President and Managing Director, Capgemini Canada
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If you look at the news today, chances are you’ll find an article on how a business is taking steps toward sustainability. It could be transitioning away from plastic products, investing in ESG initiatives or championing an environmental organization—companies everywhere are hopping on the sustainability bandwagon. But this trend isn’t enough and doesn’t always address the core changes that need to be made within the business itself.
Last year, I dove into a book called Net Positive: How Courageous Companies Thrive by Giving More Than They Take by Paul Polman and Andrew Winston. They talked about the key principles of driving a profitable business by giving back to society, and as someone who helps businesses harness the power of technology, this got me thinking about how businesses approach digital transformation to innovate their current practices while delivering impact in a more meaningful way.
Polman and Winston’s concept of a net-positive company is a relatively new approach to business, but the idea of corporate social responsibility isn’t.
Historically, businesses were all about cost efficiencies. From assembly line machines to computers, new technologies were usually about cost-cutting. Meanwhile, social good meant charity partnerships or an annual employee tree-planting initiative.
Too many see a gap between revenue and social responsibility. But now, the advancement of technology has created more possibilities for social innovation and reinforces the reality that social responsibility should be built into how a business is run. Net positivity is the evolution of corporate social responsibility—and the strategic use of technology empowers business leaders to act quickly on driving a positive impact on society while producing long-term value for the business.
A Social Approach To Technology In Business
While businesses prioritize revenue, they can propel society forward by fostering the long-term sustainability of our socioeconomic infrastructure. To remain competitive, businesses need to give something back to society by helping solve large problems, and technology can play a leading role in offering solutions.
As more businesses increase their focus on their environmental, social and governance impacts, the role of technology has shifted to include powering social innovation. Now, technology can bridge the gap between revenue and social responsibility.
While it takes time to form the business case for organizational change and digital transformation, we don’t have time to wait to act. Every business case involving new and emerging technologies will have risks, but these risks are nothing compared to the ones we face from climate change. With that, here are three learnings I took away from Polman and Winston’s book that companies should consider when incorporating technology into their business.
1. Always think of long-term value rather than short-term gain.
Businesses need to understand the long-term impact of any decision—even if the business goal is revenue-based. When companies are focused on revenue alone, they overlook other factors in the business.
The ESG impact of any business decision should be prioritized with finances. For example, introducing new technology into a facility where a business operates shouldn’t be done without first considering factors such as health and safety training for the workers, environmental impact and socioeconomic impacts on the community.
While this involves longer planning periods, setting actionable goals and measurements at the outset enables you to establish immediate action items and future initiatives in tandem to swiftly put the plan in motion. Assessing key business and ESG factors early on forms the foundation for core business data to provide all stakeholders on a long-term basis.
2. Put people first.
Net-positive companies address the needs of all stakeholders, including employees, consumers, shareholders, suppliers and communities. People are the foundation of a net-positive company, adding a human element to each business decision.
For example, maximizing employee benefits should be a key factor when discussing automation technology—instead of creating efficiencies, how can employees be reskilled or upskilled to take their careers to the next level? This provides opportunities for employees to grow and can, in turn, attract new talent.
Leveraging the value of human expertise is also important. This might look like an environmental consultation with a government agency and even a meeting with a local representative who advocates for the needs of the community. Soliciting the input of experts, whether internal or external, is key to the success of any business decision to optimize the value of new technologies and offer clearer direction that can help accelerate the planning process.
3. Throw away the traditional idea of investment.
If the return on investment is not merely financial, why should the investment be? Investment can translate into the time allocated for research, management and resource redistribution. For example, while new technologies may provide more revenue opportunities, their long-term effects on the environment can diminish the value of the investment, so investing proper time into the due process is required to contemplate these factors while mitigating unnecessary delays.
From a big-picture perspective, translating the notion of value in the business to prioritize ESG impacts leads to more opportunities for revenue growth in the long run. Net-positive companies invest in solving the world’s problems rather than creating them, cultivating strategic partnerships and innovative business prospects. Invest in people and the planet first, and the profit will come.
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