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

    Wheel of Change: What It Is & Why It's Important

    Business professional considering sustainability and the wheel of change
    • 26 Jul 2022
    Michael Boyles Author Contributors
    tag
    • Business in Society
    • Strategy
    • Sustainable Business Strategy

    Business leaders who want to create a positive impact often ask the same question: How can one organization make a meaningful difference? Fortunately, sustainable business strategies often have ripple effects across industries, leading to an outcome called the “wheel of change.”

    Here's an overview of the wheel of change and how it contributes to industry-wide sustainability.


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

    Access your free e-book today.

    DOWNLOAD NOW

    Sustainable Business Change

    Sustainability is an increasingly popular business initiative. While many companies experience the positive effects of sustainable business practices, others invest in environmentally damaging ones.

    A report by the Carbon Majors Database shows that 100 companies in the energy sector have been responsible for approximately 71 percent of industrial emissions since 1988.

    The good news is that businesses can impact their industries in several ways:

    • Discover new business models: Persuade competitors to adopt sustainable business strategies to produce industry-wide ripple effects of positive change.
    • Create new sustainable technologies: Reduce costs and persuade competition to switch to newer, greener, more sustainable alternatives.
    • Inspire consumers to value sustainability: Change consumer perceptions and prompt them to demand increased sustainability from the products and services they purchase.
    • Increase employee compensation: Pay employees more or give them a stake in their companies to persuade competitors to do the same.
    • Encourage investors to demand sustainability: Show investors the benefits of sustainable behavior on an organization’s bottom line to encourage them to demand it from companies they invest in.

    Related: What Does "Sustainability" Mean in Business?

    Companies that take advantage of these practices are often catalysts for positive change. They receive the "first mover advantage" of pioneering developments while improving their reputations and gaining market share. Promoting global sustainability encourages competitors to follow suit, sparking the wheel of change.

    Sustainable Business Strategy | Unite Profit and Purpose | Learn More

    What Is the Wheel of Change?

    The wheel of change describes the positive, self-sustaining impact one firm can have on its industry. When a company reaps the benefits of sustainability, others are likely to follow suit.

    The wheel of change has three sections, each of which affects the others.

    1. Shared Value

    The first section of the wheel of change involves making the business case for sustainability. Shareholders and business leaders need to recognize it's possible to adopt sustainable practices without sacrificing profits.

    The triple bottom line demonstrates this by focusing on a firm's profit and the impact its actions have on people and the planet.

    There's a strong business case for sustainability that several companies have capitalized on. The benefits of a sustainable business strategy include:

    • Fostering innovation: Sustainability encourages workers to solve environmental problems that don't hurt a company's bottom line.
    • Expanding security over energy sources: Companies that use renewable resources have greater control over their energy sources and are often protected from rising costs of finite resources, like coal.
    • Increasing workplace attractiveness: Employees are drawn to sustainable businesses. A recent survey by energy company Swytch reports that 70 percent of prospective employees take sustainability into account when deciding to stay with a company long term. Furthermore, 75 percent of millennials would exchange a lower salary for the prospect of working at an environmentally friendly organization.
    • Building brand loyalty and attracting new customers: Sustainability isn't just attractive to prospective employees but modern consumers, too. Most sustainable businesses have higher profits than unsustainable ones.
    • Decreasing production costs: Renewable resources—or a reduced amount of resources used—can save businesses money by decreasing production costs.
    • Improving public perception: Diverging from previous unsustainable practices or industry standards can significantly improve public relations.
    • Differentiating from competitors: Sustainability can provide a competitive edge in the market because it's incredibly appealing to consumers.
    • Influencing competitors' behavior: When competitors see the benefits of sustainability, they’re more likely to follow suit.

    Sustainability’s influence on competitors is largely due to the effect of the wheel of change’s second segment.

    2. Industry Cooperation

    If the business case for sustainability is compelling enough, competitors follow suit. This increases the speed the wheel of change spins because its positive effect rapidly spreads across an industry.

    In the online course Sustainable Business Strategy, Harvard Business School Professor Rebecca Henderson explains this effect.

    ”Individual firms can be an enormously important catalyst when there's a clear business case for change,” Henderson says, “when a single firm, acting against one of the big problems, can see a clear way to profitability.”

    3. Change Consumer and Investor Behavior

    The wheel of change’s third section is how it impacts the behavior and expectations of consumers and investors. When these groups realize sustainability’s benefits, they often demand it from all the companies they buy from or invest in.

    Sustainable investing pressures firms that don't have sustainable business strategies to adopt them, producing an industry-wide ripple effect that spreads to multiple businesses and spins the wheel of change.

    Why Is the Wheel of Change Important?

    The wheel of change promotes sustainability in business by demonstrating that one organization can spur sustainable change across an industry.

    For instance, the problem of business-related pollution is highly pressing. The United Nations reports that the world is currently using the equivalent resources of 1.6 Earths to maintain its way of life.

    This is where the tragedy of the commons comes into play. Individuals with access to a public resource act in their own interest and deplete resources, creating a major roadblock to global sustainability. The tragedy of commons theory suggests that people tend to make decisions based on their personal needs, regardless of how it might negatively impact others. In some cases, an individual’s belief that others won’t act in the group's best interest can lead them to justify selfish behavior.

    As the wheel of change impacts more businesses, the pollution they produce will ideally decrease. It will also become increasingly evident that there isn’t a conflict between sustainability and profit.

    Which HBS Online Business in Society Course is Right for You? | Download Your Free Flowchart


    How to Make a Positive Difference

    Many individuals believe they must be the CEO of a large company to positively impact the environment, but there are other avenues to becoming a purpose-driven leader.

    If the actions of one company can affect an industry at large, why can't the actions of one person impact a company? If you hope to enact positive change, you have a responsibility to develop sustainable business strategies within your organization. In turn, you can produce ripple effects across your industry.

    Even if your actions don't directly impact your industry, your small-scale behaviors can have large-scale effects on the environment and prompt widespread adoption of sustainable business practices. Adopting the phrase “reduce, reuse, recycle” is a suitable place to start. For example, departments can pledge to use recycled materials to reduce waste production.

    If you're interested in learning more about how you can make a difference, consider taking an online course, such as Sustainable Business Strategy. You'll discover how to become a purpose-driven leader and how companies can drive positive change while simultaneously growing profits.

    Are you interested in helping your business pioneer positive, purpose-driven change? Apply to Sustainable Business Strategy—one of our online courses related to business in society—to learn how to leverage the wheel of change in your organization.

    About the Author

    Michael Boyles is a content marketing specialist and contributing writer for Harvard Business School Online.
     
    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?

    +–

    HBS Online offers a variety of payment methods to provide flexibility, including:

    • Credit and debit cards (Visa, MasterCard, Discover, and AMEX)
    • PayPal
    • Wire transfers
    • Western Union
    • Bank loans (When available)

    You may split your payment across two credit card transactions or send a payment link to another individual to complete payment on your behalf. A minimum payment of $350 is required for the first transaction.

    Some learners may also 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 more information.

    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