Focus on financial performance undermines sustainable development

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After many years of operational and managerial roles in the mining sector, this is the conclusion drawn by Stacey, now an independent consultant, coach, lecturer and associate of Wits University's Centre for Sustainability in Mining and Industry (CSMI).

"The more I worked in the field, the more I realised that - while science and technology are crucial - the problems related to sustainability are caused by the criteria we use to make decisions and our choices and behaviour as individuals," says Stacey.

Having evolved a widely multi-disciplinary scope to her work, she has commenced a doctorate in sociology, examining whether executive directors of publicly listed companies feel that their personal values can be brought to bear in their business decisions.

Barriers to leadership

"Past research in which I was involved has shown that only 14% of directors agreed with the statement that board decisions are consistent with personal values. This suggested to me that many company decisions are not based on personal values, but rather those of the prevailing consumptive market, which would render the concept of corporate sustainable development a fallacy."

In a study she conducted with the Institute of Directors, personal issues were shown to present the biggest barriers to courageous leadership - taking a business viewpoint based on your personal convictions. "The three top issues that directors reported to be preventing them from acting courageously were the need to maintain the image of being a director, fear of being the lone voice, and fear of appearing weak. These are all issues of self-concept," says Stacey.

At the same time, directors reported that corporate culture is a significant barrier to courageous leadership. Directors largely understand what is required to deliver courageous leadership for sustainable development, and have admirable intentions in this regard. However, despite this common understanding, it was evident from the research that corporate actions are not as courageous as their leaders' intent.

Changing people's perspective

"By approaching the field of sustainable development from a personal values point of view, it can fundamentally change people's perspective on business and the way they connect their personal lives with their work decisions," she says. The sustainability approach really comes down to understanding that financial performance is only one of a range of issues that underpin the viability of a business. At a personal level, financial well-being only delivers happiness up to a point.

"If you adopt the Five Capitals model - which differentiates human, social, natural, manufactured and economic capital - you can identify more clearly the variety of risks and opportunities that could either prevent your business from continuing as a going concern, or enhance its capacity," she says. "For individuals, understanding that money is merely a means of exchange, rather than being the sole purpose of one's life, creates opportunities to pursue genuine meaning."

The criteria for business success are changing, as is the concept of business value and acceptable practice; where profit is the driving motive, sustainable development is effectively impossible to achieve. "We need to understand for ourselves what is truly important, in the longer term."

"The CSMI is at the heart of working out how to negotiate the space between all these apparently conflicting priorities - be it safety, environment, production or profits," she says. "In this sense, the CSMI's value goes far beyond its depth of skill and expertise in specialised fields. The really exciting strides are made when we get together and explore how all our specialised skills fit together, creating the interconnectedness and integration required to solve bigger problems."