television and Sony Pictures, I was inspired by the great stories of how these very large companies were uplifting society and doing good for the planet. I still can vividly remember these stories which definitely motivated and spurred me on to do my bit.

The sustainability story should be a big part of a company’s annual or quarterly report card and yes, we need more business executives to become good storytellers who can inspire and energize people, instead of sharing boring business updates! Being able to craft and deliver a good story is a key skill every company executive should proactively develop if they are serious about delivering a powerful message that resonates with their audience and gets people to act.

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9. The challenge of sustainability highlights the need for a multi-stakeholder, collaborative approach; how can we encourage that in organisations?

Creating a collaborative approach towards sustainability in organisations requires a concerted effort from leadership, employees and stakeholders alike.

Organisations should by now be aware they have four key stakeholders that they serve. These are Their people, their customers, their communities, and the planet.

Companies will be measured and judged by how well they have addressed their key stakeholder interests. This is also at the core of the ESG agenda and metrics. The company performance report card should be tied back to the impact on these key stakeholders. Starting with the Executive team and flowing into the various workstreams, it should be a best practice to regularly check in to see how the company is doing vis-a-vis delivering on their stakeholders’ interests. Once this process is embedded into regular company operations it becomes routine and collaborative. The company is now aligned and on track to deliver on its key stakeholder interests. Going beyond the organisation from a sustainability best practices perspective, companies should show how they are working with suppliers and third-party vendors that have adopted green practices. I know of companies in Singapore that have embraced sustainability and who are now helping their own customers and long-term vendors adopt sustainable practices. This is the way to go.

10. How can the culture of sustainability be embedded into the corporate culture of small and medium-sized enterprises (SMEs) in ASEAN, and what support can be provided to help them make this transition?

I highly recommend that every SME should create their own simple culture playbook. This is a collaborative process whereby a company arrives at its purpose and highlights its key stakeholders which include the planet. This culture playbook also includes the company values and the vision for its products and customer experience. The playbook then becomes the operating manual for the company, much like an OS for your PC.

In my book “Culling Culturitis” I provide a simple yet effective framework for a company to create and fast-track its culture playbook. This empowers them to build a dream company that employees love, customers adore and the world admires.