Sustainability is a recurring theme for businesses today. Regulatory compliance, public discourse and carbon taxation policies are increasingly driving companies to integrate net-zero principles into their strategies and operations. Add to that, investors are incentivized to allocate capital to companies with sustainable practices. These carrots and sticks aside, perhaps the best reason for businesses to embrace environmentally-friendly practices is simply because it is good marketing and has a positive impact on sales and bottom lines.

In recent years, awareness about sustainability-related topics has grown. More than just a passing fad, consumers are changing their behaviours and preferences – actively seeking out companies and products that align with their social responsibility viewpoint. This rising trend has created a new generation of brands that grow cult followings through their commitment to preserving nature.

The Reward for Doing Good
Tesla, Patagonia or Whole Foods are great examples. Tesla’s breakthrough in electric transportation revolutionized the automotive industry, leading to the growth of an entirely new category. Similarly, Patagonia’s dedication to responsible materials and recycling has nurtured a loyal fan base among customers and employees alike – the company has some of the highest retention rates in the world. Meanwhile, Whole Foods has popularised organic food and commodities that are good for health and nature. Together, these companies demonstrate that integrating social values into business operations not only benefits the environment but also drives growth, customer loyalty and brand equity.

The Key to Doing Well
As a matter of fact, doing good offers businesses an opportunity to create powerful brands and accelerate revenue. Companies with meaningful long-term missions play on a different level from those that compete on price or technical features. They invite customers to build a better world with them. Guess who will win?

And let’s not discount how sustainable practices can foster economies of scale and make operations more efficient. Patagonia’s closed-loop recycling practices are cost saving. Also, electric cars are increasingly cheaper to produce and maintain than their gasoline counterparts.

The Formula to Sustainability
Truth is, most businesses accept sustainability as necessary for complying with regulations and creating a positive customer-facing narrative. However, to unlock the full potential of doing good, companies must fully embrace and make doing good the core part of their product, business operations and marketing strategy. Because a sound strategy backed by effective communication in the form of quality, sustainability, durability, pricing and customer care is essential for success and profitability.

Remember, a product that is environmentally friendly can sell well for a while. But it takes a brand that is good for the world and stands for superior quality, great service as well as an aspirational long-term mission to have a shot at becoming an industry leader – and an iconic brand that makes history.

This essay first appeared in the Singapore Computer Society magazine.