Page 39 - The Corporate Report Pack

Business through a new lens
Business through a new lens
Jayne Mammatt
It’s generally acknowledged that a thriving society in a thriving environment is good for us all and welcome. If this outcome takes a central position, what role does business play in achieving it?
e PwC 19th Global CEO Survey 2016 gives us a snapshot into how CEOs think about sustainability issues and are incorporating them into their business. A key theme for this year is the CEO’s desire to address wider stakeholder needs. It comes at a time when there is unprecedented inter-governmental agreement to tackle major world issues; issues that have a signi cant impact on individuals, communities and the environment. It’s a sign that CEOs understand just how interconnected their business is with society, the environment and government. ey see the bigger picture and are mindful of the need to understand and report on their impact.
e business environment is changing
As the global population grows and everyone seeks a better lifestyle, pressure on the planet and its nite resources grows too. e implications are signi cant for everyone – poverty, hunger, health, access to water, energy and work, resource scarcity and the impact on the environment. is was reason enough for 193 UN member states to come together to confront these major issues, to develop and commit to the Sustainable Development Goals (SDGs), or Global Goals, driving an agenda centred on ‘dignity for all’ and ‘leaving no one behind’.
It’s an agenda that will have a signi cant impact on business and start to shape its strategy. As targets and indicators are put in place, action plans are implemented, and regulation and policy enforced, so business will feel the impact.
But are the business models of today equipped to deal with this? ose focused purely on pro t with a by-product of depletion and damage will nd themselves operating in a more di cult environment. In many ways, business no longer has the luxury of operating in isolation. It shares infrastructure, land, resources, people, energy, water and so on with the community. So as governments attempt to set the bar higher for society, business will feel the e ects too. A healthy relationship with society and government is critical.
Looking from the inside out and adapting the model to maximise value to stakeholders, not just shareholders, makes good business sense. It’s about understanding who has in uence on an organisation’s strategy and respecting their interests (see Figure 1: Who’s in uencing my strategy?). For CEOs, their customers, government and competitors or peers have a big in uence on business strategy. Understanding their needs and working towards addressing them, can help maintain reputation and a licence to operate.
A thriving society in a THRIVING environment – business in context
Taking a step back and looking from the outside in, where does business really t in to the bigger picture? It’s generally acknowledged that a thriving society in a thriving environment is good for us all and welcome. If this outcome takes a central position, what role does business play in achieving it?
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