Top brands exhibit benefits of Lean and environmental sustainability

Business sustainability is no longer just a matter of environmental consciousness. Increasingly, savvy executives and corporate managers are acknowledging the operational benefits of sustainability, particularly as they relate to cost savings, procurement and public relations.

However, new research suggests corporate leaders are ineffective in achieving sustainability goals, even as Lean practices take hold and revolutionize the ways in which organizations conduct themselves.

According to a recent survey by SustainAbility and GlobeScan, only 17 percent of experts rate the performance of corporate leaders in addressing sustainability goals as effective, down from 24 percent in 2011. The survey analyzed more than 800 leaders across corporate, government, NGO, academic, research and service organizations in 76 different countries.

Only 5 percent of government leaders were rated as effective in achieving sustainability goals, while social entrepreneurs were rated the most effective, although they still received a mere 48 percent approval rating. A few familiar brand names were cited as leaders in corporate sustainability efforts, with Unilever taking the top spot, followed by Interface, GE, Patagonia and Walmart, respectively.

Last week, Jan Zijderveld, Unilever’s president of European operations, explained in an interview with CNN that the advantages of sustainability extend well beyond the realm of marketing and environmental consideration, adding that these efforts can boost sales, increase profits and drive organizational efficiency.

“Unilever and Patagonia are the only top companies that have seen their 'market share' – their frequency of being selected by experts in the survey – increase in each of the past two years,” Environmental Leader reports. “The report also found that Unilever has a significantly stronger reputation among corporate peers and service/media organizations than among other types of respondents.”

GE was one of several brands that saw a clear decline in the proportion of survey mentions, dropping from 12 percent in 2011 to 7 percent this year.

These organizations have also acknowledged the benefits of Lean management in their supply chain and manufacturing operations.

“More recently, lean concepts have moved beyond manufacturing into any areas where there are processes that need improving,” Don Stuart, chief technology officer with Dunavant Global Logistics Group, told the Memphis Business Journal.