Beyond the Business Case with Andrew Winston

In this Making Waves on Purpose episode, Andrew Winston talks about going beyond the business case.

While ESG, CR, and sustainability efforts have always demanded a business case, I have been thinking of what my friend Michael Spenley said to me some 15 years ago: “Don’t over-rely on the business case; sometimes it is not there, and we still need to act.”

ESG, in its original form, is all about finding investor value. And while it feels like some believe that the arrival of ESG has implied the business case is resolved, quite the opposite is true. The business case has never been more important, and companies have to get better at telling their full ESG, DEI, CR, and sustainability story and the value it drives.

But what about when the business case might not be fully clear and yet action is needed? Sometimes, doing the right thing might come at a cost, or that cost or benefit is unknown. Too many companies, especially global ones, get caught up in the idea of cultural relativism, asking questions like "What is the right thing to do given cultural norms vary around the world or even around the US?" Most often, this stems from fear that applying their values might cost them business in some context. But that’s the point of values, isn't it? If values were always easy to apply, why might we need them? Aren’t they guardrails for times when we are conflicted between different values like making money and being inclusive, driving sustainability or protecting biodiversity? Do we need a business case to support women's rights? Or the rights of LGBTQ or people of color? Over the long term, I am sure there is a business case for all these issues, but it might not always be perfectly evident in the short-term view of investors. But companies need to act, nonetheless. 

Andrew calls this “doing the right thing.” And he points out that there is still a widespread "weird" assumption that "doing the right thing" or sustainability always costs money. We also discuss empathy in corporate strategy and planning. Andrew also pointed out something so simple and yet so profound it has remained with me: “Businesses should not be excused from right and wrong conversations." This is fundamental to the question of purpose and the role of business in society and yet continues to be pushed as branding rather than core values, identity and purpose. 

This was a great discussion on going beyond the business case with some deep insights, and Andrew always brings a reasoned, thoughtful, clear and compelling position.

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