The importance of having a sustainable business culture

The business world is overrun with buzzwords and catchphrases, and it’s easy to get jaded when new terms become the flavor of the week. But while most of them fade away just as quickly as they emerged, a small handful are actually meaningful and become a permanent part of the lexicon.

One of these terms is sustainability, which has rapidly become part of the DNA of companies around the world in every industry. But sustainability goes beyond just having environmentally friendly policies and goes right to the heart of our organization is what it represents. And a strong commitment to sustainability it is a powerful tool that forward-thinking Sacramento companies are using to build world-class teams.

Let’s start by defining exactly what the word means. It first gained traction in 1987 after the UN published “Our Common Future,” a report that used the word to describe, "meeting the needs of the present without compromising the ability of future generations to meet their needs." In this paradigm, short-term profitability at the expense of the planet is unacceptable and unethical, and over the last 30-plus years it has become a central tenet of responsible business decision making.

One of the byproducts of this approach is that sustainability has moved beyond goods and services and has extended itself into corporate culture, which is having a major effect on how companies recruit new employees and motivate their existing team members. Unemployment rates are low, and prospective employees have the luxury of making sure that a company's values align with their own. This same approach also helps current employees decide if they will stay in their current positions or look elsewhere for new opportunities.

This is a national trend that is being echoed here in Sacramento. According to the Bureau of Labor Statistics, local unemployment plummeted from 6.7% to 4.4% in the second half of last year, and it is expected to drop even more as the shadow of the omicron variant of COVID-19 recedes. It’s a great time to look for a job in this part of the country, and companies that want to recruit and keep the best talent need to make the case for why they are a great place to work.

Talent is the key

While many people decided to take a little bit of time off work, the vast majority of people who left their positions during the Great Resignation found new employment quickly. They weren’t objecting to working: they just wanted better opportunities and knew that the job market was tilted in their favor. And while salary and benefits are important factors for job seekers, more and more people are selecting their next positions based on considerations related to culture and ethics.

This is where companies that focus on sustainability have a massive advantage when it comes to attracting, retaining, and developing top-tier talent. According to a Totaljobs survey, more than half of employees would consider leaving their jobs to work for an organization that promotes sustainable practices. If your company doesn’t fall into that category, you should be concerned.

Building sustainability

The Sacramento Human Resource Association (SAHRA) is taking an active role in promoting diversity and sustainability by helping local companies build practices that will move the needle. The organization recently hosted a workshop focused on diversity, equity and inclusion (DEI) to assist business leaders who want to implement sustainable HR policies or augment their existing programs. The workshop covered the business case for DEI, the importance of leadership and culture, and are you involving an entire organization in building a sustainable culture.

It’s one thing to say that sustainability is important, but it is quite another to actually put theory into practice. It takes more than having the right words on a corporate webpage to create an authentic brand that will resonate with job seekers who care about what a company stands for in the world.

A company's culture is inextricably tied to its reputation. Excellent ones can translate their ethics and values into higher sales, happier employees, and the ability to get the best and brightest applicants for positions, especially in our connected reality. While there are multiple paths to achieve this, the results tend to be better workers, loyal customers, higher profits, and a healthier world.