Five archetypes of top management behaviour in the approach to sustainability

The question of sustainable development depends very much depends on the style of senior management. Although it may seem that in times of crisis, when companies are struggling to survive, this is a peripheral issue, the time will come when you will happily employ strategies that keep this issue in the attention of top management.

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A survey by INSEAD has revealed a total of five different archetypes of behaviour that influence the view of this topic among members of top management.

Deniers

Some managers regard sustainability as a buzzword or fad. According to experts, this approach is especially dangerous because it can lead to greenwashing, in other words the use of PR or corporate communication to overestimate environmental benefits or underestimate the environmental damage of a company's products and services.

When facing a denier, it is important to deal with them on their own conditions and with great patience. Approach sustainability (directly and indirectly) through specific concepts such as risk exposure or cost reduction. Never raise sustainability issues in times of crisis. Instead, try to engage individual board members in a rational conversation and gain support before resolving the issue before the board.

Hardliners

Unlike the denier, hardline board members are prepared to speak positively about sustainability but from a business perspective. They focus on strategic thinking associated with healthy scepticism. Stubborn types will deal with sustainability only to the extent required by stakeholders. Typical comments include: "Short-term sustainability means destruction of value." Or, "The end user is not as demanding as you think."

These people are often found in less sustainable industries, such as oil and gas or transport. They will also tend to raise relatively complex ethical considerations to support their lack of action.

Introduce these members to sustainable ideas that are not too far removed from existing practices. Promote sustainability as a good management practice and focus on "low hanging fruit". Start with areas that are quickly reflected in the business and the results are tangible.

The superficial

Superficial board members mention the importance of sustainability but often fail to "talk" properly to others. They have a superficial knowledge of real problems and are unable to give managers the strategic framework they need to take real action. The worst advice of this kind implicitly supports greenwashing.

If their desire to do good is real, these people are the main candidates for a specialised sustainability committee, a safe transition area where the most active proponents of sustainability can talk about issues and propose concrete measures to be submitted to the whole council. The trick with these people is to play their good intentions. They often do not know where to start, so give positive suggestions and choose them wisely.

The complacent

This type can be difficult to identify. Many have taken initiatives such as CSR reports or "green" product lines in a timely manner, but are unable to keep up with the latest sustainability ideas. They are reluctant to talk about sustainability and use examples of past successes, such as CO2 reduction and community involvement, to end any sustainability talks that they believe could disrupt established business habits.

Focus on small actions rather than a wholesale strategic review. Acknowledge past successes when pointing out the shortcomings of current practice. Look for like-minded directors and form coalitions. If you are looking for a new CEO, try to include the need for sustainability in your recruitment criteria.

True believers

True believers are rare but their numbers are growing. Like stubborn people, they always carefully analyse the business advantages and disadvantages. However, they differ in having a genuinely long-term approach to management. They recognise the scale of the challenges and fundamental changes companies need to make for deep integration of environmental and human interests into their business strategy.


The challenges to sustainability are too big for governments and international bodies to address on their own. In this context, the governing board will find fulfilling their responsibilities requires addressing issues in more detail and finding ways to bridge the gap between aspirations and activities. As a result, they will also help themselves, as increasingly demanding consumers will appreciate their initiative.

 

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Article source INSEAD Knowledge - INSEAD Business School knowledge portal
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