ABSTRACT
The pressure is on for business to embrace sustainability: mandatory ESG (environmental, social and governance) reporting, regulatory changes, increased customer sensitivity and pressure from within leave current CEOs little choice. And yet, it is critical to differentiate between an ESG-based risk management approach and true sustainability that aims at both ensuring reducing negative impacts and generating important positive value for society and the planet. The difference between these approaches has been measured in a first-ever CEO impact rating of largest Swiss organizations. Our research shows that this shift from risk management to impact orientation involves: 1) a strategic innovation, and 2) a dual mindset transformation. The first can be mapped with the Positive Impact Measurement Framework that outlines eight innovation strategies. The second requires an outside-in leadership mindset and a co-creative organization mindset, both can be measured in four distinct aspects. Mindsets are transforming in parallel with new generations that have been entering the corporate workforce. To become Positive Impact Organizations, it is important to: a) gain strategic clarity in terms of reducing negative impact versus increasing positive impact; b) setting relevant 2030 Goal making net zero a must and measuring positive impact products & service as a percentage of revenue; c) understanding the status quo to adapt the transformation to the organizational change readiness and its current degree of sustainability; and d) succeeding the transformation process by implementing the strategic innovation and enabling the dual mindset transformation. This work presents both an invitation and framework for Organizational Development (OD) practitioners to support organizations through the transformations needed in the world today.
