Resilience and sustainability go hand in hand. The definition of resilience is “the capacity of a system, be it an individual, a forest, a city, a business, or an economy to deal with change and continue to develop.” The definition of sustainability is “the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs”.
Sustainable practices contribute to resilience, and both are the ultimate goals of a healthy society.
Covid-19 taught us we can all be resilient when we had to adapt to virtual working and face huge disruption. One of the most important lessons is that those businesses that have stayed resilient through lockdown, are the ones that are willing to accept that things out of their control will always happen and that the key is to adapt to survive and hopefully even thrive.
Resilience is about anticipating and preparing for environmental and social change and following best corporate governance practices to prepare for any shocks or disruptions in the future. It’s about lowering risk, building competitive advantage, adjusting to new consumer demands, getting ahead of new regulations and gaining ground with investors.
For businesses to succeed in this current climate, they need to have a purpose and be socially responsible.
Organisations have an ethical obligation to contribute to the societies in which they exist. Phil Preston describes purpose in a really useful manner using a variation of the Ikigai diagram – you create your purpose by focusing on the centre of these four elements.
Balancing purpose with profit allows companies to become more resilient and to prepare their businesses for the future with a cause in mind allowing for long-term improvements over short-term gains.
It has been shown that those businesses with a social impact are more ambitious, they attract the top talent, inspire richer innovation, make faster and more informed decisions, and are trusted. They also have greater customer loyalty, which will ultimately attract more investment. All these attributes lead to a more successful and resilient business.
If you are thinking, that’s great but how do I begin?
Book onto ‘Business as a Power For Good’ taking place on Thursday 24 March 2022 – an event aimed at inspiring the Lancashire business community to step up, accelerate and help lead us toward a thriving Lancashire.
Check out the agenda for the day here