The Future of Your Company Culture Lies in Sustainability
The following is adapted from From CULTURE to CULTURE.
Audit. The five-letter word that causes dread for most of us. Culture audits, though, have become common practice amongst some of the most well-known companies in the world.
For example, both Coca-Cola and Walmart take social responsibility very seriously — it is ingrained in their culture. They are so committed that they conduct random culture audits of suppliers to ensure they are meeting the proper criteria. If the culture on the ground doesn’t match the culture on paper, the supplier partnership will likely be terminated.
As culture audits become mainstream, more organizations are focusing on three categories over the next five years: environmental, social, and governance, or ESG.
What is ESG?
Let’s take a closer look at each component of ESG:
- Environmental sustainability has been in the forefront for the last fifteen years or so; the focus has shifted from resource depletion to deforestation and waste pollution.
2. Social sustainability is the number one topic of conversation right now.
Current discussions center on how social interest impacts economic stability — conversations about employee relations, diversity, equality, inclusion, and workplace conditions happen in the local community, as well as how each impacts the broader commerce spectrum.
3. Governance sustainability covers everything from taxation to political lobbying or affiliations to corruption. It’s a wider look at the institution of diversity infrastructures.
Of these three, there’s a clear preference emerging in the marketplace.
Social Sustainability is King
Currently, the market is focusing primarily on social sustainability. Because social interests must now be applied to organizational constructs, businesses can no longer ignore how their actions impact employee relations and desired social norms. Institutions will be forced to measure their social impact from an internal workplace standpoint.
In the past, minor cultural awareness was enough to pass in the marketplace. Most companies had a list of values and that was it. No one examined them or validated whether or not they were authentic and being applied in the workplace.
That laissez-faire attitude has shifted — now, you have to prove you live and breathe your values, otherwise, there are massive organizations that won’t partner with you as a supplier or vendor. Coca-Cola and Walmart are already moving in this direction, so how long do you think it will take before all major companies are, too?
Culture performance management (CPM) enables businesses to mobilize around the social component of ESG because it provides them with insight to focus on behaviors that align with their values and it gives them metrics to use for credibility. There is integrity to action when it is backed up by data; it’s also easier to measure progress (or regression). Data makes a sustainable culture more plausible because measurable metrics allow for continuous improvement.
Circle of Sustainability
Sustainable culture requires a practice of continuous improvement. The Circle of Sustainability model helps us assess and understand sustainability toward sustainable, social outcomes. It enables us to better understand and predict sustainability and market dominance because it assesses ecology, economics, politics, and culture.
In today’s marketplace, the business emphasis is on manpower, culture, and the learning process. There was a time when the learning process was placed more on the political side of the circle (or the governance component of ESG) because sentient educational systems served as the driver of economic stability. Government-sanctioned institutions created an industrialized education model that fueled the industrial economy. It was a regimented curriculum that taught the basics.
Times have changed and using the Circles of Sustainability model helps ensure continuous improvement for your company culture.
You Can’t Ignore Culture
Your culture doesn’t have to be perfect — but it needs to be measured, managed, and tracked to ensure continuous improvement.
The emphasis has shifted from government constructs to a focus on the social constructs, especially culture. The workplace is changing — more than 50 percent of the working population are millennials — and social and cultural considerations are front and center.
Both ESG and the Circle of Sustainability show that organizations can’t ignore culture — it is an integral part of any marketplace discussion for consumers, suppliers, and employers. Adopting a CPM system that focuses on sustainability will enable your organization to get in front of the curve. Culture audits will become as regular as a visit from the IRS, but much more enjoyable!
For more advice on sustainability in company culture, you can find From CULTURE to CULTURE on Amazon.
Dr. Donte Vaughn, DM, is an expert in organizational leadership, workforce management, and company culture. He has served as a senior-level executive and business strategist for companies throughout the US and abroad and currently serves as Chief Culture Officer and Managing Partner at CultureWorx and VP of Organizational Leadership and Culture at POWERS.
Randall Powers started POWERS, a “boots on the ground” facilitation firm focused on delivering significant financial and operational value creation by optimizing culture and performance, in 2009 and currently serves as a Managing Partner. He is also a founding member of CultureWorx, a technology company that enables organizations to proactively develop, implement, measure, and improve the leadership skills needed to optimize employee engagement, inclusion, and equity.
