Sustainable MBA Skills You Can Learn at Business School

This article is sponsored by Nyenrode Business Universiteit. Check out Nyenrode's MBA programs  and learn how to acquire sustainable MBA skills

There used to be a time when the planet did not need Earth Day. The planet was able to take care of itself, but human intervention has had severe consequences for the Earth, and the way we live on it. While Earth day is a good reminder of these environmental consequences like climate change and scarcity of resources, these problems continue affect the planet every day. 

Sustainability isn’t just a buzz word –  it's something all MBAs should understand due to its connection to the disciplines of leadership, innovation and entrepreneurship. For managers looking to make a difference in the world beyond recycling or planting trees, an MBA can give you the leadership skills to make the business case for sustainability.

What is Sustainability?

“Sustainability” is a word that has been given several meanings, so it can be hard to tell what MBA programs or the press mean when they talk about sustainability.

“The trick is how you use these definitions”, states Dr. Andre Nijhof, associate professor at Nyenrode Business Universiteit's  European Institute for Business Ethics.  Dr. Nijhof often uses the classic definition from the Brundtland report which defines sustainability as: “meeting the needs of the present without compromising the ability of future generations to fulfill their needs.”

While other definitions of sustainability include the three pillars of “people, planet, and profit” (aka the triple bottom line), Dr. Nijhof prefers the Bruntland definition, because he feels it puts human beings in the center of the sustainability debate, instead of treating them as one of three separate elements. In addition, this definition invites the question of what humans need.

 “In order to find this answer companies, NGOs and governments should start with looking at the trends in society and how they might compromise or support these needs,” states Dr. Nijhof.

While many schools treat sustainability as its own concentration or include it as part of their CSR program, Dr. Nijhof feels that sustainability is an integral part of leadership, entrepreneurship and innovation. Therefore, it should not be kept separate from other MBA disciplines. Nyenrode aims to integrate sustainability into all the activities of the MBA program.

The Connection Between Sustainability and Leadership

Being able to look at business from a sustainable point of view helps MBA students become better business leaders, since they are able to assess the consequences of their business decisions.

“The most important link [between sustainability and leadership] is that leaders understand  that they are part of society and that the developments within society should have an effect on how those leaders function within an organization,” states Dr. Nijhof.

That’s why managers need to be aware of the societal developments that affect their industry. This includes environmental issues such as climate change or scarcity of resources, and social issues such as living wages and how to provide affordable food, drinking water and security to the growing world population. Learning about sustainability can help MBAs make more informed decisions about these issues after they graduate.

The Connection Between Sustainability, Entrepreneurship and Innovation

While sustainable business is often discussed in terms of large corporations, new ventures also benefit from sustainability as well.

Developments within society create the necessity for new companies that can respond to these challenges. For example, several startups have been created as a result of concerns about climate change.

Since most new companies are created out of the need to solve a problem, they are created in response to developments within society. That’s why entrepreneurs need to be aware of how their new company is connected to these societal developments.

Making the Business Case for Sustainability

"The business case for sustainability is often not there ... but it can be created", states Dr. Nijhof. This is something that is often discussed with the executive students enrolled in Nyenrode’s CSR in Action program.

Most companies approach sustainability from a reactive point of view, deciding to get involved based in response to actions from competitors or the government which demonstrate the potential for a return on investment. In Dr. Nijhof’s view, this is wrong way to approach sustainability, because it usually only results in taking a few small steps which end up having little impact upon society.

One of the main factors which make it difficult to create a business case for sustainability is the fact that there are many obstacles within the business model of an organization that get in the way of sustainability. For example, if a company decides to make sustainable products to meet consumer demand, someone needs to arrange for the logistics of recycling materials to make those products. Since recycling isn’t included in the company’s business model, the company may decide that it is the role of the government -- not their business -- to create this recycling infrastructure, and therefore the sustainable products do not get made. An MBA can help students learn about these organizational roadblocks to sustainability, so they are better prepared to deal with them after graduation.

Effective sustainability initiatives need to stem from a sincere commitment not just consumer demand, according to Dr. Nijhof. That means observing how your business contributes to social and environmental problems in addition to where the opportunities are. Additionally, making the business case for sustainability requires business leaders to step up and take a role in implementing those initiatives. This is where leadership skills come in.

Making the business case for sustainability requires a sustainable business model. Creating a new business model takes courage, long-term vision, commitment and creativity so that business leaders can persevere when things get difficult. Since MBA programs focus on leadership development, they equip graduates with the necessary skills for creating these business models. MBA programs also develop people who are able to go out and make a difference in the world.

At Nyenrode, graduates have been able to use the skills developed in business school to make a difference in new and traditional companies. One of Dr. Nijhof’s international students created an innovation hub for small companies in his home country: Vietnam, while taking sustainability into account. An MSc graduate who took a job at Unilever was recognized by their supervisor for her eagerness to contribute to their existing sustainability initiatives, since sustainability is one of Unilever’s business goals.

The Personal Case for Sustainability

While the focus is often put on business benefits of sustainability, it can also provide personal benefits by adding a sense of pride and meaning to post-MBA work. It’s true that most MBAs choose careers based on industry and income, but Dr. Nijhof points out opportunities to do meaningful work are another major reason why MBAs choose to work for a certain company or start their own company.

Sustainability can help MBAs make their work more memorable by making them feel like they are working toward a purpose in life. Most people know the right thing to do, but actually doing the right thing requires innovation as well as the skills and tenacity to overcome obstacles.

Despite these challenges, Dr. Nijhof states that “It’s really very fulfilling and worthwhile to get into this topic and learn how you can use it for the better, and how business can become part of the solution instead of just part of the problem.”

This article is sponsored by Nyenrode Business Universiteit.