Sustainability: the Key to Future Business Prosperity - Part I

Are you a retailer and wonder where the industry will be in 15 years, 20 years, or beyond?

Regardless of industry, most of us wonder what the world will be like given our current environment. Will there be drought, floods, and/or limited energy supplies? While it is easy to ask questions about the future, it is very hard to prepare for uncertainty.

In looking ahead the Retail Industry Leaders Association “RILA” (pronounced REEL-ah) launched “The Retail Horizons Program” to help retailers and product manufacturers prepare for tomorrow by driving sustainable change within their organizations through a three-pronged approach.

The three prongs are

  1. Recognizing current trends that point to change,
  2. Planning for different future scenarios, and
  3. Using tools provided by RILA for additional support.

The program was rolled out at the end of September in conjunction with RILA’s sustainability conference in Minneapolis.

As an added bonus, being in the retail industry is not essential to reaping the perks of this program. Anyone in a product driven organization will benefit from using the second prong, future scenarios, in practicing forward thinking.

The common theme that unifies the Retail Horizons program is sustainability. At Strategic Sustainability Consulting we couldn't agree more that sustainability is the key to businesses staying strong. Implementing sustainability practices now, arm businesses with the shield they need to protect against a potential unstable future whether it is a weak economy, sparse resources, and/or environmental instability.

Additionally, RILA is not only looking out for a business’s future stability, but their financial stability as well. There is a free downloadable toolkit to help retailers plan for the years ahead, and it can also be applied to other product-driven organizations. To download the toolkit, go to: http://www.rila.org/sustainability/future/Pages/default.aspx

Stay tuned for Sustainability: the Key to Future Busniess Prosperity - Part II: Current Trends as Future Indicators next week! 

Be sure to check out our 2013 blog entry that focused on RILA's Retail Sustainability Report here.

Featured B Corp of the Month: Shifting Patterns Consulting and the Importance of Social Change

We’re big supporters of the principles behind the B Corp movement, but we want to do more than just "spread the love" about it, we want to share the sustainability success stories from other B Corps!  Each month we’ll be publishing an interview with a sustainability champion of a B Corp – and this month we are featuring Shifting Patterns Consulting!

Shifting Patterns is a boutique consulting firm, with one full-time employee and a network of consultants that can be brought in to assist with assignments, based in Washington, DC that facilitates social change by working alongside social enterprises to mobilize resources for addressing today’s most pressing challenges while developing the internal support systems needed for longer-term sustainability. Resource mobilization, institutional support, and partnership development services are tailored to the needs of each client. What separates Shifting Patterns from other consulting firms is an exclusive focus on changemakers, ability to establish working relationships grounded in trust and mutual respect, and a consulting model that strengthens organizational capacity through knowledge and skills transfer thereby reducing the need for external support.

What made your company decide that sustainability was a priority?

Sustainability, which at Shifting Patterns is defined as being kind to the environment (i.e., recycle, reuse, renew), making a lasting impact through the quality of services provided to clients, and earning a profit so that the company continues to grow, has been a priority from the very beginning. This was a conscious choice based on the intention to act consistently with the company’s values, which are synonymous with social change. 

What is your company’s greatest sustainability accomplishment, to date?

Obtaining the B Corp certification has been Shifting Patterns’ greatest sustainability achievement, so far. I’m especially proud of this accomplishment given the rigorous standards that B Lab uses to measure performance, accountability, and transparency. It’s an honor to be a member of a community of 1,000+ companies that are using the power of business to solve social and environmental challenges.        

What is the greatest sustainability challenge facing your industry today?

The greatest sustainability challenge facing the consulting industry today is oftentimes an inconsistency between the values that are espoused and actual business practices. While many consulting firms have adopted environmentally conscious business practices, few are going beyond the basics of recycling, using environmentally friendly products, and energy efficient appliances. There is an opportunity to push the needle further by “walking the social good talk” whether it’s opening an account at a community bank, treating employees as co-owners of the company, or being transparent in your business practices.  

What is the most important lesson you’ve learned in your sustainability journey?

The most important lesson that has been learned during our sustainability journey is that this concept has multiple dimensions that are interdependent. Financial sustainability is paramount; however, when profits are all that drive business decisions we end up putting them at risk by destroying the environment we depend on to earn a living not to mention eroding goodwill developed with employees and customers. The challenge for Shifting Patterns has been to incorporate a triple impact approach to decisions by consistently asking: Are we doing right by our clients, the environment, and ourselves? 

Who or what inspires your company in its sustainability journey?

At Shifting Patterns we’re inspired by our social enterprise clients who are demonstrating what it means to “be the change” by taking the initiative to innovate bold solutions to some of the most pressing social and environmental challenges of our time, such as improving learning outcomes for students by engaging the community in turning around underperforming schools. We’re also inspired by our fellow B Corps who are making significant strides in not only being the best in the world, but the best for the world by advancing sustainability best practices that are reflected new iterations of the B Corp assessment. 

About Kimberley Jutze

Kimberley Jutze is a socially responsible entrepreneur and Chief Change Architect at Shifting Patterns Consulting where she facilitates social change by working alongside social enterprises to help them mobilize resources and strengthen their organizational capabilities so that they can make the best use of these funds. Aside from presenting at social enterprise and organization development events, she has written a case study for the 10th edition of Organization Development and Change and is the author of the “Nonprofit Funding and Long Term Sustainability” Social Good Guide scheduled to be published in October 2014. Kimberley has a Master of Science in Organization Development from Pepperdine University and a Master of Arts in International Politics from American University.

Contact Info and Social Media Profiles

E-mail: succeed@shifting-patterns.com 
Twitter: @ShiftPatConsult
Facebook: http://www.facebook.com/shiftingpatterns 

Interested in reading more of our Featured B Corp of the Month entries? Look no further!

Athletic Wear and Sustainability – Who Has the Best Governance?

By: Alexandra Kueller

Last week we introduced SSC’s latest peer benchmarking analysis, and this week we will take an indepth look at each dimension.

Corporate governance traditionally refers to the system of obligations, structures, and duties that corporations are directed and controlled by, but for SSC’s peer benchmarking process, our governance dimension is focused on how the company has integrated sustainability into its organization. A company might have strong governance in the traditional sense, but it is important for us to analyze whether or not the company is being proactive about integrating sustainability into the core of the company.

Overview

Points:

  • Nike – 17
  • Adidas – 16
  • Puma – 11
  • Lululemon – 4
  • Under Armour – 3

In our benchmarking analysis, the highest governance scores went to the large companies, who generally face higher pressure to disclose issues like sustainability risk and corporate ethics. Sustainability-related communications proved to be a strong point among all companies, with everyone at least having a page on their website dedicated to sustainability. And materiality is still an emerging issue with two companies receiving no point in this area.

Materiality

When analyzing the materiality of the five companies, there was a divide between the large and the midsized companies. The larger companies – Puma, Adidas, Nike – all had sections dedicated to materiality, while Lululemon and Under Armour never touched upon the subject. Nike and Adidas had strong materiality policies laid out nicely in their reports and alongside Puma, all three companies had well thought-out programs to help back their commitment to materiality.

Ethics

It is important for companies to have strong business ethics that not only applies to all aspects of business conduct, but also to every member of the organization. All five companies analyzed had some form of a code of ethics listed either in their report or on their website, but Nike and Adidas go a step further by providing examples of programs and activities they use to help make sure they adhere to their ethics policy.

Risk

Just like materiality, only the large companies addressed risk either in their report or on their website. Nike, Adidas, and Puma each had a strong risk policy and supporting programs, while Lululemon and Under Armour failed to mention risk at all. One area for improvement in the risk category would be the addition of performance metrics; the three companies that addressed risk in their reports provide no supporting data. 

Communications

As companies continue to grow their corporate sustainability, it is important for them to increase how they communicate their programs, policies, and performance. One simple way is to have a sustainability section on the company website, and every company in our benchmarking analysis has at least one page of their website dedicated to corporate sustainability. Four out of the five companies also released some form of sustainability report in the last year (either an annual sustainability report or a CDP report), while Under Armor was the only company to not release any form of a sustainability report.

Missed our introduction to peer benchmarking blog? Catch up right here!