Module 4 DQ 1: Sustainability and Environmentalism: Their Importance to Customers and Society. An Emerging Strategic Priority

Sustainability and Environmentalism: Their Importance to Customers and Society Consumer mindset is changing, and businesses are paying attention. In a recent survey conducted by Booz Allen Hamilton/Aspen Institute (Lee, Fabish, & McGaw, 2005) shows that more and more companies are taking concrete steps to live up to their corporate values because consumers are now holding them accountable for it. As more and more businesses realign business operations with their core values, there is also a growing call for a transitioning towards sustainable and ecologically sound practices.  To cite an example, just last September, Shell, one of the first multinational companies to push for lowering carbon emissions, showed the importance of saving the planet first before counting its own profits. In an unprecedented move, the company decided to pull out from the Arctic oil drillings, despite the fact they have already spent over $7 billion and would stand to lose $4.1 billion in future earnings (Macalister, 2015) because of their decision. But for CEO Ben van Buerden, the pull out was a necessary move because it was “undermining his attempts to influence debate around how to tackle climate change” (Macalister, 2015).  As Shell has so graciously shown, corporate values cannot remain on paper – they must in fact, ‘walk the talk’ because the survival of society was at stake. In an interview, Shell’s Chief Climate Change Adviser said, “It’s [rising sea levels as a result of climate change] unlikely to affect anyone in their own lifetime, but in the lifetime of cities… it is something to think about. Sea level rises could submerge some island nation, flood heavily populated coastal areas of many countries, and even force entire citire to move to higher ground” (Hone, 2014). Shell recognizes the growing concern for sustainability and environmental protection, and that being one of the biggest and richest companies in the world; it is in a unique position to influence state leaders and resolve the issue. Another important lesson that can be gleaned from the Shell experience is their high regard for the voi...