According to the MIT Sloan Management Review Report corporate sustainability programs grew in 2011. Two thirds of the executives surveyed have responded that CSR has been part of their strategic agenda and is more likely to remain in the preceding years. Another issue being raised is also the necessity of CSR in order to increase business competitiveness in the dynamic business environment. However, although 70% of those surveyed realize the aforementioned importance of CSR strategies in the corporate agenda, only 24% have embraced such long term strategies and a 31% has started to realize the sustainability business case but have not yet integrated it in the organizational culture.
A further interesting finding of the study is the nature of corporate motivators to embrace sustainable business strategies: Consumer preference of the offered product or service seems to be to the most highly appreciated factor, with political pressure, resource scarcity/price volatility, competitors’ sustainability programs and stricter requirements from customers along value chain following.
And while businesses need to make a decision on establishing CSR strategies, it is also important that they understand the augmented value such strategies would offer. Apart from increased, businesses can gain a great competitive advantage, develop an ideal working environment and achieve high levels of risk and reputation management. Organizations therefore face a great challenge, now more than ever: Embrace Sustainability in their Corporate Strategy and form a solid sustainable business case.