Systematic Review - Network for Business Sustainability

sustainability goals and objectives in strategic and
operational plans — and from the bottom up —
for example, by being alert and responsive to and
rewarding employees’ SOI ideas and initiatives (Florida
et al., 2001; Haanes et al., 2011). So, for sustainability
to be strategically embedded, reward systems and
incentives need to reflect the focus on sustainability.
Some firms are more developed in this sphere than
others:
In Practice
In a US study of 41 Fortune 200 companies,
only about one-quarter of firms had
incentives for environmental performance
that extended to managers outside of
the environmental function. Intel links
individual compensation to environmental
performance, funds innovative environmental
projects and rewards employees who deliver
significant sustainable impact. Sixty per cent
of the remuneration of the CEO of Florida
Ice & Farm is tied to performance on triple
bottom line indicators. Adapted from Baya
and Gruman (2011); Lent and Wells (1992).
3. Revisit and reframe the business model and
modes of governance to acknowledge the firm’s
commitment to sustainability
Typically, contemporary business models are
inappropriately conceived to deliver sustainable
businesses. As a result, Organizational Transformation
innovators revisit and reframe their business model.
A novel paradigm has emerged in recent years: a
business that attends equally to social, economic and
environmental considerations (Bertens & Statema,
2011; Esslinger, 2011; Stubbs & Cocklin, 2008).
8 See http://www.bcorporation.net/
This model of the sustainable business remains unclear
and, for Birkin et al. (2009) at least, no business claims
to be fully realizing or implementing a business model
for sustainable development. Nevertheless, progressive
firms are experimenting in this area (OECD, 2010), as
typified by the following emergent characteristics:
• Drawing on TBL considerations in defining its
purpose
• Using a TBL approach in measuring performance
• Considering the needs of all stakeholders rather
than just those who hold shares
• Regarding stakeholder engagement and
collaboration as necessary
• Treating nature as a stakeholder
• Driving the cultural and structural changes
necessary to implement sustainability through
leaders or champions
• Engaging both a systems-level and a firm-level
perspective (Stubbs & Cocklin, 2008)
Some firms are experimenting with new modes of
governance that explicitly integrate sustainability. In the
United States, a new legal form, the B Corporation, 8
has recently emerged to legally oblige committed firms
to deliver societal benefits. B Corporations address two
critical problems:
• Current corporate law makes it difficult for
businesses to consider the interests of employees,
the community and the environment when making
decisions.
• The lack of transparent standards makes it difficult
to distinguish between a good company and good
marketing.
Innovating for Sustainability 41