Sustainability is good management
Xavier Baeten
Professor of Management Practice in Reward and Governance
To secure their future, businesses must prioritise sustainability—but the landscape is complex, and the challenges are diverse. Making strategic choices and forming strong partnerships is essential.
Sustainability covers a broad spectrum—from climate measures and social policies to ethical business practices. And it’s not just about the company itself; it extends throughout the entire supply chain. Yet, at its core, sustainability is simple, says Xavier Baeten, Professor of Management Practice at Vlerick Business School: “Sustainability is good management. It’s not a standalone strategy, but an integral part of a long-term vision.”
The power of focus
Sustainable business practices reach far and wide—from waste and water management to fair wages and employee development. But, according to Baeten, excelling in all areas at once is impossible. “Trying to do everything at once will quickly lead to failure,” he warns. “Companies must make choices. They should focus on the areas in which they can create the most impact—and where they, in turn, feel the biggest impact. Focus is crucial. This is the strategic dimension of sustainability: knowing where to act to make a difference.”
A must for long-term success
Being selective in sustainability efforts doesn’t make them less important—quite the opposite. Baeten quotes a well-known saying: Sustainability without performance has no impact, but performance without sustainability has no future. “In the past, the focus was primarily on shareholder value. That remains important, but companies also have a societal role. And regulations are making it non-negotiable. Ignoring sustainability can lead to weaker business results—and, ultimately, put the company’s future at risk.”
Data as a driving force
Baeten emphasises that sustainability is critical for future-proofing a business. “The biggest challenge is embedding a sustainability mindset across the entire organisation—from leadership to employees and customers,” he says. “Strong leadership is key—not by preaching, but by inspiring. Businesses must show that sustainability pays off and is a valuable long-term strategy. That’s not always easy, as the results can feel abstract. That’s why measuring, collecting data, and reporting are essential. Only then does the impact become tangible.”
Many companies see sustainability reporting as a burden, but Baeten encourages them to recognise the opportunities. “When financial reporting requirements were introduced, they weren’t immediately popular either. Sustainability reporting is following a similar path—companies that embrace it can reduce costs, uncover new opportunities, and improve profitability. In fact, reporting can even lead to strategic insights.”
An integrated approach
Many organisations still struggle with measuring sustainability performance and developing a strategy. Programmes like Take The Lead—a joint initiative of Mediafin and Vlerick Business School—help businesses take action. Baeten explains: “We don’t treat sustainability as a separate topic but integrate it into core management disciplines. We explore how HR, supply chain, and marketing can contribute to sustainability. And we dive deep into its strategic dimension. Sustainability must be fully embedded in business operations—only then will it have a lasting future.”
Interested in the programme Take the Lead in Sustainability? Check the programme or get in touch with Anastasia Kostina by email: anastasia.kostina@vlerick.com or by phone +32 2 225 41 34.
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