Managing the Next Industrial Revolution Successfully: Sustainability

Abstract

Sustainability with its complex multifold elements becomes increasingly important for our business leaders. While economies are growing and stock prices are rallying, we are also depleting our resources, wasting valuable materials, and reaching our planetary boundaries. More natural catastrophes than ever before and social inequality will sooner or later put a stop on today’s way of conducting business. Growing awareness along key stakeholders such as customers and regulators, and even investors is starting to increase pressure for responsible business behaviors. Business model innovation and leadership can only come from top management. And those companies with strong leadership are already participating in the opportunities and value sustainable business can create. However, this is still not true for the majority of companies. Strategic management needs to be rethought and reinterpreted. Harvesting the obvious financial benefits is no longer sufficient. In an increasingly complex world, environmental and social risks as well as opportunities need to be managed wisely, hence we need to rethink strategic management more holistically. This article will focus on the current external drivers behind becoming more sustainable, explain the role of top management, expand on profitable business cases, and provide actionable recommendations. Future business leaders are a force for change toward a more sustainable business environment, making it critical to include these considerations in strategic thinking.