Skip to Main Content
HBS Online
  • Courses
    Open Courses Mega Menu
    • Business Essentials
      • Credential of Readiness (CORe)
      • Business Analytics
      • Economics for Managers
      • Financial Accounting
    • Leadership & Management
      • Leadership Principles
      • Management Essentials
      • Negotiation Mastery
      • Organizational Leadership
      • Strategy Execution
      • Power and Influence for Positive Impact
      • Leadership, Ethics, and Corporate Accountability
      • Leading Change and Organizational Renewal
      • Dynamic Teaming
      • Transforming Customer Experiences
    • Credential of Leadership, Impact, and Management in Business (CLIMB)
    • Credential of Digital Innovation and Strategy
    • Entrepreneurship & Innovation
      • Entrepreneurship Essentials
      • Disruptive Strategy
      • Negotiation Mastery
      • Design Thinking and Innovation
      • Launching Tech Ventures
      • Winning with Digital Platforms
      • Leading Change and Organizational Renewal
      • Entrepreneurial Marketing
      • Transforming Customer Experiences
    • Strategy
      • Strategy Execution
      • Business Strategy
      • Economics for Managers
      • Disruptive Strategy
      • Global Business
      • Sustainable Business Strategy
    • Marketing
      • Digital Marketing Strategy
      • Creating Brand Value
      • Entrepreneurial Marketing
    • Digital Transformation
      • Winning with Digital Platforms
      • AI Essentials for Business
    • Finance & Accounting
      • Financial Accounting
      • Leading with Finance
      • Alternative Investments
      • Sustainable Investing
      • Strategic Financial Analysis
    • Business in Society
      • Sustainable Business Strategy
      • Global Business
      • Sustainable Investing
      • Power and Influence for Positive Impact
      • Leadership, Ethics, and Corporate Accountability
      • Business and Climate Change
    • All Courses
  • For Organizations
    Open For Organizations Mega Menu
    • Corporate Learning
      Help your employees master essential business concepts, improve effectiveness, and expand leadership capabilities.
    • Academic Solutions
      Integrate HBS Online courses into your curriculum to support programs and create unique educational opportunities.
    • Need Help?
      • Frequently Asked Questions
      • Contact Us
    • Insights
      Open Insights Mega Menu
      • Business Insights Blog
        • Career Development
        • Communication
        • Decision-Making
        • Earning Your MBA
        • Entrepreneurship & Innovation
        • Finance
        • Leadership
        • Management
        • Negotiation
        • Strategy
      • All Topics
      • Learner on computer exploring HBS Online business lessons
        Sample Business Lessons and E-Books

        Gain new insights and knowledge from leading faculty and industry experts.

      • HBS Online Parlor Room podcast logo
        Podcast

        The Parlor Room: Where business concepts come to life. Listen now on your favorite podcast platform.

    • More Info
      Open More Info Mega Menu
      • Learning Experience
        Master real-world business skills with our immersive platform and engaged community.
      • Certificates, Credentials, & Credits
        Learn how completing courses can boost your resume and move your career forward.
      • Learning Tracks
        Take your career to the next level with this specialization.
      • Financing & Policies
        • Employer Reimbursement
        • Payment & Financial Aid
        • Policies
      • Connect
        • Student Stories
        • Community
      • Need Help?
        • Frequently Asked Questions
        • Request Information
        • Support Portal
      • Enroll Now
    Login
    My Courses
    Access your courses and engage with your peers
    My Account
    Manage your account, enrollment, and payments.
    HBS Home
    • About HBS
    • Academic Programs
    • Alumni
    • Faculty & Research
    • Baker Library
    • Giving
    • Harvard Business Review
    • Initiatives
    • News
    • Recruit
    • Map / Directions
    HBS Online
    • Courses
    • Business Essentials
    • Leadership & Management
    • Credential of Leadership, Impact, and Management in Business (CLIMB)
    • Credential of Digital Innovation and Strategy
    • Entrepreneurship & Innovation
    • Strategy
    • Marketing
    • Digital Transformation
    • Finance & Accounting
    • Business in Society
    • For Organizations
    • Insights
    • More Info
    • About
    • Support Portal
    • Media Coverage
    • Founding Donors
    • Leadership Team
    • Careers
    • My Courses
    • My Account
    • Enroll Now
    • …→
    • Harvard Business School→
    • HBS Online→
    • Business Insights→

    Business Insights

    Harvard Business School Online's Business Insights Blog provides the career insights you need to achieve your goals and gain confidence in your business skills.

     
    Filter Results Arrow Down Arrow Up

    Topics

    Topics

    • Accounting
    • Analytics
    • Business Essentials
    • Business in Society
    • Career Development
    • Communication
    • Community
    • ConneXt
    • Decision-Making
    • Digital Transformation
    • Earning Your MBA
    • Entrepreneurship & Innovation
    • Finance
    • For Organizations
    • Leadership
    • Management
    • Marketing
    • Negotiation
    • News & Events
    • Productivity
    • Staff Spotlight
    • Strategy
    • Student Profiles
    • Technology
    • Work-Life Balance

    Courses

    Courses

    • AI Essentials for Business
    • Alternative Investments
    • Business Analytics
    • Business Strategy
    • Business and Climate Change
    • CLIMB
    • CORe
    • Creating Brand Value
    • Credential of Digital Innovation and Strategy
    • Design Thinking and Innovation
    • Digital Marketing Strategy
    • Disruptive Strategy
    • Dynamic Teaming
    • Economics for Managers
    • Entrepreneurial Marketing
    • Entrepreneurship Essentials
    • Financial Accounting
    • Global Business
    • Launching Tech Ventures
    • Leadership Principles
    • Leadership, Ethics, and Corporate Accountability
    • Leading Change and Organizational Renewal
    • Leading with Finance
    • Management Essentials
    • Negotiation Mastery
    • Organizational Leadership
    • Power and Influence for Positive Impact
    • Strategic Financial Analysis
    • Strategy Execution
    • Sustainable Business Strategy
    • Sustainable Investing
    • Transforming Customer Experiences
    • Winning with Digital Platforms
    Subscribe to the Blog
    *
    Please complete this required field.
    Email must be formatted correctly.
    Please complete all required fields.
    RSS feed

    Filters

    Topics

    Topics

    • Accounting
    • Analytics
    • Business Essentials
    • Business in Society
    • Career Development
    • Communication
    • Community
    • ConneXt
    • Decision-Making
    • Digital Transformation
    • Earning Your MBA
    • Entrepreneurship & Innovation
    • Finance
    • For Organizations
    • Leadership
    • Management
    • Marketing
    • Negotiation
    • News & Events
    • Productivity
    • Staff Spotlight
    • Strategy
    • Student Profiles
    • Technology
    • Work-Life Balance

    Courses

    Courses

    • AI Essentials for Business
    • Alternative Investments
    • Business Analytics
    • Business Strategy
    • Business and Climate Change
    • CLIMB
    • CORe
    • Creating Brand Value
    • Credential of Digital Innovation and Strategy
    • Design Thinking and Innovation
    • Digital Marketing Strategy
    • Disruptive Strategy
    • Dynamic Teaming
    • Economics for Managers
    • Entrepreneurial Marketing
    • Entrepreneurship Essentials
    • Financial Accounting
    • Global Business
    • Launching Tech Ventures
    • Leadership Principles
    • Leadership, Ethics, and Corporate Accountability
    • Leading Change and Organizational Renewal
    • Leading with Finance
    • Management Essentials
    • Negotiation Mastery
    • Organizational Leadership
    • Power and Influence for Positive Impact
    • Strategic Financial Analysis
    • Strategy Execution
    • Sustainable Business Strategy
    • Sustainable Investing
    • Transforming Customer Experiences
    • Winning with Digital Platforms
    Subscribe to the Blog
    *
    Please complete this required field.
    Email must be formatted correctly.
    Please complete all required fields.
    RSS feed

    Why You Need Sustainability in Your Business Strategy

    Successful Business Sustainability Strategy
    • 06 Nov 2019
    Natalie Chladek Author Staff
    tag
    • Strategy
    • Sustainable Business Strategy

    In today’s ever-evolving world, debating whether to incorporate sustainability into your business strategy is no longer an option. Considering a values-driven approach when developing business strategies can be vital to long-term success.

    Before getting into why sustainability is essential to successful business strategies, it's important to define what sustainability in business is.


    Free E-Book: How to Be a Purpose-Driven, Global Business Professional

    Access your free e-book today.

    DOWNLOAD NOW

    What Is Sustainability in Business?

    In short, sustainability in business refers to the effect companies have on the environment or society.

    A sustainable business strategy aims to positively impact one or both of those areas, thereby helping address some of the world’s most pressing problems.

    Some of the global issues that sustainable business strategies help to address include:

    • Climate change
    • Income inequality
    • Depletion of natural resources
    • Human rights issues
    • Fair working conditions
    • Pollution
    • Racial injustice
    • Gender inequality

    Although it may sound like it, sustainability in business is not purely altruistic. As Harvard Business School Professor Rebecca Henderson notes in the online course Sustainable Business Strategy, you can't use business to do good in the world if you're not doing well financially. Doing well and doing good are intertwined, and successful business strategies include both.

    shared value opportunity Venn diagram with 'do well' on the left and 'do good' on the right

    Many of today’s firms have adopted the triple bottom line, which suggests that organizations should focus on more than just profits, or the “bottom-line,” and also measure their environmental and social impact. These focuses can be referred to as “the three Ps,”: people, planet, and profit. Quite often, this sustainable approach to business ultimately boosts business performance.

    Why Is Sustainability Important?

    In addition to driving social and environmental change, sustainability initiatives can contribute to an organization's overall success. It may seem counterintuitive that spending more money on sustainable business practices can boost a company’s profitability, but studies show that the most sustainable companies are also the most profitable.

    Environmental, social, and governance (ESG) metrics are often used to determine how ethical and sustainable an organization is. According to McKinsey, companies with high ESG ratings consistently outperform the market in both the medium and long term. While sustainability strategies might be an investment in the short term, they can lead to long-term benefits.

    Benefits of Sustainability in Business

    1. You’ll Protect Your Brand and Mitigate Risks

    Ending up on the front page because of a scandal is a CEO’s worst nightmare. Not only do improper practices damage an organization’s reputation and cost it customers, but dealing with a public relations disaster can divert valuable human and financial resources from the core business.

    You don’t want to become the company that allowed an oil spill or forced employees to work in unsafe conditions. By instituting a sustainable strategy that protects the environment and your workers, you also protect yourself from any damaging incidents.

    2. Being Purpose-Driven Is a Competitive Advantage

    Sustainability doesn't detract from business goals, and infusing your company with purpose can help attract a motivated, skilled workforce that drives financial success. In a Facebook Live discussion, Henderson noted a recent study showing that 89 percent of executives believe an organization with shared purpose will have greater employee satisfaction. Additionally, 85 percent say they're more likely to recommend a company with strong purpose to others.

    Making your company an organization that does good in the world—rather than just a place that provides a paycheck—can be a competitive advantage when attracting the best talent.

    Related: HBS Professor Explores the Impact Purpose Can Have on Your Organization

    3. There's a Growing Market for Sustainable Goods

    A 2019 study found that 73 percent of global consumers are willing to change their consumption habits to lessen their negative impact on the environment, and sustainable product sales have grown by nearly 20 percent since 2014. Millennials in particular are more willing to pay more for products that contain sustainable ingredients or products that have social responsibility claims. If your organization commits to sustainable products and practices, it could gain market share by converting sustainability-minded customers and increasing sales.

    4. Cooperative Action Can Drive Change

    As an individual, it can feel overwhelming, isolating, or simply impossible to effect change in a meaningful way. That’s not the case when the most innovative, successful, and powerful companies are collaborating to solve some of the world’s most pressing problems. While governments struggle to address public goods problems, purpose-driven companies working together to address these issues have experienced great success.

    For example, palm oil is cheap, versatile, and found in about half of all packaged products, including soap, lipstick, and ice cream. But palm oil production has resulted in record greenhouse gas emissions and contributed to climate change.

    In light of this, consumer goods producer Unilever committed to only using palm oil from certified sustainable sources in 2008. The organization cooperated with its competitors—as well as governments, NGOs, and indigenous peoples’ organizations—to lead an industry-wide adoption of sustainable palm oil. As a result, Unilever continues to be a thriving organization, and the world has reaped the environmental benefits of sustainable palm oil harvesting practices.

    How to Be a Purpose-Driven, Global Business Professional | Access Your Free E-Book | Download Now

    The Value of Sustainability

    Sustainability doesn’t mean sacrificing profits or putting success on the backburner. Instead, it has become a crucial element to any organization’s successful strategy. A business that doesn't factor in sustainability risks is less successful in several measures, including profitability, growth, and employee retention.

    By integrating sustainability into your business strategy, you can find success because, rather than in spite, of sustainability.

    Do you want to take a more values-driven approach to business? Explore our three-week online course Sustainable Business Strategy and learn how organizations can succeed financially while also playing a role in solving some of the world’s most pressing problems.

    This post was upated on March 22, 2021. It was originally published on November 6, 2019.

    About the Author

    Natalie is an Associate Product Manager at Harvard Business School Online working on Alternative Investments, Leading with Finance, Negotiation Mastery, and Sustainable Business Strategy. She received her B.A. and M.A. from Stanford University and M.B.A. from UCLA Anderson. In her free time, she enjoys running, cooking, and staying up too late rooting for her Bay Area sports teams.
     
    All FAQs

    Top FAQs

    How are HBS Online courses delivered?

    +–

    We offer self-paced programs (with weekly deadlines) on the HBS Online course platform.

    Our platform features short, highly produced videos of HBS faculty and guest business experts, interactive graphs and exercises, cold calls to keep you engaged, and opportunities to contribute to a vibrant online community.

    Are HBS Online programs available in languages other than English?

    +–

    We expect to offer our courses in additional languages in the future but, at this time, HBS Online can only be provided in English.

    All course content is delivered in written English. Closed captioning in English is available for all videos. There are no live interactions during the course that requires the learner to speak English. Coursework must be completed in English.

    Do I need to come to campus to participate in HBS Online programs?

    +–

    No, all of our programs are 100 percent online, and available to participants regardless of their location.

    How do I enroll in a course?

    +–

    Certificate Programs

    HBS Online welcomes committed learners wherever they are—in the world and their careers—irrespective of their professional experience or academic background. To extend the reach of HBS Online, we no longer require an application for our certificate programs. (Applications are still required for our credential programs: CORe and CLIMB.) You can now immediately enroll and start taking the next step in your career.

    All programs require the completion of a brief online enrollment form before payment. If you are new to HBS Online, you will be required to set up an account before enrolling in the program of your choice.

    Our easy online enrollment form is free, and no special documentation is required. All participants must be at least 18 years of age, proficient in English, and committed to learning and engaging with fellow participants throughout the program.

    Updates to your enrollment status will be shown on your account page. HBS Online does not use race, gender, ethnicity, or any protected class as criteria for enrollment for any HBS Online program.

    Credential Programs

    HBS Online's CORe and CLIMB programs require the completion of a brief application. The applications vary slightly, but all ask for some personal background information. You can apply for and enroll in programs here. If you are new to HBS Online, you will be required to set up an account before starting an application for the program of your choice.

    Our easy online application is free, and no special documentation is required. All participants must be at least 18 years of age, proficient in English, and committed to learning and engaging with fellow participants throughout the program.

    Updates to your application and enrollment status will be shown on your account page. We confirm enrollment eligibility within one week of your application for CORe and three weeks for CLIMB. HBS Online does not use race, gender, ethnicity, or any protected class as criteria for admissions for any HBS Online program.

    Does Harvard Business School Online offer an online MBA?

    +–

    No, Harvard Business School Online offers business certificate programs.

    What are my payment options?

    +–

    We accept payments via credit card, wire transfer, Western Union, and (when available) bank loan. Some candidates may qualify for scholarships or financial aid, which will be credited against the Program Fee once eligibility is determined. Please refer to the Payment & Financial Aid page for further information.

    We also allow you to split your payment across 2 separate credit card transactions or send a payment link email to another person on your behalf. If splitting your payment into 2 transactions, a minimum payment of $350 is required for the first transaction.

    In all cases, net Program Fees must be paid in full (in US Dollars) to complete registration.

    What are the policies for refunds and deferrals?

    +–

    After enrolling in a program, you may request a withdrawal with refund (minus a $100 nonrefundable enrollment fee) up until 24 hours after the start of your program. Please review the Program Policies page for more details on refunds and deferrals. If your employer has contracted with HBS Online for participation in a program, or if you elect to enroll in the undergraduate credit option of the Credential of Readiness (CORe) program, note that policies for these options may differ.

     

    Sign up for News & Announcements


    • • Please complete this required field.
    • • Email must be formatted correctly.
    • • Please complete all required fields.

    Subject Areas

    • Business Essentials
    • Leadership & Management
    • Entrepreneurship & Innovation
    • Strategy
    • Marketing
    • Finance & Accounting
    • Business & Society
    • Digital Transformation

    Quick Links

    • FAQs
    • Contact Us
    • Request Info
    • Enroll Now
    • Support Portal

    About

    • About Us
    • Media Coverage
    • Founding Donors
    • Leadership Team
    • Careers @ HBS Online

    Legal

    • Legal
    • Policies
    Harvard Business School
    Copyright © President & Fellows of Harvard College
    • Site Map
    • Trademark Notice
    • Digital Accessibility