Traditionally, in most organisations the Board of Directors focuses on the governance, viability, survival, strategy and financial status of the organisation. For many years Boards have ignored sustainability as a secondary issue to the financial performance of the business. However, in the past decade there has been a paradigm shift towards environmentally and socially sensitive Boards.

Pressure from regulators, investors and civil society has made Boards think twice about their governance role. In order to achieve the highest level of commitment and execution modern Boards are beginning to establish specific committees that focus on sustainable development. The fear of share prices tumbling due to reputational issues caused by spillages of hazardous chemicals and other environmental catastrophes makes board oversight on sustainability an imperative.

Dented reputation, mounting pressures from stakeholders and high operational costs have resulted in Boards beginning to take sustainable development seriously. CEOs must therefore be prepared to share with their Boards the progress being made at operational level to promote sustainability within the operations of the organisation. Gone are the days where environmental, safety, health, water, energy, stakeholder relations, social accountability and waste management issues were swept under the carpet by corporate leaders.

Environmental issues and social governance topics have become make or break for companies, such that there is an increased interest in managing them. Boards have started to realise that the company reputation can be destroyed in one day simply because there is breaking news about the organisation’s pollution endeavours.

The rise of environmental activism, puts companies which are not socially responsible on the spotlight for public shame. Trust lost may never be recovered from key stakeholders. Knowing that successful business hinges on good relations and managing stakeholder interests, Boards of Directors have tightened the noose. Consequently greater demands are being put on CEOs, Managing Directors, General Managers and Executives to prove to the Board that sustainability is being effectively managed.

Author

  • Tawanda Muzamwese

    Tawanda Collins Muzamwese is the Editor in Chief of the Green Business Gazette Magazine. He is is an international consultant in sustainable business development with massive experience in training, consulting and auditing. He has facilitated capacity development in more than 100 enterprises drawn from over 30 countries. He is the founder of the sustainability think-tank called Toxiconsol Consultancy t/a African Sustainability Consultants. He is the Editor in Chief of the Green Business Gazette Magazine. He is a consultant and business coach with over 13 years experience. Tawanda is a Management Systems Consultant working on promoting development and implementation of ISO Standards (ISO 14001:2015, ISO 9001:2015 and ISO 45001:2018) in both developed and developing countries. With his inspirational and pragmatic writing style he has written cutting edge books including: 1) How to grow a Side-hustle into a viable business - Overcome Salary Dependency 2) The Leading Consultant: How become an authority in your professional field 3) Step-by-Step Guide to implementing Safety, Health, Environment and Quality Management Systems 4) Stepping on Higher Perspectives: Greatness Tips Motivational Series 5) Sustainability Guidebook for Boards and CEOs: Leading from the front Tawanda writes about sustainability, motivation, safety, health, environment and quality management. His books are relevant to both developed and developing countries. With practical approaches and case studies, he provides incisive insights into entrepreneurship. His philosophy is based on the premise that every human being has potential to make a significant difference in their lifetime. He writes books on taking personal responsibility for progression in life. He motivates entrepreneurs to implement income generating projects and determine their own financial destiny. He also motivates companies to take up sustainability initiatives. A start-up coach, public speaker, environmentalist, safety, health and quality management expert, Muzamwese bridges the gap between theory and practice through building capacity and sharing practical case studies in his books.

    View all posts