The Importance of Sustainability in Corporate Strategy

Abstract

The purpose of strategy is not simply to win in the short term but also to endure and to stand the test of time. While it is possible for a company to be temporarily profitable it is much more difficult to sustain corporate success over time. Only a limited number of companies are able to achieve such a feat. Companies are like empires: The most spectacular are not necessarily the most efficient or the longest-living. Today approximately 1700 companies worldwide have been active for more than 150 years. The timeless principles of business strategy used by enduring companies offer some interesting characteristics to be considered in order to achieve corporate sustainability and to be significant over time. For business leaders, it is difficult to resist to the emotional dimension of achieving short term gains while long term success requires discipline and a strong and persistent mindset in front of market uncertainties. Thus, corporate sustainability depends on rational audacity that conveys leaders of sustainable companies to act in a different way than those of most firms.