But, while experts are predicting the impact of AI could rival the invention of the internet, the innovative technology is not the only factor that promises to transform the business landscape.
Indeed, more than 60% of global business leaders feel that sustainability poses an existential threat if they fail to reorient their practices and processes effectively. Increasing regulation, awareness, and cultural shifts are driving sustainability to the forefront of business agendas.
So, what do business leaders need to know to harness the transformative potential of sustainability? To find out, BusinessBecause spoke with Wayne Hutchison, director of the MBA program at Michigan State University’s Broad College of Business, which recently launched an MBA concentration dedicated to Corporate Social Responsibility (CSR) and Sustainability.
1. Effective leadership requires values-driven thinking
Fundamental to the shift towards more sustainable thinking in business is a move away from traditional business models that exclusively prioritize profit. Today, organizations must consider not just economic but social, and environmental factors in their decisions.
The ‘Triple Bottom Line,’ a key concept in accounting, urges organizations to balance financial gain with considerations for ‘people, planet, and prosperity.’ A key learning area within the new MBA concentration at MSU, understanding this is essential for leaders to effectively drive change.
“Triple Bottom Line involves profit, of course, but it also involves a sense of the community and environment in which a business operates. We feel our social responsibility courses help students visualize a larger picture,” explains Wayne (pictured).
“Social responsibility doesn't suggest that everyone has the same ethical framework. But what it does suggest is that having a set of values that drives leadership decisions, management decisions, and how you act as a professional, is relevant and necessary.”
2. The next generation of leaders demand sustainability knowledge
While the shift towards achieving a greener economy through business transformation is partly driven by factors such as cultural and regulatory shifts, also key is a significant desire among the next generation of business leaders to be equipped with the ability to make an impact.
Ambitious professionals enrolling in the MSU Broad MBA, for example, have in recent years indicated a demand for enhanced sustainability and CSR learning, Wayne says.
In launching the new concentration, not only did the school feel it was important to provide more values-driven thinking and responsible leadership opportunities to students, but students themselves wanted to develop this knowledge.
“Students coming in already had backgrounds in energy, the nonprofit space, or military service, and in many instances they said: ‘Hey, I want to see more curriculum that connects to my values’,” he says.
For Malcolm Venema, a current student on the MSU Broad MBA, a desire to affect change in CSR was the driving force behind deciding to incorporate the newly launched concentration into his studies.
“I will be able to use the skills learned in this new concentration to help companies grow their CSR practices which in large will promote positive brand association, expand employee engagement, and advance ethical business decisions,” he says.
MSU Broad MBA students learn a range of fundamental business skills
3. Maximum impact relies on a combination of mindset and skills
For both the business leaders of today and the future, effectively leading change across industries relies on having an array of different tools at their disposal.
MBA programs have long blended fundamental business knowledge and actionable skills with practical experiences that combine to enhance students’ confidence.
Teaching a more community-driven and ethical approach to business encourages MBA students to go on and use this confidence to make a positive impact as responsible leaders in their respective careers after graduation.
Across a choice of 10 courses that range from Marketing Management to Advanced Investments, the new MSU concentration provides students with opportunities to develop various skills in areas such as negotiation and conflict resolution, innovation, and research.
Combined with an appreciation of CSR, this enhances students’ potential once they enter the workplace, explains Wayne. “It gives them a tangible roadmap to be able to use their professional skills and academic mindset to be able to make an impact in the business space.”
The Minskoff Pavilion is part of the MSU Broad campus
4. Sustainability affects all business divisions
Perhaps the most fundamental consideration for business leaders within the context of sustainability is that achieving sustainable transformation requires wholesale change across business divisions.
Accounting, for example, is key to the impact of an organization, however marketing management equally involves ethical considerations with regards to issues such as greenwashing. Driving organizational-level transformation relies on all functions within a business to work in tandem.
The MSU concentration therefore draws on cross-departmental expertise, explains Wayne. “You're getting a multifaceted approach from management, from finance, from accounting, and marketing classes. This is one of those paths where you're looking at business in so many different ways.”
It’s also an area that’s rapidly evolving with changes in areas such as technology and regulation. This therefore requires an agile approach to course design.
“What you see on paper today is not what you'll see on paper tomorrow, because this is a very dynamic area of scholarship,” he adds.
“When a curriculum is offered, it's the beginning of a conversation, not the end of one. And I look forward to seeing how this work reacts in the marketplace and being able to adjust accordingly.”
So, while there are principles all business leaders should know in order to lead responsibly today, sustained impact demands a growth mindset. A desire to continue evolving can prepare MBA students for further opportunities as they progress in their careers, Wayne says.
“I firmly believe that this new curriculum is very much about planning for future opportunities.”
