Why Sustainability Is Now The Key Driver Of Innovation

1374 WordsApr 6, 20166 Pages
In a Harvard Business Review (HBR) article, “Why Sustainability is now the Key Driver of Innovation”, the contributors argue against the common view: that as businesses become more environmentally friendly they become less competitive and profitable (Nidumolu, Prahalad, & Rangaswami, 2009) The contributors go on to say that companies who initiate environmental sustainability will develop competencies that competitors won’t be able to match and that ultimately, “sustainability will always be an integral part of development” (Nidumolu et al., 2009). In the year 2016, their statements are still valid and applicable to the biggest corporations in America. The largest corporation by revenue in America with over 482 billion dollars is Walmart (“Wal-Mart”). Their market cap is over 214 billion with their second biggest competitor, Target, having a market cap of over 49 billion (“Wal-Mart”). Although Walmart has a distinctive revenue advantage over Target and the industry, their sustainability operations rival each other. Their initiatives in sustainability incorporate sustainable product design, sustainable processes, and sustainability in supply chain management that have led to the increase in their triple bottom line: profit, people and the planet. Quoting Andrew Winston, an expert consultant and author in green management, from the title in his HBR article: Target is “Taking Sustainable Products Mainstream”. In his article, Winston states Target’s natural and organics
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