Although the word ‘sustainability’ seems to be appearing everywhere lately, it nevertheless remains a multifaceted issue which resists definition at every turn. Undeniably, however, the basic tenets of sustainability – in which economic, environmental, and social capital are given equal value – are essential to any well run business. Here at M&M, as is true at nearly every company, we have always stressed the importance of sustaining our economic capital, i.e. promising increasing returns for our shareholders.
However, in this changing global business (and environmental) climate, environmental and social issues are now a key concern of many stakeholders. Employees, customers, investors, government agents, the media and numerous others are all keenly aware of how companies impact the environment and the communities in which they operate.
Mahindra and Mahindra has addressed these difficult issues informally in its business plan for a long time. From our Mahindra Hariyali initiative to plant 1 million trees and our forays into alternative fuel vehicles and biodiesel tractors, to our Nanhi Kali programme to provide education for underrepresented female students, we have made great strides to sustain the environment and society, while always working towards economic growth.
In today’s world, however, there is increasing pressure to do it more formally and officially. Sometimes this means putting a name to something that is already occurring; sometimes this means restructuring our business to account for changes in the market related to sustainability issues. The drivers of these new pressures are many and varied. Sometimes we are forced to change because of new statutory requirements, so our response is essentially risk mitigation, i.e. we don’t want to face sanction or fines. Sometimes the pressure comes from NGOs or the media, so we are managing a different risk, a blow to our reputation. When consumers’ evolving demands drive a change (e.g. we offer a new green product or service) we are taking advantage of an opportunity. While managing the risk associated with sustainability is indispensable for a high performing business, it is the opportunity presented by sustainability that is perhaps most exciting and hopeful.
In subsequent posts on Mahindra Universe we will discuss how M&M tackles both the risks and opportunities of sustainability issues and how that relates to India as well as the rest of the world. Additionally, we will explore how the rest of the world and others in India are tackling sustainability and discuss what M&M and others in its situation can learn.
We hope to delve into a diverse array of issues, mirroring M&M’s dynamic and expansive market presence. Architecture and real estate, automobiles, agriculture, information technology, microfinance, and more can, should, and will all be analyzed through the lens of sustainability. We look forward to using this web spot to spark stimulating dialogue, expand our collective learning and possibly even catalyze change in the coming months.
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