A New Growth Paradigm for Sustainable Organizations

"More is better" is not sustainable. A new growth paradigm is needed for tomorrow's world.

The existing "More is Better" growth paradigm got us into much trouble, already - and it is not difficult to predict the outcome if this paradigm remains the mantra for businesses around the globe. Don't get me wrong; I don't object to growth. As stated in previous blog post, growth is a natural phenomenon. What's needed is a new growth paradigm that does not compromise sustainability - which does not destroy our world's habitat and resources.

In a sustainable business world, we need to shift away from money as the key growth measure. The triple bottom line approach attempts to accomplish that: people, planet and profit instead of profit alone. But how do we get there in a culture where money is the driving force? What's the pathway to get to this new paradigm?

I believe we must start on a personal level - everything starts with the individual (see "CSR 2.0 - It's time to make this work!"). This is not to say that government policies and board decisions are not important - I believe they are. But breaking away from the existing mindset of "More is Better" is not done by making different decisions within an existing paradigm. It doesn't help a caterpillar to eat different food if it wants to avoid transforming into a butterfly. Our world demands a paradigm shift - a transformation, just like at some point in time, the caterpillar's has to transform into a butterfly.

I believe that we can walk this transformational path by replacing "maximizing financial growth" of an organization with "maximizing the expression of its core values and its contribution to a bigger purpose". Patagonia, for example, one of the leading companies in the world when it comes to sustainable business practices, has always adhered to these principles. Numerous times, Patagonia was faced with bankruptcy, and even in these moments, the board made critical business decisions that were not based on financial rewards, but on its core values of preserving the earth's natural resources, and to "use business to inspire and implement solutions to the environmental crisis". In the mid 90's Patagonia made a decision to only use organic cotton for its clothes; at a time when not even enough organic cotton was produced to supply Patagonia's needs. When the board made the decision, Patagonia was already in financial distress, and jeopardizing the clothes production would send Patagonia to the edge of bankruptcy - if not over it. And yet, the board decided to move all production to organic cotton. It turned out that this bold move did not only birth the organic cotton industry (according to a study commissioned by Patagonia, traditional cotton growth was highly pollutant), it provided Patagonia with a leading market position as well as access to group of loyal customers that supported Patagonia's values.

Is shifting to the new growth paradigm that simple?

Yes and no. Yes, because expressing our values and contributing to a bigger purpose always has a betterment of society at large at its core. The final outcome is positive. The traditional growth paradigm of "More is better" on the other hand strives for growth at all cost - and usually it comes with the high cost of unsustainable behaviors and business practices. However, once we decide to follow the new growth paradigm, we soon find that it is not that simple after all. It requires authenticity, because otherwise we are lying to ourselves and the people around us. It requires, integrity, because we cannot walk this path half way. And lastly, it requires courage, because as we make decisions based on our values and a higher purpose, we will soon find that we are challenged with our inner demons, such as fear or anxiety, just like Patagonia's Yvon Chouinard when he put his firm on the line with the decision to move to organic cotton.