| | A new study by Arthur D.
Little explores how a
value formula for
corporate sustainability
has been a key success
factor behind retail
giant Marks & Spencer,
telecommunications
behemoth BT, healthcare
specialist Novo Nordisk,
and global banking
leader HSBC. The report
looks at how leading
businesses are
delivering sustainable
performance through an
intense focus on
integrity and
innovation.
Leadership in such
competitive and
fast-moving sectors is
now far more than just a
strong brand and careful
management – but is
there a formula for
successful performance? | |
|
| | Arthur D. Little's
latest study The
sustainability value
formula examines and
articulates how the
combination of integrity
and innovation feeds
business success, and
previews empirical
research into the
strength of the premise
that integrity +
innovation = sustainable
performance.
"Our research has
shown that successful
innovators achieve on
average a six times
higher EBIT margin than
the underperformers,"
reflects Richard Clarke,
director of Arthur D.
Little's Global
Sustainability Practice.
"Conversely, several
high-profile incidents
of recent years like | |
|
| | Ahold, Enron, Dynegy and
Global Crossing show how
costly – and even
economically fatal – the
loss of integrity can
be. Our study
illustrates how
maintaining the balance
of integrity and
innovation are vital to
improving the overall
performance and
sustainability of a
business."
Companies are
increasingly developing
sophisticated approaches
to what many are calling
‘corporate
sustainability’,
‘corporate
responsibility’ and
‘corporate social
responsibility’, but in
most cases, such
activities run parallel
to – and largely | |
|
| | separate from – the
innovation efforts. As a
result, organisations
are failing to achieve
their full potential.
According to Arthur
D. Little's study,
businesses that are
adopting the
sustainability value
formula are clearly
demonstrating
outstanding successes.
These businesses
position both integrity
and innovation as "the
way we do business".
Good examples can be
drawn from Vodafone's
mobile phone-based
payments project, IBM's
sustainable product
stewardship programme
and BASF's "Verbund"
initiative, each of
which demonstrate the
successful combination | |
|
| | of integrity and
innovation to yield
significant financial
rewards for the
organisation.
Evaluating innovation
is as complex as
evaluating integrity.
However, more than a
century's experience in
innovation management
has led Arthur D. Little
to develop rapid and
accurate assessment
tools that enable
companies to establish a
clear vision at board
level of how innovation
and integrity pay
substantial dividends in
raising the corporate
performance.
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