After Jack Welch has declared that shareholder value is the dumbest idea in the world, many are considering how to shape a sensible alternative. Mastering growth was hard enough before and it is to become harder still.

 

Also this article refers to Paul Polman of Unilever because of his focus on long term growth. Companies need strong leaders who have the courage to reset investors’ expectations. Enlightened companies are realizing that they will damage their own interests if they pursue unsustainable growth, it is concluded.

 

I believe that it is about time that not just “enlightened” companies recognize the need for sustainable growth. Articles like mr Hill’s are helpful for accelerating the debate about adopting sustainable practices.

 

But ultimately it is all about implementation. And this is the hard part. In a recent meeting with an institutional investor he concluded that conceptionally sustainable growth is the obvious way to go. He also liked having discussions on how to rebalance capital markets. “However, as soon as I am behind my desk, I’m pushed into business as usual mode”, he said.

 

Yet, there are good examples of leaders who are striving for a more balanced and sustainable future, not just in words, but in business. Today’s Financieele Dagblad covers an interview with SNS Reaal CEO Ronald Latenstein. He says clearly that a 15% return in the financial sector is not a goal anyone strives for nowadays. He is pushing “New banking”, in which transparency, simplicity and societal needs are central.

 

Sustainable growth is more than an academic topic, it is the obvious agenda for business; not just for “enlightened” companies but for mainstream corporations.  Those who act first will have a competitive advantage.