SUSTAINABLE PERFORMANCE

The demand that organizations perform well has expanded over the last several decades in the sense that it is not enough for them to improve solely in terms of the quality of the products and services they produce and their financial performance. They are increasingly being asked to perform better in how they impact the environment, the society in which they operate, and their employees.

The social movement that demands that organizations perform better in the social and environmental areas has gained considerable momentum in the past decade and will continue to do so. It has resulted in new laws involving pollution and how employees are treated. Not surprisingly, it is putting the greatest amount of pressure on organizations in developed countries. They are under pressure to change the way they operate and to change the way their suppliers and subsidiaries in developing countries operate and do business when it comes to their impact on the environment and how they treat their talent.

As the world becomes more conscious of the importance of sustainable corporate performance, there is little doubt that corporations will increasingly be held accountable for their global impact on the environment, their employees, and the societies in which they operate. The demand that corporations meet what are often called triple-bottom-line standards and report on their performance is growing. As of yet this is certainly not being undertaken by a majority of the corporations in either the developed or the developing world, but there is significant movement in this direction.

Prime examples of organizations moving toward triple-bottom-line performance accountability are Google, Starbucks, and Unilever; they are ahead of the curve and showing some positive results. The more successful they are, the more pressure there will be on other corporations to follow their lead and perform well in all the areas of corporate sustainability.