The majority of multinational companies believe that they will need to rethink their approach to business in light of emerging global challenges, according to a new report by the consultancy firm Bain & Company. Ninety per cent of companies surveyed by Bain & Co. said that they feel the need to somewhat change their core business model to operate in a truly sustainable economy; 38 per cent said that they feel that change will need to be radical.
The consultancy said that the companies that will prove best able to adapt will be those that set “transformative” ambitions, build partnerships, rebalance their ideas of corporate value away from simple financial profit, and “make sustainable irresistible for customers”.
“Over the next five years, customer loyalty and revenue generation will replace public reputation and cost savings as the primary drivers for sustainability action among leaders,” Gerry Mattios,a partner at Bain & Co. said. “Today, the most commonly cited barrier to success is low customer willingness to pay for sustainable goods, but forward-thinking companies aren’t deterred by this obstacle. By looking beyond the barriers of today, forward-thinking companies are placing themselves at the centre of a comprehensive shift in the way of thinking of profit and consumption.”
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