How to Become a Sustainable Company Harvard Case Solution & Analysis

"High stability" companies far ahead of its peers during the 18-year period in terms of the stock market and taking into account criteria such as return on assets and return on equity. They also showed lower performance volatility. Currently, organizations that have a broad commitment to sustainable development on the basis of their original corporate DNA are few and far between. For most companies, becomes stable includes a conscious and consistent effort to build long-term shareholder value, contributing to a sustainable society. The authors studied the company's organizational model, which they call "sustainable", comparing them with the companies, which they call "traditional." They focused on two main issues: (1) How to create the conditions for sustainable companies that include sustainability in business strategy and operations, and (2) What are the specific elements of the cultures of stable companies that make them different from those of traditional companies? The authors developed a model of cultural identity and how to create a sustainable company. While the model is very simple, the implementation is not easy, because it is based on large-scale change - something that few companies look for or do well. The first stage involves reframing the identity of a commitment to leadership and external engagement. The second phase includes the codification of a new identity through the interaction of employees and implementation mechanisms. Both the current processes. Once the second stage, two stages are mutually reinforcing. Employee interaction allows more complex external engagement, as a wider range of staff will be able to interact effectively with external stakeholders. Mechanisms for the enforcement of obligations associated guidance, as these organizational level attributes continue from one generation of leaders to the next.
In addition, management's commitment to providing a strong driving force for the involvement of employees, as employees know that their leaders care about what they do. External interaction strengthens mechanisms for the implementation of the company, as the pressure of interested parties disputes the company to continuously improve its quality. The article draws on examples in companies including Dow Chemical, PepsiCo, Natura and Toyota.
Corporate sustainability attracted much of the world over the past few years. Trends show that the public is no longer satisfied with corporations that are focused exclusively on short-term profit maximization. A recent study that compares companies that adopted environmental and social policies with companies that do not, the author of two of the authors of this article, and another colleague, provides empirical support for this view. "Hide
by Robert G. Eccles, Kathleen Miller Perkins, George Serafeim Source: MIT Sloan Management Review 8 pages. Publication Date: July 1, 2012. Prod. #: SMR425-PDF-ENG

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