I love this Wall Street Journal op-ed, A Manifesto for Sustainable Capitalism. Sustainability in its simplest format can be seen as the rejection of short-term thinking and an embrace of long-term thinking. With respect to capitalism, sustainability can help create greater and perpetual profits. Who doesn't want that? Yet, our system is designed today to reward short-term profits at the expense of future and sustained growth. As the op-ed states, current events have fully demonstrated the fundamental flaws with short-term thinking. It's now time to put business on a sustainable path.
Among the tips that are shared in the op-ed to help put companies on a profitable and sustainable path is the elimination of quarterly financial reporting for public companies. I've seen firsthand the radical and destructive behavior (such as mass layoffs) that occurs each quarter in order to maximize profits and keep a company's stock price artificially inflated. Then when the next quarter rolls around the same radical short-term fix begins anew. This insane pursuit of short-term profits at the expense of people's lives (and even the longevity of the company itself) is unsustainable, selfish, and prevents long-term incremental growth of a company. It is unsustainable behavior.
Sustainable business practices are nothing new. I look forward to the day when companies of all shapes and sizes begin to implement practices that will ensure their longevity. Our economy, our environment, and our communities sure could use stable, long-term planning and growth right about now. Can you make it happen at your business?
Moving toward a more sustainable, renewable, and efficient world.
How do we get there?