Systematic Review - Network for Business Sustainability

CAPACITY AND CLIMATE
Organizational Transformation requires that an SOI
culture be developed and embedded through the entire
organization. Sustainability must not be regarded as an
add-on.
1. Ensure that the top management team and line
managers are seen as having a commitment to
sustainability; communicate the values and goals
of sustainability; set goals and targets that reach
beyond operational and eco-efficiencies
2. Ensure reward systems and incentives reflect the
focus on sustainability
3. Revisit and reframe the business model and
modes of governance to acknowledge the firm’s
commitment to sustainability
4. Integrate sustainability metrics into financial
reporting; adopt transparent sustainability reporting
5. Exploit organizational slack
6. Extend search activities into unfamiliar fields: use
peripheral vision to search for weak signals
7. Unlearn outdated capabilities
1. Ensure that the top management team and line
managers are seen as having a commitment to
sustainability; communicate the values and goals
of sustainability; set goals and targets that reach
beyond operational and eco-efficiencies
Leadership and communication are important
components in establishing an appropriate climate.
For example, at 3M, management’s call for action was
reinforced by meetings on implementation in each
business unit or staff group. Company publications
provided detail on the program, including examples
of successful projects. 3M also relied on other
communications tools, including internal television
programs and the 3M intranet (Reed, 2002). Goals
can vary in the extent of the ambition they articulate.
Interface, for example, has set itself the goal of having
zero impact by the year 2020 (Arratia, 2010). Such
ambitious goals will stimulate qualitatively different and
more radical thinking than incremental targets such as
“reduce waste by 10 per cent.”
Because line managers are a principal locus of
contact with employees, they have an important role
in inculcating and motivating an SOI culture, which
includes the following activities:
• Encouraging environmental communication —
using a democratic, participatory approach to
encourage communication from employees
• Encouraging environmental competence building
— allocating the appropriate time and resources
• Recognizing and rewarding positive environmental
actions — using daily praise and awards to
reinforce environmental successes and problemsolving
• Managing environmental goals and responsibilities
and sharing them with employees
• Supporting environmental innovation — being
open to new environmental ideas and encouraging
employees to experiment to find solutions to
environmental problems (Ramus, 2001)
2. Ensure reward systems and incentives reflect the
focus on sustainability
SOI cultures can be built both from the top-down
— for example, when senior management embed
Innovating for Sustainability 40