Page 44 - Respond 2018 Magazine
P. 44


       Aramex solar farm in Amman , Jordan

       Second, improving financial performance. Businesses   to include sustainability activities in their annual
       increasingly realize the positive benefits corporate   financial reports. There is no doubt that companies are
       activism can have on their bottom line. A decade ago,   seeing the value in robust corporate activism programs,
       running a successful business may have been broadly   as this has a direct impact on the decisions existing and
       defined as ‘output’ - or what the company is capable of   potential stakeholders make when it comes to pursuing
       producing. An increase in share price, a newly acquired   a relationship with a business.
       company, or expanding into a new market would all
       possibly contribute to stronger financial results. But   Fourth, becoming a market leader. Businesses are
       what companies didn’t always think about was that   starting to see how corporate activism can raise
       business growth could also come from cutting back.   industry standards and make them market leaders.
       Minimizing operational efficiencies can significantly   Technology has played a major role in growing this
       impact finances, and investing in initiatives that   trend, with advancements over the past decade turning
       reduce water and electricity consumption can lead to   corporates on to the idea that they can outperform
       an internal rate of return of up to 80%, according to   competitors if they have the right innovative, digitally-
       McKinsey. With more research and data in the public   based solutions in place. Some companies have been
       domain on this trend, companies quickly realize that   so successful in sourcing technology-based solutions
       half the battle in maintaining sustainable business   that they have put competitors out of business, or
       growth is keeping operational costs low.         significantly reduced their share in the market. So
                                                        while corporate activism continues to contribute to
       Third, maintaining and developing stakeholder    supporting the environment and community, it also
       relationships. Clients, employees, and investors are   has a material impact on the growth and success of
       increasingly choosing to pursue relationships with   businesses and their ability to lead in their sectors.
       firms that have active corporate activism programmes.
       According to EY, many investors are finding companies’   I believe it is this holistic approach to corporate activism
       non-financial disclosures, such as their corporate   around the world – one that focuses on the success
       activism activities, as essential to making an informed   of all aspects of the business - that will contribute to
       decision about their future investments. Because of this   the development of greener economies in the future.
       growing trend, a lot of organizations are now required   We cannot go on managing businesses in ways that
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