With the world facing economic, social, and environmental challenges, businesses worldwide are beginning to realign their strategies with the Sustainable Development Goals’ (SDGs) framework, also known as Global Goals. Environmental sustainability in particular is increasingly becoming a strong focus for all stakeholders, from customers to communities and shareholders. Organisations and their leaders are now being scrutinised for their business decisions and how it affects sustainability.
Business leaders need to strike a balance between the needs of the present without compromising the ability of future generations to meet their own needs.
According to Prof Dr Mario Fernando, who is an established Professor of Management, a key issue in implementing sustainability is responsible leadership.
“There are so many instances where we come across organisations and business leaders who pay lip service. There is so much talk out there – about their commitment towards the SDGs, the strategies they are implementing, and the potential outcomes – but how effective have they been? Are our leaders equipped to look at or even envision a sustainable future?” he said.
Dr Mario was speaking during his presentation titled “Leading Responsibly for a Sustainable Future” at the 2nd Online Symposium on Sustainability jointly organised by INTI International University and Cologne Business School, Germany, on 27th November 2020. The online symposium saw some 100 participants from countries including Malaysia, Germany, Finland, Australia, the United Kingdom, Norway, and China.
Citing the definition of sustainable development as that which meets the needs of the present without compromising the ability of future generations to meet their own needs, Dr Mario said it is this compromise that we need to strike.
“This compromise, this balance, is at the heart of this definition. This is what our business leaders need to strike. So many images from people around the world have cropped up during the pandemic. People thousands of kilometres away are saying that they can see the Himalayas clearly for the first time, and that the skies are bluer and the waterways are cleaner. Why can’t we have it like this always? Striking this balance is important,” he added.
The 2nd Online Symposium on Sustainability jointly organised by INTI International University and Cologne Business School, Germany, featured high-profile experts and researchers from both local and international institutions to share their latest research on sustainability.
Dr Mario shared that the 2019 CEO Study on Sustainability conducted by the United Nations Global Compact – Accenture Strategy stated that defining responsible leadership will help pinpoint what is needed from this generation of leaders.
“There are nine emerging qualities of responsible leadership that will enable businesses to become leading actors in driving Global Goals. Besides actions from the macro and meso levels, with individuals at the micro level, each one of us will need to have a change of attitude on things such as jumping on a plane to give a 15-minute conference presentation, for example. Are those days over?
“I’ve been talking to colleagues from the US and they are saying how Covid-19 has lots of positives. Huge industry leaders are now self-reflecting and thinking about silly things businesses can do without such as having a 500-room office headquartered in Chicago. Do they really need it now that they have worked for eight months without the headquarters being occupied?” he said.
He added that as individuals, leaders need to think about this seriously and engage investors who look at more socially responsible investments and lead change with authenticity.
“Walking the talk is essential, not because you need to make a profit, or pay lip service. This is so that instrumentally your annual report, website, and own people are talking about these massive development strategies. So let’s talk about this walking the talk. Statistics from a 2018 Oxfam report showed that 61 percent of companies state they are committed to the development of SDGs in their reports and reporting, but new action is way below 27 percent in terms of action and making commitments,” cited Dr Mario.
A responsible leader, he said, is a person who is able to reconcile the idea of effectiveness with the idea of corporate responsibility by being an active citizen and promoting active citizenship inside and outside the organisation.
“Essentially, we have all these issues and responsible leadership has been called for action. Responsible leadership is ideal to take us forward,” he emphasised.
Prof Dr Mario Fernando (left), who is an established Professor of Management shared during the 2nd Online Symposium on Sustainability that a key issue in implementing sustainability is responsible leadership.
When asked who his personal favourite sustainable leader is, Dr Mario said he has yet to find a sustainable leader that could be said as exemplary, and not surprisingly so as it is not easy.
“It’s not easy at all because you have to deliver to shareholders. Profits do matter but so does the environment. Then there’s the pressures from internal and external stakeholders,” he said.
However, he shared a story about a man in his hometown of Sri Lanka. While the man is not a business leader, but instead rides a bicycle to deliver herbal soup in the country’s hot weather, he uses solar panels to heat up the hot soup.
“It was just a push cycle mind you. I used to see him often and asked where he got his idea from and his answer was simple: I have to think about my grandchildren. This fascinated me! Here is a rural folk, with probably not much education by the way he was presented to me, but I was happy that the message about ecosystems has gone through to him. I don’t know how, but he was up to it with solar panels,” Dr Mario concluded.