Our Future is now: Implementing Sustainability

Leading the Way is a column written by PricewaterhouseCoopers professional staff. It appears in the Business section of the Bangkok Post twice each month. The column provides specialised advice to corporate decision-makers in Thailand on global and local business trends.

This article appeared in the April 7, 2009 issue of the Bangkok Post.

By Dato' Johan Raslan

Part one of this article on March 31 introduced the sustainability agenda - a business's commitment to social, environmental, economic and ethical factors - and identified those who will be instrumental in driving this agenda. This week focuses on successfully implementing the sustainability agenda.

Collaboration - your strategic link: Ours is an interconnected and borderless world where geographical and societal lines are fast disappearing. Businesses that embark upon strategic collaborations are finding that new doors open up to them. Yet, exploring new relationships and territories may seem risky to some. After all, change never comes easy. Fortunately, according to PwC's 12th Annual Global CEO Survey, 2009, more CEOs plan for cross-border joint ventures than mergers and acquisitions this year - 44%, up from 30% last year - which is an indication of even higher levels of collaboration in years to come.

Businesses are also in a unique position. On the one hand, they have the ability and relationships to influence - or, at the very least, lobby - governments. On the other, they have a direct ear to the demands and concerns of ordinary people.

Businesses play a pivotal role in the lives of their people. The "caring" employer provides a wider range of employee benefits than before. Organisations in this day and age can affect their employees' (and employees' families') health, welfare, education and retirement. They have a great influence on the world's citizens in general - sometimes, even more than governments do.

People - your talent pool: At this year's World Economic Forum in Davos, it was predicted that 50 million people could lose their jobs by the end of 2009. Unfortunately, organisations will also continue to grapple with the talent war - 97% of CEOs believe that access to and retention of key talent is critical or important to sustaining their growth, but 69% feel there is still a limited supply of candidates with the right skills.

Many of us are, or will be, caught in a difficult balancing act in these trying times - struggling to reduce costs (job cuts being a tried and proven method) while supporting key talent and increasing productivity. Obviously, any cost reduction exercise needs to be carried out with a full understanding of the impact it will have on the organisation (and inevitably, the country's economy).

The risk of not having the right talent in place is obvious: any strategies, partnerships or visions developed amount to nothing without our people. And in the current environment, this risk is exacerbated. Now is the time for organisations to relook at the way they profile and interpret or use information about their people. Leaders need to remember that their people aren't just numbers but are the means by which they can ensure their business's survival.

Diversity leads to excellence: One last point, but a crucial one. The business world is increasingly coming to the realisation that a diverse organisation is better than one made up of a single "type" of person. Within organisations, teams (including and especially leadership teams and boards of directors) perform better when they are diverse. Here, I am talking about all types of diversity: ethnic, religious, educational and, of course, gender.

With the business case for diversity and women more compelling than ever, companies are rushing to diversify. In some cases it is cosmetic, in others it is to beat competition. But the fact remains, that a diverse set of people can be that crucial element to long-term success.

Make or break - the future is ours: A sustainable world is a future all of us have a stake in. However, it is a future we cannot wait to attend to. Time is no longer just of the essence - it is a luxury we cannot afford. Business leaders have an important responsibility to their shareholders.

Great business leaders know their role is to leave behind a better world.(Written by Dato' Johan Raslan, joint executive chairman of PwC SEAPEN Region, which comprises Malaysia, Thailand, Vietnam, Cambodia and Laos.)

Extracted from an article first published in "Unlocking the Potential: Investing in the Future of the Muslim World", a World Islamic Economic Forum Special Commemorative Publication 2009. Any comments, please contact leadingtheway@th.pwc.com