The time to embrace sustainability in corporate governance came long ago, asserts Dr. Ioannou, Associate Professor of Strategy and Entrepreneurship at LBS, whose research focuses on sustainability and corporate social responsibility. “Sustainability is the challenge of our time; it is the task of our generation. We need to leave the planet in better shape than we found it. And that challenge extends to pretty much every aspect of our life right now – our lifestyles, our jobs, our economy,” he says.
“There is really big doubt about the ability of the capitalist system to deliver value for everybody. We have created a lot of financial value, but at a huge cost to the environment, the planet and society. This, in turn, creates a lot of pressure for companies to adopt a new model of corporate leadership which talks to these issues and meets stakeholder demands, all while increasing competitive advantage,” continues Dr. Ioannou, who participated in the third IESE-ECGI corporate governance conference, financed by STI: Boards of Directors and Corporate Strategy in an Uncertain Context.
“Sustainability is the biggest disruption that businesses have faced in the last 50 years,” he explains. “This is because businesses lack the experience, knowledge and expertise to tackle the issues in what we call the broader environmental and social domains, simply because they haven’t done so in the past. What businesses need to realize is that those who don’t make the necessary investment to adapt are likely to perish through disruption.”
In an article published this October on LSB’s website, Dr Ioannou outlines four key principles that business leaders must master in order to embed a culture of sustainability into their organization’s DNA; thus translating purpose into practice and, ultimately, results.
Dr. Ioannou is convinced that organizations armed with the tools, frameworks and insights to achieve goals and guide efforts towards sustainability leadership can gain long-term competitive advantage and become a force for change that adds value for society.
The LBS Sustainability Leadership and Corporate Responsibility program he created is aimed at senior leaders intent on developing sustainable practices within their organization. “Together,” Ioannou affirms, “we can have a profound impact on the way the world does business and the way business impacts the world. But it has to be a collaborative effort. And it’s one that cannot wait.”
