Lessons on building a purpose-driven business

Lessons on building a purpose-driven business. [iStockPhotos] Sustainability has fast become a catchphrase for many companies as they try to endear themselves to consumers but also appear to be sensitive to environmental and social matters. Sheida Mutuku, an expert on corporate sustainability and chief executive Woodside Africa Group, discusses the strategies that work and what does not work as companies try to achieve sustainability. Business sustainability is the continuous strengthening of an entity's ecosystem around a compelling purpose which in turn ensures its long-term growth and survival. This means that businesses must be purpose-led with a strong ripple effect stemming from this purpose to encompass each and every stakeholder across the supply chain. Why and how should firms align their operations to business sustainability? It is the responsible thing to do. Firms are in business to ultimately create optimal value for all stakeholders. They need to rise to full stature, and not just scratch at the surface or maintain status quo. Given that the business environment is highly tumultuous, business leaders must really apply themselves and be brave enough to adopt business models based on sustainability that are guaranteed to ride the rough and yield exceptional returns. Existing business models are unable to withstand the strain, and this leads to a cumulative loss of value and eventual failure. Reworking the business model to absorb the continuous shifts in the market is therefore crucial. And a business model that is anchored on sustainability ensures not only the realisation of exponential growth but the long-term survivability of companies. It is worthy of mention that attempting to dress old business models into imitation or faux sustainability garbs is a great farce. It is a sorry case of 'to be seen to be' but not actually 'being'. It really is a patchwork job and the outcomes are bound to be garish and comical all at once. How can businesses achieve growth driven by sustainability? Sustainable businesses ride on social and environmental considerations to realise their economic growth ambitions. Transformational organisations are borne of implementing this simple but intense practice. The first step is to identify a compelling purpose and secure their business models around this purpose. The ensuing corporate strategy will then be inspired by the social and environmental pillars of sustainability. It entails curated programs or initiatives for key stakeholders, across the entire supply chain, that will be geared towards strengthening them. This, in turn, will yield desired business outcomes for organisations, including financial, social, and environmental. Are Kenyan firms actively pursuing this and what are the lessons The large majority of firms in Kenya exhibit a do-nothing attitude towards corporate sustainability. Proper integration and adoption are yet to be explored by many Kenyan firms. This is because sustainability is treated as an additional element to strategy, as opposed to the strategy itself. These two approaches will yield very different outcomes. If not, what are the reasons... Miseducation: Sustainability, in the business context, has often been misconstrued to mean charity - visiting children's homes, and sweeping the streets, among others. Others have translated it to mean taking care of the environment - which is only a partial but crucial part of corporate sustainability. Yet others have taken it as an additional strategic element, as advised by their various audit partners. This last group has a genuine will and desire to effectively apply sustainability, and just needs a little nudge in the right direction from authentic sustainability partners to be on the way to true transformation. Work ethic: On account of an increasingly harder business terrain, sustainability requires hard work. The metrics dashboard will beep continuously for round-the-clock attention. But it is the only noticeable framework that delivers great performance in our current times. Sustainability outcomes will last as long as the organisation is on high alert, moving with intelligence, speed, and agility in tandem with the shifting environment. Each and every part of the organisation must be attended to with total diligence, dedication, and commitment. Leadership: In embracing corporate sustainability, the need for wholesome leadership cannot be gainsaid. It must be purposeful, visible, and visionary. The essence at the core of such leadership must be extremely strong and well-defined values that will infuse every decision made in a fast-paced business environment. A values-deficient leadership will breed a horrid culture. What models from successful companies can Kenyan businesses benchmark It is more of brands rather than entire organisations that we can speak of in Kenya. M-Pesa is a big one. The fact that it is a sustainability-driven innovation was by accident rather than by design. Nevertheless, this brand epitomizes the power of sustainability. Built on the community social concern of financial inclusivity, incorporating strategic collaborations and partnerships, a founding savvy leadership propelled by communications technology, it is still exploding on its own. And what we see is the tip of the iceberg. Full gains will be realised when the entire M-Pesa and Safaricom ecosystem is strengthened by addressing critical areas that still fall short. What is the role of business lobbies and regulators in ensuring sustainability in business? To contribute in fostering a thriving corporate space, lobbies, and regulators must be thoroughly versed in at least the rudimentary aspects of corporate sustainability. Corporate Citizens of Africa (CCA) specifically focuses on assisting blue chip and other organisations to properly adopt and integrate corporate sustainability, from an African business environment perspective. This is with the hindsight that incorporating global best practices is important, but only pick elements that work for our businesses and environment. Government regulation of businesses where holistic corporate sustainability is concerned should not happen. Simply because sustainability-averse businesses will naturally weed themselves out of the market. Of course, obvious areas such as wanton environmental degradation must be regulated, as is currently done. However, corporate sustainability should be at the discretion of businesses. It is a competitive advantage for any business hence really a no-brainer. Kenya is set to host a regional meeting on sustainability. Tell us why this matters The three key pillars of corporate sustainability include the economic aspect, social impact, and environmental sustainability. The regional meeting is focusing on environmental sustainability. Our planet is very fragile right now. It doesn't matter if you're looking at it from a corporate or developmental angle, or from a geopolitical stance. This is an issue that affects everyone. Is sustainability in business a preserve for big businesses? Absolutely not. It is for every business that is keen to establish strong performance. The last I checked, that was an ambition for every business, regardless of size. The beauty of corporate sustainability is that it is a versatile concept, and can be applied across geographies, industries, and business sizes among other factors.

Lessons on building a purpose-driven business

Get Full Access for Ksh299/Week.

Related Topics

Similar Articles

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS

Similar Articles

Court declines to lift orders blocking Safaricom sale as Vodafone loses bid to exit case

Kenya blockchain industry urges faster stablecoin adoption amid new digital asset rules

Activist files petition to block fuel price hike, seeks conservatory orders

Government launches construction of 114 solar mini grids in 14 counties

DIGGER JOBS

Digger Motors

Digger Real Estate

Lessons on building a purpose-driven business

Get Full Access for Ksh299/Week.

Related Topics

Similar Articles

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS