MIT Sloan Management Review Article on Make a Stronger Business Case for Sustainability

Leaders can’t escape the global imperative to reduce the contributions businesses make to environmental degradation, but deep down, many harbor doubts: Can a profit-driven organization also be sustainable? Pressure to grow revenue and control costs is constant. How can a leader feel confident in pursuing more sustainable choices and defending them to boards and shareholders sensitive to the often higher costs of greener approaches?

The dueling pressures to do business sustainably and to maximize profits leave many leaders stuck, unsure what to do. Many falsely categorize sustainability as a compliance issue, taking a wait-and-see approach and aspiring to do the minimum. But they miss new opportunities and are less prepared for the energy transition away from fossil fuels. As with any major disruption, companies that take smart steps forward can carve out an advantage and avoid being left behind.

About the Author

Karel Cool is a professor of strategy and the BP Chaired Professor of European Competitiveness at Insead. Atalay Atasu is a professor of technology and operations management and the Bianca and James Pitt Chair in Environmental Sustainability at Insead, and academic director of the Insead Sustainable Business Initiative. Nathan Furr is a professor of strategy at Insead.

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