This commentary by Peter Senge opens with part of a speech given by John Browne, CEO of BP, stating “there comes a time when prudent precautionary actions must be taken…if we wait until there is complete unanimity among scientists about the effects of continued increases in carbon in the atmosphere, we will have waited much too long to do anything about it.” He uses motivation and goal setting to boost morale and interest around this environmental concern. Browne is also making a significant point that it should not take unanimity among scientists for actions to be taken; actions may be and should be taken now.
The commentary states, “There are at least three fundamental leadership roles global corporations can exhibit with regard to crucial issues shaping the future.” We’ll start by examining the first, which is, “to put a stake in the ground about the nature of particular issues and to lead by action around those issues.” This correlates to Browne’s initiative to act now instead of waiting for a general consensus. It’s one thing to talk about an issue and talk about potential fixes, but it’s necessary in some instances, such as protecting the environment, to take action and put into play these fixes now.
The second fundamental is, “to be willing to work in partnership with others to shift the market, technology and regulatory conditions that individual firms cannot alter by themselves.” This fundamental turns to strength in numbers. Certainly there are firms with minds and hearts in the right places, but sometimes it’s a problem too big to tackle individually. What firms should learn is the power and importance of partnerships. It is a “we can” attitude instead of an “I can’t.”
The third fundamental states, “Ultimately, companies must be prepared to undertake radical changes in their established ways of operating, including creating alternative products, processes, and business models.” The third fundamental encourages companies to think outside the box and to come out of their current comfort zones. Companies should not fear change, but rather embrace it and run with it. It is a proactive way of thinking and encourages strong leadership skills and cooperation.
The article goes on to state, “All three types of leadership illustrate corporations working in a way that few would have imagined even a few years ago, educating consumers on global issues and showing how they can be a part of solutions through their purchasing choices.” As more and more companies increase consumer awareness of major environmental issues the true test is whether these consumers who claim to care and want to make a difference will in fact do something about it. There’s no question that its currently more costly to make conscious purchases that benefit the wellbeing of our planet, so hopefully consumers realize the benefit beyond that of their own pockets in protecting the environment and ensuring sustainable business practices.
The commentary ends with a powerful notion that reads, “If companies are willing to face the dysfunctions of global systems of which they are a part, and upon whose health their future depends, they can also tap potentially the greatest leverage for changing these systems: the purchasing choices of consumers who care about the future.” Companies may give the power back to the people in enabling a healthier world by simply giving them the ability to do so. The companies are the ones with the major resources, so if they use this massive opportunity the right way it will be a win-win for everyone involved, including the environment in which we live.
Jennifer Myers
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