Executive Report Sustainability and Corporate Culture

8/4/2019 Executive Report Sustainability and Corporate Culture

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embedding sustainabilityin organizational culture

A How-to Guide for Executives

Prepared by

Dr. Stephanie Bertels

Simon Fraser Universityand NBS


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Cv im cusy f Hh, Inc. | PHotograPHer: Phiip Csn


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93% of CEOs see sustainabilityas important to their companys

future success. Yet, mostdo not know how to embedsustainability into their company.


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What are you doing to develop aculture of sustainability?


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A How-to Guide for Executives

2010Nk f Businss Susinbiiy

nbs.n

embedding sustainability inorganizational culture


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How om oh h v?

Organizations launch change initiatives on a regular basis. In fact, many organizations are

undergoing multiple change initiatives simultaneously. There is a wealth of research on

implementing total quality management, building cultures of health and safety or building

cultures of compliance. While the lessons learned from these kinds of culture change may

prove useful, a shift towards a culture of sustainability presents some unique challenges.

Most organizational change initiatives are bounded and internal. In contrast,

sustainability is part of a broader societal agenda that extends beyond the organization.

External forces often provide the motivation for a sustainability change initiative. Whenthe change is motivated internally, it may be driven by a desire to do the right thing,

rather than an effort to improve competitiveness. Furthermore, key levers required

for change may be beyond the control of the organizationthe power may reside in

the organizations supply chain or with its key stakeholders. This often means that

organizations embarking on a sustainability journey must be willing to collaborate

with other organizations. For these reasons, transitions to sustainability may require

paradigm-breaking business models or approaches.

a 2010 accnu b suvy f m

hn 700 Ceos fund h 93 pcn

s susinbiiy s impn hi

cmpnys fuu succss.

Hv, mny businss ds

su buid susinbiiy in

hi dy--dy pins. and,

susinbiiy pms fn

dpndn n ky d. excuivsnd sni mns n kn

h susin susinbiiy v

h n m. t mk susinbiiy

n vydy, nduin p f h

nizin, i nds bcm

mbddd in nizin cuu.

What isbusiness sustainability

Businss susinbiiy mns mnin h ip bm in

incudin finnci, sci, nd nvinmn isks, biins nd

ppuniis.

Susinb businsss siin nd c cnmic vu,

hhy csysms nd sn cmmuniis. Susinb businsss

suviv v h n m bcus hy inimy cnncd hhy cnmic, sci nd nvinmn sysms.

Sustainability has become an increasingly importantpart of doing business.

OrganizatiOnal culture Of sustainability

I is cuu in hich nizin mmbs hd shd

ssumpins nd bifs bu h impnc f bncin

cnmic fficincy, sci quiy nd nvinmn ccunbiiy.

onizins ih sn cuus f susinbiiy siv supp

hhy nvinmn nd impv h ivs f hs hi

pin succssfuy v h n m.


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This report represents a framework for embedding sustainability in organizational culture. Designed for executives,

senior HR managers and senior sustainability managers, it presents a portfolio of practicesboth those practices that

the research has shown to be effective and those that show potential but remain untested.

To produce this report, the Network for Business Sustainability commissioned a systematic review of the entire body

of research on sustainability and organizational culture. Synthesizing data from 179 studies spanning 15 years of

research, this review presents the most comprehensive and credible evidence to date on embedding sustainability inorganizational culture.

The sustainability movement exhibits strong parallels to the

safety and ethical conduct movements of years past. Research

in those elds indicates that organizations must implement

a combination of diverse practicesotherwise known as a

portfolio approachto fully entrench the desired changes.

Consider the organization-wide safety practices that

now represent standard operating procedures for many

organizations in the developed world:

Safety goals are often integrated directly into anorganizations strategic objectives.

Responsibilities are embedded into current roles, or

new roles are created, to address safety issues within the

organization.

Formal safety policies are written and enforced.

Employees receive regular education and training related to

workplace safety.

Sufce it to say, embedding safety in organizational DNA

has required a combination of different practices, including

formal and informal, strategic and tactical, top-down and bottom-up. The same

appears to be true of the sustainability movement.

th fin fmk i hp yu impmn pfi

ppch mbddin susinbiiy in yu nizins

cuu. th fmk ups h pcics h hp buid

nd supp susinbiiy in nizins in fu diffn

cis: fsin cmmimn; cifyin xpcins;

buidin mmnum f chn; nd insiin cpciy fchn. N h h pfi ppch susinbiiy quis

bnc. In h sm y pp mus cnsum fd fm ch

f h fu fd ups, nizins shud mpy scin

f pcics fm ch f h fmks fu qudns.

What can you do to build and support aculture of sustainability?


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This framework depicts the many ways that you can embed sustainability in your organization. Each of the four main quadrants is broken

into categories of practices. On the following four pages, each category is further divided into individual practices. In the full academic

report on Embedding Sustainability in Organizational Culture (available at www.nbs.net/knowledge/culture) each practice is described in

more detail and accompanied by specic examples.

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Learn

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Train

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Assig

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Co

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FormalPractices that establishrules and procedures

InformalPractices that aect

values and behaviours

FulllmentPractices for delivering on current sustainability commitments

InnovationPractices that move the organization further along the path to sustainability
http://www.nbs.net/knowledge/culturehttp://www.nbs.net/knowledge/culture


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Fostering CommitmentInformal Practices for Delivering on Current Sustainability Commitments

ppo

Makeiteasierforemployeestomakesustainabilitydecisionsatwork Providesupportforemployeestomakesustainabilitydecisionsintheir

psn ivs such s nsi pss pms, id shin, nd scubicyc pkin

mo

Demonstratesustainabilityleadershipbywalkingthewalkand

kin h k

Participateinongoingdiscussionsaboutthesustainabilityjourney

Prioritizesustainabilityindecision-making

Showinterestintheworkofsustainabilitycommittees

ink

Encourageemployeestobringtheirpersonalsustainabilitybehavioursin h kpc

Encourageemployeestocarrytheorganizationalsustainabilitymessage

in hi cmmuniis

sis Discusscasestudiesofsuccessfulsustainabilityinitiativesinyour

nizin

Createstoriesaboutwhatthecompanycouldbelikeinthefuture

Createsimplestoriesandrepeatthemoftenandusingdifferentmeans

Starteverymeetingwithaquicksustainabilitystory

Usemetaphorsandsymbols

suPPOrted Practices PraCtICeS wItH PoteNtIal

ths pcics hv bn schd nd, bsd n his sch,

pp ffciv. thy yu pcics. whn ssmbin pfi f civiis, y incud s f pcics fmhis cy.

th minin pcics hv bn susd by schs, cnsuns

yu ps s schs s hvin h pni buid supp cuuf susinbiiy. thy hv undn i n sin vu hiffcivnss. w sus yu cnsid yin hs pcics, bu h yu

mni nd ssss hi ffcivnss n u bsis.

Pcics in his qudn im buid nd infc h impnc f susinbiiy f h nizin nd supp nd ncu mpys

h mkin ffs mbd susinbiiy. th fiv cis f pcics: nin; sinin; cmmunicin; mnin n; nd

infcin.

F m pcics, visi h fu sysmic vi.

e s comm M t ro

ppo mo sis cui infm

duc o o cusmiz c pp p

ink cmmi pm f up

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cpu quick ins ccmmd k- if bnc

cniz invs in h cmmuniy


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Clarifying ExpectationsFormal Practices for Delivering on Current Sustainability Commitments

po Developenvironmentalpolicies;health&safetypolicies;ethics

picis; cim chn picis ImplementSustainabilityCodesofConduct

Createsuppliersustainabilityperformancepoliciesorprocurement

picis

po o o

Assignresponsibilityforsustainabilitytoboardmembersand/ora

bd subcmmi

AssignresponsibilityforsustainabilitytotheCEO

Assignresponsibilityforsustainabilitytoroleswithinthesenior

dship (c VP Susinbiiy, f insnc)

incn Includesustainabilitymetricsinemployeesperformanceappraisalsand

ssssmns Linkcompensationtosustainabilityperformance

Redesignpromotions,raises,bonusesandbenefitstorewardsustainable

pfmnc

Beclearhowpeoplewillbemeasuredandensurethatthetargetsare

ihin h psns cn

p Implementacorporateenvironmentalreportingsystem

Publishinternalandexternalenvironmental,sustainabilityorCSRreports

Reportonsustainabilityprogress,addressingpreviouslysetgoals

Reportonfutureplansandcommitments


Pcics in his qudn invv sbishin us nd pcdus, ih h f cifyin mpy xpcins din susinbiiy. ths

pcics im in susinbiiy in h c f h nizins sis nd pcsss; quip nd ncu mpys vi inin nd

incnivs; nd msu, ck, nd p n h nizins pss. th svn cis f pcics : cdifyin; inin; ssinin

responsibility;training;incenting;assessing;andverifying/auditing.


co i a t i a V/a

po o po po oo

incn invny udi

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in xisin s

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pp ffciv. thy yu pcics. whn ssmbin pfi f civiis, y incud s f pcics fm hiscy.

th minin pcics hv bn susd by schs, cnsuns

yu ps s schs s hvin h pni buid supp cuuf susinbiiy. thy hv undn i n sin vu hiffcivnss. w sus yu cnsid yin hs pcics, bu h yu

mni nd ssss hi ffcivnss n u bsis.


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Building Momentum for ChangeInformal Practices for Innovation

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pvid inin ssisnc

ih susinbiiy issus Getguestspeakerstotalkabout

nvinmn nd sci issus

Consultwithyoursuppliersor

yu cusms f ids


Pcics in his qudn im supp cuu f susinb innvin by dvpin n ids ndd bin yu nizin cs is n

m susinbiiy s. ths pcics inspi nd ssu mpys s h hy cn xpimn, y n hins, nd buid n ch hs ids.

th cis in his qudn : nss isin; chmpinin; inviin; xpimnin; -nvisinin; nd shin.

xpm

Encourageresearchand

xpimnin h is ind

ih h cmpnys susinbiiyvus

Provideautonomytoworkers

nd mns dvpn suins susinbiiychns

Allowself-startedprojectsto

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Allowemployeessomeflexibility

in impmnin

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yu nizin is susinb

Workbackwardsfromthefuu visin dmin h

ncssy sps h

Setdistinctmilestonestohelp

cnsuc h ph h fuu

ths pcics hv bn schd nd, bsd n his sch,pp ffciv. thy yu pcics. whn ssmbin pfi f civiis, y incud s f pcics fm his

cy.

th minin pcics hv bn susd by schs, cnsuns yu ps s schs s hvin h pni buid supp cuuf susinbiiy. thy hv undn i n sin vu hi

ffcivnss. w sus yu cnsid yin hs pcics, bu h yumni nd ssss hi ffcivnss n u bsis.


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Instilling Capacity for ChangeFormal Practices for Innovation

Pcics in his qudn im c sucus supps h i fm fundin f fuu chns in h nizin. thy psn us

nd pcdus h d innvin. th cis in h qudn nin nd dvpin.

Nn f h pcics in hisqudn hv bn h fcus

f cdmic sch.

scn Attendindustryandenvironmentalconferences

Joinasustainabilitygroupinwhichmembersshare

infmin nd bs pcics

Observeyourcompetitorssustainabilityactivity

Developdiverseinternalandexternalknowledgeandnks

Researchstakeholderneedsandvalues

Scanforchangesinlegislationandupcomingregulatory

quimns

dvp n pducs nd svics Developnewproductsandserviceswithminimalnegative

impcs n h nu nvinmn

Developnewproductsandservicesthatmeetunmet

susinbiiy nds

pi Adoptinitiativesthatoriginatedatthegrass-

rootslevelasformalpilotprojects

Welcomesuggestionsandfollowthroughby

cin sucs piin h bs ids

Setinternaltargetsforfindingandexecuting

pilotprojects

bnchmk Selectsustainabilitymetricsusedbyothersto

fcii bnchmkin

Decidewhichinformationyouwillmakepublic

s yu pfmnc cn b cmpd ih

h f h cmpnis

Considerbenchmarkinginternallybetween

divisins, businss unis cins


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nd sysms

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pi

n fm fiu

fc


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schd nd, bsd n hissch, pp ffciv.thy yu pcics.

whn ssmbin pfif civiis, y incud s f pcics fm his

cy.

th minin pcics hv bn susd by schs, cnsuns yu ps s schs s hvinh pni buid supp cuu f susinbiiy. thy hv undn i n sin vu hi

ffcivnss. w sus yu cnsid yin hs pcics, bu h yu mni nd ssss hi ffcivnss n u bsis.


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Tembec, a forest products company, realized benets for its employees through external

engagement and partnership activities. This has helped to embed sustainability in a

company founded on strong social values.

While many rms are reluctant to share proprietary dataespecially on issues facing

regulatory uncertaintyTembec has embraced transparency and collaboration. It has

partnered with the World Wildlife Fund and Natural Resources Canada to share data and

evaluate the impact of various types of forestry practices on carbon management. The

results are publicly shared so that other companies, environmental groups, government

agencies and researchers can observe and learn from the initiative.

Our people are very pleased to be involved in something that is quite different from

their core responsibilities and yet integral to the future of our business, explained Chris

McDonell, Tembecs Manager of Environmental and Aboriginal Relations. Its the kindof thing that were asked about in public meetings and we feel good to respond actively

as opposed to saying climate change is the governments responsibility. We learn about

emerging issues that were not part of our education, which increases our professional

credibility. In this economic climate, there isnt a lot of space to learn and innovate but

we make it work.

Its the kind of thing that

were asked about in public

meetings and we feel good

to respond actively as

opposed to saying climate

change is the governmentsresponsibility.

develop metrics, monitor/track, report, share knowledge

externally, collaborate with others, benchmark, reect

Practices:

Case Studies from Leading Organizations


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Teck, a mining company, has created a cross-functional working group to develop its sustainability

vision, strategy and action plan. This has resulted in an active, company-wide engagement in

sustainability.

We had begun hearing from our employees and sustainability report review panel. They wanted a

clearer vision and strategy for sustainability, explained Carmen Turner, Leader, Sustainability at

Teck. Then our CEO made sustainability leadership one of his top ve goals for the year, which was

our call to action. But, rst we needed to dene where we wanted to go. People representing all parts

of the organization need to have a say in such decisions. So, Teck invited Gran Carstedt, former

president of Volvo and IKEA, to galvanize employees. He asked us what kind of company we want

to be. After that presentation, I had such good feedbackpeople wanted to be part of creating a

sustainable future. Teck also conducted in-depth interviews with employees across Canada to gain

even more input on how to develop a clear vision and strategy and gain buy-in.

Tecks sustainability group then populated a cross-functional working group. Participants were

invited by our CEO. This set the tone for engagement, and theyve embraced the task. They meet on

weekends and work late. They run with it because we invited them to engage in something that has

meaning and purposesomething they want to be a part of.

Turner recalled an anecdote that summed up how working groups were helping push their thinking

on sustainability. We were discussing our efforts to create a culture of sustainability, much like weve

created a culture of safety. It was noted that one difference between how we view safety and climate

change is that with safety its unacceptable to have a fatality, but with climate change we talk only

about how to reduce emissions incrementally. Why is it acceptable to have any emissions? The issuewas about dening success, and it was a totally different mind frame that resonated with everyone.

Setting stretch goals initiates long-term thinking and creates room for innovation and creativity to nd

new solutions.

... our CEO made

sustainability leadership

one of his top ve goals forthe year, which was our

call to action. But, rst we

needed to dene where wewanted to go.

seek external help, ask, listen, dene sustainability, back-cast,

frame, champion, educate, integrate into existing roles

Practices:



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Canadian Pacifc (CP), a logistics and shipping company, implemented a campaign to reduce the

use of bottled water and educate employees about broader sustainability issues.

Grete Bridgewater, Director, Environmental Management Systems at CP, recalls: We launched with

presentations and walk-aboutsyou could see discarded water bottles all over. The need to reduce our

use was clear. CP used many tactics to get employees engaged. We provided information about the

consequences of waste from bottles through our newsletter and our intranet. Employees saw pictures

of mountains of water bottles and associated dollar amounts. We featured interviews on our intranet

with employees saying now I understand and Im glad to be supporting the environment. But not

everyone in the company has a desk and a computer, so other messaging and presentations come in

handy.

Bridgewater and her team made a conscious effort to link actions at work and actions at home. We

drew lessons from think globally, act locally. You need to make a personal commitment. [We got]

individual employees to feel they can participate and make a difference and see a connection much

broader than one job and one taskto a greater community and a greater benet. Encouragement

and rewards were also employed. We gave feedback about reduced consumption and encouraged

[employees] to see that its doable. We translated that into so many fewer emissions, less waste to

landlls, etc. We have a conference once a year with regional awards. Employees get recognized by

coming to Calgary in front of senior management for a day. Senior managers also demonstrated their

commitment to the initiative by making the switch to tap water at their meetings.

Bridgewater concluded: We can modify our behaviourour employees reduced [bottled water

consumption] by 30%!

... individual employeesto feel they can participate

and make a difference and

see a connection much

broader than one job and

one taskto a greater

community and a greaterbenet.

educate, link, recognize, model, tell stories, customize, repeat,

monitor/track, report, share knowledge internally, ask

Practices:



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Suncor, an integrated energy company, wanted to ensure they were consistently meeting their

environmental commitments at various facilities. Given that Suncor merged with Petro-Canada in

August 2009, adopting one company-wide approach was critical for dening the culture of the new

Suncor.

The rst step in the process was a strong management commitment to Operational Excellence,

comprised of four elements: personal & process safety; reliability; people development; and

sustainability & environmental excellence. Operational Excellence became a key strategic priority,

and now all employees have goals associated with each element. In addition to this overarching

internal approach, Suncor also publicly declared four environmental performance goals to focus its

sustainability efforts.

One aspect of Operational Excellence involves improved integration of compliance into existing

business processes and roles, and the development of new business processes and systems to identifyand track compliance across the organization. Suncor sent a strong signal that compliance was

important by placing senior managers with strong operational compliance records in key positions.

These managers took a hands on approach by walking the walk. Training tools were developed and an

effort is presently underway to ensure compliance training takes place across the organization. Finally,

compliance targets were embedded into performance evaluations at all levels of the organization.

Our investment in technology is a good example of operational excellence within Suncors culture.

By deploying different technology, Suncor can improve our operations andreduce our environmental

footprint, said Peter MacConnachie, Sr Sustainability Issues Management Specialist. A recent

example is the development of our new tailings technology, TRO, which will allow us to reduce tailingsreclamation time by decades.

... By deploying different

technology, Suncor canimprove our operations

andreduce our

environmental footprint

commit, model, allocate resources, set goals, integrate into

business processes and systems, integrate into existing roles,

create new roles, train, incent, monitor/track, develop newbusiness processes

Practices:



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ao h rh

This research was inspired by the NBS Leadership Council, which gathers annually to identify the

Priorities for Business Sustainability. The research team, led by Dr. Stephanie Bertels at Simon Fraser

University, reviewed 13,756 academic and practitioner articles, narrowing them down to 179 relevant

sources. These sources included 96 relevant materials on embedding sustainability (82 academic

articles and 14 practitioner articles and books). Also included were 83 sources examining other types

of organizational culture, such as safety and innovation. Using this set of sources, the researchersconducted extensive, detailed analysis and synthesis of the materials to extract the various practices

that may support embedding sustainability.


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b/gp a onw Pom impmo

steP 1

Whenconductingabaseline/gapanalysis,placeacheck

mk nx h pcics h yu dy mpy. If yu

pnnin n pm, pc chck mk bsidhs h yu pn mpy.

steP 2

Takealookatthedistribution.Doyoumakeuseofa

sub-s f pcics fm ch qudn? a yu mkinuseofthesupportedpractices?Doyouexpendtoomuch

ny in n qudn h xpns f hs?

steP 3

Cic ddiin pcics h yu mih n cnsid,

mphsizin hs h hv bn dmnsd bffciv. S h fu sysmic vi f m dismkin us f h fmk.

UsethePortfolioAssessmentTooltoconductabaseline

ssssmn nd p nysis f h nizin s h.o, us h fmk pn h pcics yu i us supp h impmnin f picu pm.

th vw o pvo h p v h oow :

Embedding sustainability in organizational culture is

still an emerging eld of research. There has been a very

limited amount of research that addresses the issue of

embedding sustainability into organizational culture. This

is an area where practice often leads theory.

The research that has been conducted on embedding

sustainability continues to be dominated by exploratory,

case-based research with an emphasis on success stories.

There is a lack of clear denitions (what academics call

construct clarity) in this eldterms are used somewhat

interchangeably and are often not dened.

We encourage you to visit the full systematic review (www.nbs.

net/knowledge/culture) for a detailed discussion of practices,

case studies, and implications for research and practice.
http://www.nbs.net/knowledge/culturehttp://www.nbs.net/knowledge/culturehttp://www.nbs.net/knowledge/culturehttp://www.nbs.net/knowledge/culture


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Foste

rin

gCom

mitm

ent ClarifyingExp

ec

t

atio

ns

Reinforce

Man

ageTalen

t

Communicate

Signal

Engage

for

Cha

nge

Instillin

gC

apacity

Share

Re-en

vision

Exp

erim

ent

Invite

Ch

ampio

n

Ra

ise

Awareness

for

Cha

nge

Build

ing

Mo

mentum

Deve

lop

Learn

Verify/Audit

Assess

Train

Incent

Assig

nIn

tegrate

Co

dif

y

frame

tr

igger

champio

n

FormalPractices that establishrules and procedures

InformalPractices that aect

values and behaviours

FulllmentPractices for delivering on

current sustainabilitycommitments

InnovationPractices that move theorganization further alongthe path to sustainability

commit

model

allocateresources

self-regulate

adheretostandards

accommodatework-life

balance

investincommunity

supporteducatelinkchallengeleverage

capturequickwinsrecognize

knowledge

internally

knowledge

externally

collaborate

withother

s

denes

ustaina

bility

back-ca

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ask

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and

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,visio

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and

business

pla

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usiness

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syste

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existing

role

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create

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etrics

monitor/

track

report

verifyaudit

scanbenchmark

pilotlearnfromfailure

reect

busin

essprocesses

products&

service

s

am too oem s

Supported practices are listed in green


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nbs Kow c

ForadditionalresourcesvisittheNetworksKnowledgeCentreatnbs.net/knowledge

ao h nwok

A Canadian non-prot established in 2005, the Network for Business Sustainability produces authoritative resources on important sustainability issues

with the goal of changing management practice. We unite thousands of researchers and professionals worldwide who believe in research-based

practice and practice-based research.

The Network is funded by the Social Sciences and Humanities Research Council of Canada, the Richard Ivey School of Business (at The University of

Western Ontario), the Universit du Qubec Montral, and our Leadership Council.

nbs lhp co

The Networks Leadership Council is a group of Canadian sustainability leaders from diverse sectors. At an annual meeting, these leaders identify their

top priorities in business sustainabilitythe issues on which their organizations need authoritative answers and reliable insights. Their sustainability

priorities prompt each of the Networks research projects.

Network for Business Sustainabilityc/o Richard Ivey School of Business,University of Western Ontario

1151 Richmond St.,London, Ontario, Canada N6A 3K7519-661-2111 x80094

Rseau entreprise et dveloppement durable

Dpartement stratgie, responsabilit socialeet environnementale,

cole des Sciences de la gestion,Universit du Qubec Montral

315, rue Ste-Catherine Est, Montral, Qubec,

Canada H2X 3X2514-987-3000 x7898

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Executive Report Sustainability and Corporate Culture

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