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Systematic Review - Network for Business Sustainability

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competitive advantages. Third, firms found it easier to<br />

integrate sustainability thinking into existing systems<br />

rather than reinvent the way they worked.<br />

However, from a sustainability perspective (i.e. climate<br />

change, resource depletion, emissions, biodiversity<br />

loss, social equity and fairness), it became apparent<br />

that Optimization could not and would not deliver<br />

the necessary changes. As a result, some pioneering<br />

firms began exploring the possibility of moving beyond<br />

Optimization and toward Systems Building.<br />

Many firms now embrace SOI principles. By 2011, more<br />

than 250,000 firms in 155 countries had achieved ISO<br />

14001 certification, which focuses on environmental<br />

dimensions, but many more firms have not yet<br />

achieved it (ISO, 2011). For firms yet to embark on the<br />

sustainability journey, what is an appropriate point of<br />

entry?<br />

BEGINNING THE SUSTAINABILITY JOURNEY<br />

Some firms, such as Desso, have attempted to<br />

leap the chasm between Operational Optimization<br />

and Organizational Trans<strong>for</strong>mation through activities<br />

described in the review, including the setting of<br />

audacious goals; investment in new technologies;<br />

working with their suppliers; collaborating with<br />

new partners, including policy-making bodies; and<br />

integrating cradle-to-cradle principles throughout<br />

their operations. Others engage with SOI on a more<br />

piecemeal basis, in an ambidextrous fashion, in which<br />

sustainability emerges at different rates within the firm.<br />

Our review does not clarify whether the activities we<br />

have identified exist in a hierarchy or whether different<br />

configurations better suit different contexts. There is<br />

no one-size-fits-all model. Clearly, firms have a choice<br />

of options depending on their circumstances. In firms<br />

where sustainability is a contested philosophy, “lowhanging<br />

fruit” may offer an appropriate point of entry<br />

— a series of quick wins to demonstrate the business<br />

case. Process and primary industries, <strong>for</strong> example, may<br />

have outstanding issues, such as emissions, resource<br />

degradation or social exploitation, which, if addressed,<br />

would enhance those organizations’ legitimacy.<br />

It is not an all-or-nothing scenario. Incumbent firms<br />

are experimenting with new configurations and new<br />

modes of operating. The transition from Operational<br />

Optimization to Organizational Trans<strong>for</strong>mation need<br />

not be attempted in a single leap. This review will help<br />

firms navigate the steps they might take in making this<br />

journey.<br />

limitations of the review<br />

The methodology and a descriptive analysis, presented<br />

in Appendices 1 and 2, illustrate an evolving research<br />

field, but one that is young, widely distributed and of<br />

variable quality. Studies are largely prescriptive and tend<br />

to be dominated by case histories and so a cumulative<br />

tradition has yet to develop. Longitudinal studies are<br />

rare, and causal relationships have not been explored,<br />

though a number of studies note correlations between<br />

sustainable innovation and organizational per<strong>for</strong>mance.<br />

Innovating <strong>for</strong> <strong>Sustainability</strong> 59

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