Insights

Sustainable business transformation through a people-centric approach

Krishna Prasad, Chief Strategy Officer | CIO

Rapid technological advancements, environmental crises, and evolving consumer expectations define our lives today. Sustainable business transformation has shifted from a competitive advantage to a critical necessity. These raise crucial questions for Chief Information Officers (CIOs):

How do we navigate technological disruption and economic uncertainty while tackling pressing issues such as climate change and resource scarcity? Can organizations truly balance innovation and growth with sustainability?

The answer lies in adopting a people-centric approach—putting your people, employees, customers, and communities at the core of your transformation strategies. Organizations can create a framework that intertwines this focus with responsible technology practices.

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A deeper look at the people-centric transformation: Empowering employees as change agents

Stop considering employees, customers, and broader communities as just stakeholders and start considering them as catalysts for sustainable innovation and long-term resilience. View your employees as collaborators rather than passive participants in the sustainability journey.

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Why employees are key to sustainable growth

They drive innovation

Employees are invaluable resources because of their hands-on insights and unique perspectives. Their diversity of thoughts and ideas can fuel creative solutions to complex challenges. For instance, Patagonia's renownedWorn Wear program—a circular economy initiative—emerged from employee suggestions on promoting repair and reuse.

They can be champions of change

Regardless of its design, a sustainability strategy can only succeed with employee buy-in. Workers who understand and support an organization's goals can ensure the seamless adoption of sustainable technologies and processes.

They can be cultural stewards

The foundation of organizational culture is its people—from the top down to every single employee who shapes and sustains it. To develop a culture of accountability and ecological awareness in our organization, we must integrate sustainability into our regular work and choices.

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So, how to build a people-centric culture

Building a culture that puts people first means empowering employees as sustainability advocates. Here's how you can foster engagement and align your workforce with your sustainability vision:

Create a purpose that inspires

A strong organizational identity is built on the foundation of a compelling reason. To engage the workforce, connect the sustainability objectives with the actual objectives of the compelling mission. Reach out at a higher level by organizing combined workshops and, for several participants, open forums to make it as pertinent and common as possible. In this manner, leadership helps enhance people's responsibility and willingness to be active contributors.

Encourage employee ideas

Allow your teams the freedom to generate and develop new ideas. Establish processes that encourage people's input, such as communication forums that make employees active participants in promoting sustainable practices. Most importantly, I want to get back to everyone who has taken the time to share ideas.

Build in public: Inclusion and collaboration

Many organizations take the ideas and develop them in isolation before getting back and engaging the larger employee base. While this may help move quickly, engaging teams throughout development allows excitement for the upcoming transformation while allowing course correction, if needed. Establish a culture where employees feel comfortable expressing opinions and making an effort to achieve the organization's sustainability objectives. By creating an environment in which people can speak freely and where many viewpoints are sought, you build confidence, increase collaboration, and create more effective, better-targeted, holistic approaches to sustainability.

Reward and recognize contributions

Awards, public praise, or gamification strategies for green initiatives may be used to reward employee efforts. Celebrate victories, accomplishments, and even failures for their lessons, which nurture the innovativeness and improvement of people and processes.

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Aligning business with customer and societal expectations

A NielsenIQ survey reveals that 76% of global consumers are willing to pay a premium for sustainable products. The modern buyer makes value-based purchase decisions. They are informed and ask questions, actively scrutinizing sourcing practices. Organizations that fail to prioritize transparency and accountability risk losing their trust and relevance.

Putting people first in B2B relationships

In the B2B space, a people-centric approach is just as critical. Success lies in prioritizing the individuals we work with rather than focusing solely on the organizations they represent. Building strong personal connections fosters loyalty and devotion, particularly during turbulent times.

Reliability, flexibility, and creativity are some of the qualities central to long-lasting partnerships. Clients appreciate partners who take accountability, find ways to solve problems, and demonstrate value by presenting solutions specifically designed for their needs.

Due to a strong emphasis on people, such business relationships are characterized by the idea of successful growth for everyone involved, which drives further growth for all. Empowering people—whether they are customers, employees, or partners—is at the heart of a thriving, people-first business transformation strategy.

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The societal imperative: Creating shared value

Every business must understand that it affects communities. Whether it is creating jobs, preserving the environment, or building relationships, business impacts go beyond the company. Organizational change is not only about improving processes but also about achieving positive changes inside and outside the company.

To build trust and shared value, businesses must actively engage customers and communities in efforts that are sustainable in the short and long run. Companies that can partner together to create value not only for themselves but also in the communities they operate in create a brand that delivers long-term sustainable value.

For example, Programs like UST's Step IT Up™ enable clients to partner with UST to create long-lasting community impact. UST identifies, develops, and employs technology talent in underprivileged and underrepresented groups in client communities, while clients demonstrate commitment by deploying the talent within their environments. This is a win-win-win for all parties and creates business value as well as sustainable transformation in societies.

These community-focused endeavors contribute to sustainability goals and create long-lasting relationships with stakeholders—a cornerstone of a sustainable and people-centric business approach.

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Consider responsible tech as an enabler of sustainable business transformation

Every business strives for sustainability, and technology plays a crucial role in any digitally enabled transformation. Interoperable digital ecosystems must be built to protect vital assets, instill confidence, and allow for sustainable business continuity. Initiatives like Green IT and ethical AI practices are focused on responsible innovation while aligning with stakeholders' values.

In today's world, the power of AI to shape our future is becoming increasingly apparent. AI is poised to create tremendous value in many fields, from medicine and financial services to government and society. However, for AI-driven transformation to be sustainable, the power of AI has to be harnessed to serve people equitably. This would include creating models that promote fairness and AI that uses energy responsibly to deliver its impact.

For business transformation to be sustainable, it must incorporate two emergent concepts: sustainability by technology and sustainability of technology. While many have focused on the former, the thinking around the latter is only now evolving.

Green IT, focused on using technology in an environmentally responsible manner, will help ensure the sustainability of technology. This could incorporate energy-efficient hardware, cloud computing, and other strategies for resource management. It could also incorporate ways of extending the life of technologies and creating a circular economy for these technologies. All this goes a long way in reducing waste and sustaining the role of technology as an instrument for sustainable development.

Empower employees by offering training on Green IT and ethical AI, providing tools for energy-efficient technology and fair algorithms, and fostering a culture of collaboration. Establish clear frameworks, reward responsible and sustainable creativity, and foster leaders within the teams to effect relevant transformations of technology practices across the corporation.

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The path forward

As technology stewards, organizational leaders, including CIOs, play a crucial role in aligning an organization's sustainability goals with innovation. Their mandate is clear: build a culture that puts people at the heart of change, champion ethics, and transparency, and ensure technologies serve a meaningful purpose.

Let us strive for a tomorrow in which sustainability is no longer a mere goal but a core component of achieving long-term success.

Learn more about UST's sustainable business transformation efforts.