Managing for Sustainability

Olusanya Oyeyemi

Walden University

MMSL 6130

Dr. Cherif Sidialicherif

14 July, 2015

Abstract

This is the summary of the importance that executive leaders attached to sustainability in organization and the motives in implementing it at all level of their organization for maximum effectiveness even with its long time benefits.

Managing for Sustainability: A report from the Economist from the Economist Intelligence Unit sponsored by ENEL.

Sustainability in organization is the ability of leaders or executives to continue managing or operating their business or firm.  It is usually judged by its progress or achievements over years of operations and advancement “doing well by doing good”. In their research, ENEL report shows that climate changes always bring about a change in every business.  Meanwhile, globalization is a current example of such changes that brought about a new dimension that shows how businesses operate worldwide.  Adding that, the emergence of Internet has exposed companies, and their activities to the worldview.

ENEL findings are that: 1) leaders sees more opportunities in sustainability than risk, and suggested that in the next three years, sustainability will become more important. 2) The connection between sustainability and profitability remain cloudy, research shows that fewer people agreed that the connection between “financial performance and commitment to sustainability in the short term” while more people see a stronger connection in the ‘long term’.  3) Poor business climate create an obstacle to pursuing sustainability, lower than average people claimed that their organizations placed more emphasis on financial goal than they do to sustainability, and at the same time, difficult to reach agreement and clarity of purpose. 4) Sustainability can lead to new strategies and improve image by showing more priority on the company code of ethics and promoting environmental protection for a better image. 5) Leaders are implementing sustainability into all their organizational functions by educating their employees on sustainability, and related activities with improving energy efficiency. 6) Cash incentives are not widespread – but are growing in that, more employees claimed that recognition programs contribute more to sustainability than the growing incentive. 7) Only around one-half of companies report progress in sustainability. Leaders agree that goal clarification and feedback on environmental sustainability and social sustainability is a good way to enhance sustainability.

Finally, the research shows that sustainability is becoming more popular in this era and improving drastically.  At the same time, senior executives are laying more foundation from their experience to embrace sustainability among the junior leaders by giving adequate training.  This is an additional clue for me on the effectiveness of globalization in the present economy of the world, a must skill that this era leaders should imbibe for an excellence performance.

Reference:

ENEL, (2010).  Managing for Sustainability: A report from the Economist from the

            Economist Intelligence Unit.  The Economist Intelligence Unit Limited

http://graphics.eiu.com/upload/eb/Enel_Managing_for_sustainability_WEB.

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