A Different Way of Doing Business

It was clear that this would only be successful if all those who worked for and with Shell understood what sustainable development meant to Shell and how they could contribute. A difficulty was that there was very little understanding of what such a commitment meant. There had been a long tradition of social investment by Shell in the communities in which it worked, but this had tended to be philanthropic and seen as an optional extra. 

There was undoubtedly significant skepticism at the outset on the need to make a commitment to sustainable development. Why us now Most of our competitors seem to be doing well if not better without it was a common retort. And What about the shareholder Companies are not charities. Surely the prime responsibility of any corporation is to its shareholders This sentiment was driven by the widely held perception that although the moral case was clear, such a commitment might mean additional burdens on the business and therefore make it less effective. 

People would need to be convinced of the value of this approach. There was a need to demonstrate that the best way of serving shareholders is, paradoxically, not to focus exclusively on the shareholder. There was a need to make the case that the best way of maximizing long-term total shareholder returns is by taking a wider perspective of the expectations placed on a company - and thus avoiding risks that destroy value - and grasping future opportunities that create value. 

At the heart of the effort to convince the organization that this was a sensible way to proceed was the need to show how a commitment to sustainable development could add value to the business - to present the business case for sustainable development (SD) in the same way as for any other element of the Group s activity. 

As these components are so fundamental to the internal understanding and acceptance of SD, it is worth providing further insight into each one. 

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Step (3). Consider the consequences of your plan. There will be positive ones, but also negative ones. Consider what will happen if you do not pursue your plan. Will your competitors do so On the positive side you expect Live on Your Roof to be an attractive sales proposition. You may be able to draw customers away from other companies. Live on Your Roof will lead to new learning in the company and perhaps to a different way of doing business. On the negative side there will be initial losses you have to spend time and money in the first half year with no return. You may have the hassle of producing of prototype material that differs from the standard. And, as always, anything new will cannibalize existing sales. 

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