Defining the S-word
Joseph Fiksel
August 18, 2010
Of course, different definitions of sustainability abound. Here’s my preferred definition: “A sustainable enterprise is a company that achieves enduring growth and superior long-term financial performance by addressing the social, economic, and environmental needs of present and future generations of stakeholders.”What's yours?To go further, I would argue that in practice there are three levels of corporate sustainability:
Passive sustainability - This is an extension of the old compliance mentality. Companies try to respond to stakeholder expectations by adopting “best practices”such as commissioning LEED buildings and purchasing carbon credits. Essentially, this is a way to stay even with competitors and does not employ sustainability as a source of competitive advantage.
Adaptive sustainability - This is a more active approach in which companies try to be alert to changes in the business environment that could represent risks or opportunities. For example, anticipated regulations or projected shortages of critical raw materials might lead a company to redesign its products or manufacturing processes in order to remain cost-competitive. This requires frequent reexamination of sustainability goals and company practices.
Resilience - This is an emerging approach that has been adopted by a few companies such as Dow Chemical Co. and Cisco Systems Inc. Resilience can be defined as “the capacity to survive, adapt and grow in the face of turbulent change.”In a complex and tightly connected global economy, with supply chains extending around the world, it is impossible to predict future changes in technologies, markets, and political conditions. Instead, resilient companies deliberately design their products and supply chain processes to overcome unforeseen disruptions and to rapidly seize opportunities. This strengthens both short-term business continuity and long-term sustainability. Of course, corporate responsibility is an essential component of enterprise resilience.
Which business model best describes your company?
Topics:
Sustainability
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About the Author
Joseph Fiksel
The Ohio State University
Dr. Joseph Fiksel is an author, consultant, researcher, and educator who retired from The Ohio State University in 2018. His publications and real-world projects have advanced the science and practice of sustainability and resilience, earning him an international reputation as an expert in environmental risk analysis, design for sustainability, supply chain resilience, circular economy, and complex systems modeling.
A native of Montreal, Joseph began his career at DuPont of Canada. He immigrated to the U.S. and founded the Decision and Risk Management group at Arthur D. Little, Inc. in Cambridge, MA. After a stint in Silicon Valley, he became Vice President for Life Cycle Management at Battelle, where he also directed the Responsible Care® program. His consulting clients have included leading multi-national companies such as 3M, Apple, Dow Chemical, Eli Lilly, Ford, General Motors, Nestle, Owens Corning, and Procter & Gamble.
Joseph led several major projects for the Global Environmental Management Initiative (GEMI), a consortium of over 40 leading U.S. companies, producing tools and publications that capture the business value of environmental excellence and sustainability. He also directed a $2.5 million study of the global cement industry on behalf of the World Business Council for Sustainable Development, leading to a consensus action plan in 2002.
In 2005, Joseph joined the Integrated Systems Engineering department at The Ohio State University where he co-founded the Center for Resilience with Prof. Bhavik Bakshi. The center secured multiple contracts and grants, and engaged both faculty and students in developing innovative computer-based tools for decision-makers. From 2010 to 2014, Joseph served as the Special Assistant for Sustainability at the U.S. EPA, helping to embed sustainability, resilience, and systems thinking into the agency’s programs. He led a Triple Value modeling team that earned the agency’s award for research excellence in 2013.
Returning to Ohio State, Joseph launched into a new venture under the Discovery Themes initiative. He became Executive Director for the interdisciplinary Sustainable and Resilient Economy program, co-led with Prof. Elena Irwin. In this role, he developed collaborations with major companies, government agencies, and non-profits to evaluate and improve the sustainability and resilience of enterprises, communities, and global supply chains. This innovative program continues to flourish, rebranded as the Sustainability Institute.
Joseph has served on numerous advisory and editorial boards, including the U.S. Technical Advisory Group for ISO 14000. He was an officer and founding member of the Society for Risk Analysis, and has testified on cancer risk attribution to Congress and the White House. He has published over 100 articles and 5 books, and has been a frequent invited speaker at professional conferences throughout the world. In 2009 McGraw-Hill published the second edition of his landmark textbook, Design for Environment: A Guide to Sustainable Product Development. His most recent book, Resilient by Design: Creating Businesses That Adapt and Flourish in a Changing World, was published by Island Press in 2015.
Joseph holds a B.Sc. degree from M.I.T., a Ph.D. in Operations Research from Stanford University, and an applied mathematics degree from La Sorbonne, University of Paris. He and his wife, Diane now reside in Washington, DC, and they continue to devote time to projects in both the U.S. and India. In 2019, Joseph was appointed a Visiting Scholar at George Washington University’s Environmental and Energy Management Institute.
A native of Montreal, Joseph began his career at DuPont of Canada. He immigrated to the U.S. and founded the Decision and Risk Management group at Arthur D. Little, Inc. in Cambridge, MA. After a stint in Silicon Valley, he became Vice President for Life Cycle Management at Battelle, where he also directed the Responsible Care® program. His consulting clients have included leading multi-national companies such as 3M, Apple, Dow Chemical, Eli Lilly, Ford, General Motors, Nestle, Owens Corning, and Procter & Gamble.
Joseph led several major projects for the Global Environmental Management Initiative (GEMI), a consortium of over 40 leading U.S. companies, producing tools and publications that capture the business value of environmental excellence and sustainability. He also directed a $2.5 million study of the global cement industry on behalf of the World Business Council for Sustainable Development, leading to a consensus action plan in 2002.
In 2005, Joseph joined the Integrated Systems Engineering department at The Ohio State University where he co-founded the Center for Resilience with Prof. Bhavik Bakshi. The center secured multiple contracts and grants, and engaged both faculty and students in developing innovative computer-based tools for decision-makers. From 2010 to 2014, Joseph served as the Special Assistant for Sustainability at the U.S. EPA, helping to embed sustainability, resilience, and systems thinking into the agency’s programs. He led a Triple Value modeling team that earned the agency’s award for research excellence in 2013.
Returning to Ohio State, Joseph launched into a new venture under the Discovery Themes initiative. He became Executive Director for the interdisciplinary Sustainable and Resilient Economy program, co-led with Prof. Elena Irwin. In this role, he developed collaborations with major companies, government agencies, and non-profits to evaluate and improve the sustainability and resilience of enterprises, communities, and global supply chains. This innovative program continues to flourish, rebranded as the Sustainability Institute.
Joseph has served on numerous advisory and editorial boards, including the U.S. Technical Advisory Group for ISO 14000. He was an officer and founding member of the Society for Risk Analysis, and has testified on cancer risk attribution to Congress and the White House. He has published over 100 articles and 5 books, and has been a frequent invited speaker at professional conferences throughout the world. In 2009 McGraw-Hill published the second edition of his landmark textbook, Design for Environment: A Guide to Sustainable Product Development. His most recent book, Resilient by Design: Creating Businesses That Adapt and Flourish in a Changing World, was published by Island Press in 2015.
Joseph holds a B.Sc. degree from M.I.T., a Ph.D. in Operations Research from Stanford University, and an applied mathematics degree from La Sorbonne, University of Paris. He and his wife, Diane now reside in Washington, DC, and they continue to devote time to projects in both the U.S. and India. In 2019, Joseph was appointed a Visiting Scholar at George Washington University’s Environmental and Energy Management Institute.