Page 44 - Respond 2018 Magazine

42

Aramex solar farm in Amman , Jordan

Second, improving financial performance. Businesses to include sustainability activities in their annual
increasingly realize the positive benefits corporate financial reports. There is no doubt that companies are
activism can have on their bottom line. A decade ago, seeing the value in robust corporate activism programs,
running a successful business may have been broadly as this has a direct impact on the decisions existing and
defined as ‘output’ - or what the company is capable of potential stakeholders make when it comes to pursuing
producing. An increase in share price, a newly acquired a relationship with a business.
company, or expanding into a new market would all
possibly contribute to stronger financial results. But Fourth, becoming a market leader. Businesses are
what companies didn’t always think about was that starting to see how corporate activism can raise
business growth could also come from cutting back. industry standards and make them market leaders.
Minimizing operational efficiencies can significantly Technology has played a major role in growing this
impact finances, and investing in initiatives that trend, with advancements over the past decade turning
reduce water and electricity consumption can lead to corporates on to the idea that they can outperform
an internal rate of return of up to 80%, according to competitors if they have the right innovative, digitally-
McKinsey. With more research and data in the public based solutions in place. Some companies have been
domain on this trend, companies quickly realize that so successful in sourcing technology-based solutions
half the battle in maintaining sustainable business that they have put competitors out of business, or
growth is keeping operational costs low. significantly reduced their share in the market. So
while corporate activism continues to contribute to
Third, maintaining and developing stakeholder supporting the environment and community, it also
relationships. Clients, employees, and investors are has a material impact on the growth and success of
increasingly choosing to pursue relationships with businesses and their ability to lead in their sectors.
firms that have active corporate activism programmes.
According to EY, many investors are finding companies’ I believe it is this holistic approach to corporate activism
non-financial disclosures, such as their corporate around the world – one that focuses on the success
activism activities, as essential to making an informed of all aspects of the business - that will contribute to
decision about their future investments. Because of this the development of greener economies in the future.
growing trend, a lot of organizations are now required We cannot go on managing businesses in ways that