Throughout my career I have seen sustainability roles in corporates be shoved, bolted on or thrown in as an afterthought into HR, Marketing, Legal, Strategy, Environment, Safety, Office of CEO and the list goes on. In fact, looking back especially in my role as Head of Sustainability in large multinationals I have reported to most of those teams at one stage.
I was looking at the Sustainability and Leadership Conference coming up here in Auckland and saw from the speaker list a growing trend which is the combination of Sustainability and Corporate Affairs. It is this mix that raises significant concerns, and based on my personal experience, it is an extremely problematic blend.
Having worked for two large multinational companies over a span of 20 years, with four of those years directly under the supervision of Corporate Affairs, I can confidently say that those were the most difficult and challenging years of my career.
Whenever I presented a complex sustainability issue, I could visibly see the conflicting emotions on my managers' faces. Sustainability was a relatively new concept to them, and finding a balance between corporate reputation and sustainability seemed almost impossible. Unfortunately, in 90% of cases when faced with a choice between reputation and sustainability, reputation took precedence.
Six Reasons Why Combining These Functions Is Ill-Advised
- Focus and Expertise: Sustainability and corporate affairs are distinct disciplines that require specific expertise and focus.
- Different Objectives: Sustainability aims to drive positive environmental and social impact while ensuring long-term business sustainability. Corporate affairs focuses on managing reputation and stakeholder perceptions.
- Stakeholder Engagement: Both involve stakeholder engagement, but the nature of engagement differs fundamentally.
- Risk Management: Sustainability professionals assess and mitigate environmental and social risks. Corporate affairs handles reputational risks. You need both opinions in the room.
- Transparency and Credibility: Clear separation ensures sustainability initiatives are conducted independently, fostering trust among stakeholders.
- Accountability and Measurement: Distinct roles enable clear accountability and measurement of outcomes without potential biases or conflicts of interest.
Conclusion
The integration of sustainability roles within corporate affairs departments has led to the dilution of effectiveness in driving much needed meaningful change. By preserving the separation between sustainability and corporate affairs, organisations have a much better chance of success.
To truly make a lasting impact, it is crucial to recognise the unique value and significance of dedicated sustainability leadership.