Dr. Basavaraju R Shreshta
“Business cannot operate in isolation.” This phrase, a staple in discussions on corporate strategy, encapsulates a profound reality: businesses are embedded within and dependent on a broader ecosystem comprising the environment, society, and economy. Sustainability, as defined in the 1987 Brundtland Report, is “meeting the needs of the present without compromising the ability of future generations to meet their own needs.” However, this is more than an ethical responsibility; it is a survival imperative.
Sustainability: A Business Mandate
The shift from perceiving sustainability as optional charity work to recognizing it as a core business strategy is evident. The climate crisis, social inequities, and resource scarcity pose existential threats to businesses.
- Climate crisis disrupts supply chains.
- Social inequities create systemic risks for economies and businesses.
- Resource scarcity leads to operational bottlenecks.
Organizations that fail to integrate sustainable practices risk alienating stakeholders—consumers, regulators, and investors alike. Studies reveal that companies adhering to environmental, social, and governance (ESG) standards outperform their peers both financially and reputationally.
Sustainability: A Business Mandate
At the Individual Level:
- Adopt a green mindset: Make conscious choices in energy consumption, waste management, and transportation.
- Promote sustainable workplaces: Advocate for paperless operations, efficient energy use, and waste segregation.
- Be a change agent: Inspire sustainable practices in communities and organizations.
At the Industry Level:
- Integrate sustainability into business models: Transition to renewable energy, adopt circular economy practices, and design eco-friendly products.
- Engage stakeholders: Collaborate with suppliers, customers, and local communities to create shared value.
- Innovate for impact: Leverage AI, IoT, and big data for resource optimization and predictive sustainability strategies.
Diversity, Equity, and Inclusion (DEI): A Cornerstone of Management 5.0
Diversity, Equity, and Inclusion (DEI) is another vital pillar for the future of organizations. DEI transcends representation; it is about unlocking human potential, addressing systemic inequities, and creating equitable opportunities.
Insights from the Field: Persons with Disabilities (PwD)
During a study in Karnataka on the inclusion of Persons with Disabilities (PwDs) in employment, I encountered varying perceptions:
- In some regions, PwDs were viewed through a lens of sympathy rather than potential contributors to the workforce—a stereotype I call the “benevolent attitude.”
- Contrastingly, a PwD participant in Andhra Pradesh expressed that employment offered dignity beyond income, highlighting the transformative role of inclusion.
Despite progress, PwD workforce participation in India remains at 36%, far below the 60% rate for non-disabled individuals. Private sector representation of PwDs is abysmally low, with surveys indicating figures below 0.5%.
The Case for PwD Inclusion
A study conducted by GRAAM on Vinyaas Industries demonstrates how inclusion of PwDs enhances productivity and fosters an engaged workforce. Employing individuals with hearing impairments, for instance, created a loyal and efficient team. “Disability is an ability in many scenarios,” proving that inclusion can drive innovation and competitiveness.
The Broader Benefits of DEI
Organizations that embrace DEI witness:
- Diverse perspectives fueling innovation and problem-solving.
- Improved performance: Companies with diverse leadership outperform peers by 25%.
- Enhanced employee engagement and reduced attrition rates.
Driving DEI in Organizations:
- Train leaders to value and leverage diversity.
- Reassess recruitment policies to eliminate unconscious bias.
- Foster inclusive cultures through dialogue and collaboration.
The Intersection of Sustainability and DEI
Sustainability and DEI are interdependent. A sustainable future necessitates diverse voices, and inclusive systems require sustainability to thrive. Examples of this synergy include:
- Companies integrating marginalized communities into their value chains, strengthening both societal equity and business resilience.
- Organizations employing women and PwDs in green jobs, addressing climate action and social inequality simultaneously.
Conclusion: A Call to Action
As we transition to Management 5.0, our focus must shift from profit to purpose, from progress to shared prosperity. Businesses must embrace sustainability and DEI as core strategies to build resilient, inclusive futures.
- For individuals: Practice sustainability in daily choices.
- For leaders: Champion diversity and inclusion.
- For innovators: Reimagine systems balancing technology with human values.
Together, let us ensure that businesses operate as integral parts of a thriving, sustainable, and inclusive world.
(Dr. Basavaraju R. Shreshta is currently serving as Executive Director of policy think-and-act tank GRAAM in India. He is a social scientist and a development practitioner advocate for inclusive and sustainable development, and has authored several policies and papers)Â
