Is Sustainability sustainble?

Traditionally, whenever companies seek to tighten their budget belts, initiatives like CSR and sustainability are initiatives to receive a haircut. However, Michael Shapinker, from the Financial Times, writes that despite current market conditions, companies like Wal-mart are sticking to their guns.

Joel Makowever recently keynoted a conference in DC when he was asked by a corporate VP, "How can I justify putting money into things that don't make business sense?"

His answer, "You probably shouldn't bother."

We're starting to see a shift in understanding what sustainability can do for companies. Initially a employee rentential strategy, many companies realize that sustainability can increase the efficiency and effectiveness of their operations. For example, Wal-Mart have been able to reep cost-savings through implementing sustainability initiatives. Leading companies are able to take it one step further--as a source of revenue. A manufacturing plant in S. America discovered that their waste product was a key ingredient to a cement maker up the river.

Sustainability and CSR is a priority at Wal-Mart not only because it allows Wal-Mart to manage costs, but mirrors Japan's rebuilding strategy after WWII-- doing things right first time, rather than correcting mistakes.

Sustainability is still very nascient in execution. In growing the business philosophy, companies will need to experiment and try different business models.

You can read Michael Shapinker opinion piece here. (registration required)