Sustainable MBA Skills You Can Learn at Business School

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.

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.

"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.

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.